Going for Growth: The Backward Integration Option - Central Bank of Nigeria
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Central Bank of Nigeria
ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
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Going for Growth:
The Backward
Integration Option
INSIDE THIS EDITION:
15 Micro nance Banks Receive Licences
COVID-19: Explore Alternative Payment Channels
AGSMEIS: CBN Disburses Over N1tn Stimulus ino Economy
NIRSAL, NiMET Partners to Boost Productivity in Agriculture
Rice Value-Chain Development on Course
Contents
CBN UPDATE EDITORIAL CREW Editor s Note 1
Editor-in-Chief CBN Hosts Roundtable on Economic
Isaac Okorafor Growth and Stability 2
Managing Editor COVID 19: CBN Disinfects Head Of ce,
Samuel Okogbue Branches 3
Editor COVID-19: CBN to Inject N1tn Stimulus into
Innocent Edozie Economy 4
Assistant Editor I Eme ele Af rms Tough Sanctions on
Kerma Mshelia Credit Defaulters 5
Assistant Editor II Banks to seek CBN s Approval
Mohammed Haruna on Lay-offs 6
Staff Writers NIRSAL, NiMET Partners to Boost
Bartholomew Mbaegbu Productivity in Agriculture 7
Daba Olowodun
Ruqayyah Mohammed Going for Growth 2.0:
The Backward integration Option 8
Olusola Amadi
Louisa Okaria
CBN Activates BCP in Face of Covid-19 10
Contributing Editors
Isa Abdulmumin AGSMEIS: CBN Disburses over 1bn to
Williams Kareem Bene ciaries 10
Olalekan Ajayi
Ademola Bakare
15 Micro nance Banks Receive Licenses 11
CBN Set to Intervene in Health Sector 11
LETTERS TO THE EDITOR
We welcome your contribution
New License Framework for Fintechs Soon 12
and comments. Please forward them to
the Editor via: ioedozie@cbn.gov.ng COVID-19: Explore Alternative Payment
Channels says CBN 12
CBN SOCIAL MEDIA
Twitter: @cenbank
Rice Value-Chain Development on Course 13
Facebook:/cenbankng
Instagram: @centralbankng
CBN Extends NUBAN to Other Financial Institutions 13
CBN CONTACT CENTRE
contactcbn@cbn.gov.ng Collective Action Required For
07002255226 Gender Equality- Eme ele 14
CONTACT DETAILS FG Gives Small Businesses Tax Break 15
Corporate Communications Department,
CBN Head Office: 6th Floor Wing “B” Interest Rate on CBN Intervention Funds now 5% 15
Plot 33, Tafawa Balewa Way,
Central Business District, Frequently Asked Questions (FAQs) 16
P.M.B. 0187, Garki, Abuja.
ISSN No: 2695-2394 Vol. 2 No. 3 March 2020 Editor's Note It is yet another bumper edition of our news magazine- CBNUPDATE. The editorial team did not leave any stone unturned to rake in stories that will continue to sustain the interest of our dear readers. Following the Black Monday widespread crash of stock markets across the globe on account of the Coronavirus (COVID-19) pandemic, we bring to you a story on the response of the Central Bank of Nigeria (CBN), in hosting a Policy Roundtable. This is followed by an agenda-setting news analysis on the policy roundtable hosted by the CBN Governor, Mr. Godwin Eme ele, which seeks to coalesce views from private-sector players with their public-sector counterparts to chart a common course in fostering economic growth and development. The story on the robust stimulus measures of N1.1trillion by the CBN, to ameliorate negative impact of Coronavirus on the Nigerian economy, no doubt makes for interesting read. This, is in addition to the N1.5trillion private sector contribution for infrastructure funding. Still on effort to confront the ravaging impact of COVID- 19, is a story on the planned intervention of the CBN in the health sector aimed at supporting health services to ght the pandemic in Nigeria. The CBN has lightened the burden of participants in the various CBN intervention funds, as the Bank has reduced interest rate for all CBN intervention loans from 9% to 5% effective from March 1, 2020. As support to the women folks, the CBN Governor in commemorating the 2020 International Women's Day, calls for collective action in achieving gender equality. These and other interesting stories are lined up for this edition, which our readers will cherish for their reading pleasure. Thank you once more for your interest in the CBNUpdate. Isaac Okorafor Editor -in- Chief CBNUPDATE is a monthly news publication of the Central Bank of Nigeria. Opinions expressed herein do not necessarily re ect the views of the Bank s Management.
ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
CBN Hosts Roundtable on Economic
Growth and Stability
By: Daba Olowodun
A cross section of participants at the Going for Growth 2.0 Consultative Roundtable at the Central Bank Head Of ce
F
ollowing the crash of stock 19) epidemic and the crash in Other issues discussed
markets around the world, crude oil prices. bordered on promoting
which industry players economic growth through
termed Black Monday , the According to the Managing lending and nancial inclusion,
Central Bank of Nigeria (CBN) in Director/CEO, Access Bank Plc., the impact of COVID-19 on the
collaboration with THISDAY Mr. Herbert Wigwe, Going for Nigerian economy, how to
Media Group, organized a Growth 2.0 was a follow up to a maximize the agriculture value
consultative roundtable with similar event held in 2019 where chain and a search for innovative
industry giants tagged: Going strategies for growth ways to nance infrastructure
for Growth 2.0. stimulation were outlined. He and other plans to grow the
opined that the current edition economy.
The meeting which took place was to drive implementation of
on March 11, 2020 at the CBN those strategies, ne tune and Health practitioners sought
head of ce auditorium, was improve where necessary. CBN intervention for the private
aimed at producing workable and public health sectors, being
short term and long term plans Interactions between scal and the rst line of defense against
that would shield the country monetary policies were the ongoing pandemic and its
from slipping into recession, addressed as well as challenges possible impact on the lives of
encourage stability and even and recommendations for Nigerians and the economy.
growth in spite of the global Broadband and Technology;
headwinds presented by the Roads, Rails, Ports and Airports; During the plenary session
Coronavirus Disease (COVID- Power and Energy Networks. moderated by Samaila Zubairu,
2
ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
CEO, Africa Finance Minister for Transportation, Bank, Jim Ovia; MD/CEO Emzor
Corporation, panelists Rotimi Amaechi; MD/CEO Pharmaceuticals, Dr. Stella Okoli;
underscored the need for private Nigeria Sovereign Investment Economist/Entrepreneur, Tony
sector participation in A u t h o u r i t y, U c h e O r j i a n d Elumelu; Director General,
infrastructure development, MD/CEO Axius Capital, Phillip National Agency for Food and
stating that government funds Southwell, made valuable Drug Administration and
alone would not be suf cient to contributions to the discourse. Control, Mojisola Adeyeye;
meet the infrastructure needs in MD/CEO Nigeria Deposit
Nigeria. Other attendees at the event Insurance Corporation, Alahaji
included; the Minister of Finance, Umaru Ibrahim; MDs of Deposit
Panelists which included the Mrs. Zainab Ahmed; foremost Money Banks amongst other
Federal Minister Works and industrialist, Alhaji Aliko captains of industry.
Housing, Babatunde Fashola; Dangote; Founder/CEO, Zenith
COVID 19: CBN Disinfects Head Of ce, Branches
By: Onyemakonor Ogbe
A
s t h e F e d e r a l preventive measure against the the Federal Ministry of Health,
Government, through virus. Nigeria Centre for Disease
the Federal Ministry of Control (NCDC) and other
Health and the Nigeria Centre Okorafor also disclosed that the relevant health agencies of
for Disease Control (NCDC), CBN had instructed all Deposit government to curb possible
intensi es efforts to check the Money Banks (DMBs) and other spread of the virus in Nigeria.
spread of the novel Corona virus nancial institutions operating
pandemic in the country, the in Nigeria to take adequate The disinfection exercise at the
Central Bank of Nigeria (CBN) measures to disinfect their Bank, being supervised by the
has commenced the disinfection of ces. the Director, Procurement and
of its head of ce and 37 Support Services Department
branches. Speaking further, Okorafor (PSSD), Mr. Stanley Arinze, will
reiterated the assurance by the be replicated in all the Bank's
Disclosing this in Abuja at the C B N G o v e r n o r, G o d w i n branches across the country.
w e e k e n d , t h e D i r e c t o r, Eme ele, that the Bank,
Corporate Communications collaborating with the banking It will be recalled that the
Department, Isaac Okorafor industry players, will ensure it Central Bank of Nigeria (CBN)
said the move followed a mitigates the impact of the last Wednesday embarked on a
Management directive, which corona virus on the Nigerian partial lockdown, while also
was in line with the WHO and economy. assuring stakeholders and
NCDC advisory that all members of the Nigerian public
government establishment He, however, urged Nigerians to that the Bank will remain open
should disinfect their of ces as a follow stipulated guidelines by for business during this period.
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ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
COVID-19: CBN to Inject N1tn Stimulus into
Economy
·Meets with Bank Chiefs on March 21
·Health Sector to get Additional N100b Loan Boost
By: Olalekan Ajayi
T
wo days after it unveiled a private sector contribution of Nigeria to prepare for any major
six-point palliative to N1.5trillion Infrastructure funding crises ahead.
ameliorate the continued that will link farming communities
impact of the corona virus on the to markets as agreed at the According to him, the Bank will
Nigerian economy and supply recently concluded Going for re l e a s e d e t a i l s o f h o w t h e
chains round the globe, the Growth Roundtable last week unveiled facilities would be
Central Bank of Nigeria (CBN) has will be set-up next week. Given accessed and released, adding
announced its decision to increase the plunge in the price of oil, that the CBN had also set-up the
its intervention in boosting local which dropped to $25 per barrel Financial Markets Situation Room
manufacturing and import on Wednesday with its attendant to monitor global markets and
substitution by another N1trillion low accretion to oil revenue, the advise the Bank on adequate
across all critical sectors of the C B N G o v e r n o r d i re c t e d a l l r e s p o n s e . M e a n w h i l e , M r.
economy. Deposit Money Banks to increase Eme ele has advised all Deposit
their support to the Money Banks and other regulated
This is in addition to N100 billion pharmaceutical and healthcare entities in the banking industry to
in loan in 2020, to support the industries to enhance local drug trigger their business continuity
health authorities to ensure manufacturing, increased bed plans to ensure that their staff and
laboratories, researchers and count in hospitals across Nigeria, families are protected, and their
innovators work with global in funding intensive care as well as operations remain largely
scientists to patent and or in training, laboratory testing, undisrupted.
produce vaccines and test kits In equipment and Research &
Nigeria to prepare for any major Development. He further advised the banks to
crises ahead. The CBN Governor, adhere strictly to the directives,
Mr. Godwin Eme ele, stated this In addition to the N50 billion soft advice, and notices from the
in Abuja on Wednesday, March loans to small businesses Federal Ministry of Health,
18, 2020, disclosing that the announced on Monday, March 16, National Centre for Disease
management of the CBN will 2020, Eme ele said the CBN Control and other relevant
meet with the Bankers' would also increase its government agencies on national
Committee on Saturday, March intervention by another N100 response measures to COVID-19.
21, 2020, to work out the billion in loan in 2020, to support As a way of checking possible
modalities. the health authorities to ensure spread of the virus, he urged the
laboratories, researchers and institutions to ensure regular and
Mr. Eme ele also told newsmen innovators work with global appropriate sanitization of their
that an Implementation scientists to patent and or premises and make available in all
Committee that will action the produce vaccines and test kits In their locations adequate
sanitization materials and also to
discourage large gatherings of
staff and customers.
While pledging that the CBN will
continue to monitor all
developments on the COVID - 19
infection and design appropriate
Monetary response to protect the
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people and economy of Nigeria,
Eme ele urged that Nigerians
take advantage of turning what
appeared to be an adversity in the
pandemic into an opportunity.
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ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
Eme ele Af rms Tough Sanctions on
Credit Defaulters
By: Senmial Senlong
(From right to left) Governor Eme ele, CBN Deputy Governor, Aishah Ahmad and Aliko Dangote
inspecting the largest fertilizer plant in the world
T
he Governor of the begin to ride on bicycles. Then Speaking on the fertilizer plant,
Central Bank of Nigeria we will know you are truly a Mr. Eme ele stated that the
( C B N ) , M r. G o d w i n liquidated person . plant will become fully
Eme ele, has declared tough operational in May 2020, which
sanctions on credit defaulters, While citing the unimpressive will bring an end to the
stating that the Bank will not high number of creditors in the importation of fertilizer into the
allow entrepreneurs to borrow records of the Asset country and allow the
and not pay back. Management Corporation of diversi cation of the Nigerian
Nigeria (AMCON), he insisted economy to move its base from
Speaking during an assessment that banks must be catalysts for oil to other areas for revenue
tour of the Dangote Re nery, national development and generation.
Fertilizer Plant and economic growth in lending to
Petrochemical Company on credible entrepreneurs who The plant, according to him, will
Saturday, February 29, 2020, at portray trustworthiness with produce 3 million tons of
Ibeju-Lekki, Lagos, the loan repayments. fertilizer per annum, generating
Governor avowed that the era $1 billion with 25% of the
of entrepreneurs borrowing He reiterated that the CBN is product going into domestic
from banks and not paying back willing to support credible agricultural reforms while the
is gone because, if you don't foreign and local investors who remaining 75% will be exported,
pay, we will take your money nd Nigeria a good investment generating approximately $750
wherever you are keeping it. destination, be it in the areas of million from fertilizer for the
the banking sector, agriculture economy, thus making it the
If you are ying private jets, we or foreign exchange for the largest fertilizer plant in the
will seize them so that you can importation of equipment. world.
5
ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
within the country such as
reduced interest rates, Alhaji
Dangote stated that the
establishment of the facility
aims at fostering job creation
and reducing the out ow of
foreign exchange, not exclusive
of petroleum but also
p e t ro c h e m i c a l s , c o a l a n d
fertilizers which would make the
re nery a major foreign
exchange generating company
in the country.
He noted thus we also have
polyethylene, which is about 1.3
million tons annually. These two
products would bring in about
Dangote Re nery Plant
$2.5 billion annually in terms of
Speaking further, Mr. Eme ele Nigeria to be lower than those foreign exchange, which is only
stated that the re nery project, import alternatives that come about 10 per cent of
which will have a capacity to from different parts of the remittances. Secondly, Nigeria
process about 650,000 barrels world . would now become the largest
per day (bpd) will not only satisfy exporter of petroleum products
local need but also position He commended the President, in Africa from our own domestic
Nigeria as a major exporter of Dangote Group, Alhaji Aliko crude .
petroleum products. Dangote, for his commitment to He called on other
completing the plant, stating entrepreneurs to come out with
He said that because Nigeria is the signi cance of this initiative their seed capital to borrow
so central, this re nery would to achieving the country's more money and invest in order
serve the whole of Africa, which diversi cation goals. While t o d e v e l o p t h e c o u n t r y,
would reduce freight costs. Also expressing his gratitude to the considering the attractive
because this project is Governor and management of interest rate regime and banks
strategically positioned, it the Central Bank of Nigeria for willingness to lend.
would even make the nal cost implementing policies that
of petroleum within and outside support economic growth
Banks to Seek CBN s Approval on Lay-offs
By: Louisa Okaria
T
he Central Bank of Nigeria Markets Department, Angela that a noti cation and approval
(CBN) has issued a S e re E j e m b i . T h e c i rc u l a r is required from the CBN before
warning to banks emphasized that banks should dismissing more than ve staff.
directing that they must seek send a sample of contract letters
approval from the Bank before issued to outsourced staff and a The Bankers' Committee stated
sacking more than ve staff. This Service-level Agreement (SLA) that it was working assiduously
was stated in a communique with the company being used to to reduce the level of job losses
re l e a s e d b y t h e B a n k e r s ' recruit the outsourced staff to in the sector while giving
Committee after a meeting held the CBN upon employment. assurances that mass sacking in
on February 21, 2020. The banks would reduce in the
warning was issued in a circular The CBN also stated that banks shortest time.
signed by the Director, Financial must be guided going forward,
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ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
NIRSAL, NiMET Partners to Boost Productivity
in Agriculture
By: Ruqayyah Mohammed
CBN Governor granting a press interview at the NIRSAL, NiMET Partners to Boost Productivity in Agriculture
T
he Nigeria Incentive-Based partnership was a strategic one of necessary support to NIRSAL by
Risk Sharing System for which the of cial mandate of designing and developing
Agricultural Lending NiMET is to provide climate and effective strategies for
(NIRSAL), has signed a weather data services to the d i s s e m i n a t i n g
Memorandum of Understanding country. He stated that with the agrometeorological services to
(MoU) with the Nigerian partnership with NiMet, NIRSAL farmers leveraging on the latest
Meteorological Agency (NiMet) had been working assiduously to technology which will enable
to stem weather risks in structure agricultural primary them reach as many farmers as
agriculture and boost yield p ro d u c t i o n i n N i g e r i a a n d possible. He further said NiMet
increase and productivity with the a s s u re d t h a t v i t a l w e a t h e r would be developing the site for
utilization of meteorological information that got to NIRSAL speci c cropping calendars in line
data. from NiMet would reach the last with the focus on agricultural
inch of the last mile. value chain across the country.
T h e M a n a g i n g D i re c t o r o f
NIRSAL, Aliyu Abdulhameed, The Director-General, NiMet,
speaking at the signing of the Prof. Sani Abubakar Mashi, in his NIRSAL will utilize the partnership
MoU said it was a signi cant step remarks said the partnership to pursue strategies to downscale
towards achieving precision would enhance agricultural the Seasonal Rainfall Prediction
agriculture in Nigeria. He added operations through the provision (SRP) components including
that the collaboration will of agrometeorological temperature, onset of rainfall and
ultimately lead to the generation information in Nigeria. He dry spells amongst others. There
and provision of agro- explained that the partnership will be a structured awareness
meteorological weather with NIRSAL was a perfect t for campaign that will guide farmers
information and other strategic NiMet in achieving its primary against pre-onset rainfall and risk
services for supporting nance mandate of promoting climate- measures will be recommended
and investment decisions. smart agriculture in agricultural in areas that will experience
activities. He promised that severe dry speels like Bauchi,
He further said that the NiMet would provide all Borno, Katsina, Kebbi, Yobe and
Zamfara.
7
ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
News Analysis
Going for Growth 2.0:
The Backward Integration Option
By: Sam Okogbue
Google Image
A collection of CBN Bank Initiatives
T
he Governor, Central sector players with their public- Director, NNPC, Malam Mele
Bank of Nigeria (CBN), Mr. sector counterparts to chart a Kyari and private sector
Godwin Eme ele on common path in igniting chieftains as President, Dangote
Wednesday, March 11, 2020, economic growth and Group of Companies, Alhaji
played host to a Roundtable development. Aliko Dangote, Chairman,
Strategy Session (Going for Zenith Bank Plc, Mr. Jim Ovia,
Growth 2.0) aimed at harnessing At the rst forum, focus was on and CEOs of Deposit Money
views of private cum public promoting import substitution Banks among others.
sectors' stakeholders as input and Forex stability, improving
towards stimulating growth in the competitiveness of made-in- Since assumption of of ce, the
the Nigerian economy. The Nigeria goods. Other areas of CBN Governor, Mr. Eme ele,
Nigerian economy has been interest included nancing has remained the lonely voice
characterized by sluggish infrastructure development, pointing to the danger of over
growth since exiting recession in ensuring conducive (low) dependence on importation of
2017. This, probably informed interest rate regime and goods and services for basic and
Mr. Godwin Eme ele's choice of improving nancial inclusion essential needs of life. Over the
single-digit in ation, economic from 65% to 95% by 2024. years, successive governments
growth and job creation as the have paid lip service to the
main policy thrust of his agenda Going for Growth 2.0 witnessed urgency for economic
for second tenure in of ce. the convergence of public diversi cation away from the
of cers such as the Minister of present undue reliance on crude
The roundtable, which was rst Finance, Mrs. Zainab Ahmed, oil production and export,
articulated on June 8, 2019, at Minister of Transportation, Hon. which only exacerbates the
the George Hotel, Ikoyi, no Rotimi Amaechi, Minister of vulnerability of the economy to
doubt, has metamorphosed Wo r k s a n d H o u s i n g , M r. the international market
into a full- edged policy Babatunde Fashola, Minister of dynamics.
dialogue forum. It seeks to Trade and Industry, Otunba Niyi
coalesce views from private- Adebayo, Group Managing
8ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
Past efforts to address the The role of the manufacturing This will necessarily entail
diversi cation challenge industry cannot be over installing processing plants and
through development plans, emphasized at least in providing manufacturing industries aimed
especially the Third and Fourth the necessary skills to transform at adding value, and possibly,
Development Plan documents primary agricultural products to achieving other by-products. To
proved abortive. processed and semi- this end, it will involve setting up
manufactured products for research and development units
Despite initial skepticism, Mr. export. This approach has the in such manufacturing industries
Eme ele kept faith with the bene t of enhancing the price of concerned with creating value
Anchor Borrowers' Programme our exports and therefore addition to certain
(ABP) and the restriction of moderates the vulnerability of commodities.
access to forex for the the domestic economy to the
importation of 41 (later 43) international market. This will encourage higher
items that can be produced in scienti c achievements and
Nigeria. The result turned out to Furthermore, diversifying into broaden potential to create
be a huge success in the manufacturing also provides a more jobs. The approach will
production and consumption of platform for learning-by-doing unleash tremendous backward
Nigerian rice. it process, which goes to and forward integration
enhance skills and talent between agriculture and the
Today, critics of the CBN acquisition by the domestic manufacturing industry. The
Governor's initiative have labour force necessary for entire scheme, if effectively
swallowed their words because much-sought-after executed, no doubt, promises
his import substitution initiative industrialization take-off. to launch the country into the
resulted to signi cant savings in club of highly industrialized
foreign exchange and above all It is envisaged that by extending countries with attendant
achieved tremendous some incentives to enable milk positive foreign exchange
attitudinal change among companies set up production in savings and consequent foreign
Nigerians who switched over to Nigeria, a vast potential of reserves accretion.
the consumption of locally generating bene ts could be
produced rice. explored, not only within the G o i n g f o r w a rd t h e re f o re ,
dairy industry but in such other attention should be directed
Perhaps, it was to replicate the products as cocoa-based towards positioning educational
success of the ABP in other chocolate. It is left to be institutions to lay emphasis on
sectors of the economy that imagined the tremendous producing sizeable pool of skills
motivated Mr. Eme ele to host economic bene ts derivable by with science and technological
the roundtable Going for processing the cocoa bean into professions to manage the
Growth 2.0 . According to him, cocoa powder and dairy by- envisaged explosion in
with the advent of Coronavirus products into chocolate as industrialization.
(Covid-19), and the trade wars nished product. This is aside
(resulting to fall in crude oil from job-creation, skills Also, requisite infrastructure
prices) and the attendant acquisition, and other activities such as power, roads, and
negative impact on the Nigerian down the value-chain such as seaports cannot be over
e c o n o m y, i t b e c o m e s marketing, packaging etc. emphasized at this point. There
imperative for both monetary is need for a rethink towards
and scal authorities to sit down Already, the CBN is currently establishing complimentary
to tackle the challenges . f o c u s i n g o n g ro w i n g a n d mother-industries such as iron
improving the value chain of ten and steel industry,
He called for the mobilization of commodities (rice, tomato, petrochemical and machine tool
funds to help nance palm oil, maize, cassava, industries.
infrastructure and urged the groundnut, livestock/poultry,
private sector players present to milk/dairy, cocoa, and soya It is only hoped that this time,
invest in the manufacturing beans), thus concerted efforts the gospel of diversi cation in
sector especially the should be made to embark on the Nigerian economy, would
pharmaceutical industry to large scale production of these be a departure from the hitherto
increase domestic investment, commodities and processed lip service of the past.
create more jobs and forestall into industrial raw materials and
drug insecurity. nished products.
9ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
CBN Activates BCP in Face of Covid-19
By: Daba Olowodun
Head of ce foyer Central Bank of Nigeria
I
n the face of the global open for business during these The statement which was issued
Coronavirus, Covid-19 trying times. on Wednesday, March 25, 2020,
pandemic, the Central Bank of also revealed that the CBN had
Nigeria (CBN) has activated its Mr. Okorafor further stated that directed all Deposit Money Banks
Business Continuity Plan to the Bank, being a responsible and to prioritize staff well-being and
ensure that it continues to provide responsive institution, held the restrict physical activity to only
seamless service to Nigerians. well-being of its staff in top essential services.
priority and as such had directed
In a statement signed by the all staff in non-critical roles to stay Furthermore, all staff of the CBN
D i re c t o r, C o r p o r a t e at home and work remotely, had been directed to follow all
Communications Department, allowing for staff who have critical guidelines of the Federal Ministry
Mr. Isaac Okorafor, the Bank assignments at the Head Of ce of Health and the Nigeria Center
assured the public that in line with and the 37 Branches of the Bank, for Diseases Control (NCDC), to
its mandate of ensuring monetary to report for daily duty while help curtail the spread of the
and price stability, it would remain observing social distancing. Coronavirus in Nigeria
AGSMEIS: CBN Disburses over 1Bn to
Bene ciaries
By: Olusola Amadi
T
he Central Bank of Nigeria participating nancial the Federal Government s
(CBN) has disbursed a institutions for onward efforts at promoting Agri-
total sum of one billion, disbursement as at February businesses/Small and Medium
two hundred and fty-two 2020, was a total of seventeen Enterprises as a vehicle for
million, four hundred and sixty billion, three hundred and sustainable economic
nine thousand, ve hundred and eighty two million, ve hundred development and employment
ten Naira only (N1, 252,469,510) and ninety ve thousand, nine generation.
in favour of 223 AGSMEIS hundred and fty two Naira
applicants through NIRSAL only(N17,382,595,952) in favour The scheme requires all deposit
Micro nance Bank (NMFB) for of 5,743 bene ciaries. money banks in Nigeria to set
the month of February, 2020. aside 5 percent of their pro t
AGSMEIS is an initiative of the after tax (PAT) annually.
In addition, the cumulative Bankers' Committee set up in a
amount released to all bid to support and complement
10ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
15 Micro nance Banks Receive Licenses
By: Louisa Okaria
F
ifteen micro nance banks the Bank stipulated that Tier 2- strengthen the subsector to
were given the nod to start unit micro nance banks must support development and
business by the Central have a minimum capital of growth in the Nigerian economy.
Bank of Nigeria (CBN) between N 5 0 m i l l i o n , w h i l e T i e r- 1
February and December 2019. maintains N200million capital To this end MFBs were permitted
Prior to granting of licenses to base by April, 2021. to engage in some types of
the new banks, the CBN had put deposits which include savings,
t h e n u m b e r o f re c o g n i z e d The Bank directed micro nance time, target and demand
micro nance banks operating in banks in Tier-1 unit category to d e p o s i t s f ro m i n d i v i d u a l s ,
the country at 898 as at February raise its capital base to groups, and associations,
2019. N100million by April 2020 and provision of credit to its
must move it up to N200million customers as well as making
With the newly licensed MFBs, by April 2021, while Tier-2 unit is available housing micro loans.
the CBN revealed that the N35million and N50million
number of of cially recognized capital requirement within the The revised guidelines also avails
m i c ro n a n c e b a n k s i n t h e same period. The circular also MFBs the opportunity to provide
country has now risen to 913 as at stipulated N500million and ancillary services, like capacity
December 2019. N1billion for State owned building on record keeping and
micro nance banks also for the small businesses management,
It would be recalled that the CBN same period. safe custody and issuance of
in 2019 released a fresh guideline debentures to interested parties
for recapitalization of The CBN released the revised wishing to raise funds from the
micro nance banks in Nigeria. In guideline for micro nance banks public which must be approved
the circular issued in March 2019, for repositioning and to by the Central Bank of Nigeria.
CBN Set to Intervene in Health Sector
By: Ademola Bakare
T
he Governor of the Central specialist hospitals across the that the Bank was doing
Bank of Nigeria (CBN), Mr. country, stressing that the everything possible to mitigate
Godwin Eme ele has said intervention would be in the area the impact of the coronavirus on
that the Bank is set to fully of diagnosis and surgery. the economy. Thus, by working
intervene in the health sector with the scal authorities, we will
following the outbreak of The Governor pointed out that not hesitate to deploy additional
Coronavirus in Nigeria. this would reduce the drain on measures to strengthen our
the reserves caused by constant buffers and insulate the economy
Mr. Eme ele dropped the hint at travelling of Nigerians going from global headwinds.
the second consultative abroad to seek medical
roundtable with stakeholders assistance. Giving the impact of He stressed further that the
which held at the Bank's head the Coronavirus, I heard some measures so far taken by the Bank
of ce in Abuja, themed: Going countries are trying to ban export which had focused on improving
for Growth 2.0. The rst edition of some pharmaceutical products domestic production of goods
was held in Lagos in June 2019. It and we must look inward at this and services, particularly in
was a forum of technocrats, time . Stressing further that the agriculture and manufacturing
bureaucrats and industrialists in CBN is currently working towards sectors were necessary if we are
the Nigerian economy to supporting the pharmacy and to insulate the economy from
formulate ideas on how to move pharmacology industry. volatilities in the international
the economy forward. crude oil market. He admonished
The host, Governor Eme ele that we must build on the
He told the gathering that the when commenting on the impact successes of these measures and
CBN had decided to support the of the virus outbreak on the reduce dependency on excessive
government by helping to build Nigerian economy told his guests imports.
11ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
New License Framework for Fintechs Soon
By: Mohammed Haruna
T
he Central Bank of Nigeria planned categorization of this core is well protected to
(CBN) is poised to payment service providers (PSP) serve us, I think it is just the right
rede ne the payments which revealed the proposed thing to do. Because if it fails at
system ecosystem with the roll restructuring of earlier licenses that point, for any nancial
out of a new license framework including Mobile Money system, if that infrastructure
intended to reorganise licenses Operators (MMOs), Payment goes down, nobody has trust in
for payment companies. Solutions Service Provider the system again.
( P S S P ) , P a y m e n t Te r m i n a l
A representative of the Service Providers (PTSPs), super The nancial services industry
Payments System Management agents and switches into three has witnessed a sustained boom
Department made this known at groupings: PSP Super License, since the CBN Payments System
a recent ntech roundtable PSP Standard License and PSP Vision was launched in 2007. In
organised by Banwo and Basic License. response to the growing
Ighodalo, a law rm attention on payments and its
representing a number of Speaking further, the PSMD efforts towards nancial
ntechs in Nigeria. representative stated, inclusion, the CBN created the
whatever we are doing now, Payments System Management
In 2018, the Bank released an payment remains at its core. So Department on November 1,
exposure draft containing the if there is that need to ensure 2018.
COVID-19: Explore Alternative Payment
Channels says CBN
By: Mohammed Haruna
disease by touching a surface or
object that had the virus and
then touching one's mouth,
nose or possibly the eyes, it is
advisable for Nigerians to adopt
alternative payment methods
and be wary of cash or
Google Image
Automated Teller Machines .
Okorafor who is also the Bank's
spokesperson further stated,
The Naira note is one surface
that people touch every day. It
will be wise for us to wash hands
after handling money, especially
if you are eating or touching
food, he said.
T
o curtail the spread of the such as electronic transfers and
novel coronavirus internet banking. According to The CBN Director restated the
epidemic, The Central t h e D i r e c t o r, C o r p o r a t e ef ciency and safety of the
Bank of Nigeria (CBN) has Communications Department alternative payment channels in
recommended the use of the CBN, Mr. Isaac Okorafor, nancial transactions.
alternative payment platforms since people could contract the
12ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
Rice Value-Chain Development on Course
By: Kerma Mshelia
Governor Eme ele at a rice inspection farm
A
recent up-date report sustained. The report showed takers had commenced with
from the Development that a total of 5,187.91 paddies Taraba State. The schedule was
Finance Department of were recently collected by TAK expected to cover a period of ten
the Central Bank of Nigeria (logistics collection) with a value weeks across various States with
(CBN) has stated that the of N570.67 million. In the report, off-takers collection of 2,500 tons
successes gained in the the schedule for sales/evacuation per location culminating in the
development of the rice value- of Rice Farmers Association of North Central and South West by
chain in Nigeria is being Nigeria (RIFAN) paddy by the off- the end of April, 2020.
CBN Extends NUBAN to Other Financial Institutions
By: Olusola Amadi
I
n furtherance of its mandate the CBN states that the success operations by DMBs and OFIs,
for the development of of the NUBAN Standards which the Revised Standards on Nigeria
electronic payments system in were rst issued in 2010 to Uniform Bank Account Number
Nigeria, the Central Bank of achieve a uniform customer bank (NUBAN) Scheme for banks in
Nigeria (CBN) has issued the account numbering structure Nigeria was revised to include
Revised Standards on Nigeria among DMBs in Nigeria; and the the OFIs.
Uniform Bank Account Number increasing role of the OFIs in the
(NUBAN) for Deposit Money Electronic Payments System, The Circular will take effect from
Banks (DMBS) and Other deemed it imperative to expand April 20, 2020 with a deadline of
Financial Institutions (OFIs). the scope of the Standards to March 15, 2021 and the Bank
include the OFIs. demands full compliance after
As contained in a circular signed which appropriate sanctions
b y t h e D i re c t o r, P a y m e n t s Therefore, to ensure the ef cient would be imposed for
System Management operations of electronic funds contraventions and non-
Department, Mr. Sam Okojere, transfer and cheque clearing compliance.
13
1ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
Collective Action Required For Gender Equality
- Eme ele
By: Ruqayyah Mohammed
gender equal work place,
boardroom and government is a
task that must be accomplished.
He also advocated for more
gender equality in health and
wealth.
The Deputy Governor
Operations, Mr. Folashodun
Shonubi, in his remarks noted
that Equality is not about
gender, it is not a women's
issue, it is about being fair, it is
a b o u t e q u i t y, i t i s a b o u t
providing and taking
opportunities, it is about
realizing potentials for the
individual and the company. It is
about you and me'
The newly appointed Deputy
I
n commemorating the 2020 some of whom he said, are at Governor, Economic Policy, Dr.
International Women's Day, the forefront of achieving the Kingsley Obiora, also lent his
the Governor of the Central mandate of the Bank. According voice to commemorate the
Bank of Nigeria (CBN), Mr. to him at the Central Bank of International Women's Day,
Godwin Eme ele, has called for Nigeria, we remain committed stressing that gender equality is
collective action in achieving to promoting equal essential for economies and
gender equality. He made this opportunities for men and communities to thrive, and it is
call during a web broadcast to women at every level not as a fundamentally about fairness.
staff of the Bank, on the 8th of favor to women but in
March, 2020. Eme ele lauded recognition of the talents that The CBN is reputed to be a
the tradition of celebrating the re s i d e s i n e v e r y h u m a n . ' ' gender friendly institution. Only
socio-economic and political Eme ele pledged to raise recently, the Bank made history
achievement of women around awareness against bias and by appointing the rst ever
the world for over 100 years. most importantly to take actions female Director of Currency
for equality. Operations Department. In its
He further said the theme for Corporate Communications
the year 2020 Generation The Deputy Governor Financial Department, the staff strength
Equality: Realizing Women's System Stability, Mrs. Aishah re ects a 49% (female) to 51%
Right and the hashtag Ahmad in her statement to (male) ratio distribution.
EachforEqual is a simple celebrate the International
reminder of our individual Women's day, said the hashtag International women's day is
responsibility to achieve EachforEqual is about celebrated on the 8th of March
change. He emphasized that the collective individualism, and every year. It is a focal point in
Central Bank of Nigeria together we all can make the movement of women's
applauds the signi cant change happen and help create right. The United Nations
contributions of Nigerian a gender equal world. General Assembly of cially
women who have distinguished proclaimed March 8 as the UN
themselves in the public and On his part, the Deputy Day for women's rights and
private sectors. He paid tribute Governor Corporate Services, world peace in 1977.
to the female staff of the Bank, Mr. Edward Adamu, said that a
14ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
FG Gives Small Businesses Tax Break
By: Louisa Okaria
T
he Federal Government medium enterprises with She also said that small
has exempted small turnover of N100million are businesses that have turnovers
businesses in Nigeria with expected to pay 30% Company of less than N25m are exempted
turnover of 25million and below I n c o m e Ta x ( C I T ) w h i l e from paying taxes in order to
from paying taxes. businesses with turnover of e n a b l e s a v e a n d re i n v e s t
between 25million and resources for growth.
The Minister of Finance, Budget 100million annually will pay 20%
and National Planning, Mrs. CIT. She said that the government is
Zainab Ahmed reiterated this partnering with the trade
during a meeting with the The development according to authorities to encourage people
Governor of the Central Bank of the Minister is to enhance in the informal sector to be
Nigeria (CBN), Mr. Godwin growth in all sectors of the formalised such as business
Eme ele and captains of economy, increase productivity registration and bank account
industries at the CBN Head and employability rates which opening as the incentives and
Of ce, Abuja on 11 th March will ultimately translate to more opportunities of doing so
2020. Speaking at the event Mrs revenue for the government. outweigh the contrary.
Ahmed said that small and
Interest Rate on CBN Intervention Funds now 5%
By: Daba Olowodun
T
he Governor of the Bank had also noted that the Bank's readiness to increase
Central Bank of Nigeria Nigerians were beginning to credit supply to the healthcare
( C B N ) , M r. G o d w i n feel the effects as supply chains industry, saying that loans would
Eme ele, has announced a had been disrupted owing to be given to hospitals and
reduction in interest rate for all lockdown of various trading pharmaceuticals intending to
CBN intervention loans from 9% partner countries. expand their operations or build
to 5% effective March 1, 2020. manufacturing plants.
The CBN Governor therefore
He made the announcement stated the Bank's commitment Noting that households and
during a press brie ng at the to providing support to cushion SMEs would be greatly affected
CBN Head Of ce, on Monday, the effect of the global by an economic downturn, the
March 16, 2020. The Governor, pandemic on the Nigerian CBN Governor pledged the
supported by the four Deputy citizens. In addition to the release of N50b to ameliorate
Governors of the Bank, reduction of interest rate for their concerns as well as those of
presented the monetary policy CBN intervention loans from 9% hoteliers and airline service
palliatives intended to mitigate to 5%, he also announced a 1 providers. He further assured
the pains resulting from the year extension of moratorium Nigerians that the Lending to
coronavirus pandemic that had on all principal repayments of Deposit Ratio (LDR) policy
affected economies around the CBN loans. would continue to be
world. strengthened.
Deposit Money Banks were
According to Mr. Eme ele, the given regulatory forbearance to He urged Nigerians not to
initial assessment of the effects restructure all loans in order to panic, but take necessary health
of the health crises worldwide, reduce the obligation of and safety precautions in all
reveal a potential economic borrowers. By the new dealings and promised that the
crises. He pointed out that the structure, loan tenures would Central Bank of Nigeria would
United States of America had run for longer periods with more continue to monitor events as
already lost $13 trillion as at the affordable monthly repayments. they unfold and release updates
time of the press brie ng. The Mr. Eme ele also announced as necessary.
15ISSN No: 2695-2394 Vol. 2 No. 3 March 2020
FREQUENTLY ASKED QUESTIONS (FAQs)
1. Why is the CBN the only bank that can for distribution to all CBN branches. The branch
produce the Naira? further distributes the banknotes to DMBs
where they are nally released to the public via
Section 2b and Section 17 of the CBN act gives withdrawals.
the CBN the sole right to issue currency notes
and coins throughout Nigeria and neither the 9. Why are there no new currencies in
Federal Government nor any state circulation?
Government, Local Government, other person Analysis of the currency in circulation
or authority shall issue currency notes, showed that a large and increasing
banknotes or coins or any document or token proportion of the Nigerian currency outside
payable to bearer on demand being document the commercial banking system (COB) is
or token which are to pass as legal tender. held by the general public who hoard a lot of
Section 18 of the CBN act also gives CBN the the new banknotes.
power to print banknotes and mint coins.
10. Why are the lower denomination
2. Are machines for printing money available banknotes scarce?
for purchase by the public?
The scarcity of lower denomination could be
No. The machines are only available to issuing linked to the fact that these notes are held by
authorities on request. the public. Absence of Automated Teller
Machines (ATM) dedicated to dispense
3. What Department of the CBN is responsible lower denominations has also contributed to
for the printing of money? the dearth of lower denomination in
circulation.
Currency Operations Department.
11. Why are there huge numbers of dirty One
4. What is the purpose of printing polymer Hundred Naira notes in circulation?
notes?
To extend the life span of the banknotes as the Handling habits of the general public such
polymer notes lasts three times longer than the as, squeezing, staining, spraying etc. greatly
paper banknotes. contributes to soiling of the banknotes.
5. How long does the polymer note last? 12. In view of the fact that our politicians and
leaders abuse the naira at rallies and
18 to 24 months. public events, how do we expect the
people to treat the naira with care?
6. Where can one change currency notes?
CBN constantly sensitizes the general
Deposit Money banks (DMBs) and CBN. public, politicians and leaders through
public enlightenment campaigns through
7. Can coins be deposited in the Banks? the print and electronic media on how to
p ro p e r l y h a n d l e t h e n a i r a . F u r t h e r
Yes. sensitization campaigns are arranged to
engage politicians, leaders and other
8. How are new currencies circulated? respected elders to make them change
CBN evacuates the nished banknotes form champions of the Bank's Clean Notes Policy.
Nigerian Security Printing & Minting (NSPM) Plc This would enable the public follow suit.
16@cenbank Central Bank of Nigeria centralbankng cenbank Central Bank of Nigeria
DO
YOU
KNOW
Discretionary Monetary Policy: These are deliberate actions taken by the monetary authority
to in uence money supply in the system with a view to achieving its mandates.
Direct Monetary Policy: This involves the use of quantitative monetary controls such as credit
ceilings, credit rationing and statutory liquidity ratios to control the amount of money in
circulation.
Indirect Monetary Policy: This involves the use of market based instruments such as open
market operations for the implementation of monetary policy.
Price stability: In an economy this means the general price level does not change much over
time. Prices neither goes up or down.
Exchange Rate Channel: This arises when the exchange rate become the intermediate policy
variable for transmission of monetary policy impulses.
Interest Rate Channel: This is a monetary policy transmission mechanism channel where by
changes to the policy are propagated through interest rates to in ation.
That if you make a complaint to your bank, you must insist on getting the Consumer Complaint.
Management System (CCM) tracking number from your bank? This will enable the Central Bank
Nigeria do a follow up.
That if you make a complaint to your bank on card related and funds transfer issues, and it is not
resolved after 72 hours, you can contact the CBN by sending an email to:
cpd@cbn.gov.ng, contactcbn@cbn.gov.ng or call +234 7002255226
That if you make a complaint to your bank on account management issues and is not resolved
08056124959
after 14 days grace period stipulated the by Central Bank of Nigeria (CBN), you can contact the
CBN by sending an email to: cpd@cbn.gov.ng, contactcbn@cbn.gov.ng or call +234
7002255226
That if you make a complaint to your bank on excess charges and was not reciti ed within
30 days allowed for resolution, you can contact the CBN by sending an email to:
cpd@cbn.gov.ng, contactcbn@cbn.gov.ng or call +234 7002255226
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