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Bank Customers Shun Cash Deposits Into Domiciliary Accounts



Nigerian 1000 Naira notes

Bank customers are shying away from making cash deposits into their domiciliary accounts three days after the Central Bank of Nigeria lifted the ban on foreign currency deposits, our correspondent has learnt.

The CBN had Monday said holders of ordinary domiciliary accounts were allowed to deposit foreign currencies into their accounts, a move that ended a six-month embargo on the banks from receiving cash deposits from the customers.

Bankers at some branches of Guaranty Trust Bank, First City Monument Bank and First Bank of Nigeria in Lagos told our correspondents on Thursday that customers had not been coming to make dollar deposits.

Industry analysts said the lack of certainty about whether customers could transfer or do transactions with the deposits was the major factor discouraging foreign currency deposits by customers, stating that the central bank needed to address that.

The CBN had on August 5, 2015 banned the payment of cash into domiciliary accounts in a bid to stop illicit financial flows in the Nigerian banking system.

A spokesperson of one of the banks, who pleaded anonymity, said, “The directive from the CBN was silent on whether customers can transfer the deposits, and I know there are concerns about that. Possibly, this is one of the things the Bankers’ Committee might want to discuss at its next meeting.

“I am as confused as the rest of the bank customers. I don’t really understand what the central bank is trying to do. A lot of the things they are saying we are not really clear about it. The banking industry is still very confused.”

The Head, Media and External Relations, FirstBank, Mr. Babatunde Lasaki, said, “People have been coming to deposit money into their domiciliary accounts in our bank.”

A currency strategist at Ecobank Nigeria, Mr. Kunle Ezun, said, “One would have thought that with that directive, there would be opportunity for business. But basically, I think it has a mooted effect on the banks because it doesn’t create any business; rather, it creates more burdens on the banks.

“When you deposit your dollar cash with the bank and the bank has no outlet for those dollar cash, then you create more problems for them because they will need to pay premium on those deposits. Meanwhile, those deposits are not being utilised. Today, the CBN is not allowing the banks to do wire transfers.”

The CBN needs to come back to the banks and perhaps provide a clearer view about how they will use the deposits, Ezun said.

“A lot of banks are not too excited about it (the dollar cash deposit) because it is not going to help their business. What it will only end up doing is that it will make the banks to just accumulate dollar cash in their vaults without any outlets for those dollar cash. So, at the end of the day, the banks are just keeping assets that are not earning any income for them,” he added.

The Head of Investment Research, Afrinvest West Africa Limited, Ayodeji Ebo, said, “It won’t be very effective because they also need to address the user end. What I mean by that is that people are not sure of the modality for withdrawal or usage. Most of the banks have not reversed the initial policy regarding the cap that has been placed on debit and credit cards as well as withdrawals.

“You can’t expect me to pay in $1,000 and you are telling me I can only use $300 in a day, or that I can’t use my card. So, we don’t feel that will be very effective because the CBN also needs to address the utilisation or the modality around the usage.”


Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Intervention Funds: CBN Disburses N9.3 Trillion to SMEs, Agriculture, Others

The Central Bank of Nigeria (CBN) said it has so far disbursed a total sum of N9.3 trillion to Small and Medium Enterprises (SMEs), Agriculture, manufacturing and health sectors under its intervention funds program.



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The Central Bank of Nigeria (CBN) said it has so far disbursed a total sum of N9.3 trillion to Small and Medium Enterprises (SMEs), Agriculture, manufacturing and health sectors under its intervention funds program.

Dr Yusuf Yila, Director of Development Finance, CBN, made the announcement during a media engagement in Abuja on Wednesday.

According to the director, the apex bank has recovered N3.7 trillion from the total amount disbursed, saying the remaining N5 trillion was not yet due.

He, however, stated that 31% of the total amount was disbursed to the manufacturing sector, the largest for any sector.

“Some of the loans are under moratorium. We have moved from agriculture to manufacturing. So far, manufacturing, agriculture, health, exports and SMEs, have benefitted from the intervention,” he said.

Yila further stated that the central bank has now slowed down fund disbursement under its various intervention programs to curb rising inflation after data showed inflation rose to 20.52% in the month of August despite efforts to contain it.

The CBN-led monetary policy committee on Tuesday raised the interest rate by 150 basis points from 14% to 15.5% to rein in inflation and also remain competitive against global economies in luring investors into the Nigerian economy.

Developed economies started raising interest rates after the Russia-Ukraine war impacted global economies and compelled most nations to start tightening monetary policy to curb consumer prices. The persistent increase in interest rates (borrowing costs) in developed economies is expected to hurt capital inflow into the Nigerian economy, except the CBN raised borrowing costs to compensate for emerging market risks.

On Anchor Borrowers Programme, the CBN said it has disbursed N1 trillion to date, but announced that only N400 billion has been recovered.

He, however, warned debtors to ensure to repay their loans to various banks that granted them as the bank has collaborated with the Economic and Financial Crimes Commission (EFCC) to set up a unit that will help recover the loans.

“Any person who borrowed from us will pay back. We have recovered from states and we debit their FAAC. Every single loan taken from our development finance will be returned.”


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Banking Sector

Fidelity Bank Collaborates With SMEDAN, Seeks to Enhance SMEs Access to Fund

Fidelity Bank has partnered with the Small And Medium Enterprises Development Agency (SMEDAN) to bridge the funding gap in small businesses in Nigeria



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Nigerian commercial bank, Fidelity Bank has partnered with the Small And Medium Enterprises Development Agency (SMEDAN) to bridge the funding gap in small businesses in Nigeria.

At a Memorandum of Understanding (MOU) signing ceremony recently held in Lagos, the Managing Director/Chief Executive Officer of Fidelity bank Mrs. Nneka Onyeali-Ikpe who was represented by Executive Director, Lagos and South-West Dr. Ken Opara, disclosed that the partnership with SMEDAN reinforces the fact that the bank is a leading supporter of SMEs in Nigeria.

Her words, “For us at Fidelity Bank, supporting SMEs is in our DNA and for more than two decades, we have been creating multiple platforms to help them thrive.

“These include the numerous products we have pioneered, our collaboration with the Lagos Business School to host the Export Management Programme, the Fidelity SME Academy, and our weekly SME Forum radio program successful business owners and SMEDAN share tips on running thriving ventures with listeners.

“This partnership is therefore another step in our journey of helping entrepreneurs grow and compete favorably in any market they operate and we are very happy to have SMEDAN join us.”

Also, the Director-General/Chief Executive Officer of SMEDAN, Olawale Fasanya expressed gratitude to Fidelity Bank for facilitating the partnership, emphasizing that the MOU was particularly significant not just to the Agency but to the MSMEs ecosystem.

He said, “Fidelity Bank is one of the few commercial banks in Nigeria that have shown immense interest in providing support to the large MSME community. I am very aware of some of your products purposely designed to serve the MSMEs.

“This explains why the Agency is very excited entering into this relationship that we believe will help change the narratives of the sub-sector”.

Knowing that SMEs are the backbone of any economy, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has on several occasions launched different initiatives for small and medium enterprises (SMEs) in the country to help boost sales and enhance capacity building.

On the other hand, Fidelity Bank has continued to play a pivotal role in the development of SMEs in the country by offering numerous support through partnerships with different firms and agencies.

It should be recalled that in June 2022, Investors King reported that Fidelity bank partnered with impactHER a non-profit organization, to empower 1,052 female entrepreneurs with sales skills in Nigeria.

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CBN Raises Interest Rate to 15.5 Percent Amid Inflation Concerns

The Central Bank of Nigeria (CBN) has raised interest rates to 15.5 percent, the highest in the last 20 years. 



Godwin Emefiele - Investors King

The Central Bank of Nigeria (CBN) has raised interest rates to 15.5 percent, the highest in the last 20 years. 

Godwin Emefiele, the Governor of CBN, announced the increase shortly after the Monetary Policy Committee (MPC) meeting that was held at the CBN headquarters in Abuja on Tuesday.

The CBN Governor disclosed that all 10 members of the monetary policy committee voted for the hike to contain escalating inflation rate.

Investors King had earlier reported that central banks of the three biggest economies (Nigeria, South Africa and Egypt) are expected to raise interest rates in an effort to curb rising inflation. 

Addressing journalists after the meeting, the CBN Governor stated that the committee will continue to increase interest rates to reduce the high effect of inflation. 

The CBN governor was quoted to have said ” The tested monetary policy theory is that the easiest way to tame inflationary pressure is to raise rates”. 

In August 2022, Nigeria’s inflation rose to 20.52 percent which is 17 years high. This has caused the Monetary Policy Committee (MPC) to increase interest rates to 14 percent.

The committee also raised the Cash Reserve Ratio (CRR) to 32.5 percent from 27.5 percent. Cash Reserve Ratio is the specified minimum percentage of a bank’s total deposits that must be in the custody of the Central bank in form of liquid cash.

Meanwhile, the recent hike in interest has generated mixed feelings among financial analysts and economic observers. While some analysts believed the hike is the way to go considering the inflation rate which currently stands at 20. 52 percent, others argued that the hike will affect borrowers who are due for repayment. 

Analysts fear that borrowers might default in servicing their loans. Those who have taken credit facilities will have to pay more to reflect the new interest rates.

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