Deposit Money Banks have yet to comply with the Central Bank of Nigeria’s directive asking them to sell $50,000 from Diaspora remittances to Bureau De Change operators on weekly basis, the President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, has said.
In a statement on Monday, the ABCON boss said only 10 per cent of the BDCs from the Lagos market had accessed dollars from the DMBs since the CBN gave the directive about three weeks ago.
According to him, the banks that have been involved in the dollar sales so far include First Bank of Nigeria Limited, Ecobank Nigeria, Fidelity Bank Plc, United Bank for Africa Plc and Unity Bank Plc.
Others are Diamond Bank Plc, Zenith Bank Plc and Stanbic IBTC Bank.
Gwadabe regretted that the BDCs in Port Harcourt, Kano, Abuja, Onitsha, Maiduguri, Benin and Enugu had yet to get dollars from the banks.
He said that the BDCs were also selling the dollar between N345/dollar and N355/dollar, far above the interbank rate of N305 to the dollar on Monday.
The banks, he added, were supposed to sell to the BDCs on the same day within the week, but had failed to do so.
He said, “Instead of staggering the payment, the banks should sell to the BDCs on the same week’s day, so that the impact will be felt in the market. We also want the CBN to license new International Money Transfer Operators to deepen the market
“Our members across the country have funded their accounts since two weeks ago but the banks are not selling to them. The BDCs that met the CBN’s policy guidelines on the disbursement and cleared by the banks have still not received a dime from the banks.”
Gwadabe therefore called on the CBN to outsource the dollar distribution role to an independent distributor since the banks had failed in their assigned role.
“I think the banks are compromising the policy and CBN’s directive on the matter. And like I said earlier, since the banks are not cooperating, I expect the CBN to take that role from them and assign it to a reputable independent distributor,” he said.
The CBN had directed, through a circular to authorised dealers, that all agents to approved IMTOs sell foreign currency accruing from inward money remittances to licensed BDCs.
The directive was meant to ensure stability of the exchange rate and encourage participation of critical stakeholders in the foreign exchange market.
Speaking further on the Diaspora remittances, Gwadabe said, “The proceed of the international money transfer fund, is not the CBN money. It is not from the foreign reserves of the CBN. This is money that Nigerians in Diaspora are sending into the economy. Before, this money comes through unofficial means, some sending through hands, and at the end of the day, the beneficiary will not even get the money”.
According to him, the CBN is trying to increase liquidity, and deepen the market. “Before the circular on Diaspora remittances, the proceeds were exclusive reserve of the banks. And in other climes, it is not like that. That kind of money is exclusive to the BDCs in other countries. But what we have here is the reverse case. It became monopolised by the banking sector,” he said.
“This money should all go to the BDCs. But we want the banks to give us part of it, so that we begin to see activities in the market. And based on that submission, the CBN saw reasons in what we are saying. And they issued circular directing banks to sell part of the funds to the BDCs so that we can ensure that the demands of the critical retail sector are being serviced.”
FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020
FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.
In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.
FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.
The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.
Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.
Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.
The bank’s total assets increased by 22.12 percent to N2.04 trillion.
Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary
Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).
In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.
“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”
World Bank to Discuss New $1.5 Billion Loan Request From Nigeria
The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.
The minister disclosed this on Bloomberg TV.
She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.
In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.
Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.
Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.
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