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CBN, NIBSS Restate Commitment to Cashless Policy

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  • CBN, NIBSS Restate Commitment to Cashless Policy

The Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS) have reiterated their commitment to the cashless policy.The policy is expected to be extended to the remaining 30 states from April this year.

Speaking in an interview with journalists on the sidelines of the Electronic Payment Incentive Scheme (EPIS) 2016 awards that took place in Lagos at the weekend, the Deputy Governor (Operations), CBN, Mr. Adebayo Adelabu, said the central bank was working to ensure that the aim of the cashless policy was realised.

Adelabu added: “As we all know that the function of any initiative depends on the amount of preparation that you do before you go into execution level.

We have used about six states as pilot states. We have learnt our lessons, we have made mistakes and corrected them and before we move into the other 30 states, all the learning points would be effected. So, we have spent so much time preparing for this and we believe we would not have any challenge when we go nationwide.”

On his part, the Chief Executive of NIBSS, Mr. Ade Shonubi, who pointed out that the role NIBSS in the system has always been that of infrastruture provider, assured Nigerians that his organisation would “make sure that the backbone works, we would try to scale it up so that as the volume grows, there would be no impact. We already have an idea of what is going to happen, so we are already scaling up.”

Shonubi also advised banks and other stakeholders to sensitise members of the public on the initiative.

The EPIS ‘Most Customer Experience (Electronic Payment Platform Experience) Award was won by Guaranty Trust Bank Plc. Also, Zenith Bank won the ‘Cashless Driver Bulk Payment’ and the ‘Cashless Driver PoS Transaction’ awards, while the ‘Cashless Driver Instant Payment,’ ‘Cashless Driver PoS Issued Cards Transaction,’ and three other awards went to GTBank.

Ikeja Disco won the Cashless Drive Merchant award, Lagos state also won the Cashless Driver Government, while Benin Electricity Disco was rewarded with the Cashless Driver Corporate award. Several other firms were rewarded at the event.

Speaking on the awards, which is in its second year, Adelabu said: “We decided to recognise those operators who have contributed immensely to the efficiency and effectiveness of the payment system in 2016, thereby encouraging them to do more in 2017. I am actually excited about recent developments in the payment system.

“We have come a long way and we have grown so fast. Nigeria has been identified as the leader in Africa because of the advancement we have made in the payment system and I foresee faster, more rapid and more efficient payment system in the coming years, given the calibre of operators we have in Nigeria.”

Also, Shonubi said: “Every year we look at the past 12 months and we encourage banks with light competition, where we look at the efficiency and how well they have done in terms of increase in volume and efficiency. We have seen significant improvement in efficiency across most of the platforms. The error rate in PoS transactions which have been a very big problem for us has dropped significantly. The telcos have provided better network services and the banks have improved their system as well.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

CBN to Extend Credit Risk Management System to OFIs

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In an effort to curb growing bad debt, the Central Bank of Nigeria has said it will extend its Credit Risk Management System to Other Financial Institutions (OFIs) operating in Nigeria to protect them from bad debtors.

According to the apex bank, this is important following the successful implementation of the credit risk system in other lending institutions operating in Nigeria.

The bank disclosed this in a circular titled ‘Credit Risk Management System: Commencement of enrolment of all Development Finance Institutions, Microfinance Banks, Primary Mortgage Banks and Finance Companies’ and signed by Kelvin Amugo, the Director, Financial Policy and Regulation Department, on Monday.

In part, the circular read, “As part of efforts to promote a safe and sound financial system in Nigeria, the CBN introduced the CRMS to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrolment of Other Financial Institutions on the CTMS platform.

“Accordingly, all DFIs, MfBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMs and to update same on monthly basis.

“OFIs shall note the Bank Verification Numbers and Tax Identification Numbers are the only basis for regulatory renditions”.

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Banking Sector

BoI Grows Assets by 78.8% to N1.86 Trillion

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The Bank of Industry Group concluded the 2020 financial year with a 78.8 per cent growth of assets from N1.04tn to N1.86tn between 2019 and 2020.

A statement by the bank on Monday said the increase was driven to a large extent by the successful debt syndication of €1bn and $1bn that were concluded in March and December 2020 respectively.

BoI stated that the group’s financial statement demonstrated resilience and strength, noting that the period had significant challenges in the operating environment on account of the impact of COVID-19 pandemic on the economy.

“It also indicates synergy with the various interventions developed by the Federal Government, the Central Bank as well as other strategic partners towards ameliorating the impact of the pandemic on Nigerian enterprises,” the statement said.

The group’s total equity increased by 14.8 per cent from N293.08bn in the previous year to N336.48bn in 2020.

It added that as a reflection of the adverse impact of the challenging operating environment on growth of new facilities, loans and advances grew marginally in 2020 by 1.3 per cent to N749.84bn from the 2019 position.

The bank explained that this was largely due to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers.

“The bank reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from nine to five per cent per annum for a period of one year and moratorium extension of three months (with a possible extension up to 12 months),” it said.

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Banking Sector

TAJBank Deploys NQR Solution To Ease Customer Transactions

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TAJBank, Nigeria’s non-interest bank, has announced the deployment of the NQR Payment solution, an indigenous Quick Response Code (QRC) by the Nigeria Interbank Settlement Scheme (NIBSS), for merchants and customers as the newest addition to its innovative e-business channels.

The NQR Payment solution is a secure QR-code-based payments and collections platform developed for merchants and customers to receive and make payments for goods and services in a quick, easy, contactless and secure manner.

A statement signed by the Founder/Chief Operating Officer of the bank, Mr. Hamid Joda, indicated that the ingenious solution would further drive TAJBank’s culture of innovation and create a seamless payment experience for its rapidly growing individual and corporate customers in their banking transactions.

“We are excited to have this payment channel introduced into the nation’s financial system as an addition to other innovative solutions we have deployed over the past few months.

This is a proof that, as we have said in our communications signature line, TAJBank’s interest is always in our customers”, Joda enthused.

In his remarks, the non-interest lender’s Chief Marketing Officer/Co-Founder, Mr. Sherif Idi, also maintained that the deployment of the NQR payment solution would revolutionize the e-payment experience and open new frontiers for small, medium and large scale businesses who are major stakeholders of the bank.

Since it commenced operations in the non-interest banking segment of the financial services industry, TAJBank is noted for its impeccable track record of growth and innovation, rendering exceptional quality services to customers.

The lender’s NQR solution is open to all customers of the bank, both merchants and individuals, across all its branches and digital channels globally.

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