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CBN, Access Bank Partner on Cashless Policy Awareness

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Access Bank
  • CBN, Access Bank Partner on Cashless Policy Awareness

As part of efforts to promote awareness on the cashless policy, which was extended to the 30 remaining states of the federation recently, Access Bank Plc with the support of the Central Bank of Nigeria (CBN) recently sensitised some business operators on the benefits of the scheme.

The cashless policy engagement session was organised by Access Bank.

Speaking at the event, a Deputy Director in the Governor’s Office, CBN, Mr. Babatunde Ajiboye, described the cashless policy as a journey, saying that the policy was introduced in a bid to transform the payment system.

Ajiboye emphasised that handling cash is expensive and constitute quite a significant percentage of the cost that banks carry.

“And of course, that cost is passed on to customers in order for them to make profit. Of course, we need efficiency within our payment system. Of course, there is high security and safety risks, which we can’t elaborate too much on that.

“We know the level of insecurity we face in Nigeria today. And most of the insecurity that we face can be tied directly to cash. One of the the social crimes that we face is kidnapping, for instance. Once we bring in transparency into our payment system, it will also bring down the social evil that we face,” Ajiboye emphasised.

According to him, only about 10 per cent of Nigerian bank customers do cash transactions above N150,000 daily. He stressed that the aim of the cashless policy is certainly not to eliminate cash completel, but to reduce the amount of cash in the system.

On his part, the Executive Director, Commercial Banking, Access Bank, Mr. Roosevelt Ogbonna said the CBN and banks had put in a lot of resources towards making the cashless policy a success.

“For states where this has been entrenched over the last couple of years, we have seen the significant benefits and advantages it has brought to economic participants in those markets. I think what is clear is that this is a policy that has come to stay.

“So, as against fighting it, it is about learning what it means for our businesses and what we can do differently to take advantage of the opportunities it offers,” Ogbonna added.

He advised firms to ensure that they comply with the policy.

To the Managing Director, Accenture Financial Services Nigeria, Mrs. Toluleke Adenmosun, the cashless policy would help increase the volume of economic transactions in the financial system and also help in achieving efficiency in the payment system.

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.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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Oil

The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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