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‘Currency Swap Deal With China’ll Expand BDCs’ Capacity’

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  • ‘Currency Swap Deal With China’ll Expand BDCs’ Capacity’

The President of the Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, has said the currency swap deal between Nigeria and China will expand BDCs’ capacity to handle new business transactions in Chinese currency.

The CBN, in May, signed the agreement with the People’s Bank of China to facilitate trade between the two countries and enhance foreign reserve management, making Nigeria the third country in Africa (after South Africa and Egypt) to sign such a deal with China.

The PBoC-CBN Bilateral Currency Swap Agreement will allow the two countries to swap a total of 15 billion renminbi for N720bn, or vice versa, in the next three years. The deal can be extended by mutual consent.

Gwadabe was quoted in a statement as saying the naira would benefit hugely from the deal, given the rising influence of Chinese yuan in the international market.

He noted that the currency swap deal was part of the CBN’s plan to keep the naira stable and protect the foreign reserves domiciled in dollars.

He said the deal would provide adequate local currency liquidity for Nigerian and Chinese industrialists.

“A stable and strong naira is good for the economy and operators,” the ABCON boss said, adding that increased use of yuan in trade deals would also open a new business opportunity for BDC operators.

According to Gwadabe, ABCON will continually support the CBN in achieving its exchange rate stability mandate and promoting economic growth through increased global partnerships and collaborations.

He noted that the swap deal would smoothen bilateral trade, boost investment, and protect the financial markets in both countries as well as cut dollar demand by Nigerian entrepreneurs importing from China.

According to him, China has remained Nigeria’s largest trade partner over the last five years, with imports from China standing at over 20 per cent of Nigeria’s total imports.

Gwadabe, therefore, said to achieve the full gains of the deal, Nigeria should take steps to boost its trade balance with China by raising the quality of its local products to make them more attractive and acceptable to the Chinese people.

He said the deal would “reduce currency transaction cost for importers that go for yuan while also easing foreign exchange liquidity pressures in periods of rate volatility and/or scarcity for Nigeria.

“The deal will expand the BDCs capacity to handle new business transactions in Yuan. Besides, BDCs in both countries will have their transaction base expanded, including new opportunity to transact higher volume of naira/yuan in the export/import of equipment, raw materials and finished goods.”

The ABCON boss also urged the CBN to consider adding yuan to dollar disbursement to BDCs to enable them to meet the critical needs of their clients travelling to China for personal and business purposes.

He stated that if implemented, such move would further deepen the interest in purchasing yuan and reduce dollar demand.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

Unity Bank’S Boss Reaffirms Commitment To Going Above And Beyond

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The Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun has commended the lender’s frontline staff for effectively translating its Customer Service Charter thereby forging a culture of responsiveness and exceptional partnership to demonstrate unwavering commitment to customers.

In a message commemorating this year’s Customer Service Week, Mrs. Somefun celebrated with staff in customer service roles and expressed deep appreciation to the bank’s clients for their continued trust and loyalty, which have propelled the bank’s growth and success.

“This year’s theme “Above and Beyond” supports our mission at Unity Bank which enables us to reflect on our collective journey so far where our customers are at the centre of our business,” she said.

Somefun further stated that the Bank is continually investing in innovation as well as revamping existing systems, noting that new tools and strategies would be rolled out in the coming months to further enrich customer experiences. “Whether it’s through improved digital platforms or personalized services, we are committed to enhancing the way you bank with us,” she added.

While acknowledging the essential role frontline staff play in creating lasting relationships with customers, Somefun said that through dedication, resilience, and professionalism, Unity Bank Customer Service has demonstrated that it embodies the “Above and Beyond” theme of this year’s celebration.

“Day after day, our staff go beyond the call of duty, ensuring that every customer interaction is handled with care and excellence. They are the reason our customers continue to choose Unity Bank.”

Also speaking, the Bank’s Chief Customer Service Officer, Elfrida Igebu said that, “Throughout the week, we have seen firsthand what it means to go the extra mile. Our commitment to exceeding expectations, personalizing experiences, and showing genuine empathy has set us apart and created lasting connections with our customers.”

She noted that the different activities lined up to celebrate the customer service week “have strengthened the team’s professional capabilities and reinforced the bonds that make us a united team.”

From October 7 – 11, the Bank lined up several activities to celebrate customers and the exceptional teams in its over 200 branches nationwide, rewarding outstanding staff members, while reflecting on the theme of this year’s event – Above and Beyond.

The Bank has continued to prioritize the customer over the past few years through its increased focus on digital strategy. For instance, over the past four years, it has maintained its commitment to customer service excellence by introducing innovative digital products such as the multilingual USSD banking *7799#, and mobile banking solution, UniFi which have boosted customers’ access to the Bank’s services, while facilitating convenience.

These electronic banking channels are constantly updated with new and exciting features to put the customers first and make their banking experiences top-notch in the industry.

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Banking Sector

Sowore Sues GTBank Over Five-Year Account Freeze, Demands N100 Million in Damages

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Former presidential candidate of the African Action Congress (AAC), Omoyele Sowore, has launched a legal battle against Guaranty Trust Bank (GTB) for freezing his bank accounts for five years.

In a suit filed by his lawyer, Inibehe Effiong, at the Federal High Court in Lagos, Sowore stated that the freezing of his bank accounts was not only illegal but also a violation of his human rights.

Sowore revealed that his bank accounts were frozen without due process by the bank, leaving him financially frustrated.

As a result, the human rights activist is demanding N100 million in damages from GTBank, according to the suit.

Sowore is requesting that the bank immediately unfreeze his accounts and pay the damages. Effiong described the account freezing as unlawful stating “the arbitrary freezing of my client’s accounts without due process is not only illegal but also a blatant violation of his fundamental rights.”

The suit reads, “A Declaration that the Respondent’s act of freezing and restricting the Applicant’s accounts with Account Numbers: (1) 0169510647 (Current Account); (2) 0169510867 (Savings Account); (3) 0169510850 (Current Account); (4) 0171422811 (MasterCard/Visa Debit Account Type) and Account Name: Sowore Omoyele Stephen respectively, all domiciled with the Respondent; Guaranty Trust Bank Ltd is unlawful, unconstitutional, null and void, and a breach of the Applicant’s right to property guaranteed by the provisions of Section 44 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and Article 14 of the African Charter of Human and Peoples Rights (Ratification and Enforcement) Act LFN 2010.

“An Order of this Honourable Court directing the Respondent to lift the restriction placed on the Applicant’s accounts with the aforementioned account numbers.

“An Order of perpetual injunction restraining the Respondent, whether by itself, its agents, privies, or servants, from unlawfully interfering with the Applicant’s accounts.”

Sowore is seeking N100 million as general damages for the unlawful freezing of his accounts, as well as the cost of prosecuting the suit.

He further said since 2019, his accounts have been rendered inoperable by the bank, with no formal explanation offered.

Despite several complaints, the Respondent has refused to lift the restrictions. A demand letter dated April 23, 2024, was also served on the Respondent, but to no avail.

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Banking Sector

Zenith Bank Enhances Customer Online Experience with Revamped Digital Channels

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Zenith Bank, one of Nigeria’s foremost financial institutions, has successfully restored full operational services across its electronic transaction channels, ensuring that customers can now enjoy seamless access to digital banking services.

This restoration follows temporary disruptions caused by a routine upgrade of the bank’s technology infrastructure, which aimed to optimize service delivery but impacted e-channel services recently.

In a post shared on Thursday through its social media platforms, the leading lender confirmed that all services across its electronic channels have been fully reinstated.

Reiterating its commitment to providing quality digital services, the bank assured customers of exceptional service with its newly enhanced technology infrastructure, designed to deliver seamless and innovative financial solutions.

The announcement stated:

“We are pleased to inform you that access to our digital channels has been restored, allowing you to perform transactions conveniently via your preferred platform. We appreciate your patience during the IT infrastructure upgrade and sincerely apologize for any inconveniences you experienced.

“Rest assured, we are dedicated to providing you with exceptional service, and the new IT infrastructure we have implemented will enable us to do so moving forward.

Thank you for choosing to bank with us.”

Important Reminder

Zenith Bank will NEVER call, SMS, or email you requesting your card details, PIN, token codes, mobile/internet banking login details, or any other account-related information.

“We will also NEVER ask you to click on a link to update your bank information or activate your account. If you receive such messages, please DO NOT respond,” the bank stated.

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