Connect with us

Banking Sector

UBA Joins Zenith, GTB to Cap International Card Spending Limits

Published

on

UBA
  • UBA Joins Zenith, GTB to Cap International Card Spending Limits

The United Bank for Africa on Sunday announced it has reduced international spending limits on its Naira denominated cards due to the uncertainty surrounding the foreign exchange market.

The lender reduced its monthly spending limit to $500 and announced that the new limit has taken effect immediately.

In a note to customers, the bank said “In light of the changing economic climate and uncertainties in the Foreign Exchange market, we have had to review international card spending limits.

“The new applicable limit on your card is $500 monthly, this new rate has taken effect. Whilst we note this significant reduction from your previous spend limit, we would like to reassure you of our commitment to offering you the best rates in the industry.

“We apologise for any inconvenience this may cause and would like to thank you for your understanding at this time.”

This was after Guaranty Trust Bank and Zenith Bank announced they have capped international spending limits on their Naira denominated cards in March. Guaranty Trust Bank had reduced spending from $3,000 to $500 while Zenith Bank lowered its spending limit from $3,000 to $1,000.

The uncertainty surrounding the Central Bank of Nigeria’s ability to intervene at the foreign exchange market following the drastic decline in the foreign reserves continues to hurt market sentiment, especially with oil prices trading lower and demands for the commodity at a record low.

The nation’s foreign reserves depreciated from $38 billion in January 2020 to $34 billion in May despite the central bank devaluing the nation’s currency to curb rising capital flight. Foreign investors are said to be keen on getting out with traders at the non-deliverable fx futures contract already trading the Naira at N570 to a US dollar in a five-year contract.

Banks have now started managing their available foreign exchange to ensure they are able to service customers much longer.

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

Continue Reading
Comments

Banking Sector

85.51 Million Nigerian Bank Customers Face Withdrawal Freeze Over NIN, BVN Deadline

Published

on

First Bank

As the March 1 deadline looms, an estimated 85.51 million Nigerian bank customers are facing the possibility of frozen accounts due to their failure to link their National Identification Numbers (NINs) and/or Bank Verification Numbers (BVNs) to their accounts.

Recent findings reveal the potential scale of the impending banking crisis.

Data from the Nigeria Inter-Bank Settlement System (NIBSS) indicates that Nigeria had approximately 146 million active individual bank customers as of December 2022.

However, by January 26, 2024, only 60.49 million BVNs were recorded on the NIBSS portal, leaving a significant portion unlinked.

Meanwhile, about 104 million NINs had been issued by December 2023, highlighting the disparity between NIN issuance and BVN linkage.

The Central Bank of Nigeria (CBN) had earlier issued directives to banks, mandating them to restrict transactions on accounts lacking linked NINs and BVNs, with effect from March 1, 2024.

Any accounts found non-compliant risk being designated as ‘Post no Debit,’ rendering them unable to process further transactions.

Responding to the impending crisis, the Director-General of the National Identification Management Commission (NIMC), Abisoye Coker-Odusote, emphasized the need for the revalidation of Front-End Partners (FEPs) to ensure the integrity of the identity database.

She underscored the importance of NIN registration and urged collaboration with various stakeholders to expedite the process.

The Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, reiterated the significance of linking NINs to SIM cards to enhance national security.

Telecom subscribers were urged to comply with the NIN-SIM linkage directive to avoid service disruptions.

Meanwhile, financial service providers like Opay have issued reminders of the impending restrictions, urging customers to comply with the linkage requirements.

Amidst concerns, some customers contemplate transferring funds to compliant accounts to avoid potential financial setbacks.

As the deadline approaches, stakeholders are intensifying efforts to mitigate the impact of the impending banking crisis on millions of Nigerians.

Continue Reading

Banking Sector

Central Bank of Nigeria Injects Over $300 Million to Stabilize Naira-Dollar Exchange Rate

Published

on

central-bank-of-nigeria

In a bid to mitigate the continuous depreciation of the naira against the dollar, the Central Bank of Nigeria (CBN) has injected over $300 million into the foreign exchange market.

This move comes amidst concerns over the instability of the naira-dollar exchange rate, which has seen rates soar as high as N1850/$ in recent trading sessions.

The Association of Corporate Treasurers of Nigeria revealed the CBN’s intervention in an advisory memo to its members, highlighting the significant injections made over the past two weeks.

The memo underscores the urgency to address the steep decline in the value of the naira, which has posed challenges to businesses and individuals alike.

The CBN’s proactive measures signal a concerted effort to stabilize the forex market and restore confidence in the domestic currency.

The injection of funds aims to provide liquidity and alleviate pressure on the naira, which has experienced rapid depreciation in recent weeks.

Market analysts anticipate that the CBN’s intervention will help mitigate the volatility of the naira-dollar exchange rate, providing relief to businesses and consumers grappling with the economic uncertainties.

The move reflects the CBN’s commitment to maintaining stability in the forex market and fostering economic growth amidst challenging times.

Continue Reading

Banking Sector

FBN Holdings Surpasses GTCO, Zenith Bank to Become Nigeria’s Most Valuable Bank

Published

on

Femi Otedola

FBN Holdings has emerged as Nigeria’s most valuable bank, surpassing Guaranty Trust Holding Company (GTCO) and Zenith Bank in terms of market capitalization.

At the close of trading on Monday, FBN Holdings achieved a market capitalization of N1.22 trillion, solidifying its position at the forefront of the banking sector.

The bank’s market cap is now higher than GTCO’s N1.16 trillion and Zenith Bank’s N1.11 trillion.

The surge in FBN Holdings’ market capitalization represents a 56.68% increase since Femi Otedola assumed the role of chairman on January 31st.

Otedola’s stewardship has been instrumental in driving FBN Holdings’ exponential growth.

Since he was appointed a non-executive director in August 2023 and subsequent ratification by shareholders, his leadership has been characterized by strategic decision-making and investor confidence.

Holdings’ shares have risen from N21.70 to N34 under his chairmanship, representing a significant boost for investors and shareholders.

The market’s positive response to Otedola’s leadership underscores the importance of effective governance and visionary leadership in driving financial performance and investor value.

Minority shareholders have expressed optimism about Otedola’s impact on dividend payments and capital appreciation, highlighting his track record of prioritizing shareholder interests in his previous roles.

FBN Holdings’ ascent to the top spot signals a new era of growth and stability for the bank, setting the stage for continued success in Nigeria’s dynamic financial landscape.

As the banking sector navigates evolving market conditions, FBN Holdings’ position at the pinnacle reflects its resilience and adaptability in driving sustainable value for stakeholders.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending