CBN Denies Directing Banks to Collect Old N500 and N1000 Notes: A Confusing Development for Nigerians
Nigerians are currently in a state of confusion over where to deposit their old N1000 and N500 notes.
This development comes after conflicting announcements from Deposit Money Banks (DMBs) in the country, which directed their customers to deposit their old notes after registering with the Central Bank of Nigeria (CBN) portal.
However, in less than an hour, the CBN issued a press release refuting the announcement, stating that it did not authorize the DMBs to collect old N500 and N1000 banknotes.
The apex bank added that it has only been directed to reissue and recirculate old N200 notes, which will be legal tender for 60 days up to April 10, 2023.
This sudden reversal of announcements has left Nigerians more confused than ever, with many unsure of what to do with their old notes. Adding to the confusion is the recent declaration by the Governor of Kaduna State, Nasir El Rufai, that all old naira notes are still valid.
The lack of a clear and consistent policy on the issue is a cause for concern, and many Nigerians are calling on the government to provide clarity on the matter.
In the meantime, individuals are advised to be cautious of any unofficial information or messages on the subject and to await official announcements from the CBN.
The confusion around the deposit of old notes is just one of the many challenges faced by Nigerians as the country grapples with a range of economic issues. Despite this, Nigerians have demonstrated resilience and resourcefulness, finding ways to adapt and survive in the face of adversity.
Demola Sogunle Increases Stake in Stanbic IBTC
Dr. Demola Sogunle, the Chief Executive Officer of Stanbic IBTC Holdings Plc has expanded his stake in the bank by 1,521,117 shares.
This was made known in a statement signed by Chidi Okezie, Company Secretary, Stanbic IBTC and made available to investing public.
The bank chief acquired the shares between 21 March and 24 March 2023 at N37.05 a unit. Meaning, he paid a total sum of N56.357 million for the acquisition.
Sogunle held 3.41 million indirect shares before acquiring more shares in Stanbic IBTC as of December 31, 2022. In 2021, he held 2.41 million indirect shares, which he increased to 3.41 million last year.
Sogunle remained the second-largest shareholder in Stanbic IBTC after Ifeoma Esiri, who holds 40.38 million direct shares and 3.11 million indirect shares valued at N1.63 billion as of December 2022.
During the financial period of 2022, Stanbic IBTC reported a gross turnover of N287.53 million, surpassing the N206.64 million generated in the previous year. The financial institution also recorded growth in its net interest income, which increased to N113.11 billion in 2022 from N75.37 billion in 2021.
In addition, Stanbic IBTC closed the year with N80.81 billion in net profit, an improvement on the N56.96 billion profit after tax earned in the corresponding period of 2021.
Stanbic IBTC Holdings’ Gross Earnings Reach a Decade High in 2022 With 131% Growth in Trading Revenue
Stanbic IBTC Holdings reported its highest gross earnings in a decade, aided by a 131% growth in trading revenue in 2022, according to data released by the Nigerian Exchange Group (NGX).
Gross earnings grew by 39.15% to N287.54 billion in 2022 compared to N206.64 billion in 2021, while trading revenue for the period surged to N34.69 billion in 2022 from N13.29 billion in 2021.
The growth in interest income was driven by an increase in the volume of risk assets and growth in average yield due to a higher interest rate environment, analysts at CSL Stockbrokers Limited said in a note.
The bank declared earnings per share of N603 per share in 2022 from N420 per share in 2021, and proposed a final dividend of N2.00 per ordinary share.
Further checks by Investors King showed that the bank’s interest expense rose by 34.62 percent to N39.55 billion in 2022 compared to N29.38 billion in 2021. This was driven by a significant increase of 124 percent in interest generated from savings accounts and a 62.36 percent increase in interest from borrowed funds.
The bank’s fees and commission revenue also grew by 8.77 percent to N96.07 billion in 2022, up from N88.32 billion in 2021. However, its fees and commission expenses decreased by 8.05 percent from N5.44 billion in 2021 to N5.01 billion in 2022.
Despite the profit growth, the bank’s activities are not generating cash as net cash flow from operating activities amounted to N-84.23 billion in 2022.
The bank’s return on equity for the full year period of 2022 increased by 470 basis points to 19.82 percent compared to 15.12 percent in 2021.
Nigeria Raises Interest Rate by 50 Basis Points to 18%
The Central Bank of Nigeria (CBN) led monetary policy committee has raised the nation’s borrowing cost by another 50 basis points following a 500 basis points increase in 2022 to 18%.
The committee attributed its decision to the rising inflation rate and the need to contain price development around expectations of subsidy removal and other energy sources.
“These in the view of members, provides a compelling argument for an upward adjustment of the policy rate, albeit, less aggressively. The Committee, however, noted that the naira redesign and cash withdrawal limit policies have resulted in a sizeable reduction in Currency-Outside-Banks, indicating an expected improvement in the potency of monetary policy tools,” the minutes stated.
Another factor considered was the drop in capital importation and the impact of exchange rate pressure on domestic price levels.
The committee, therefore, called for policies to attract both portfolio and foreign direct investment to Nigeria.
It maintained optimism that, the continued progress made with the RT200 FX programme, Naira-4-dollar and
other policies targeted at attracting diaspora remittances, would continue to help improve accretion to the external reserves and improve liquidity in the foreign exchange market.
Members, however, remained aware of the ongoing challenges associated with the limits imposed on cash withdrawals in the face of frequent downtime in bank electronic transaction channels. The Committee thus called on Other Depository Corporations, online payment platforms, and other stakeholders to ensure that the prevailing incidence of network failures is overcome in the immediate and short term.
This would ensure that the Naira Redesign and Cash Withdrawal Limit Policies lead to an improved in-road of the CBN Cashless program and efficiency of the transmission mechanism of monetary policy.
Members, therefore, agreed to raise Monetary Policy Rate by 50 basis points, with ten members voting to raise the MPR by 50 basis points while one member voted to raise the MPR by 25 basis points and one member voted to hold the MPR. All members voted to keep all other parameters constant.
News3 weeks ago
Npower Pays November, December Stipends; Gives Update on Next Step
Cryptocurrency3 weeks ago
90 Million People Use Cryptocurrency in Nigeria – Report
Technology3 weeks ago
Africa Emerges as The Worst Performing Region in Internet Value
Fintech3 weeks ago
Nigerians Turn to Digital Banks as Traditional Banking Apps Face Challenges
Finance1 week ago
Npower Release Update on Failed Payment, Send Validation Link to Affected Beneficiaries
Government4 weeks ago
Peter Obi of Labour Party Defeats Tinubu of APC in Lagos Presidential Election
Government4 weeks ago
Bola Tinubu Emerges Winner of Nigeria’s 2023 Presidential Election
Billionaire Watch3 weeks ago
Aliko Dangote, Johann Rupert Sit Atop Africa’s Forbes Richest Persons List in 2023