Banking Sector

Nigerian Banks Ordered to Intensify Monitoring of Transactions with Cameroon, Croatia, and Vietnam

The directive requires these institutions to intensify their monitoring of transactions involving businesses and individuals from Cameroon, Croatia, and Vietnam.

Published

3 months ago

July 7, 2023

Investors King

In a move aimed at strengthening financial regulations and combating illicit activities, the Central Bank of Nigeria (CBN) has issued a directive to all Deposit Money Banks and other financial institutions in the country.

The directive requires these institutions to intensify their monitoring of transactions involving businesses and individuals from Cameroon, Croatia, and Vietnam.

The directive comes in response to recent developments where these three countries have been placed on the grey list by the Financial Action Task Force (FATF).

The FATF is an international body focused on developing and implementing measures to combat money laundering, terrorist financing, and proliferation financing.

Being placed on the grey list means that the identified countries have strategic deficiencies in their regimes to counter financial crimes. As a result, it becomes crucial for Nigerian banks and financial institutions to exercise enhanced due diligence when conducting transactions with entities from these jurisdictions.

The circular, referenced as FPR/AML/PUB/BOF/001/029 and issued by Mr. Chibuzo Efobi, the Director of Financial Policy and Regulation, highlights the need for increased monitoring. The objective is to safeguard the integrity of the international financial system and protect Nigeria’s financial sector from being exploited for illegal activities.

The Central Bank’s directive emphasizes the importance of proactive measures to mitigate risks associated with financial transactions involving Cameroon, Croatia, and Vietnam. Financial institutions are expected to apply enhanced due diligence in their dealings with businesses and individuals from these countries.

Furthermore, the Central Bank has reiterated the need for continued vigilance when dealing with high-risk jurisdictions such as the Democratic People’s Republic of Korea, Iran, and Myanmar.

These countries remain on the list of high-risk jurisdictions subject to a “Call for Action.” This designation places an additional burden on banks and financial institutions to exercise utmost caution and implement necessary measures to minimize associated risks.

The Central Bank’s circular also serves as a reminder that Russia remains suspended from the FATF while Nigerian banks are urged to remain vigilant and be wary of any potential risks arising from transactions with the listed countries.

Earlier this year, Nigeria found itself on the FATF’s grey list due to identified deficiencies in its anti-money laundering and counter-terrorist financing framework.

However, the country has made significant progress in addressing these deficiencies as FATF has recognized Nigeria’s positive efforts in slashing the number of identified deficiencies from 84 to 15.

This accomplishment reflects Nigeria’s commitment to enhancing its financial systems and aligning them with international standards.

As Nigerian banks and financial institutions implement the Central Bank’s directive, collaboration between the government, regulatory bodies, and the financial sector will play a crucial role in combating financial crimes and ensuring the stability of the Nigerian financial system.

With heightened monitoring and enhanced due diligence, the country aims to safeguard its financial sector and maintain its standing in the global financial community.

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Banking Sector

Access Bank, Others Collect N154 Billion in Electronic Banking Fees in H1’23, a 16.7% YoY Surge

Published

4 days ago

September 28, 2023

Samed Olukoya

In the first half of 2023, customers of Nigeria’s top nine commercial banks paid a whopping N154 billion in fees for utilizing electronic banking services, reflecting a robust 16.7% year-on-year increase compared to H1’22’s N131.97 billion.

The data, extracted from the financial statements of these banks, underscores the escalating trend of Nigerians embracing electronic payment channels.

Leading the pack in revenue generation from these fees is Access Bank, amassing N43.9 billion, followed by United Bank for Africa Plc (N51.07 billion), Zenith Bank (N22.27 billion), Guaranty Trust Bank (N21.2 billion), and others like Stanbic IBTC (N2.14 billion), First City Monument Bank (N7.4 billion), Unity Bank (N1.96 billion), Fidelity Bank (N1.85 billion), and Wema Bank (N3.13 billion).

Electronic banking services encompass a gamut of options, including internet banking, mobile banking, ATMs, and Point of Sale (PoS) systems.

Recent data from the Nigerian Interbank Settlement System (NIBSS) for Q1’23 indicates a substantial surge in electronic transactions.

Transaction volume increased by 209% YoY to 4.7 billion, and transaction value grew by 48% YoY to N137.52 trillion.

The nine banks collectively raked in N66.7 billion in account maintenance fees and commissions during H1’23, reflecting a 14.7% YoY rise.

Zenith Bank led this category with N21.02 billion, trailed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), and United Bank of Africa (N9.6 billion).

Overall, the banks’ cumulative net fees and commission income registered a substantial 20.7% YoY growth, reaching N448.47 billion in H1’23 from N371.43 billion in H1’22.

Banking Sector

Access Holdings Posts 52.6% Profit for the First Half of the Year

Parent Company of Access Bank Celebrates Remarkable Financial Performance in H1’23

Published

6 days ago

September 26, 2023

Investors King

Access Holdings Plc, the parent company of Access Bank, has reported a 58.9 percent surge in gross revenue to N940.3 billion for the first half of 2023.

The financial services giant also recorded remarkable growth in Profit Before Tax (PBT) and Profit After Tax (PAT) at 71.4 percent and 52.6 percent, respectively, culminating in N167.6 billion for PBT and N135.4 billion for PAT during the same period.

These financial milestones were unveiled as part of Access Holdings’ Audited Consolidated and Separate Financial Statements for the period concluding on June 30, 2023.

The driving force behind this unprecedented growth can be attributed to a potent combination of factors. A 63.0 percent growth in interest income and a 51.9 percent increase in non-interest income fueled the surge in gross revenue.

Access Holdings also witnessed a 35 percent year-to-date growth in customer deposits, capping the first half of 2023 at an impressive N12.5 trillion. This remarkable achievement encompassed all business segments, reinforcing the Group’s status as Nigeria’s largest financial institution by total assets.

The company’s total assets grew by 39.0 percent year-on-year to N20.9 trillion while shareholders’ funds surged by 40.6 percent to N1.7 trillion.

These astounding figures underline the Group’s ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services.

Herbert Wigwe, the Group Chief Executive Officer of Access Holdings Plc, commented on the company’s positive performance, saying, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.”

He went on to emphasize the company’s commitment to its 5-year cyclical strategy, stating, “Our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity among all stakeholders.”

Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

1 week ago

September 22, 2023

Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.