Nigerians abroad, mostly students, on Saturday took to the streets to protest against Deposit Money Banks’ proposed ban on naira-denominated Automated Teller Machine cards for dollar-denominated transactions when users are outside the country.
The ban is to take effect from January 1, 2016.
The banks will not allow their customers to use naira-denominated ATM cards locally for transactions denominated in forex.
This means that bank customers will not be able to use their cards to buy products from foreign e-commerce sites like e-bay and amazon.com in which payments are made in forex.
Different photographs of placard-carrying protesters had gone viral on the Internet on Saturday, in which the youths stated that they needed the payment cards to survive.
Various websites and blogs that published the photos however did not give the details of the protesters’ location.
In one of the photographs, a lady who held a Nigerian flag had displayed a placard that read, “My father is a successful palm wine tapper. He is not a corrupt thief. We need our naira ATM (card).”
In another photograph, a male youth had also said in his placard, “CBN Governor, why? Can you not advise Buhari? We need our naira ATM cards to survive.”
Another held a placard in another photograph which also read, “My father is not a politician or government thief. He is only a businessman. I need my naira ATM (card).”
The Nigerians in the Diaspora also protested against the slashing of transaction allowance of their dollar-denominated debit and credit cards.
In a group photo, a lady said, “Nigerian students abroad need their naira MasterCard (ATM) to survive,” while a man who wrapped himself with Nigerian flag wrote on his placard, “$1000/month on ATM/POS/online does not cover hospital bills.”
According to findings by our correspondent, Ecobank Nigeria Plc has reduced its limit from $50,000 to $5,000, with a maximum of $500 monthly and $100 daily expenditure.
Skye Bank Plc, in a notice to its customers via email, also slashed its international card spending limit from $50,000 to $12,000 annually, a maximum of $1,000 monthly and $100 daily.
Wema Bank Plc also slashed spending on its payment cards from $50,000 to $10,000 annually, $1,000 monthly and $100 daily.
Although other banks have yet to confirm their new international card spending limits, findings by our correspondent revealed that the new limits for most of them ranged from $5,000 to $15,000 annually, and $500 to $1,000 monthly.
The DMBs in the country are said to be recording unprecedented foreign exchange bills, owing to heavy and frequent use of payment cards by their customers who travel abroad.
Top 5 Largest US Banks Hold over $7 Trillion in Deposits as Personal Savings Rate Grows by 17.8%
US 5 Largest Banks Hold Over $7 Trillion in Deposits as Savings Rate Jumps 17.8%
According to the research data analyzed and published by ComprarAcciones, the personal saving rate in the US as of July 20, 2020 was 17.8%, up from 7% the previous July. The rate increased from 7.6% in January and hit a high of 33.7% in April 2020.
In April 2020 alone, deposits in US banks grew by a massive $865 billion according to the FDIC data. It coincided with a 10.5% increase in personal income according to the Bureau of Economic Analysis (BEA). Overall, FDIC shows an upsurge of deposits exceeding $2 trillion during the pandemic period.
JP Morgan Chase Grows by 18% in Total Deposits, Citigroup 11% and BAC 10%
During Q1 2020, total deposits made into US banks amounted to $15.78 trillion according to YCharts. It marked an 8.54% increase from $14.54 trillion in Q4 2019. There was a 13.29% year-on-year (YoY) growth from $13.93 trillion in Q1 2019. At the end of February, banks held $13.3 trillion in deposit accounts. During the week ending June 2020, this figure had risen to $15.47 trillion.
According to the FDIC, over 66% of the gains went to the top 25 US banks by assets. Of these, the top three banks reported the highest growth. JP Morgan Chase saw an increase of 18% in total deposits from Q4 2019 to Q1 2020. During the same period, Citigroup reported 11% growth while Bank of America saw an increase of 10%. In contrast, the industry as a whole only reported a 4% upsurge.
Due to this explosive growth, the top 5 banks by assets held over $7 trillion in deposits at the end of H1 2020. JP Morgan Chase led the pack with $2.05 trillion while Bank of America was second with $1.82 trillion. Wells Fargo was third with $1.50 trillion, Citigroup fourth with $1.24 trillion and U.S. Bancorp fifth with $425.28 billion.
P&ID Nigeria Case: Nigeria’s Foreign Reserves Rise by Over $200 Million to $36 Billion
Foreign Reserves Rose by Over $200 Million to $36 Billion after London Commerce Court Returned P&ID Nigeria Case’s Security Fund
The Central Bank of Nigeria on Tuesday said the nation’s foreign reserves rose by US$200 million to US$35.746 billion following the return of the $200 million security used in the discredited P&ID $10 billion Arbitral claim.
The P&ID had taken Nigeria to London Commerce Court over breach of contractual agreement, previous fine and accumulated interest to the tune of $10 billion over a period of 10 years.
The company had claimed it invested a substantial amount in a contract project signed between itself and the Nigerian government, only for the Federal Government to backout or failed to fulfil its end of the deal.
An accusation the Federal Government denied and described the whole project as a scam orchestrated by some Nigerians and foreign entities looking to profit from the nation’s lack of proper documentation.
The government fought back with evidence proving that the P&ID supposed contract was a sham as the contract was not signed or approved by the then president who was way because of sickness.
The Federal Government was asked to deposit security of $200 million to appeal the case in London commerce court.
After proving beyond a reasonable doubt that the project was a fraud, the London commerce court has now returned the $200 million security plus the £1.5 million previous awarded to Nigeria and another £70,000 for the cost incurred during the trial.
In a tweet on Tuesday, the apex bank said “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.”
“The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.”
Nigeria's Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.
— Central Bank of Nigeria (@cenbank) September 29, 2020
N75 Billion Nigeria Youth Investment Fund to be Opened for Application Soon -CBN
CBN to Open N75 Billion Nigeria Youth Investment Fund for Application Soon
The Central Bank of Nigeria has said it will announce the Nigeria Youth Investment Fund soon to support Nigerian youths as unemployment jumped to 27.1 percent in the second quarter.
The apex bank has launched numerous funds to deepen growth and ease the negative impact of COVID-19 on Nigerian youths, Africa’s largest youth population and one of the largest in the world.
As stated on the apex bank website, the Nigeria Youth Investment Fund (NYIF) is a N75 billion investment fund approved by the Federal Executive Council (FEC) in August to address the financial needs of 500,000 youths from 2020 to 2023.
According to the CBN, approval will range from N250,000 to N50 million with a spread across group applications, individual applications and working capital loans with a single-digit interest rate of 5 percent.
The fund was approved in August by the Federal Executive Council, the first of such approval.
Following the FEC meeting presided over by President Muhammadu Buhari in August, the presidency had tweeted that, “We recently established a 75 billion Naira Nigerian Youth Investment Fund (NYIF), as part of our commitment to creating opportunities for the youth of Nigeria. On this occasion of International Youth Day, I urge all our young people to take advantage of these opportunities.”
Nigeria youth investment fund website/portal
There is no dedicated website or portal to Nigeria Youth Investment Fund, applicants would have to go through the 125 micro-credit banks across the country to access the fund.
How to apply for the Nigeria Youth Investment Fund
To apply for the Nigeria Youth Investment Fund, you must have a fundable business idea, be a registered business owner in Nigeria and be a Nigerian citizen.
Also, you must be between the age of 18 and 35 to be qualified for the fund.
The fund would be disbursed to qualified applicants through one of the numerous microcredit institutions in Nigeria under the Central Bank of Nigeria but supported by BOI, Fintech Organisations and Venture Capital Organisations registered with the apex bank.
This is coming after the Federal Government introduced Survival Fund a week ago to stimulate growth in small and medium businesses and cushion the economy from the impact of COVID-19 that is expected by many to plunge it into recession in this third quarter.
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