Business

CBN Bans Over-the-counter Withdrawal Of New Notes

Published

1 year ago

January 7, 2023

Editor

The Central Bank of Nigeria has ordered Deposit Money Banks not to pay customers making over-the-counter withdrawals of new naira notes again.

Instead, the apex bank directed the banks to load their Automated Teller Machines with only new notes to ensure that the currency circulates across the nation ahead of the January 31, 2023 deadline when the old notes will no longer be legal tender.

The PUNCH gathered that the apex bank issued the directive to the banks on Wednesday and ordered that the implementation must begin immediately.

However, as of Friday, the banks had not been able to comply with the directive as they complained of inadequate supply of the new notes, prompting them to load their ATMs with the old notes.

A source in a Tier-1 bank, who informed one of our correspondents of the CBN directive on Thursday, said her lender on Thursday issued a memo in that respect to all the branch managers to enforce the CBN order.

The memo, which was titled., ‘Urgent update on currency redesign’ and signed by the Group Head, Retail Operation, stated, “The CBN has mandated that we immediately stop the Over-the-Counter payment of the new N200, N500 & N,1000 currency. Instead, all new notes should be loaded into the ATMs for customer withdrawals.

“This is effective immediately please.”

The source, who is a manager in one of the bank’s branches in Ikeja, Lagos, however, complained that the new notes were in short supply, hence the branch decided to load a mixture of the old and new N1,000 and N500 notes in the ATMs for customers to withdraw.

The source stated, “We got a memo from the head office this morning (Thursday) that we should stop dispensing new notes to customers who come to withdraw over the counter, but instead we should load the ATMs with the new notes. The correspondence from the head office said the directive was from the CBN and that we should implement it immediately.

“The directive has, however, thrown us into a dilemma as we are in short supply of the new notes and we can’t afford not to load the ATMs as there has been a surge in the number of customers coming to withdraw after the Yuletide holidays.

“Loading of ATMs is the responsibility of the banks. When our bank tested the ATMs, only one denomination of the new notes passed the test of dispensing seamlessly through our machines. The bank is working on reconfiguring the ATMs to be able to dispense the new notes. What we have done in my branch is to mix the few new N1,000 and N500 notes available with old ones so that desperate customers can make withdrawals and meet their immediate needs.

“If you observed, a lot of ATMs were inactive during the Christmas and New Year holidays. The idea was not to give out old notes, but unfortunately, the new ones are not in circulation. The banks have a mandate to evacuate N1bn old notes each to the CBN on a daily basis and our head office has set a strict vault limit or cash holding limit for each branch, which on no condition we must exceed.”

When contacted, the CBN spokesman, Osita Nwanisobi, did not respond to enquiries by The PUNCH. As soon as one of our correspondents introduced himself and the topic, he went mute. Subsequent calls to his mobile line were not taken. Text and WhatsApp messages sent to his telephone were not replied to.

However, a senior official of the CBN, who spoke on condition of anonymity because he was not authorised to comment on the issue, confirmed to The PUNCH that the apex bank indeed issued the directive to the banks.

He explained, “From this weekend, new notes will be available for disbursement to bank customers. We are pushing the N1,000 and N500 notes through the ATMs for now. The N200 will be available later.

“The aim is to check inflation and currency abuse. A research was conducted and it showed that the demand for the N1,000 and N500 is higher, hence the decision to start with them.”

When asked when the agent banking representatives, who dispense cash to customers through Point of Sale terminals, would have the new notes, he said the objective of setting them up was not to handle large volume transactions, adding that the operators were abusing the guideline.

A source in the corporate affairs department of a new generation bank told The PUNCH, “Even before the CBN directive, our bank had been loading the ATMs with new notes. However, I must admit that the new notes are in short supply. What we do is to mix them up with old notes. For example, if you want to withdraw N10,000, you may get only two pieces of new N1,000. Some of our ATMs in the Oniru area of Victoria Island, Lagos, are dispensing only new notes.

“The configuration of the ATMs is an ongoing thing; yes, all the ATMs have not been fully configured. There are gaps from the regulator, which is the CBN, but we will obey the directive within the limit of what we have. Customers are depositing old notes in huge volumes. The CBN has stopped the supply of the notes that will soon cease to be legal tenders to the banks.

“I am sure that before January 31, the new notes would have spread to different parts of the country. Though I work in a bank, I have not seen the new N200; I have only seen N500 at a party in Abeokuta and it was being sold as your paper rightly reported a few weeks back.”

Old notes

When Saturday PUNCH conducted surveys across many bank branches and ATM galleries on Friday to find out if the CBN directive had been complied with, it was discovered that the majority of them were still dispensing to their customers old notes that would go out of circulation by month end.

At the Ibafo, Ogun State branch of the UBA, it was observed that the ATMs were dispensing only old N1,000 and N500 notes to customers, who lined up in a queue at the gallery. When one of our correspondents asked the security guard on duty at the gallery when new notes would be loaded onto the ATMs, he said arrangements were being made for that and that the new notes should be available two hours from then. That was around 12.15pm. A subsequent visit to the bank’s ATM gallery around 2.30pm revealed that one of the machines had been loaded with the new N1,000 notes, but customers were limited to withdraw only N10,000.

At the nearby Access Bank branch, only one ATM was working at the gallery as it only dispensed the old N1,000 notes.

At the UBA Akute business office in Ogun State, one of our correspondents observed that the ATMs were dispensing new notes, but old notes were being paid to customers who made over-the-counter withdrawals.

The First Bank ATMs in Mowe were dispensing old notes as of Friday afternoon and when one of our correspondents approached the cashier inside the banking hall for new notes, she was told that it was not possible as the branch only got small amounts of the new notes and was mixing it with old notes.

Over the counter, customers were being given old notes, but the cashier said the new notes should be in circulation by the end of the month. When our correspondent returned to the ATM gallery, she withdrew N5,000 in old N500 notes.

PoS operators in Magboro said that they did not have new notes to give to their customers, adding that in a bale of N100,000 they get from the bank, they get only N1,000 new notes.

At the Ecobank branch inside the Mountain of Fire and Miracles’ Prayer City, Magboro, Ogun State, the ATMs were not dispensing new notes and customers were also being paid old notes over the counter. A teller said the branch did not have new notes to dispense to customers.

The Access Bank and Wema Bank ATMs in Arepo were also dispensing old notes.

At the GTbank, Mushin, Lagos, the ATMs were still dispensing old notes, while over-the-counter withdrawals were also in old notes. The same situation was recorded at the bank’s branch in Anthony Village.

Branches of Access Bank and First Bank at Nyanya in Abuja were still dispensing old notes as of 2pm on Friday.

At Access Bank, CMD Road, Magodo, Lagos, the old naira notes were being dispensed by the ATMs and inside the banking halls.

It was observed that some customers, who insisted on new notes, were told to return on Monday or wait till the bullion van bringing the notes from the ‘store’ arrives later on Friday evening.

An aggrieved customer, Ayotunde Disu, who claimed to have been affected by the situation, said he had been lied to by the tellers for far too long.

Disu said, “I am a PoS operator. They know me here. They promised to give us some level of concession but they have been posting me. I came here on December 30, 2022, and they promised that they would attend to me on January 4, 2023, when they resumed.

“I came here on January 4 and I was shocked when they gave me very dirty notes. I rejected them and protested, and they told me to come back today (Friday). Look at it now. They are telling me to hold on till Monday. I won’t.

“My own problem is that I don’t want to have any old notes with me by the time the deadline is over, which is January 31, 2023.”

Another customer at the banking hall, who did not want to be named, said he was shocked when the teller gave him old notes when he came to cash a cheque.

“I don’t bank here but I came to cash a cheque. They are giving me old notes, which are very dirty. They look like they were taken out of a dungeon. Of course, I rejected them,” he said.

A teller at the counter said the new notes had been exhausted.

“They gave us some new notes as we resumed this year, but I have to be honest with you; they have finished. I cannot have the new notes and do not want to give you, please,” she said.

Another teller, who begged not to be named, asked our correspondent to come back on Monday, promising to give him the new notes.

“I am not promising that everything will be new notes, but I will try and squeeze out more than the approved 10 per cent per N100,000 for you,” he said.

At the Keystone Bank branch on CMD Road, the situation was even worse as no new note was disbursed over the counter. The tellers claimed to have all exhausted the ones given to them for the week.

“They gave us some stacks as we resumed this year, but we have exhausted them. This morning, I still had some, but a PoS operator came and took everything,” one of the tellers claimed.

A customer in the banking hall, Hadiza Ahmed, said he had not laid her hands on the new notes since they were released last year.

“I don’t know if this January 31 deadline is feasible because I haven’t even touched the new naira notes since they were released,” she added.

At Access Bank, Obalende, the tellers mixed the new naira notes with very old and dirty old notes for customers.

One of our correspondents observed that for N50,000 withdrawal, N5,000 worth of new notes were added. For N100,000, N10,000 was given.

Many customers who were disgruntled by this and protested to have their notes changed were asked to come back on Monday.

“The tellers said we should come back on Monday. My own fear is that I don’t want to collect these old notes and forget to spend them and they become invalid in my hands,” a customer stated.

At the First Bank main branch on Bonny Island, Rivers State, old notes were still being dispensed as of Friday.

A trader, Comfort Adindu, who visited the branch for an over-the-counter withdrawal, was paid with old notes.

Adindu said, “At Bonny Island, I am not sure these new notes have been brought except for those who brought them from Port Harcourt.

“I have gone to many banks and they are still giving out old notes.”

A student, Wisdom Ahamefuna, who visited the UBA, King Perekule Road branch, Bonny, said the tellers mixed a few new notes with the old notes at the counter.

“The ATMs are still dispensing old notes. It is as though the money has been kept for long,” he added.

A senior bank official at Access Bank, who begged for anonymity because he was not permitted to speak on the matter, said it was not the fault of the banks but that of the CBN.

The bank official said, “The new notes you are talking about are being given by the CBN and the quantity they give to us is too small; so, we have to ration them to all over customers. There is nothing we can do.

“It is obvious that the January 31 deadline is not feasible, but we are waiting for the decision of the CBN. A lot of our customers are complaining. One even came here to fight us, but there is nothing we can do.

“Last week, our director of currency operations came with just 14 stacks worth N100,000 of new notes. How many customers will that serve?”

CBN overwhelmed – Economist

An economist, Mr Ade Dayo, said the central bank seemed overwhelmed as it was obvious that it would not be able to meet up with the January 31 deadline.

Dayo stated, “The CBN policy is good but the time span is too short. By this time, the new notes should have been everywhere. The CBN needs to do more sensitisation. It doesn’t seem like many people are aware that there is even a new naira or what it looks like, and it is not a good one.

“If people in Lagos and other megacities like Port Harcourt are having issues with getting the new notes, what will then happen to rural dwellers, who do not even have access to banking? The CBN must resolve this issue of moving the deadline a bit further to enable Nigerians to get the notes.”

PUNCH

Business

Tinubu Okays Payment Of N3.3tn Power Sector Debts, Gencos, Gas Producers To Get N1.3tn, $1.3bn

Published

4 days ago

May 17, 2024

Editor

As part of the measures to tackle incessant power outages in the country, President Bola Tinubu has approved the gradual payments of power sector debts estimated at over N3.3tn.

Consequently, about N1.3tn owed power generating companies by the Federal Government will be paid via cash injections and promissory notes, while about $1.3bn (N1.994tn using the current official closing rate) owed to gas companies will be paid via cash and future royalties.

Already, the Federal Government has commenced payment of the cash part of the N1.3tn debt owed Gencos and concluded plans to settle the second part via promissory notes within a timeframe ranging from two to five years.

The Minister of Power, Chief Adebayo Adelabu, disclosed this at the 8th Africa Energy Marketplace held on Thursday in Abuja.

The event was themed, “Towards Nigeria ‘s Sustainable Energy Future: Policy, Regulation and Investment – A Policy Dialogue for the National Integrated Electricity Policy and Strategic Implementation Plan.”

The government is subsidising electricity by shouldering the gas payment component for power generation.

But over the years this payment has not been steady, leading to humongous gas debts as well as indebtedness to power generation companies.

Disclosing the solution to the issue, Adelabu stated that Tinubu had directed the Minister of Finance to make immediate payment of N130bn from the Gas Stabilisation Fund, being part of the N1.3tn owed Gencos. The rest will be spread over some time.

The power minister further explained that the payment of $1.3bn legacy debts owed gas producers would be sourced from future royalties and income streams in the gas sub-sector, a solution deemed satisfactory by the gas-supplying companies.

He said, “It is true that I mentioned that Mr President has approved the submission of the Hon. Minister of State Petroleum (Gas) to defray the outstanding debts owed to the gas supplying companies to the power sector operators.

“The payments will be in parts. We have the legacy debt and we have the current debt. For the current debt, approval has been given for a cash payment of about N130bn from the Gas Stabilisation Fund, which the Federal Ministry of Finance will pay, if not already paid.

“The payment for the legacy debts is going to be made from future royalties and streams of income in the gas sub-sector which is quite satisfactory to the gas supply companies. The last amount that was being quoted was $1.3bn, which we believe will go a long way to encourage these gas companies to enter into firm supplying contracts with the power generating companies.”

He further explained, “The situation we are in now is on a best endeavour model, which means there is no firm contract between the gas companies and the majority of the power generating companies. The day they can supply gas, they will, the day they cannot supply gas, there is no penalty. But once there is a firm contract they will be under contractual obligations to supply gas to these power-generating companies so that we can have a consistent power generation.

“So, that is the situation and the model we want to adopt for the gas segment of the power sector value chain.”

Continuing, the minister voiced concerns about the lack of policy coordination in the power sector, assuring the sector however that the current administration was committed to eliminating all bottlenecks in the industry.

Adelabu also justified the Band A tariff hike, saying that only 15 per cent of Nigerians were affected.

He disclosed that without proper billing, the power reform agenda of the present administration might not be achieved.

The minister also revealed that with the generation of 700MW from the Zungeru hydroelectric power plant, the Nigerian Electricity Supply Industry has recorded a new feat of 5,000MW.

Regarding the power-generating companies, he noted that the president had approved cash injections and promissory notes, providing significant encouragement to the companies and incentivising them to further invest in generation capacity.

The minister explained, “For the power generating companies, the debt is put at N1.3tn. I can also tell you that we have the consent of Mr. President to pay on the condition of settling the reconciliation of these debts between the government and the power-generating companies.

“And this, we have successfully done, and it is being signed off by both parties now. The majority have signed off, and we are engaging others to ensure we have a 100 per cent sign-off from the power-generating companies. And the modalities for paying this will be in two ways. Of course, there will be a cash injection, immediate cash injection.”

He added, “Government is not buoyant enough to pay down N1.3tn once and for all in terms of cash. But there is a fraction of it that will be paid in cash while the remaining fraction will be settled through a guaranteed debt instrument, preferably a promissory note. That is more like a comfort to these companies that in the next two, three to five years, the government is ready to defray this debt finally. This will go a long way to encourage the power generating companies to incentivise them to even invest more in generation so that you can know our generating output from the level it is now to a higher level because as I mentioned, there is an opportunity for demand locally and across the border. And that is a source of foreign exchange earnings for the country.”

Adelabu, who said the supply of electricity had increased due to the implementation of the Electricity Act 2023 and the Band A tariff, added that the Discos were requesting more load for onward distribution to their customers.

The power minister had stated in February that Nigeria must begin to move towards a cost-effective tariff model, as he revealed that the country was indebted to the tune of N1.3tn to electricity generating companies, while the debt to gas companies was $1.3bn at the time.

On March 1, 2024, The PUNCH reported that the Federal Government had paid $120m out of the $1.3bn indebtedness to gas companies for the supply of gas to run gas-fired power plants across the country.

Nigeria is currently suffering from low power supply because gas supply has been reduced after some operators stopped supplying the commodity to power-generating companies due to the indebtedness of the Gencos to gas-producing firms.

Adelabu recently revealed that the crash in power generation and attendant poor supply in January was because gas suppliers stopped supplying gas for the generation of electricity due to the indebtedness of the sector to gas producers.

Nigeria gets more than 70 per cent of its electricity from thermal power plants that run on gas. The remaining amount of electricity comes from hydropower-generating plants.

Speaking at the 7th Nigeria International Energy Summit in Abuja in March, the Director, Decade of Gas Secretariat, Ed Ubong, expressed excitement that the Federal Government had cleared $120m out of the $1.3bn gas debts.

The Decade of Gas Secretariat is under the Federal Ministry of Petroleum Resources (Gas). The Federal Government is subsidising electricity by paying for the gas used in generating power, as Nigerian power users are currently not paying the exact amount for electricity.

“As of last year, that (gas debts) was about $1.3bn, depending on how you add up the numbers. But I am pleased that between October and the end of January, the government has paid over $120m to offset some of that money,” Ubong stated.

Meanwhile, the African Development Bank is set to seek board approval for a $1bn policy-based operation with a significant energy component to support the reforms initiated by the new Electricity Act, of 2023. This funding aims to actualise the outcomes expected from the NIEP-SIP and attract sustainable investments.

The Vice President, Power, Energy, Climate and Green Growth Complex at the AfDB, Dr. Kevin K. Kariuki, disclosed this at the African Energy Market Place held in Abuja on Thursday.

The AEMP special edition focuses on the “National Integrated Electricity Policy and Strategic Implementation Plan,” reflecting the Federal Government of Nigeria’s ongoing reforms to enhance the power sector’s effectiveness, efficiency, and productivity.

Kariuki emphasised the alignment of the event with the bank’s “Light Up and Power Africa” initiative, which is part of its High 5 development strategy for the continent.

With Nigeria holding the highest electricity access deficit globally, the success of the reforms, including tariff adjustments and regulatory improvements, is crucial.

Kariuki highlighted the need to utilise over 13,000,000MW of installed capacity, improve transmission, reduce supply interruptions, and achieve financial viability across the power sector.

The VP noted that the success of the Electricity Act would hinge on its ability to rapidly provide quality electricity access to all Nigerians, thereby addressing the country’s status as having the world’s highest electricity access deficit.

“With 90m Nigerians lacking electricity, the reforms are poised to utilize over 13 Gigawatt of installed capacity, improve transmission, reduce supply interruptions, and enhance the financial viability of the power sector.

“No economy can grow in the dark,” the VP stated, emphasising the critical role of reliable power in economic growth, industrialisation, and competitiveness.

The AfDB’s investments include the $256.2m Nigeria Transmission Expansion Project and the $200m Nigeria Electrification Project, which will construct transmission lines, substations, and mini-grids.

Furthermore, the AfDB is financing a study to explore the deployment of Battery Energy Storage Systems to stabilise the grid and promote renewable energy.

Nigeria’s participation in the $20bn Desert to Power initiative to generate 10,000MW of solar power in the Sahel region, was also mentioned as a key step toward increasing renewable energy in the country.

The AfDB boss expressed confidence that the AfDB’s multi-faceted approach, including policy support, infrastructure financing, and capacity building, would ensure a viable and sustainable power sector in Nigeria.

He called for a collaborative spirit among governments, the private sector, and partners to craft policy recommendations that would lead Nigeria to universal access by 2030 and zero carbon emissions by 2060.

Obi, Nnaji speak

Meanwhile, a former Minister of Power, Barth Nnaji, and the presidential candidate of the Labour Party in the 2023 general election, Peter Obi, have advised the Federal Government to declare an emergency in the power sector.

The duo spoke at the inaugural Dele Momodu Leadership Lecture held Thursday at the Nigerian Institute of International Affairs, Lagos.

Nnaji also called a super grid to end the incessant collapse of the national power grid.

Nnaji, who was the Guest Speaker at the event, said the current national grid kept collapsing because it was not well structured.

Recall that the national grid collapsed more than two times in the first quarter of 2024, plunging Nigerians into darkness.

Touching on the theme, ‘Politics of Energy: The Way Forward’, Nnaji stated that the power ministry under his watch had years ago sought the approval of the Federal Executive Council to build what he called a super grid, a 765KV network that would rise above the existing 330 KV.

According to him, the 765KV is large enough to take power from high-capacity plants like the Manbilla Power Plant.

He revealed that the country has yet to have a transmission network that could wheel power from Manbilla when completed.

Nnaji explained, “Another critical area in Nigeria’s power sector is the transmission network. I believe that having the national grid the way we have it still going to be a problem. First, it is not robust, and it is not well structured. My advocacy is for multiple grids, autonomous but connected to the national grid. So that the national grid still operates, and will be more robust. It will begin to cure the regular incident of the failure of the national grid.

“When I was in government, we asked the Federal Executive Council to approve what we called a super grid, a 765KV network that will kind of rise above the existing 330KV network. Right now, Nigeria has 330KV and 132KV, but none of them is robust. But the 765KV network will be very important to take power from power plants such as the Manbilla that has been on for a while. Over 10,000 megawatts of power will come from Manbilla. So, the question is, which transmission infrastructure will take that power suppose that we finish it now? We need a super grid to take that power so that Nigeria can take power from various plants and transmit it to wherever we want it.”

The Chairman of Geometric Power commended Adelabu for reviving the super grid project.

“I am happy that the current Minister of Power, Adebayo Adelabu is reviving this super grid, and I think we have to spot him on that because it is a very important project. Our conception was that it would be done in sections by various companies so that it would not be one of these white elephant projects,” he said.

Nnaji expressed concern that still suffers gas shortages in the power sector despite its abundant natural gas reserves.

He wondered why the nation keeps exporting gas that is not yet enough for domestic use, calling for a state of emergency in the gas sector.

“A state of emergency needs to be declared in the gas sector. The declaration will save the power sector and allow the government and other stakeholders to address fundamental issues in the gas sector in a robust manner. The issue will include how to strike a healthy balance between producing gas for export and gas for domestic consumption,” he noted.

The former minister regretted that the Federal Government has not executed a power project since almost nine years ago, adding that some ongoing ones were abandoned by successive administrations.

“The development of the power sector has also been stalled for years because of the suspension of what we developed that time called partial risk guarantee to support power purchase agreement. A government that is buying power has to issue a power purchase agreement to the producer of power, and the agreement must be guaranteed.

“We were able to do this but only one project was completed, that is the Azura-Edo project, a 461MW power plant; and then it was stopped nine years ago. The outcome is that for this period, Nigeria has not commissioned a government-sponsored power project. And the former President of Ghana said you need to be adding over 12 per cent of energy to your country yearly. If you want to grow the economy, that’s what you need. If in nine years, we have not added anything, you can imagine. I want to tell you that because of that partial risk guarantee, four or five major projects had been fully developed but stopped. I encourage the government to reawaken those projects. They are very critical,” Nnaji added.

Earlier in his speech, former Ghanaian President, John Mahama, disclosed that Ghana had been able to power generation capacity to 5454MW, saying the country had been exporting electricity to other neighbouring countries in the West of Africa like Togo, Benin Republic and others.

Mahama remarked that Nigeria could achieve energy security for itself and other African countries, adding that a nation must plan because the energy demand will keep rising by 10 per cent yearly.

On energy transition, Mahama urged African leaders to decide their modalities with Nigeria showing leadership.

Speaking, the presidential candidate of the Labour Party, Peter Obi, posited, “When the former president of Ghana said they are generating and distributing 5,000MW, I was wondering; Ghana with one-seventh of our population generates and distributes more than us. We must declare an emergency in power. The way to go is very simple, we need embedded power, with gas supply. We have gas all over the place. Yes, we need the dollars, but I think making Nigeria more productive and pulling our people out of poverty, especially in the north, will give us far more value and dollars than focusing on exports. I think it is time to declare an emergency. We should encourage an embedded power”.

The organiser of the lecture and publisher of Ovation Magazine, Dele Momodu, maintained that Nigerians pay for electricity without getting the same being delivered to their homes.

In his welcome address, the veteran journalist wondered why the electricity challenges in Nigeria have defied all solutions.

“Why can’t we stop this endless energy crisis in Nigeria? We pay for electricity, but it can’t be delivered. The more we pay, the less we get,” he said.

Momodu lamented that the humongous money invested in the power sector over the years has not yielded any result.

This, he stated, informed his decision to organise the public lecture in commemoration of his 64th birthday.

Others at the lecture were Governor Ademola Adeleke of Osun State; former Governor Rabiu Kwankwanso of Kano State; former Governor Donald Duke of Cross River; the Ooni of Ife, Oba Adeyeye Ogunwusi and others.
PUNCH

Business

Naira Slumps, Exchanges At Over N1,500 Against Dollar

Published

1 week ago

May 13, 2024

Editor

The naira continued its depreciation against the US dollar in the foreign exchange market.

Data from the parallel market section and FMDQ showed further depreciation against the dollar on Monday.

At the parallel market, a Bureau De Change operator in Wuse Zone 4, Mistila Dayyabu, told DAILY POST that the naira was sold as high as N1,517 per dollar on Monday before settling at N1,500 per dollar.

“On Monday morning, the dollar was sold at N1,517 per dollar. However, on hearing the information about the coming of the Economic and Financial Crimes Commission operatives, we started selling at N1,500 this evening, ” he said.

The figure increased from the N1, 450 per dollar it traded at the weekend.

Similarly, at the official market, FMDQ data showed that they dipped to N1478.11 per dollar on Monday from N1466.31 last Friday.

This represents an N11.8 drop from the N1466.31 recorded last Friday.

Earlier, the Central Bank of Nigeria Governor, Olayemi Cardoso, said the apex bank’s Monetary Policy Committee will do everything to bring down soaring Nigeria’s inflation, which stood at 33.22 per cent in March 2024.

Business

CAC Opens Centre For Registration Of PoS Operators

Published

2 weeks ago

May 9, 2024

Editor

The Corporate Affairs Commission has inaugurated a centre for bulk registration of Point of Sale operators in its database.

The CAC Registrar-General, Hussaini Magaji, said this while inaugurating the centre stationed at its Federal Capital Territory Office in Abuja on Wednesday.

According to Magaji, the importance of registering the PoS operators in the commission’s database cannot be over emphasised.

He said the centre was well equipped with all the necessary facilities to operate 24 hours a day and ensure the commission’s achievement of its purpose.

“What we did was accommodate the request from the Fintechs.

“We have allowed them to integrate with the Corporate Affairs Commission; they have developed their structure, and we gave them access.

“Once they supply the necessary details for registration on their platform, the certificate is generally generated and transmitted directly to their platform without them having to contact anyone.

“We have done this to ensure that everyone gets it easy without hitches, but if they choose to apply manually, we have a secretariat open for them to do so,” he stated.

Recall that the Federal Government through the CAC on Tuesday issued a two-month registration deadline to Point of Sales companies, to register their agents, merchants, and individuals with the commission in line with legal requirements and the directives of the Central Bank of Nigeria.

Meanwhile, at the event, the registrar-general reiterated that the centre would be opened to all operators in the fintech industry who voluntarily submitted their agents and merchants for regularisation with the CAC.

Magaji said that the registration was in line with President Bola Tinubu’s desire to ensure financial inclusion for the youth and strengthen the fight against fraud, finance and other crimes in the country.

He further expressed his resolve to ensure compliance with the provisions of Section 863 (1) of the Companies and Allied Matters, CAMA 2020, and the CBN guidelines for Agent Banking, 2013.

On security, the CAC boss said that if a crime were committed using the PoS, the government would easily trace the perpetrators to the CAC data platform if such machines were registered.

“If an incident happens and they report it to CAC, if we do not have the operator’s details, we cannot respond, and that is the essence of this registration.

“The registration ensures that every detail of the person is provided, including NIN, passport photograph and all other useful documents.

“And it is an opportunity for more people to be captured into the formal sector,” he said.

The News Agency of Nigeria reports that the Special Adviser to the President on ICT Development and Innovation, Tokoni Peter attended the event.

The event was attended by Dr Salihu Dasuki, the Special Adviser to the President on ICT Policy Office, the PoS operators, and other stakeholders.

(NAN)