Business

CBN To Roll Out Guidelines On Contactless Payment System

Published

2 years ago

May 8, 2023

…Set to mitigate inconveniences ahead Dec 31 deadline for cashless policy

The Central Bank of Nigeria (CBN) has revealed that it is set to issue guidelines to promote safe and efficient use of contactless payments across the country. This, according to the apex bank is part of its effort to modernise and drive the cashless payment policy in Nigeria.

The Director, Payment Systems Management Department at CBN, Musa Jimoh, revealed this at the just concluded 34th seminar for Finance Correspondents and Business Editors themed; “Implementing a Robust payment Architecture: Prospects, Opportunities and Challenges” which held in Calabar.

Jimoh who was represented by the Deputy Director, Payment Systems Management Department at CBN, Adefuye Adeyemi, said the introduction of contactless payment is another tool the apex bank will introduce before December 31 to mitigate any inconvenience that may arise when the old notes make way for the new ones. Describing the contactless payment system as a technology that enables an alternative payment method whereby payment instruments are used without physical contact with devices, the Deputy Director said the guidelines would cover the technical and operational requirements for implementing contactless payment systems and the security measures needed to protect customers’ information.

“Contactless technology in payments will provide easy, convenient, and efficient cashless options for users. Create shorter queues at checkout points. The instruments that will be used for contactless payment include pre-paid debit and credit cards, stickers, fobs, wearable devices, tokens, and mobile electronics devices’’.

“An interesting feature of contactless payment is the introduction of Free on board (FOB). In this case the risk of loss shifts from the buyer to seller”, he said.

Identifying some of the benefits of contactless payment which include ease of payments, speed and convenience to consumers’ in-person transactions using their phone, Adefuye noted that this would enhance customer experience.

According to him, “the contactless payment system is more secure than traditional payment methods thus giving customers peace of mind; it will reduce printing of currency thus save the regulator cost of printing and managing currency in circulation; and it reduces spread of contagious diseases during payment due to the lack of contact”.

When quizzed on what the apex bank’s strategies are as regards the phasing out of the old naira notes and the availability of the new naira notes amid the December 31st deadline, Adefuye said, “We are ready and working effectively on that. If we look at India, they did exactly what we did. They did a currency redesign for 6 months and the outcome was the same problem we had and the bad part of it is that people lost confidence in the currency to the extent that people stopped saving their currencies in banks and kept it at home.

“Yes, we know there is a loss of confidence but overtime, everything will come back to normal. The December 31st deadline is still a long way to go. That is in about 8 months’ time and so I know we are ready”.
Sun

Business

Naira Depreciates Against Dollar

Published

2 days ago

July 4, 2025

Editor

The Naira experienced a slight depreciation on Friday at the official market, trading at N1,528.56 to the dollar.

Data obtained from the website of the Central Bank of Nigeria (CBN) showed that the Naira lost N2.73.

This represents a 0.17 percent loss compared to the N1,525.82 recorded on Thursday.

The Naira, which opened the week on Monday with a gain of N9.52 against the dollar, held steady gains until Thursday.

On Wednesday, the local currency gained N3.42 against the dollar and received commendation from the International Monetary Fund (IMF).

The IMF, in its 2025 Article IV Consultation report on Nigeria, commended the CBN for its reforms to the foreign exchange market, which supported price discovery and liquidity.

Business

JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

Published

2 weeks ago

June 20, 2025

Editor

Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit to N880 per litre, raising fresh concerns over fuel affordability and price volatility in the downstream sector.

Checks on petroleumprice.ng, a platform tracking daily product prices, and a Pro Forma Invoice seen by The PUNCH confirmed the hike, representing a N55 increase from the previous rate of N825 per litre.

The increment would ripple across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.

The hike comes despite global crude prices falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks offers little relief due to persistent fears of sudden supply disruptions.

The refinery has increased its reliance on imported U.S. crude and operational costs amid exchange rate instability, which adds to its pricing pressure.

On Thursday, the President of the Dangote Group, Aliko Dangote, said his 650,000-barrel capacity refinery is “increasingly” relying on the United States for crude oil.

This came as findings showed that the Dangote Petroleum Refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered in the past two months, amid ongoing allocations under the Federal Government’s naira-for-crude policy.

Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative that the refinery was still battling crude shortages, which had led it to resort to imports from the United States.

On Monday, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.

He criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

He asserted that if Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.

His forecast of increased costs now appears spot on, considering the latest developments.

Marketers are already adjusting. Depot owners and fuel distributors in Lagos and other cities anticipate a domino effect, with new price bands expected to follow Dangote’s lead.

Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs. The delay fueled speculation, allowing opportunistic price hikes across various depots.

Business

Naira Appreciates At Official Market

Published

1 month ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.