Business

Knocks, Kudos Trail CBN’s Planned Redesign Of Naira Notes

Published

3 years ago

November 1, 2022

Financial experts and analysts have expressed mixed reactions over the proposed Naira notes redesign by the Central Bank of Nigeria (CBN).

Recall that the CBN, on October 26, made known its decision to redesign the N200, N500 and N1000 notes by December 15, 2022.

The apex bank added that the existing notes will no longer be regarded as legal tender by January 31, 2023.

Justifying the development, CBN Governor, Dr Godwin Emefiele, lamented that 85 per cent of the currency in circulation is being hoarded by Nigerians.

Emefiele added that the redesigning of Naira notes would help to curb counterfeit, as well as hamper ramson payment to terrorists and kidnappers.

CBN’s announcement has generated polarised reactions even within the government itself.

Minister of Finance, Budget and Planning, Zainab Ahmed became a known critic of the planned policy following her comment at the Nigeria Senate that she was not consulted.

Although President Buhari Muhammadu seems to have saved the situation when he stated that he backed the CBN on its move to redesign naira notes.

However, speakingon Monday, some financial experts described the Naira notes redesign idea as wasteful, without economic value, while others justified the move.

A Financial Inclusion/Wealth Management expert, Mr Idakolo Gbolade, said the decision will not positively lift the ailing Nigerian economy.

He explained that the pronoucement has further devalued the Naira against Dollar.

“The reasons given for redesigning the Naira notes regarding efforts to trace ransom payments or curbing counterfeiting may be germaine but it’s attendant cost could further increase inflationary pressures on the economy. This decision will not positively lift the economy.

“Presently the pronouncement has further devalued the Naira with its exchange rate going for N815/$ in the black market.

“The sudden change could be politically correct but economically damaging due to the short period of implementation which could cause upheavals in the financial system.

“This sudden rise is the exchange rate of Naira to US Dollars is largely due to massive request to exchange the Naira notes to dollars which has further increased the scarcity of dollars and put more pressure on the Naira thereby reducing our foreign reserves.

“The continous devaluation of the Naira will further hurt the economy and increase the cost of production and cost of living”, he stated.

On his part, the Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf disclosed that the exercise has no monetary policy significance.

Muda added that the country can survive without such intervention rather CBN should devote its attention to solving the issue with liquidity in the foreign exchange market, Naira depreciation and soaring inflation.

In his words, “Currency as a percentage of money supply is less than seven percent. The exercise therefore has no monetary policy significance.

“Besides it will come with huge logistics costs, and avoidable dislocations to small businesses, most of whom are in the informal sector.

“This is one intervention we can do without. There are more urgent issues demanding the attention of the CBN. We have issues with liquidity in the foreign exchange market, the depreciating currency the recent Moody’s downgrade of nigeria, soaring inflation and many more.

“The CBN should save the citizens and the economy the trauma of this currency redesign. It is a distraction we can do without.”

Meanwhile, Professor of Management and Accounting, Lead City University, Ibadan, Godwin Oyedokun, said the move could help distort flow of illicit funds.

“Well, I have reviewed it, I actually do not have problem with it. I don’t have to support it because of the opinion of others, ones it is correct and according to the law, I will support it.

“I believe it is the right thing to be done. Like Buhari said, it is only those that have issue that will not support it. Some people said it will affect exchange rate, I don’t believe in this.

“It can be used to distort the flow of illicit funds. If you don’t have business in holding dollars, you shouldn’t hold it. A lot of money will be in circulation now but it is temporary. I expect by January, February, another policy should come in, because one should not have any reason in holding cash. The cost of printing Naira is more; everybody will be ok without physical exchange of cash”, he said.

It was learnt that commercial banks have put forward measures to facilitate an easy cash collection process from depositors before the January deadline.
DAILY POST

Business

NNPCL Raises Fuel Price

Published

1 week ago

October 13, 2025

Editor

The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of petrol from ₦865 to ₦992 per litre, marking a fresh hike that has sparked widespread concern among motorists and consumers .

As of the time of filing this report, the company has not released any official statement explaining the reason for the sudden adjustment.

During visits to several NNPC retail outlets, The Nation observed fuel attendants recalibrating their pumps to reflect the new price.

At NNPC filling station on Ogunusi road, Ojodu Berger, petrol attendants at the station said they were instructed to change the price to reflect the new rate N992 per litre.

However, checks at Ibafo along the Lagos /Ibadan expressway showed that NNPC outlets still displayed the old price of N875 per litre, although they were not selling to commuters.

Most of the NNPC stations were not dispensing fuel.

Business

CBN Directs Banks To Refund Failed ATM Transactions Within 48hrs

Published

1 week ago

October 11, 2025

Editor

The Central Bank of Nigeria has directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine transactions within 48 hours, in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.

The directive is contained in a draft guideline released by the apex bank on Saturday, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”

The document, signed by Musa I. Jimoh, Director of Payments System Policy Department, was circulated to banks, payment service providers, card schemes, and independent ATM deployers, with a call for stakeholder feedback by October 31, 2025.

Under the draft, failed “on-us” transactions, where customers use their own bank’s ATM, must be reversed instantly. If technical glitches prevent immediate reversal, the bank is required to manually refund the customer within 24 hours.

For “not-on-us” transactions, involving other banks’ ATMs, refunds must be processed within 48 hours.

“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.

In a significant shift, the CBN mandated banks and ATM acquirers to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to lodge complaints.

Institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.

According to the apex bank, these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.

The guidelines will also overhaul ATM operations nationwide. Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased targets of 30% compliance in 2026, 60% in 2027, and full compliance by 2028. Any future deployment, relocation, or decommissioning of ATMs must receive prior approval from the CBN.

To ensure safety, ATMs must be fitted with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas.

Machines are expected to comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts. At least 2% of all ATMs must feature tactile symbols for visually impaired customers.

ATMs are also required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees, dispense only clean banknotes, and provide backup power to reduce downtime.

Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the cause and expected restoration time.

The CBN will enforce compliance through regular audits, on-site inspections, and monthly reports from ATM operators detailing deployments and locations. Defaulting institutions risk sanctions, though fines were not specified.

The apex bank explained that the overhaul was necessary due to rising complaints about failed transactions, cyber fraud, and declining service quality, noting that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”

Nigeria’s electronic payments landscape has grown rapidly in recent years, with 200 million cardholders and rising reliance on digital banking, but network failures, poor infrastructure, and delayed reversals have continued to undermine confidence.

The fresh guidelines, coming eight months after a revision of ATM fees, are expected to streamline service delivery, enhance transaction security, and hold banks accountable. Stakeholders are invited to submit feedback ahead of the final policy adoption, which could take effect before the end of the year.

Business

Nigerian Stock Market Hits 10th Consecutive Uptrend As investors Gain N308bn

Published

2 weeks ago

October 10, 2025

Editor

The Nigerian Stock Market recorded its 10th consecutive uptrend as investors raked in N308 billion gain on Thursday.

This comes as the Nigerian Exchange Limited, NGX, market capitalisation, which opened at N92.490 trillion, appreciated by 0.33 per cent to close at N92.798 trillion on Thursday.

Also, the All-Share Index added 0.33 per cent, or 485.25 points, to close at 146,204.34, compared with 145,719.09 recorded on Wednesday.

Increased trading in Eunisell Interlinked, Caverton Offshore Support Group, Sunu Assurances, Industrial and Medical Gases, Mecure, and 27 other advancing stocks boosted market performance on Thursday.

To this end, the market breadth also closed positive with 32 gainers and 21 losers.

Further analysis showed that Eunisell Interlinked and Caverton Offshore Support Group led the gainers’ chart by 10 per cent each, closing at N44 and N6.93 per share, respectively, while FTN Cocoa Processors led the losers’ table by 6.67 per cent, closing at N5.60 per share.

Market activity showed a decline in the number of deals and volume traded but an improvement in trade value.

Accordingly, a total of 346.99 million shares worth N27.43 billion were traded in 24,691 deals, compared with 525.72 million shares worth N13.61 billion exchanged in 25,597 deals on Wednesday.

Fidelity Bank topped the activity chart with 42.01 million shares valued at N861.54 million.

According to DAILY POST, NGX has continued its bullish run from last month’s end to date.