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Nigeria’s central bank, anti-graft agency to monitor banks over illicit funds during recapitalization

Published

9 months ago

March 30, 2024

Regulatory attention will be on the Nigerian banking sector during the central bank’s mandated recapitalization to prevent the influx of illicit financing into the sector.

The Central Bank of Nigeria (CBN), alongside law enforcement agencies, will closely monitor the banking activities as revealed in a circular signed by Mr Haruna Mustafa, the Director of the Financial Policy and Regulation Department at the CBN.

Commercial banks with international authorization now have to meet a minimum capital base of N500 billion, according to a statement released by the CBN on Thursday.

The recapitalization is a major increase that will make these banks more competitive in the global financial market. Regional banks have a N50 billion threshold, while national authorization-holding banks must raise their capital to N200 billion.

The top bank intends to firmly enforce its stringent anti-money laundering laws. The bank hopes to guarantee that the capital raised during the recapitalization process is free from the stain of illegality with the assistance of pertinent law enforcement agencies.

“The CBN has robust anti-money laundering regulations which will be strictly enforced, with the active collaboration of relevant law enforcement agencies.

“In addition, the CBN will require all banks to ensure that appropriate and effective anti-money laundering screening/checks (Know Your Customer, Customer Due Diligence and Suspicious Transactions Monitoring, etc) are conducted,” the circular read.

The Nigerian financial system has experienced several crises, the most significant of which occurred in 2008 and 2009. Following this, there was a programme of recapitalization and consolidation, which led to a reduction in the number of banks from roughly 90 in 2005 to 24 by 2006 and 20 commercial banks by the end of 2011.

Related Topics:Featured Nigeria Recapitalization

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Moroccan annual inflation rises to 0.8% in November

Published

49 minutes ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

1 day ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”