USSD Charge

Banks commence N6.98 USSD charge, customers kick - Punch Some banks have notified their customers that they will start charging them N6.98 for every USSD transactions. However, experts have said that excessive charges by banks could pose a threat to financial inclusion. According to them, it will increase cash transactions because many bank customers would avoid using the USSD for transactions and could also discourage the unbanked segment of the population because they would not like to pay such charges over their little deposits. A message from some of the banks, including Guaranty Trust Bank, First Bank and Fidelity Bank on ‘Update on USSD transactions’ stated, “Please be informed that you are now required to pay a fee of N6.98 to your mobile network provider for every banking transaction carried out on all USSD banking platforms. “This means that when you send money to anyone using USSD, a fee of N6.98 will be charged to your bank account, which is in turn remitted in full by your bank to your mobile network provider. Read more here

Bankers and Foreign Accounts

National Assembly working on barring bankers from operating foreign accounts – Punch The House of Representatives is considering barring staff members of banks and other financial institutions from operating accounts outside the shores of Nigeria. Their spouses and children may also be mandated to declare their assets when a bill presently at the House becomes law. This was contained in the ‘Bank Employees, Etc., (Declaration of Assets)(Amendment) Bill 2021’, which is awaiting second reading. The legislation was titled ‘A Bill for an Act to amend the bank employees, etc., (Declaration of Assets) Act CAP. B1 Laws of the federation of Nigeria 2004 to reflect the prevailing situation in the country’. The bill, sponsored by the lawmaker representing Iseyin/Itesiwaju/Kajola/Iwajowa Federal constituency in Oyo State, Mr. Shina Peller, proposed a series of amendments to the Act. Read more here

Forex

We’re increasing forex to banks for SMEs, travelers, tuition - Punch The Central Bank of Nigeria said it has concluded plans to increase the amount of foreign exchange allocated to banks to meet the requests of customers seeking forex for travel allowances, payment of tuition and medical fees, among other invisibles. This followed the warning by the CBN Governor, Mr. Godwin Emefiele, to Deposit Money Banks to desist from denying customers the opportunity to purchase foreign exchange for several purposes. The purposes include Personal Travel Allowance, Basic Travel Allowance, tuition fees, and medical payments as well as Small and Medium Enterprises transactions or for the repatriation of Foreign Direct Investment proceeds. During a meeting on the challenge faced by customers in accessing forex from their banks, the governor warned that the CBN would severely deal with any bank that denied customers the opportunity to purchase foreign exchange for legitimate purposes. Read more here

2020 Financial Inclusion Target

Nigeria falls short of 2020 financial inclusion target as 38m adults lack access – Business Day Nigeria failed to meet its National Financial Inclusion Strategy target for 2020 to include 80 percent of its adult population into the financial system. EFInA data show that only 64.1 percent were financially included by the end of last year. This means that 36 percent of Nigerian adults, or 38.1 million of the country’s 106 million (18 years and above) adults, remain completely financially excluded. This is a shortfall by 16 percent points from the desired target of a 20 percent exclusion rate. The 2012 strategy by the Central Bank of Nigeria (CBN) had also aimed to reach 70 percent of Nigerians with formal financial services by 2020; the actual figure reported by EFInA’s Access to Financial Services in Nigeria 2020 Survey released on Thursday showed it was 51 percent, a shortfall by 19 percent points. A breakdown of the EFinA report showed that Nigeria did not only miss its overall financial inclusion target, it was unable to also achieve other sub-targets outlined by the Central Bank of Nigeria. Read more here

Twitter Suspension

$12b e-commerce suffers as Twitter ban costs N7.5 billion in three days – The Guardian The suspension of Twitter, a leading micro-blogging platform, has begun to take its toll on struggling Nigeria’s economy, leading to a loss of N7.5 billion in the past three days. Nigeria’s decision to suspend Twitter, at first indefinitely but later temporarily, could backfire for the government and cost the country economically in terms of new investment into its technology sector. The ban may threaten Nigeria’s status as one of the best-performing African countries in attracting investment for technology start-up businesses. Read more here