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CBN raises capital requirements for microfinance banks by 900%

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The Central Bank of Nigeria has increased the capital requirements for microfinance banks in the country in a bid to tackle the challenge of inadequate capital base in the sub-sector.

The CBN announced the upward review of the minimum capital requirement in a circular dated October 22, 2018 to all microfinance banks in the country.

The minimum capital requirement for unit and state microfinance banks was raised by 900 per cent each to N200m and N1bn, respectively from N20m and N100m, while that of national microfinance banks increased by 150 per cent to N5bn from N2bn.

According to the circular, the new minimum capital requirement takes immediate effect for new applications, while existing microfinance banks shall be required to fully comply with effect from April 1, 2020.

The Director, Financial Policy and Regulation Department, CBN, Mr Kevin Amugo, said the apex bank reviewed the minimum capital requirement in exercise of the powers conferred on it by the Banks and Other Financial Institutions Act and in furtherance of its mandate to promote a sound financial system in the country.

He noted that given the role of microfinance banks in economic growth and development, the Microfinance Policy, Regulatory and Supervisory Framework was introduced on December 15, 2005 and revised in 2011.

Amugo stated that the key focus of the policy was, among others, to increase financial inclusion rate in the country, improve access to financial services for the active rural poor, and pursue poverty eradication.

According to him, the microfinance banking sub-sector, in pursuit of the above objectives, has been contending with such challenges as inadequate capital base, weak corporate governance, ineffective risk management practices, dearth of requisite capacity and mission drift.

He said, “The CBN has reviewed the state of health of the sub-sector and is of the view that microfinance banks, as presently constituted, would be unable to meet the critical targets set out in the Microfinance Policy, hence the need for specific reforms to strengthen the sub-sector and reposition microfinance banks towards improved performance.

“To meet these requirements, existing microfinance banks are expected to explore the possibility of mergers and acquisitions and/or direct injection of funds. The Revised Regulatory and Supervisory Guidelines for Microfinance Banks, Code of Corporate Governance for Microfinance Banks and sector-specific Prudential Guidelines for Microfinance Banks would be issued in due course.”

According to the circular, institutions that meet the capital requirements as well as demonstrate the existence of strong corporate governance in their operations will be allowed to open account at the CBN office within their state of operation.

Amugo said such institutions would also be channels for micro funding activities of the CBN and the Development Bank of Nigeria.

Source: Punch

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Finance

All You Need To Know About Dr. Adaora Umeoji, The New GMD/CEO of Zenith Bank Plc

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On June 1, 2024, Adaora Umeoji will become the new Group Managing Director/Chief Executive Officer of Zenith Bank Plc, replacing Ebenezer Onyeagwu, whose five-year term ends on May 31, 2024. Zenith Bank announced this on its website on March March 19th 2024.

The appointment is a historic moment as Adaora Umeoji becomes the first female GMD/CEO since the bank’s inception in May 1990.

According to the bank’s statement, “Her appointment is consistent with the bank’s executive transition tradition, succession plan, and strategy of grooming leaders from within.”

Adaora Umeoji has almost thirty years of experience in banking. She previously served as the deputy managing director of the bank, a role she assumed in October 2016. She has been with the bank for nearly twenty-six years.

Early Life and Education

•Dr. Adaora’s journey began in Jos Nigeria

• She holds a bachelor’s degree in sociology from the University of Jos, a bachelor’s degree in accounting, and a first-class honours degree in law from Baze University, Abuja.

•She holds a Master of Laws from the University of Salford, United Kingdom, a Master in Business Administration from the University of Calabar, and also has a doctorate in business administration from Apollos University, USA.

• She holds a Certificate in Economics for Business from the prestigious MIT Sloan School of Management, USA, and has attended various management programmes in renowned Universities around the world including the strategic thinking and Management programme at Wharton Business School, USA.

•Umeoji is an alumnus of Harvard Business School, where she attended the Advanced Management Programme, and an alumnus of Columbia Business School with a Certificate in the Global Banking Program.

Dr. Adaora’s Professional Ascension

•Umeoji has been the Deputy Managing Director of the bank since October 28, 2016 and has close to 30 years of banking experience of which 26 years has been with Zenith Bank.
Adaora Umeoji, founded the Catholic Bankers Association of Nigeria (CBAN), a platform she uses to promote ethical banking and service to humanity.

Chart Success In Leadership

• Umeoji being the first female to be appointed as GMD of the bank effective June 1, 2024
• Dame Adaora Umeoji stands as a shining example of empowerment and leadership and as a role model for aspiring individuals worldwide.

•Despite her accomplishments, Adaora Umeoji emphasizing the importance of humility and focus on one’s mission.

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Finance

Binance To Discontinue All Nigerian Naira Related Services

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Cryptocurrency exchange, Binance, has announced plans to discontinue all services related to the Nigerian naira.

Binance, a cryptocurrency exchange platform, was accused of exploiting the Nigerian currency, Naira, leading to its free fall in value.

The company is, in addition, facing allegations of terrorism financing, money laundering and tax invasion, among others.Nigeria is one of the largest peer-to-peer crypto markets in the world.

Between July 2022 and June 2023, crypto transactions in the country reached $56.7bn, according to Chainalysis.But the company, in a statement on Tuesday, advised users to withdraw NGN, trade their NGN assets or convert NGN into crypto.

The statement read, “Users are encouraged to withdraw NGN, trade their NGN assets or convert NGN into crypto prior to the discontinuation of these NGN services.

“From 2024-03-08 08:00 (UTC), any remaining NGN balances in users’ Binance accounts will be automatically converted to USDT based on the conversion rate below.

“Binance will not support deposits of NGN after 2024-03-05 14:00 (UTC). Withdrawals of NGN will not be supported after 2024-03-08 06:00 (UTC).

“After 2024-03-08 08:00 (UTC), Binance will convert any remaining NGN balances in users’ Spot and Funding wallets into USDT on behalf of users at a ratio of 1 USDT = 1,515.13 NGN.

“Please note that the conversion rate is calculated based on the average closing price of the USDT/NGN trading pair on Binance Spot in the last seven days.

“The conversion may take approximately up to 24 hours or longer. USDT tokens will be credited to users’ Spot wallets thereafter, and users can confirm receipt of the tokens via the Convert History page.

“If users hold less than 0.00000001 USDT worth of NGN in their Spot and Funding wallets, they will each receive 0.00000001 USDT in their Spot wallets after the conversion.”

Recently, the government through the Nigerian Communications Commission blocked the online platforms of Binance and other crypto firms to avert what it considers continuous manipulation of the forex market and illicit movement of funds.

Binance customers are asking if Binance is leaving Nigeria completely.

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“I And My Team Are Not Responsible For The Woes That We Have Today ” – Current CBN Governor

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Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has said that he’s not responsible for the economic challenges facing the country.

Cardoso said this at the first Monetary Policy Committee (MPC) meeting under his leadership on Tuesday, February 27. He also said that the CBN is taking necessary steps to get the country’s fiscal and monetary health back to normal.

He said;

”I laugh at that question but it’s not a laughing matter and I think it is very important for Nigerians to understand that the Central Bank Governor; I and my team, are not responsible for the woes that we have today; we are part of the solution.

“We are determined to ensure that we work hard to get out of the mess that Nigeria is in. We assumed responsibility in a time of crisis of confidence; there was a crisis of confidence and you may all want to go to bed and wish that crisis of confidence was not there but it was, and we can’t turn back the clock.

“All we can do is do the difficult things to make a bad situation better and I do believe that the efforts that we are making are beginning to bring back confidence because to be frank, without confidence in your business, you are not going to get far.”

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