New Framework for Licensing of Super-Agents Released by CBN
The Central Bank of Nigeria (CBN) has drafted a framework for licensing super- agents in furtherance of its mandate to develop the electronic payment system in the country.
This was contained in a circular sent to all DMBs, mobile operators and switches by the Director of Payment System of CBN, Mr. Dipo Fatokun.
Fatokun directed the affected operators to forward to his department their inputs to the proposed framework before December 12, 2014.
The circular stated that a super- agent is an agent that has been contracted by the principal and may thereafter subcontract other agents in a network while retaining overall responsibility for the agency relationship.
In the Exposive Draft on the licensing framework for “super-agents,” the apex bank stated that any institutions wishing to be licensed as super agent shall submit an application for approval to the CBN and that all applicants must have a minimum shareholders fund un-impaired by losses of N50 million, must also be a company with an existing business operational for at least 12 months and must have a minimum of 50 agents.
CBN noted that the approach for monitoring super agents would differ from other agent types in view of the probable higher risk, liquidity management and consequences of failure.
Licensed companies shall renew all agent agreement every two years except otherwise required.
The CBN also said the super agents platform shall be for the management and monitoring of the activities of their agents only and shall not hold electronic money value, whereas, the financial institution (FI) shall provide and operate the Mobile Money Platform and hold electronic money value.
NDIC: Fraud Cases in Banks in 2013 Put at N21.8bn
Bank fraud cases in 2013 have been put at N21.8 billion. The figure, according to the Nigeria Deposit Insurance Corporation (NDIC) in its 2013 annual report and statements of account, indicates some 21 percent increase over the N18.5 billion frauds recorded in the corresponding year of 2012.
The number of banks fraud cases rose marginally from 3,330 in 2012 to 3,756 in 2013. The NDIC report noted that there was an increase in both the expected/actual loss by N1.24 billion or 27.4 percent from N4.52 billion in 2012 to N5.76 billion in 2013.
The higher expected/actual loss of N2.5 billion occured in the first quarter of 2013, this represents 47.4 percent of the total industry expected/actual loss.
Meanwhile, the scams committed include ATM frauds, fraudulent transfers, withdrawals, internet banking fraud, cash suppression and authorised credits.
Others are fraudulent conversion of cheques, diversion of customers deposits and presentation of forged cheques.
Also reported in the annual report, two banks out of 24 in the country did not render returns on dismissed and terminated staff as a result of frauds and forgeries.
Out of the 3,756 fraud cases, 62 were attributed to staff collaboration, indicating an increase of 151 of such fraud cases over the 531 cases reported in 2012.
The corporation also said that three new Deposit Money Banks that were licensed during the year had a total of 12 branches, adding that the number of new entrants have increased the number of DMBs branches to 40 from 5,225 as recorded in December 2012 to 5,265 during the corresponding period of 2013.
The report further showed that the cases of fraud were perpetrated mostly by outsiders and some bank staff through theft, illegal funds transfer and fraudulent ATM withdrawals.
NDIC MD: Banking Sector, Engineroom for Economic Growth, Development
The Managing Director of the Nigeria Deposit Insurance Corporation (NDIC) Alhaji Umaru Ibrahim, has said the banking sector remains the engine room for economic growth and development.
Speaking while declaring open the 12th NDIC/ FICAN seminar in Katsina, Ibrahim said the pivotal role of the banking system had made it imperative for all stakeholders in the sector to continuously strategise with a view to tailoring it towards responding to global development and transformation agenda of the present administration.
He noted that the annual meeting had transformed into a veritable platform not only for capacity-building for members of the press but also for members of the civil society organisations to facilitate robust collaboration towards promoting the safety, soundness and stability of Nigeria’s financial system
It is against this backdrop that the theme for 2014 NDIC/FICAN workshop is “Recent Developments in the Nigerian Banking System”.
He said: “You will agree with me that several critical issues had come to the fore in recent times that had drawn the attention of the regulatory/supervisory authorities and operators, which need to be focused on in this workshop; these include mobile payments, agency banking, sustainable banking MSME funds and mortgage financing.
“It is on record that NDIC, as a deposit insurer, has been effectively responding to all emerging issues in the global financial system, particularly finncial literacy, consumer protection, financial inclusion, sustainable banking and extension of deposit insurance coverage to depositors of non-interest banks”.
“On Mobile Payment services, the CBN issued a Regulatory Framework for Mobile Payment Services in Nigeria in June 2009 as a measure which would aid the reduction of the number of unbanked Nigerians. The apex bank had also granted licences to 21 Mobile Money Operators in Nigeria, comprising 15 non-bank operators and six bank operators as at January, 2013. In order to engender confidence of the public in subscribing the products of the MMO’s, the NDIC has considered as imperative the extension of deposit insurance to the individual subcribers of the MMO’s in the form of pass-through deposit insurance. The framework for making the pass-through insurance scheme operational is currently being finalised by the Corporation”.
On the issue of sustainable banking, the Banker’s Committee at its retreat of July 14,2012 approved the adoption of the Nigerian Sustainable Banking Principles by banks, discount houses and development finance institutions in Nigeria.This is furtherance to the Banker’s Committee’s commitment to deliver positive development impaacts to society while protecting the communities and environment in which financial institutions and their clients operate
Operate while the CBN issued The Nigerian Sustainable Banking Principles together with guidelines which covered three priority sectors namely; Agriculture sector guideline, Power Sector Guidline and Oil and Gas Sector. The principle included corporate governance, financial inonclusion, financial literacy, consumer protection, employee welfare, capacity building, gender mainstreaming. Collaborative partnerships and reporting.
On the Mortgage sub-sector, the Federal Government has equally taken a giant step towards providing affordable accommodation to all Nigerians. The existing figure of 10.7 million houses in no doubt highly inadequate when compared to the size of the nation’s population. To this end, the World Bank has estimated that it would cost as high as N59.50 trillion to bridge Nigeria’s 17 million housing deficit.
There is no gain saying the fact that the Micro, Small and Medium Enterprise (MSME) sub-sector of the economy is still characterised by huge financing gap which hinders the development of MSME’s. Against this backdrop, the CBN on August 15, 2013 launched the Micro, Small and Medium Enterprises Fund (MSMEDF) with a take off seed capital of N220 billion. The objective of the fund is to channel low interest funds to the MSME sub-sector.
The MD stressed that there is no doubt that these developments are geared towards consolidating the gains of the various reforms in the banking sector.
Forbes Lists Toyosi Akerele among 2014 ‘20 Young Power Women in Africa’
Forbes Magazine has released its 2014 edition of the annual ’20 Young Power Women in Africa’ list and Toyosi, the founder and CEO of Rise Networks, Nigeria’s leading Social Enterprise for Youth Development is on the list. Akerele has also just returned from Baku, Azerbaijan, where she represented Nigeria at the very first United Nations Global Forum on Youth Policies having worked across Nigeria over the last 7 years and is now being venerated for her undeniable impact on Nigeria’s Youth and Education Development circles.
According to Forbes, these women are “20 young, extraordinary and inspiring African women, aged 45 and under, who are making the most dramatic impact in individual African countries in the world of politics, business, technology, policy, diplomacy and media. Meet the 2014 class of the 20 Youngest Power Women in Africa: the continent’s emerging power brokers, the Amazons to watch, and the custodians of tomorrow.”
Reacting to the exciting news, the newly-wedded Toyosi, said that this huge acknowledgement challenges her to higher responsibility in her commitment to capacity building and human capital development for the Youth of the Continent. She further stated that it is timely as Africa is the next port of call for some of Rise Networks’ Initiatives and Forbes has only emphasized the need to deepen engagements across Africa in a way that brings development to Nigerian Young People across Africa and the World.