The Central Bank of Nigeria (CBN) has announced a series of new sanctions that will be meted out to Deposit Money Banks (DMBs), Mobile Money Operators (MMO) and Other Financial Institutions (OFIs) for electronic payment infractions.
The series of new sanctions released by the apex bank was contained in the latest document obtained on the bank’s website and titled: ‘Regulations on Electronic Payments and Collections for Public and Private Sectors in Nigeria.’
The details: According to the CBN, the newly released regulation is a revision of the guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014), and is intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in Nigeria.
The CBN stated that all DMBs, OFIs and Mobile Money Operators must:
- promote the adoption of end-to-end electronic payments by all stakeholders covered by this regulation;
- provide payers and beneficiaries with appropriate accounts with DMBs, OFIs or any other approved channel for receiving payments such as mobile money/electronic wallet, subject to the CBN’s approved KYC limits;
- process electronic payment instructions in accordance with subsisting payments system and clearing system rules;
- publish customer service/ contact centres details via multiple media channels and maintain customer service contact centres, to promptly attend to all electronic payment enquiries and challenges within stipulated timelines; and report of customer complaints, indicating resolution status;
- make available any or combination of the following data sets, as may be applicable, along with the mandatory returns to the CBN, on a monthly basis or as may be otherwise specified:
I. Number of salary/pension/supplier/tax-paying organisations
II. Salaries/pension/supplier/tax payment transactions count
III. Salaries/pension/supplier/tax payment transactions value per payment method given below;I. end-to-end; bank assist;
II. cheques; and
- in the event of duplicated/excess payments, establish a recovery process engaging both Payers and Beneficiaries in line with subsisting CBN.
According to the Central Bank, any DMB, OFI or MMO that fails to discharge the responsibilities as detailed above shall be penalised.
Compliance: Following the implementation of the Guideline on end-to-end electronic payment of salaries, pensions, suppliers and taxes by all public and private sector organisations, the CBN also instructed DMBs to dishonour payment instructions for all forms of salaries, pensions, suppliers and taxes not transmitted on a CBN approved straight-through electronic payment and collection platform issued by organisations with more than 20 employees.
This means payment instructions and associated schedules are no longer to be transmitted to DMBs through unsecured channels, such as paper-based mandates, flash drives, compact discs (CDs), email attachments, etc. by qualifying public and private sector organisations.
The sanctions: Among other sanctions, the CBN disclosed that failure to offer 3rd party e-payment solution to customers not approved by CBN now attracts a penalty of N2 million for DMB and N1 million for OFIs on every repeated occurrence.
- Transactions not consummated within the timelines prescribed in the relevant payment channel regulation or non-return of un-applied funds to payer’s account within 24 hours attract a penalty of N1,000 per transaction.
- Also, the non-provision of the quarterly report on end-to-end e–payment of salaries, pensions, suppliers & taxes to the CBN now attracts N5,000 penalty for each day for which report is not provided to the CBN or a penalty of N250,000 and a warning letter to the Managing Director.
Multiverse forecasts N39.5 million profit in Q1 2021
The management of Multiverse Plc has projected a revenue of N76 million and a profit of N39.5 million in Q1 2021.
Multiverse Mining and Exploration Plc has projected that in the first quarter of 2021, the mining and exploration company will generate N76 million in revenue, and post a profit of N39.5 million.
These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Corporate Secretaries of the company.
Key highlights of the earnings forecast for Q1 2021
- Total revenue is projected at N76 million.
- Turnover from agency sale is projected at N1 million.
- Agency cost is s projected at N850 thousand.
- Total expenses are projected at N7.8 million.
- Operating Profit is projected at N67.3 million.
- EBIT (Earnings Before Interest and Taxation) is projected at N67.3 million.
- Interest Expense is projected at N27.8 million.
- Profit after tax is projected at N39.5 million.
Key assumptions made to support the earnings forecast and projection of the company
The earnings forecast was made on the ground that there won’t be any significant change in the economic policies of the Federal Government, while the monetary policies of the CBN would not be altered significantly.
The company also maintained that there would not be any industrial unrest that would affect its production and sales volume, while the profit of the company would not be pressured by rising costs of inputs, as prices of materials used in production shall be stable in the period under review.
GCR affirms Dangote Cement issuer ratings of AA+(NG) and A1+(NG)
Global Credit Ratings has affirmed Dangote Cement issuer ratings of AA+(NG) and A1+(NG).
Dangote Cement Plc has announced that Global Credit Ratings has affirmed the cement manufacturer a long-term and short-term national scale issuer ratings of AA+ (NG) and A1+(NG) respectively.
According to the press release issued by the company, the rating which maintains a stable outlook on Dangote Cement would expire by November 2021.
In line with this, GCR reviewed existing bonds of the company and assigned the N100bn Series 1 Fixed Rate Bond of Dangote Cement a rating of AA+.
Why this matters
- The ratings reflect Dangote Cement Plc’s status as Africa’s leading integrated cement manufacturer with a group-wide installed capacity of 45.6 million metric tonnes per annum across ten countries.
- The stable outlook which was maintained by GCR reflects the extensive distribution network, significant scale economies and position as the largest corporations on the Nigerian Stock Exchange, with sound access to capital.
- It is important to note that a rebound is expected within 18-24 months, on the back of strong base domestic demand.
What they are saying
Michel Puchercos, Chief Executive Officer, said:
- “Dangote Cement has shown great resilience in 2020 despite the COVID-19 pandemic and a challenging environment. The Group continues to report strong cash generation while maintaining strong financial discipline. As Africa’s leading cement producer, we are committed to maximizing shareholder value creation.”
Governor Sanwo-Olu says 24,000 students yet to resume in public schools
24,000 students in public schools are yet to return back after the reopening of schools, according to Governor Sanwo-Olu.
The Lagos State Governor, Babajide Sanwo-Olu, has revealed that about 24,000 students in public schools are yet to come back after the reopening of schools following last year’s lockdown necessitated by the first wave of Covid-19 across the country.
This is as the governor said that resumption of school activities Monday, January 20, 2021, was a difficult decision to make in light of the second wave of Covid-19.
This disclosure was made by the governor while peaking during a press conference on Covid-19 update at the Lagos House, Ikeja on Tuesday.
Sanwo-Olu assured that it was the best decision for the children’s safety and long-term development, especially the most vulnerable ones.
What the Lagos State Governor is saying
Sanwo-Olu in his statement said, “Last year after the first lockdown and kids have to come back to school, we are still looking for about 24,000 of them that have not come back to school. So, there is a challenge if you keep them out for that long and their parents or guardians now turn them to other things instead of ensuring that they have time to come back for learning even if it is twice or thrice a week.
“At least they have been registered since the beginning of a session and they can be monitored. If not, they will just be roaming the streets and become endangered. We have seen incidents of child abuse and all unprintable things that are being done to these children. So, we believe to a large extent that schools sometimes happen to be the safe haven for them. We have done the roster in which we ensure they keep social distance and we are monitoring,” he said.
What you should know
- It can be recalled that public and private schools below the tertiary level in Lagos State, On Monday, January 18, 2021, reopened for academic activities despite opposition from some stakeholders due to the second wave of coronavirus pandemic in the state.
- Following the surge in the number of infections in the state, which is the epicentre of the disease in the country, there were complaints about the state of preparedness of the schools, especially the public ones, in adhering to the strict Covid-19 protocols and guidelines.