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CBN exempts federation accounts, microfinance banks, ministries, others from new Cashless Policy 

The CBN has exempted all revenue-generating accounts of government agencies, and several others from charges on cash withdrawal and deposits.

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The Central Bank of Nigeria (CBN) has exempted all revenue-generating accounts of government agencies, ministries, microfinance banks and several others from charges on cash withdrawal and deposits as imposed by the new cashless policy.

According to the new circular addressed to all Deposit Money Banks (DMBs), the CBN disclosed that exemption is given until March 30, 2020 when it would be reviewed.

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[READ MORE: Yet again! another directive from the CBN]

The Details: In the circular signed by Sam Okojere, the Director, Payment System Management Department, CBN stated that all embassies, diplomatic missions, multilateral and aid donor agencies in Nigeria, as well as revenue-generating accounts of government agencies, are exempted from charges on cash withdrawal and deposits with regard to the implementation of the cashless policy.

The apex bank also disclosed that the float accounts of Mobile Money Operators and the accounts Microfinance Banks (MFBs) and Primary Mortgage Institutions (PMI) keep with DMBs are equally exempted from the charges on cash withdrawal and deposits.

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According to the CBN, the exemptions would last until March 31, 2020, when it would be reviewed.

Man detained in Ibadan for making a 'cardless' withdrawal

The CBN circular reads:Further to our previous circular on ‘Implementation of the Cash-less Policy’, please be informed that currently, the following are the existing exemptions until March 31, 2020 when it will be reviewed. 

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“Revenue generating accounts of the Federal, State and Local Governments; embassies, Diplomatic Missions, Multilateral Agencies, Aid Donor Agencies in Nigeria, Ministries, Departments and Agencies of Government (revenue collection only); Mobile Money Operators (Float accounts only) and Micro Finance Banks (MFBs) and Primary Mortgage Institutions (PMls) accounts with DMBs.” 

The Backstory: Recall that the CBN made the announcement earlier on September 18, imposing new charges on withdrawals and Deposits.

According to the apex bank, extra charges (3 to 5%) would be imposed on cash deposits and withdrawals (by individuals and companies) that exceed the official limits of N500,000 and N3 million, respectively.

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[READ ALSO: CBN confirms N500 and N1000 as two most counterfeited banknotes in Nigeria]

Also, the CBN stated that partial implementation of the policy would immediately take effect in the Federal Capital Territory and six other states namely: Abia, Anambra, Kano, Lagos, Ogun, and Rivers. Nationwide implementation of the same policy is expected in March 2020.

Meanwhile, the announcement drew widespread criticism from Nigerians who described the extra charge for withdrawing/depositing money as unnecessary.

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Patricia

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Coronavirus

Evacuation: 247 Nigerians arrive home from Malaysia, Thailand 

The returnees were evacuated with a chartered Air Peace flight APK-7813.

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The Federal Government of Nigeria has safely evacuated and returned home, two hundred and forty-seven Nigerians who were stranded in Malaysia and Thailand 

The returnees were evacuated with a chartered Air Peace flight APK-7813 which arrived the Nnamdi Azikiwe International Airport, Abuja at about 11p.m. on Saturday. 

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According to Mr Gabriel Odu, the Head of Media and Public Relations Unit of the Nigerians in Diaspora Commission (NiDCOM) who spoke to NAN, some of the returnees disembarked in Abuja, while the others proceeded to Murtala Muhammed International Airport, Lagos. 

In line with the protocols announced by the Presidential Task Force on COVID-19, all of the returnees presented a negative COVID-19 test result before boarding the evacuation flight, and upon arriving Nigeria, are expected to proceed on a 14-day self-isolation 

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Since four weeks ago, from the federal government, through the ministry of Foreign Affairs announced the resumption of evacuation flights, hundreds of stranded Nigerians have been returned home to their families from different countries including the United States of America, United Kingdom, Egypt, Malaysia and Thailand.  

The returnees bear the cost of their flight tickets and are expected to self-isolate for four weeks, upon their return to Nigeria. Returnees who receive a clean bill of health after the isolation, are given their passports and allowed to go home.  

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Macro-Economic News

Katsina State records fastest growth in mobile internet subscribers in Nigeria

Nigeria has a total of 136.2 million mobile internet subscribers as at 2020 Q1.

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Katsina State recorded a massive 41.46% jump in the number of mobile internet subscribers the fastest growth by any state in the country. This is according to data from the National Bureau of Statistics. The data focus on mobile internet subscribers via GSM phones.

Katsina state recorded 3.679 million internet subscribers in the first quarter of 2020 compared to 3.17 million and 2.6 million subscribers in the 4th quarter and 1st quarter of 2019 respectively. This represents a 15.8% jump quarter on quarter and 41.5% jump year on year. No other state comes close.

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Edo State was however second year on year recording a growth of 36.8% to 4.3 million internet subscribers. Katsina was also recorded the fastest growth quarter on quarter followed by Sokoto State.

Nigeria’s Mobile Internet Subscribers Data

According to the data from the NBS, the total number of internet subscribers in Nigeria as at the first quarter of 2020 is 136, 203, 231. This compares to 126, 078, 999 in the 4th quarter of 2019 and 116, 310, 154 in the first quarter of 2019. This represents a QoQ growth of 8.03% and year on year growth of 17.1%.

Nigeria’s commercial cities of Lagos, Rivers State, FCT and Kano also recorded growth in internet subscribers year on year.

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Lagos State 

Subscribers – 17.02 million

YoY Growth – 7.16%

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Rivers State

Subscribers – 5.12 million

YoY Growth – 9.77%

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Kano

Subscribers – 8.33 million

YoY Growth – 33.19%

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FCT

Subscribers – 6.13 million

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YoY Growth – 13.3%

Growth by Geopolitical Zones

We also observed the North West still retains the number one position in terms of internet subscribers per geopolitical zone with 46.9 million subscribers out of a total of 136.2 million in the country. The North-Eastern part of the country recorded the fastest growth of 23.3%. See below;

Internet Subscribers by Geo-Political Zones. Source: NBS/Nairametrics

 

Internat Subscribers by GSM Companies

MTN continues to lead with 57.2 million subscribers. They also grew the fastest YoY by 23%

MTN – 57,282,123
GLO – 33,871,456
AIRTEL – 36,827,677
9MOBILE – 7,762,068
Others – 459,907
Total – 136,203,231

Upshots: Internet subscriber’s growth in Nigeria continues to record double-digit growth and one of the fastest in the world. The competition for mobile data subscription is intense and could end up being a winner take all activity. As GSM companies move in search of growth, the North seems the area with the most potential for double-digit subscriber growth.

Patricia
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Energy

COVID-19: Minister of Power instructs contractors back to site as lockdown eases

The power minister gave the directive during an inspection visit to the new Gagarawa 2.

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Second largest hydropower project in Africa to finally take off after settlement of legal dispute

The Minister of Power, Sale Mamman, has asked all contractors handling power projects across the country to return back to project sites following the gradual relaxation of the lockdown by the Federal Government, due to the coronavirus pandemic.

The directive from the minister was contained in a press statement by the Special Adviser to the Minister on Media and Communications, Aaron Artimas, on Sunday, July 12, 2020, in Abuja.

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The power minister gave the directive during an inspection visit to the new Gagarawa 2 by 60 Mega Volt Amp (MVA) 132/33 Kilo Volt Sub-station being constructed by the Transmission Company of Nigeria (TCN) in Jigawa.

Mamman, lamented the negative impact of the coronavirus pandemic on the power sector, pointing out that the sector was among the worst affected with the entire value chain directly or indirectly counting losses.

The Minister in the statement said, ‘’I can tell you that the impact of the pandemic is huge in the power sector as a real service provider. We, however, have joined the government effort to restart the economy with the easing of the lockdown and opening of the interstate road.’’

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“I direct all contractors handling power projects to return to sites and work assiduously to recover from the losses recorded during this lockdown,” he said.

Mamman said the Gagarawa Sub-station project would boost power supply in over 7 local government areas including an industrial area.

On his part, the Jigawa State Governor, Abubakar Badaru, who was part of the inspection team, commended the power minister’s effort at ensuring completion of these projects that have been on for over 20 years.

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The News agency of Nigeria (NAN), reports that the sub-station is 99% completed and has been energized.

The acting Managing Director of TCN, Suleiman Abdulaziz, who was also part of the inspection asked for speedy completion of similar sub-station across the country.

 

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