Business News
U-turn: CBN clarifies order on domiciliary account transfers
The CBN cleared the air on the order it gave to DMBs on transactions carried out through domiciliary accounts in the country.
The Central Bank of Nigeria (CBN) cleared the air on the order it gave to Deposit Money Banks (DMB) on transactions carried out through domiciliary accounts in the country. The development was cleared in a letter issued by the apex bank and seen by Nairametrics.
The letter, which was signed by CBN’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji, cautioned the DMBs against misleading their customers on transactions carried out through domiciliary accounts in the country.
It read, “Following different interpretations of operations of domiciliary accounts. It has become imperative to clarify the operations of domiciliary accounts as contained in the CBN Foreign Exchange Manual Memorandum 25 provisions under reference.
“For the avoidance of doubt, all provisions of the CBN Foreign Exchange Manual has not changed and remains in effect.
“Consequently, all ordinary domiciliary account holders can utilise cash deposits not exceeding $10,000 or its equivalent by telegraphic transfers to fund eligible transactions.
“As a result, all deposits money banks are advised to desist from misguiding their customers. Please ensure strict compliance.”
[READ ALSO: CBN Cashless Policy: Emiefele regrets decision, insists on the policy]
Meanwhile, Nairametrics had reported, on Sunday, that the CBN stated that only cash deposit into domiciliary account can be withdrawn over the counter and not through electronic transfer.
The apex bank disclosed in a tweet, stating that deposits made through electronic transfers into domiciliary accounts can only be transferred but cannot be withdrawn as cash over the counter.
The CBN added that cash deposits also made into domiciliary accounts can only be withdrawn as cash over the counter and not transferred out of the domiciliary account.
The Director, Corporate Communications, CBN, Isaac Okorafor, had clarified the uncertainties surrounding the operations of domiciliary accounts in Nigeria.
[READ ALSO: PwC is being dragged into Isabel dos Santos fraud case]
He said, “The bank has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.
“Only electronic fund transfers into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”
Okorafor, therefore, urged stakeholders and other interested parties to always endeavour to seek clarification on issues and avoid speculative tendencies which were detrimental to the financial system
Coronavirus
COVID-19: Ogun orders full reopening of churches, mosques, hotels
Religious centres and other public places have been reopened following the success recorded in flattening the curve of COVID-19.
The Ogun State Government has ordered the full reopening of churches, mosques, businesses, hotels, and entertainment centres across the state.
This was disclosed by the State Governor, Dapo Abiodun, in a statement signed by his Chief Press Secretary, Kunle Somorin, via the state’s Twitter handle on Wednesday.
Abiodun stated that the religious centres and other public places had been reopened, following the success recorded in flattening the curve of COVID-19.
According to him, the government is aware that many people are just recovering from the economic hardship imposed by COVID-19, as their activities had been affected by the lockdown, while necessary measures had been put in place to combat the pandemic.
He stated, “In the process of rebuilding the economy, the State Government was irrevocably committed to the successful implementation of the “Building our Future Together” agenda, and would ensure everything possible for people to have increased prosperity that would place the State on a sound footing towards continued development.
“Government would improve on testing, just as it continues to monitor the development and not hesitate to do selective lockdown should there be any flagrant disobedience to the set COVID-19 protocols.”
COVID-19: Ogun orders full reopening of churches, mosque, hotels
Pleased with the drop of COVID-19 infections in Ogun State, @dabiodunMFR, has announced that all hotels, viewing centres, marquees, event centres, suites, guest houses, motels, and establishments providing…. pic.twitter.com/sMiUe3DUt5
— Ogun State Government – OGSG (@OGSG_Official) October 28, 2020
What you should know
Governor Abiodun had closed religious centres, businesses and schools in March, as part of moves to flatten the curve of the coronavirus.
He later announced the reopening of only worship centres and schools in August.
Abiodun pegged the number of worshippers for each service at 200, and insisted that services must not exceed one and a half hours.
Financial Services
CBN reveals framework for the N75 billion Youth Investment Fund
The Nigerian Youth Investment Fund will be funded through the NIRSAL MFB window of the CBN.
Sports
NFF receives $1 million from FIFA as COVID-19 palliative
Nigerian Football Federation received the sum of $1 million from FIFA as COVID-19 palliative.
The Nigerian Football Federation (NFF) has received the sum of $1 million from FIFA as COVID-19 palliative to support male and female footballers in the country.
This was disclosed by Amaju Pinnick in a statement confirming the receipt of the grant from the world football governing federation FIFA, which was seen by Nairametrics on his official Twitter handle.
READ: DEAL: Nigerian Breweries and NFF sign sponsorship agreement
He tweeted, “Huge appreciation to football’s world governing body, FIFA for the $1 million (one million dollars) the Federation has received in the frame of COVID-19 palliatives. The money was received by the Nigeria Football Federation and we re-confirmed the purpose from FIFA two days ago.
“It is imperative to note that, FIFA also sent $600,000 to the Federation for the FIFA Forward 2.0 projects in Binin-Kebbi and Ugborodo, which costs $300,000 each.
READ: UPDATED: Nigeria received $1.29 billion capital inflows in Q2 2020, down by 78.6%
“This fund is a big boost for the mini-stadia projects in both centres, as it will fast track the completion of the projects slated for the end of March 2021.”
Huge appreciation to football's world governing body, @FIFAcom, for the $1 million (one million dollars) the Federation has received in the frame of COVID-19 palliatives. The money was received by the @thenff and we re-confirmed the purpose from FIFA two days ago.
/1
— Amaju Melvin Pinnick (@PinnickAmaju) October 28, 2020
Explore Data on the Nairametrics Research Website
What they are saying
Speaking on the receipt of the grant, NFF President said:
“The $1 million for palliatives is composed of $500,000 for men’s football and $500,000 for the women’s game. FIFA has also promised to send the Federation an additional $500,000 sometime in January 2021, also as part of COVID-19 palliative efforts.”
READ: Football: Manchester United net debt rises by 133% to £474.1million
Speaking of other grants, he added:
“On the continent, we have received confirmation from Confederation of African Football (CAF) that the Federation will receive the expected $300,000 from the Confederation on or before Sunday, the 1st of November.”
With the $200,000, he added that the NFF has already ring-fenced from its sponsors’ funds for the purpose, “the coast will then be clear for us to start the disbursement of funds to the beneficiaries, as captured in our approved template, from next week.”
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“Even though we are bolstered by the guidelines from FIFA strictly outlying the purposes of these funds as well as the approval of the NFF Executive Board, we will also interface with our auditors, PricewaterhouseCoopers, on each and every line item, to ensure the disbursements conform to global best practices.”
The beneficiaries of the fund are expected to ensure 100% compliance to the guidelines, by ensuring that all funds are paid into designated accounts.
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COVID-19 Update in Nigeria
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Olu
February 25, 2020 at 12:14 pm
I’m more confused about the policy after reading this article. Are cash deposits paid over the counter into domiciliary accounts eligible for electronic transfers or not?
Stanley
February 25, 2020 at 2:06 pm
From my understanding, cash deposits can’t be transferred electronically. Hence, am also trying to decipher what the ‘correction’ is all about.
Eniola
February 25, 2020 at 7:09 pm
This is confusing, what is the landing or clarification about the operation of domiciliary accounts in the country.
It still unclear, seems you just reported about the varying statements made about operating domiciliary accounts
Ekpang Bisong
February 26, 2020 at 5:42 am
Not very smart. What’s wrong with just listing out the guidelines. It’s simple policy guys, we are Nat in a law court.
Anonymous
February 27, 2020 at 11:36 am
$10,000 cash can be deposit and transfer for genuine transaction. This policy still hold till date.