Connect with us
nairametrics

Financial Services

CBN allows banks to pay winnings, salaries for 7 banned betting & gaming companies

The banned betting and gaming companies are now allowed to access their accounts for limited purposes.

Published

on

Betting companies makes about N300m per day - Nigerian man reveals

The Central Bank of Nigeria has given some commercial banks instructions to allow betting and gaming companies suspended earlier in the month the approval to honour withdrawals from their accounts to pay for winnings, salaries and other overhead expenses.  

Nairametrics saw a copy of the letter addressed to one of the banks.

READ: CBN sequesters N321.6 billion from banks in new CRR Debits

  • Recall on September 5th the central bank instructed banks to post a no debit on account of 38 companies some of which included betting and gaming companies for violating its foreign exchange regulations, freezing their accounts. 
  • In the prior memo instructing the banks to freeze the accounts the CBN did not mention that it was for forex infractions. However, this memo now confirms that’s what the ban was for.
  • However, banks pleaded with the apex banks to allow the betting and gaming companies to meet urgent operational requirements.

READ: Naira gains at NAFEX window as CBN block accounts of some firms for forex abuse

In one of the memos seen by Nairametrics, the CBN wrote; 

GTBank 728 x 90

On Quote:You will recall at the meeting held by the Governor of the Central Bank of Nigeria (CBN) with your bank and stakeholders of seven (7) betting and gaming companies on September 11 2020, you pleaded for clemency processing some transactions in violation of the extant foreign exchange regulations. Similarly, the betting and gaming companies intreated the Governor to allow them discharge operational expenses.” 

The CBN therefore approved that cheque payments and transfers be made out of the accounts provided it was towards winnings, salaries and other overhead expenses. 

READ: Presidency gives reason for forex ban on food and fertilizer imports as MAN reacts

On quote: “Consequently, the Management of CBN has magnanimously granted your bank the approval to honour instruments presented by the companies for payment of winnings, salaries and other overhead expenses.” 

Despite the partial lifting on the ban, the CBN still maintained a “Post No Debit restriction on the account and ordered that “no other transactions should be processed for any of the companies during the period of the waiver” effectively restricting the owners of the companies from accessing to pay capital obligations.  

READ: World Bank puts pressure on Nigeria for more forex reforms to aid recovery

A copy of the letter is attached below; 

 

Download (PDF, 447KB)

GTBank 728 x 90
Fidelity ads

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Financial Services

CBN grants Greenwich Trust Limited operational license for merchant banking

CBN has upscaled Greenwich Trust Limited to the status of a merchant bank.

Published

on

CBN grants Greenwich Trust Limited operational license for merchant banking, NSE Market Data, NSE records total transactions of N121.99 billion in August , 2019 events in the Nigerian capital market and outlook for 2020, Why you might need a capital market lawyer

The Central Bank of Nigeria (CBN) has upscaled Greenwich Trust Limited and granted it, operational license for merchant banking in the country.

According to an official statement released by the firm, the entity would be known as Greenwich Merchant Bank Limited. This license allows Greenwich Merchant Bank to upscale and offer such diverse services as corporate banking, investment banking, financial advisory services, securities dealing, treasury wealth and asset management, etc., making it possible to provide increased value to stakeholders beyond its previous scope.

Explore the Nairametrics Research Website for Economic and Financial Data

Recall that the minimum capital requirements for establishing a merchant bank according to Merchant Banking Licensing Regulations in 2010 are N15 billion

(READ MORE: CBN debits banks N216.1 billion for CRR compliance)

GTBank 728 x 90

With the addition of Greenwich Merchant Bank, Nigeria now has six merchant banks. The others are; FBN Quest, Coronation Merchant Bank, DSH Merchant Bank, Nova Merchant Bank and Rand Merchant Bank.

About Greenwich Trust Limited

Greenwich Trust Limited is an investment banking firm duly registered with relevant authorities such as the Nigerian Securities and Exchange Commission (SEC). It is a diversified firm with subsidiaries such as Asset management, GTL Properties, GTL Securities Limited, Cedar Express Limited and Meyer Plc.

Continue Reading

Financial Services

AIICO Insurance to boost property, technology with proceeds from right issue

Right issue will increase the capital base of the firm from N11.6 billion to N15.1 billion.

Published

on

FCMB Pensions

AIICO Insurance Plc, to invest the proceeds of its on-going right issue on its property, plant, equipment and technology.

While 61.2% of the proceeds are planned to be invested in property, plant and equipment to be completed Q4 2024, 38.8% are expected to be invested in technology to ne completed Q2 2023.

This was disclosed by Chief Executive Officer, AIICO Insurance Plc, Mr. Babatunde Fajemirokun during a virtual Facts Behind the Issue on Friday.

According to him, the issue, which is between September 2, 2020, and October 7, 2020, worth a total of N3.5 billion, will be offered on the basis of 5 new ordinary shares for every 13 ordinary shares held at the close of business on Monday 15th June, 2020. 

On the rationale for the right issue, Fajemirokun, remarked that NAICOM increased the regulatory capital requirements for the insurance industry, increasing the composite players to the tune of N18 billion by 2021.

GTBank 728 x 90

He said, “If successfully implemented, the right issue will increase the capital base of the firm from N11.6 billion to N15.1 billion.”

He also expressed intent in capitalizing some of the firm’s retained earnings. 

Speaking further, Fajemirokun remarked that the offering of the right issue will ensure networking and infrastructural upgrade, while empowering the firm to underwrite big-ticket transactions, especially in oil and gas industries.

Key highlights 

  • The right issue size is worth N3,486,216,763.20 
  • The number of shares is 4,357,770,954 
  • The price is N0.80 (representing a discount of 25.2% as of the qualification date)
  • 5 new shares will be issued for every 13 shares held as of C.O.B, June 15th, 2020
  • The issue period will be between September 2, 2020 and October 7, 2020 
  • 61.2% of the proceeds from the right issue will be invested in Property, Plant and equipment to be completed by Q4, 2024 
  • 38.8% of the proceeds from the right issue will be invested in technology, to be completed by Q2, 2023 

Over the years, AIICO has evolved from an insurance agency to a leading diversified non-banking financial institution in Nigeria providing life, health and general insurance, as well as investment management.

 About AIICO Insurance Plc 

AIICO Insurance Plc was established in 1963 with a large Life and Non-life business, and complimentary focus on Asset Management, Health and Pension. Its market capitalization pre-issue is N9,064,163,584.00.

In 2019, AIICO Insurance Plc recorded 78% revenue from the Life business, 17% from Non-life business. On profit side, Life business contributed 91%, Asset Management contributed about 9%. It currently has 22 branches and 3 retail outlets across the federation. 

GTBank 728 x 90
Fidelity ads
Continue Reading

Financial Services

CBN to hold MPC meeting next week

The CBN’s highest monetary policy decision-making body, the MPC is set to hold its meeting.

Published

on

CBN to hold MPC meeting next week, Demand for credit by household increases in Q2 2020 - CBN, CBN grants licenses to 3 Payment Service Banks, Mobile money loan CBN Governor, CBN, Three PSBs get Apex Bank’s provisional to commence operations, Milk Import: Experts advise CBN on FX restriction , CBN automates trading system, introduces electronic form to facilitate exports , CBN campaigns for Made-in-Nigeria products 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is set to convene next week for its periodic meeting.

The notice of the meeting, which was released by the apex bank on its website, stated that the 275th meeting of the MPC is scheduled to hold on next Monday, September 21 and Tuesday, September 22, 2020, at CBN Headquarters, Abuja.

READ: UBA Plc H1’2020 results, a true reflection of its rightsizing decision?

The MPC meeting: Basically, the MPC is the CBN’s highest monetary policy decision-making body. It comprises the governor of the Bank who is the chairman, the four deputy governors of the Bank, two members of the board of directors of the Bank, three members appointed by the president, and two members appointed by the governor.

The MPC sets monetary policies for banks in the country through decisions on the Monetary Policy Rate (MPR), Cash Reserve Ratio (CRR) and Liquidity ratio. These variables determine the quantum of funds that the banks have at their disposal to lend.

GTBank 728 x 90

The MPR is the rate at which the CBN lends to banks. This, in turn, determines the interest rate that banks charge members of the public.

READ: President Buhari approves N13.3 billion for Community Policing in Nigeria

Decisions at the last meeting

The Central Bank’s MPC meeting was last held in August 2020, where all key rates were left unchanged. Basically, the MPR was kept at 12.5%, while other parameters such as Cash Reserve Ratio (CRR) at 27.5%, Liquidity ratio at 30%, and asymmetric corridor remained unchanged.

Emefiele explained that eight members of the committee voted in favour of holding the MPR, while two members wanted it reduced.

READ: CBN debits banks another N459.7 billion for failure to meet CRR target

According to the MPC, the decision to hold all rates constant was largely driven by the effect of the outbreak of COVID-19 that has largely disrupted the global economy.

Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Patricia
Advertisement
FCMB ads
Advertisement
IZIKJON
Advertisement
Fidelity ads
Advertisement
first bank
Advertisement
bitad
Advertisement
deals book
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement