CBN reassigns government officers, supports review of enabling regulation, BOFIA
• Direct banks to concern outdated banknotes.
There are indications that the Central Bank of Nigeria (CBN) has rigorously reassigned the management of its apex financial institution as half of strikes to revitalize the establishment.
The Guardian on Monday reported that CBN Governor Olayemi Cardoso has been given the accountability of “housecleaning”, with the goal of redeploying workers deemed unsuitable for the position according to the financial institution’s new route. It reported that it had begun an in depth workers audit.
Although this report couldn’t be formally confirmed by the CBN, some of the affected workers did certainly affirm the event.
This comes as there are additionally indications that the CBN could also be pushing for a review of the CBN Act and the Banks and Other Financial Institutions Act (BOFIA) to strip them of prudential rules.
In this reshuffle, eight administrators have been transferred to the Financial Sector Surveillance (FSS) division of the Maitama workplace.
Although the motive behind the redeployment is just not but clear, there are clear considerations on the apex financial institution that extra individuals could also be affected by the redeployment.
There are additionally considerations that the purge marketing campaign will ultimately result in mass layoffs at apex banks.
The identities of these despatched to the Maitama workplace are unknown apart from Philip Yusuf Eala, who was the Director-General of the Development Finance Department (DFD) of the CBN underneath the Godwin Emefiele administration.
Mr. Ila stated that the important thing position in supporting companies by rising entry to financing for precedence sectors underneath numerous applications such because the Anchor Borrower Program (ABP), Agribusiness/SME Investment Scheme (AGSMEIS), and so forth. Supervised DFD who carried out the position. Small and Medium Enterprises Development Fund (MSMEDF).
He was additionally chargeable for spending on households and small companies in the course of the COVID-19 pandemic to cushion the affect of the ensuing lockdown.
Dr. Isa Abdulmumin, Director of Corporate Communications, may even be reassigned and changed by Sidi Ali Hakama.
To give the financial institution a brand new route, there are plans to abolish BOFIA, which strips the CBN of prudential rules.
Mr. Cardoso is claimed to be in favor of making a “Banking Commission” that might be merged with the Securities and Exchange Commission (SEC), and would, amongst different issues, help middleman liquidity points comparable to threat diversification, capitalization, and so forth. , set up prudential guidelines aimed toward sustaining solvency and stability. Banking System Bad Debt Provisions.
This successfully signifies that the proposed Banking Committee might be shaped quickly.
The fee is chargeable for setting and implementing guidelines for banks and different monetary establishments.
Some consider the fee might be merged with the SEC, which is chargeable for regulating the Nigerian capital market.
Experts have suggested splitting the CBN into two our bodies, as is the case within the UK and another international locations the place financial coverage and banking regulation are dealt with by totally different regulatory our bodies.
Meanwhile, the Apex Bank has directed banks to proceed issuing new and outdated naira notes. The financial institution stated that is in accordance with the Supreme Court’s order on Wednesday, November 29, 2023, granting the prayer of the Minister of Justice and Attorney-General of the Federation, Lateef Fagbemi, to increase the use of outdated naira notes indefinitely. stated.
An announcement signed by Hakama stated that in accordance with Section 20(5) of the CBN Act 2007, all banknotes issued by the CBN will stay authorized tender indefinitely.
“It is incumbent on the general public to proceed accepting all naira banknotes (outdated or new design) for his or her day by day transactions and to deal with these banknotes with utmost care to guard and shield the lifecycle of the banknotes. It is being
“Furthermore, the public is encouraged to adopt alternative payment methods, electronic channels, to reduce the pressure on the use of physical cash.
November 29, 2023,” she stated.
Source: guardian.ng