By Seun Ibiyemi

The Central Bank of Nigeria has warned authorised forex dealers against defacing/stamping US Dollar banknotes and continued rejection of old series and lower denominations of the United States of American dollars by its regulated entities in Nigeria.

This is even as the apex bank threatened to sanction lenders that rejected the currencies.

This was contained in a circular dated June 27, signed by the acting director of the currency operations department, Solaja Olayemi, which was recently released on the website of the apex bank.

The circular directed at Deposit Money Banks, Bureau De Change operators and the general public cautioned against the continued rejection of the old series and lower denomination of the American greenback.

CBN said the fresh circular followed the outcome of its consumer market intelligence, which revealed the continued rejection of old/lower denominations of dollar bills by banks and other authorised forex dealers.

The circular also warned authorised forex dealers against defacing/stamping US Dollar banknotes as such notes always fail authentication tests during processing/sorting.

“Kindly be reminded that the Central Bank of Nigeria circular referenced COD/DIR/INT/CIR/001/002 and dated 9th April 2021, which explicitly frowned at this selective acceptance of deposit, is still in force and must be adhered to and complied with by all relevant parties.

“For the avoidance of doubt and further guidance on the circular, the content is hereby reissued as follows for strict compliance: All DMBs /authorised forex dealers should henceforth accept both old series and lower denominations of United States Dollars that are legal tender for deposit from their customers.

“The CBN will not hesitate to sanction any DMB or authorised forex dealers who refuse to accept old series/lower denominations of US Dollar bills from their customers,” the circular partly read.

CBN first issued the warning in a circular signed by then director of the currency operations department, Ahmed Umar, on April 9, 2021.

Wema Bank, the pioneer of Africa’s first fully digital bank, ALAT, has charged stakeholders to prioritise digital empowerment for MSMEs as a measure for championing a sustainable MSME ecosystem in Nigeria.

The charge was made at the International MSMEs Day and MSME Awards Night 2024; a two-fold event organised by the Federal Government through the Office of the Vice President in commemoration of World MSME Day 2024 recently in Abuja.

The event was themed ‘Call to action: Provision of sustainable single-digit loans for MSMEs,’ and featured entities, including Wema Bank, who brainstormed and proffered financial solutions to provide affordable loans and funding for MSMEs.

The Chief Executive Officer of Wema Bank, Moruf Oseni, represented by the bank’s Executive Director of Retail and Digital Business, Tunde Mabawonku, emphasised the pressing need to prioritise technology and digital empowerment to complement capacity development, financial empowerment, and collaborative efforts, towards building a supportive ecosystem for MSMEs to thrive.

He said, “At Wema Bank, our approach embodies the saying, ‘Give a man fish, he will come back but teach a man to fish, he will learn to fend for himself and others.’ Technology and digital are the future, and intelligence is here to stay. What we are doing for these MSMEs is beyond providing the finances they need.

“We are also focusing on empowering them with relevant and transferrable digital skills to ensure they are not left behind in this digital evolution. What are the skills they need to sell in this fast-growing digital world? To operate effectively? To compete? To maximise the resources at their disposal? These are the questions that drive us at Wema Bank,” he said.

According to Oseni, the goal is digital empowerment for scale and to maximise the bank’s impact.

“We continue to partner with several esteemed bodies and institutions across the world, from banks to agencies, regulatory organisations, etc.

“Collaboration for us is continuous, from small alliances that allow us to empower smaller businesses through significant platforms within their ecosystem to bigger partnerships like the FGN-ALAT Digital Skillnovation Programme.

“We will continue to combine efforts and pool resources where ideal to create an enabling environment for businesses to thrive, provide financial support and other resources that these businesses need and empower them to skillfully utilise the resources available to them for maximum impact and growth,” Mabawonku concluded.

Micro, Small, and Medium Enterprises Day is celebrated globally to raise awareness of the tremendous contributions of enterprises to the achievement of the United Nations Sustainable Development Goals.

The Securities and Exchange Commission (SEC) has announced plans to impose a N1 million penalty on banks failing to submit complete capital raise applications in line with banking sector recapitalisation guidelines.

In a statement released, SEC emphasised that banks must follow specific norms and procedures to raise capital through rights issuance, private placements, or other authorised methods.

Applications and supporting documents are required to be submitted electronically via email. The SEC will review the documents and notify applicants of any deficiencies electronically.

The statement read in part, “Where an application is returned for being incomplete, a penalty of N1,000,000 and re-filing fee of N100,000 shall apply. This fee is payable by the Issuing House without a recourse to the Issuer or the Issue proceeds.”

The SEC’s initiative aligns with the Central Bank of Nigeria’s directive for banks to raise additional capital, essential for overcoming economic challenges and achieving a $1 trillion economy by 2030.

“As the regulatory institution mandated to regulate and develop the Nigerian capital market, the Securities and Exchange Commission has the responsibility to ensure a smooth, transparent, and efficient capital raising process by the banks.

“This framework outlines the guidelines and procedures banks are required to follow to raise capital through rights issuance, private placements, or other approved methods during the 2024–2026 recapitalisation period.

“The SEC stated that applications and documents are filed electronically via email, adding that documents forwarded will be reviewed, and where there are observed deficiencies, this will be communicated to the applicants electronically,” the statement continued.

International banks must increase their capital base to N500 billion under the new CBN capital requirement, while national banks must raise theirs to N200 billion, and regional banks to N5 billion.

The SEC highlighted that this framework is designed to ensure an efficient, transparent capital raising process that protects stakeholders’ interests. Banks and stakeholders are urged to adhere to the guidelines, which align with the Investment and Securities Act of 2007.

The SEC also stressed the importance of updating corporate information with the Corporate Affairs Commission before filing applications, to streamline the approval process and enhance regulatory oversight.

“The commission may require other documents or information as may be necessary. Where an issuer had already filed necessary documents with the SEC (e.g., a Memorandum and Articles of Association (Memart) or a certificate of incorporation or a certificate of increase in share capital, etc.),” the statement concluded.

The CBN on March 28, revealed updated minimum capital requirements for banks, establishing a minimum capital base of N500 billion for commercial banks with international authorisation.