Money market
Launch of American Express cards in Nigeria met with high demand — O3 Capital
O3 Capital, a leading Nigerian fintech and the country’s first non-bank credit card issuer, has disclosed that the launch of its four American Express (‘Amex’) cards have been met with huge demand both in and out of Nigeria.
Chief Executive Officer of O3 Capital, Abimbola Pinheiro, in a statement said, “We are delighted with the amazing response to our launch of American Express cards in Nigeria.
“The success of the Green and Platinum cards, in particular, shows the market’s enthusiasm for modern financial solutions. We are proud to support both individual and corporate customers in their financial journeys.
“Our cards launch has also struck a major chord with established banks and fintechs – many of whom have approached us to partner with them. The future for O3 is exciting.
“We are also pleased to have received a positive acknowledgment from the Government of Nigeria, to our exciting developments – and which is aligned with the Financial System Strategy 2020 of the Central Bank of Nigeria (CBN), and the main thrust of a ‘cashless Nigeria’,” he stated.
Abimbola further said the acknowledgment underscores the importance of O3 Capital’s contribution to the country’s financial ecosystem.
In May 2024, O3 Capital announced an agreement with American Express to issue four new American Express credit cards: the O3 American Express® Green Card for consumers, the O3 American Express Gold Card for consumers, and the O3 American Express Platinum® Card for consumers; and the O3 American Express Gold Business Card for small- and medium-sized enterprises (SMEs).
The Securities and Exchange Commission (SEC) says the regulation of crypto-currencies and other digital assets are under its full control and regulation.
The Director-General of SEC, Dr Emomotimi Agama, said this at the first Annual Conference of the Association of Capital Market Academics of Nigeria (ACMAN) on Thursday in Abuja.
Agama described crypto assets as digital or virtual assets utilised by cryptography for security.
He said there were over 15,000 crypto currencies created which had Bitcoin as the most popular.
The director-general said that the regulatory landscape for cryptocurrency was not yet firm even in the United States.
According to him, Nigeria’s crypto transaction volume had reached $56.7 billion between July 2022 and June 2023, hence the efforts by SEC.
Agama quoted a survey which said that 33.4 per cent of Nigerians were using or owned crypto currencies.
”Secrecy of crypto usage is what is driving its adoption by the youth.
”Some people don’t have bank accounts but they have crypto wallet.
”Crypto is like an air, can you cage it, No. What you can do is to build a risk management around it, ”he said.
Agama said the commission would continue to educate investors on the risks associated with digital assets to be able to make wise investment decisions.
Chief Osita Izunaso, the Chairman, Senate Committee on Capital Market, said the country required effective crypto regulation to benefit from the gains of the market.
Izunaso said the absence of effective regulation on crypto currencies had exposed so many investors to fraud.
He called for synergy from all stakeholders to harness opportunities in the crypto space.
The Director-General of the Debt Management Office, Ms Patience Oniha, called for awareness creation to educate investors to make informed decisions.
Mr Bello Hassan, the Managing Director of the Nigeria Deposit Insurance Corporation, said that crypto currencies had come to stay as younger people were patronising the market.
Hassan called on SEC to constantly update investors with unbiased information of the associated risks of trading in the crypto market.
Prof. Uche Uwaleke, the President, ACMAN, said the conference was aimed at considering the possibilities of expanding the financial sector regulations.
Uwaleke said the conference would also explore ways to accommodate crypto assets within the regulatory space.
ACMAN conferred awards on many stakeholders in the financial and capital markets for their various contributions in moving the markets forward.
The conference was organised by ACMAN in collaboration with SEC.
By Opeyemi Abdulsalam
The Nigerian currency, Naira, maintained its stability against the United States dollar at the official foreign exchange market on Wednesday, trading at N1,507.83 per dollar.
According to data from FMDQ, this represents a marginal change of N0.04 from the previous day’s rate of N1,507.79 per dollar.
At the parallel market, the naira also maintained its exchange rate of N1,505 per dollar, unchanged from the previous day.
Bureau de Change operators in the Wuse Zone 4 area of Abuja confirmed the rates, with one operator, Dayyabu Ashiru, stating that they sell at N1,505 per dollar and buy at N1,495.
“We sell at N1,505 per dollar and buy at N1,495,” Dayyabu Ashiru, a Bureau de Change operator in Wuse Zone 4 told a source on Wednesday.
The stability of the naira comes on the heels of recent reforms implemented by the Central Bank of Nigeria (CBN), which have attracted a significant inflow of $24 billion into the country in the first quarter of 2024, according to the CBN Governor’s recent interview with Bloomberg Television.
In a related development, the CBN on Tuesday issued a fresh directive permitting International Money Transfer Operators and all banks to pay diaspora remittances in naira.
The Debt Management Office says the rise in Nigeria’s public debt stock from N97.34 trillion in December 2023 to N121.67 trillion in March is partly due to exchange rate fluctuations.
The Director-General of DMO, Patience Oniha, said this in an interview with journalists.
She was clarifying misconceptions about the recently released update of the country’s total debt profile.
She said that the securitisation of N4.90 trillion as part of the securitisation of the N7.3 trillion Ways and Means Advances approved by the National Assembly was also responsible for the N24.33 trillion increase in the debt stock.
According to her, there is also the interest rate, as well as new borrowing of N2.81 trillion as part of the N6.06 trillion provided in the 2024 budget.
She, however, emphasised that the debt stock included the domestic and external debt stock of the 36 states and the Federal Capital Territory (FCT).
“The total public debt as of March 31, showed that the total public debt in Naira terms stood at N121.67 trillion compared to N97.34 trillion as of December 31, 2023.
“While detailed information was provided on the data, such as the split between external and domestic debt as well as the fact that the debt stock includes the domestic and external debt stock of the 36 states and the FCT, it has become imperative to provide some explanations.
“It is important to recognise the fact that Nigeria has undergone some major reforms that have impacted economic indices such as the dollar/Naira exchange rate and interest rates.
“These two, in particular, affect the debt stock and debt service,” she said.
Oniha said that the increase in Naira in terms of N24.33 trillion between the fourth quarter of 2023 and the first quarter of 2024, did not strictly represent new borrowing.
She said that the total external debt stock was relatively flat at 42.50 billion dollars and 42.12 billion dollars in the fourth quarter of 2023, and the first quarter of 2024, respectively.
“The Naira values were significantly different at N38.22 trillion and N56.02 trillion, respectively, representing a difference of N17.8 trillion.
“This explains the perceived sharp increase of N24.33 trillion in the total debt stock in the first quarter of 2024.
“The difference in the exchange rate for the two periods also explains why, in dollar terms, the total debt stock actually declined in the first quarter of 2024 to 91.46 billion dollars,” Oniha said.
She said that the debt report was somewhat an improvement from the past, before President Bola Tinubu’s government.
According to her, “if you discount FX impact, the debt is moderate and within the normal limit.”
She urged the Federal Government to prioritise fiscal retrenchment while assuring that the various measures to attract foreign exchange inflows would increase external reserves and support the Naira exchange rate.
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