Thursday 2 February 2012

Mobile Money West Africa Summit 2012 – Executives from Ecobank, Citibank, MTN others to speak

 



First round speakers announcement for MobileMoney West Africa Summit, Lagos – Nigeria

MobileMoneyAfrica, Africa's leading resource for mobile financial inclusion today announced that executives from EcoBank International, Africa centre for mobile financial inclusion, citi Bank, PayG Solutions, Mfino, Comviva, Finsol –Kenya, MobileMoney Consulting –UK, Oceanic Bank International, MTN GHANA, Fortis MobileMoney, NIPOST, comnavig, Netsignature, Microensure, Experian MicroAnalytics are among the first round of speakers that will present at the MobileMoney West Africa
summit and exhibition which will be held on March 5th – 6th , 2012 at the prestigious Lagos Oriental Hotel,Victoria Island,Lagos – Nigeria.

The speakers lineup is made up from experienced industry subject matter experts cutting across Financial institutions, technology and other associated industries.The two day event will empower delegates to make informed decisions in the emerging mobile money ecosystem in West Africa, a region of 150 million mobile subscribers with only a small fraction having access to formal banking services under an addressable population of 300 million.

''We look forward to a impacting event at the second annual event in Nigeria where the regulator is making efforts to bring access to millions that are actively left behind from the formal financial ecosystem. It is our sincere desire that the summit will open new opportunities in the West African region cutting across cross border remittances, banking, payments, regulatory and payment services'' said Emmanuel Okoegwale, Principal Associate at MobileMoneyAfrica.

The first round of speakers announced for MobileMoney West Africa include:

Click link for all details 

Cleric counsels Lagos Muslim community on CBN’s cashless policy

Written by Soji Ajibola, LagosThursday, 02 February 2012

Muslim community in Lagos State has been asked to support the Cashless Policy recently introduced by the Central Bank of Nigeria (CBN).

Giving the advice at a Breakfast–in-the-Mosque Programme organised by the Muslim Community of the Lagos State House of Assembly, Mr Maroof Tijani, said the policy introduced by the CBN was to reduce armed robbery attacks as well as make the naira more attractive.

"Our currency is very dirty compared to others in the developed world. This policy was informed to reduce crime rate in the society and the money spent to print our naira by the CBN is too high."

Read it all here http://www.tribune.com.ng/index.php/community-news/35282-cleric-counsels-lagos-muslim-community-on-cbns-cashless-policy




  

Wednesday 1 February 2012

Are MfBs set for reforms?


 By AKINOLA AJIBADE FOR THE NATION

The Central Bank of Nigeria (CBN) has introduced measures to sanitise microfinance banks (MfBs). In this report, AKINOLA AJIBADE examines how effective the measures are.

The microfinance banking sub-sector is plagued by problems such as inadequate capital, bad debt, management ineptitude, weak corporate governance structures, faulty accounting procedures and corruption.

Others are poor skills, inability of the operators to properly understand the concept of microfinance banking, among others. These have eroded confidence in the sub-sector, making it a source of concern to many, especially the Central Bank of Nigeria (CBN). To revive the operations of the 898 microfinance institutions, CBN introduced some far-reaching measures, which are part of its reforms agenda for the banking industry, aimed at putting the banks on the path of profitability.

Like what happened to commercial banks, the reforms in the microfinance banking were introduced, inter alia, to lay to rest the notion that the banks were no longer capable of recording growth.


The reforms

Part of the reforms is the introduction of the electronic format of rendering returns to CBN against the manual method; categorisation of banks into unit, state or national level; the imposition of a new capital regime of N20 million, N100 million, and N2 billion on the banks; and granting the banks a waiver not to participate  in the microfinance programmes.

Others include examination of the books of the banks, and the directives on a uniform accounting year for them, among others.

Since the reforms were introduced, the banks have been making frantic efforts to improve their operations albeit at a greater cost. While many have adopted cost-cutting measures to stimulate growth, others are fine-tuning plans to get sizeable shares of the market. In all these, stakeholders have described the reforms as the best thing to



Cash-less Policy: CBN, Banks to Step Up Awareness

By Obinna Chima for THIS DAY LIVE

Concerned by the seeming apathy that had trailed the cash-less policy which commenced in Lagos last month, the Central Bank of Nigeria (CBN) and the bankers' committee had concluded arrangement to step up the level of awareness of the policy.

Sources at the meeting which was held in Lagos last week, informed THISDAY that the decision reached at the meeting was to aggressively improve the level of enlightenment on the policy before March 30th, when the service charges/fees will become effective. THISDAY learnt that the meeting had representatives from the CBN, the bankers' committee and the media consultant on the policy.

The pilot phase of the new cash policy, which seeks to limit daily cash withdrawal/lodgement by individual and corporate organisations to N150, 000 and N1 million respectively, commenced in Lagos on January 1, 2012.

According to the CBN, the policy is expected to fast-track the development of the economy.

The source who pleaded to remain anonymous said: "we noticed that we were not achieving the desired objectives with the earlier campaign and we have decided to go full blast from this week."


 


Osibodu tasks compliance officers on int’l standards

By BABAJIDE KOMOLAFE
From: Vangurd Newspapers


COMMITTEE of Chief Compliance Officers of Banks in Nigeria (CCCOBIN) has been advised to adhere to International Standards as they grapple with new challenges of a cashless economy, anti-money laundering and countering financing terrorism in order to change the negative perception of Nigeria in the global financial market.

The Group Managing Director /Chief Executive of Union Bank of Nigeria PLC, Mrs. Funke Osibodu, made this call in Lagos while addressing members of the Committee at a general meeting hosted by the bank.

Osibodu said that the negative perception and threat to blacklist Nigeria in the global financial market stemmed from non-adherence to anti-money laundering and countering financing terrorism laws; and for the country to change the perception, the compliance function in different banks need to be enhanced and made more stringent even as they participate in the international AML/CFT programmes so as to appreciate the country's stance against money laundering.

On the cashless policy, Osibodu canvassed for shared experience and robust discussions amongst all stakeholders would help to tackle issues emerging from the new policy; pointing out the tremendous progress made in the electronic banking products, mobile banking and prepaid cards.



MOBILE MONEY:Show me the money in Nigeria

Article by CASHLESS NIGERIA

Mobile money is conducted using the mobile telephone network and includes the use of mobile phones (The mobile phone become your cash wallet), agents and subscribers. It started in Kenya, as an alternative and fast way of sending money to recipients from the urban to rural areas most especially those without access to bank accounts. Mobile phones now significantly outnumber ATMs and bank branch network, giving mobile operators a level of reach far greater than money transfer providers and banks.

Nigeria, no doubt, remains the biggest market for mobile phones in Africa, with over 90 million telephone users and still counting. GSM, which gives unlimited mobile access, accounts for over 85 million lines while CDMA, which gives limited mobility access, accounts for the remainder.

Today, with just a click of the mobile phone button, calls can be made to anybody with a telephone line (Mobile or Fixed) connected to any network around the world. While the mobile phone has served the functions of making and receiving voice call, sending and receiving Short Message Service (SMS), it has as well taken on another function of being a tool for the delivery of money.

Want read it all, click here http://www.cashlessnigeria.com/themoney/
--

Kindest Regards

sludba Team


 4 Ikosi Road
 Ikosi-Ketu
 Lagos-Nigeria
  
234 805 783 8282
234 806 361 2572
234 809 514 5111
234 807 070 8795
234 805 844 9177
  

CBN exempts microfinance banks

Article written by Akinola Ajibade
culled from: The Nation

The Central Bank of Nigeria (CBN) has exempted microfinance banks from participating in cash-lite banking system. By this, the customers of the 898 microfinance institutions can now continue to deposit and withdraw above the apex bank's limit.

Confirming the development, the Chairman, National Association of Microfinance Banks (NAMB), Lagos State Chapter, Mr Olufemi Babajide, said the apex bank has exempted the microfinance banks from participating in the cashless banking.

Read More here http://www.thenationonlineng.net/2011/index.php/business/money/35232-cbn-exempts-microfinance-banks.html

Kindest Regards

sludba Team


 4 Ikosi Road
 Ikosi-Ketu
 Lagos-Nigeria
  
234 805 783 8282
234 806 361 2572
234 809 514 5111
234 807 070 8795
234 805 844 9177
  

Tuesday 31 January 2012

POCKETMONI


PocketMoni is the brand name of eTranzact Mobile Money service. eTranzact Mobile Money platform is the first truly operational mobile commerce application that is multi network capable with the ability to interface seamlessly with third party payment schemes.

The service in line with international standards is secured utilizing 3DES encryption technology. In addition a PIN is required for every transaction. PocketMoni customers can securely, conveniently and cost-effectively send money to family and friends, buy airtime TopUp of any network, Pay bills such as: DSTV, Hi TV, MyTV monthly subscription, POSTPAID bills, PHCN bills and Make cash deposits, e.t.c:

Cashless Lagos: Banks yet to roll out 40,000 PoS


By OMODELE ADIGUN
copied from http://www.sunnewsonline.com

One month after the nation’s banks were expected to have rolled out 40,000 Points of Sale (PoS) devices for the successful implementation of Cashless Lagos, the pilot of Cashless Policy of the Central Bank of Nigeria (CBN), investigation has shown that the electronic payment channel is yet to fully register its presence in the nation’s commercial hub.

It would be recalled that Mr Tunde Lemo, the CBN deputy governor in charge of Operations, while speaking mid-December, last year, at the Annual Seminar of Committee of e-Banking Industry Heads (CeBIH), had said that the banking system would roll out 40,000 PoS terminals before the end of the year in preparation for the January 1, 2012 take-off of Cashless Lagos.

According to him, this was expected to cater for settlement of transactions along other electronic payment options.
His words: “The policy on cash transactions would take effect from June 2012. However, a pilot implementation of the retail payments transformation initiative is to commence in Lagos, code-named Cash-less Lagos. The pilot will take off on January 1, 2012. For the cash-less Lagos project, it is expected that by end-December 2011, a target of 40,000 PoS devices would have been deployed within Lagos State to cater for settlement of transactions alongside other electronic payment options.

“We have a target of deploying 150,000 PoS by end December 2012, which will be scaled up to 375,000 PoS by end 2015 when we hope to have attained our benchmark PoS penetration of 2,247 PoS per 100,000 adult population as obtainable currently in Brazil,” he said.
But one month after, none of the banks has been able to deploy the required PoS terminals anywhere in Lagos State. The Pos terminals are expected to be deployed to all locations where cash is used as means of payment. These include schools/educational institutions, filling stations, worship places/religious organizations, retail/wholesale outlets, travel agencies ,hotels, telecoms companies etc.
Explaining why the PoS devices are nowhere to be found in Lagos, a source said that the PoS devices are already in the country but that the importers are facing clearing hurdles at the port.

“The 40,000 PoS are already in Nigeria. What is holding them is just deployment, which has to do with clearing and Customs issues. We got waivers, almost orally, on the importation of these PoS which was not communicated in writing to the (Nigeria) Customs (Service).
“So when the PoS arrived the Port, there was an unexpected clearing problem which would not have arisen if there was no communication breakdown. The banks even ordered hundreds of thousands of ATMs themselves to ensure seamless implementation of the scheme. But in the next two weeks or so, you will see and hear a lot of things,” said the source.

The POS terminal is an electronic device that is used for the verification and processing of card transaction for payment of goods and services. And to ensure the effectiveness of the CBN Policy on cash collection and lodgment, the POS terminal has been identified as an effective channel to promote cashless society.

On how the device works, Mr Paul Lawal, the immediate past CEO of Nigeria InterBank Settlement System (NIBSS),in an interview with New Fortunes magazine, explains: “The hardware in the PoS devices is where you insert your card. It asks you to put your Personal Identification Number (PIN) and you do that. It means that the amount will be communicated to your bank, your bank will then confirm through your PIN that you are the owner of the account. It also has to confirm that the card can pay the amount requested. After the transaction is approved, then the customer is paid.”

Cash Less Policy to Tackle Money Laundering, Says Osibodu

B010112-Funke-Osibodu.jpg - B010112-Funke-Osibodu.jpg


By Obinna Chima
copied from: http://www.thisdaylive.com

The Group Managing Director /Chief Executive of Union Bank of Nigeria Plc, Mrs. Funke Osibodu has said that the cash-less  policy initiative that had been introduced in the system would go a long way to reduce activities of money laundering in the system.

Therefore,  Osibodu advised the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN) to adhere to international standards as they grapple with new challenges of in the global market, even as she listed the new cash-less policy, anti- money laundering and countering financing terrorism as some of the challenges that the officer had to grapple with.

According to a statement from the bank, the Union Bank boss made the call in Lagos while addressing members of the committee at a general meeting hosted by the bank.
Osibodu said that the negative perception and threat to blacklist Nigeria in the global financial market stemmed from non-adherence to anti-money laundering and countering financing terrorism laws, saying that for the country to change such perception, the compliance function in different banks needed to be enhanced and made more stringent even as they participate in the international AML/CFT programmes so as to appreciate the country’s stance against money laundering.

Commenting further on the cash-less policy, she canvassed for shared experience and robust discussions amongst all stakeholders would help to tackle issues emerging from the new policy; pointing out that tremendous progress had been made in the electronic  banking products, mobile banking and prepaid cards.

She argued that the new cash policy would bring both positive and negative effect on money laundering, financing terrorism and other forms of financial crimes, saying that the positive impact would far outweigh the negatives.

According to her, the cash-less policy had come to change the face and mode of operations in Nigeria.

She said given that legitimate businesses were also used by the terrorist groups and their supporters to either raise funds in support of logistics and operational requirements to cover some activities of the groups or as a front for money laundering, the committee should develop the sensitivity and tools that could be in focusing on these areas.

Monday 30 January 2012

Going Cashless & Cash Lite What are your Payment options

You must have heard about the cashless policy of the Central Bank of Nigeria, CBN by now. Well, if you have not, it is a policy aimed at reducing the volume of physical cash circulating in the Nigerian economy. Core to the cashless (more like cash-lite) policy is the introduction of daily bank deposit/withdrawal limits above which account holders pay huge transaction costs.

Most articles on the cashless policy so far have focused on either announcing the policy or highlighting the challenges facing it. Very few have actually focused on what payment and transaction options are available to you if you require transactions above the daily limits without paying the huge cash handling charges or if you just want to go cashless or cash-lite. In this article we will be highlighting some of these e-payment and e-transaction options. 

Cashless Policy Overview

Before going through the payment/bank transaction options, let us first see what the cashless policy is all about. CBN has introduced daily limit for withdrawal and deposit into a bank account. The cumulative daily limit is N150,000 for individual accounts and N1,000,000 for corporate accounts. Above this daily limit you will pay huge cash handling cost of N100 for every N1000 (10%) above the limit.

So, you can withdraw above the limit, but it will be very expensive if not stupid. For example, if an individual withdraws/deposits N1,000,000 in a day, the first N150,000 will be handled free and the excess N850,000 will attract a 10% handling charge (i.e N85,000). So, under the cashless policy you will be debited for N1,085,000 if you withdraw N1,000,000 and credited for N915,000 if you deposit N1,000,000. To avoid the huge charges you have to use e-payment and e-banking options. Note that if a third party deposits cash to your bank account it is you (account holder) that will bear the transaction cost.

CBN Exempts MFBs from Cashless Banking

Following the kick-off of cashless banking in Lagos, the Central Bank of Nigeria(CBN), has exempted microfinance banks natiowide from the policy, BusinessWorld Intelligence can now reveal. To this end, microfinance clients as well as microfinance banks can now continue to deposit and withdraw above the apex bank's set limit.
The apex bank had earlier pegged cash withdrawal and lodgement limits by individual to N150, 000 and N1 million for corporate bodies, as its implementation commenced in banks within Lagos metropolis earlier in the year. Virtually all banks within the state have started the implementation of the cashless banking policy.
However, investigation shows that microfinance industry in Nigeria fully operate a cash-driven system, such that majority of transactions in the sub-sector are done  through cash movement. 
Only few customers embrace electronic banking as the use of ATM points by microfinance clients is very rare. Some, it was learnt, also engage in cheque transactions, but a large proportion rely on naira notes to engage in business dealings. The high illiteracy level in the sub-sector makes it difficult for cashless banking policy to work, with customers unwilling to buy into this initiative.
While customers in most cases deposit more than the said limit, they also withdraw above the stipulated limit, especially at the end of the month, when most small companies had to offset employees' salaries.
BusinessWorld Intelligence also revealed that credit canvassers of MFBs, are responsible for every transaction (withdrawal and lodgement) of their customers. All transactions are pulled together and this withdrawal is done en-masse by MFBs through their corresponding banks, which in most cases exceed this limit. 

Going Cashless- Are we ready?


The Apex bank CBN as part of its structural economic developmental program amongst others has been on set to fully activate its plans of the proposed Cashless Nigeria nay, a cashless society. 
 
Citing the raison d'être for this constructive innovation in an article; 'Further Clarifications on Cash-Less Lagos Project' the advancement suffice to say, would venture to:
 
i.           Create an efficient and modern payment system accommodating for economic growth.

ii.          Reduce the cost of banking services and increase transaction options.

iii.        Improve the effectiveness of monetary policy in managing inflation and driving economic growth.
 
Investors information correspondence- one of Proshare's core and passion for existence, propelled the move to seek to find the views and concerns of Local and Diaspora citizens profiled; -investors, professionals, HNI's and citizens at large via an online pool survey to determine the challenge envisaged in the full deployment of a Cashless Nigeria

read more about this here: http://www.proshareng.com/news/16153

4 WAYS TO GO CASHLESS OR CASHLITE IN NIGERIA



Are you ready for the CBN Cashless Policy?
Much has been said about the Central Bank of Nigeria Cashless policy set to take effect this year (March 1, 2012 for Lagos and June 1, 2012 for other states) but one thing you should be very concerned about is your readiness for this policy when it comes in full force.




You must understand what this policy is all about before preparing for it. I will try and explain it here.
Last year CBN introduced its cashless policy which stipulates daily limit for withdrawal and deposit into a bank account. The cumulative daily limit is N150,000 for individual accounts and N1,000,000 for corporate accounts. On exceeding this limit you will be charged a cash handling cost of N100 for every N1000 (i.e. 10% of the excess amount).




Now let me illustrate:
If you withdraws/deposits N1,000,000 in a day, the initial N150,000 will be processed free but you will be charge 10% handling cost for the excess N850,000, this means you will be paying N85,000 as charges.
So, under the cashless policy you will be debited for N1,085,000 if you withdraw N1,000,000 and credited for N915,000 if you deposit N1,000,000.




If you handle more than N150,000 a day then you shouldn't sit and wait until this policy comes into force. The best way to get ready for this is to start going cashless or cashlite now. I'll give you options that you can consider below.




Internet Banking/Online Banking:
This enables you to do normal banking transactions through the internet. You can transfer funds, check your balance, pay bills and taxes, make FX transfer and FX sales. If you don't have an internet banking profile go to your bank and ask for it. The process is fairly simple, you fill a form and an account will be created for you. Make sure you ask them for internet banking token – a hardware that enables you validate you transactions online (GT Bank charges about N3000 for the token).




Electronic Payment cards
If you are the type that hates ATM/Electronic Cash cards then you better start liking them unless you are willing to pay 10% charges for your transactions that exceed N150,000 everyday. E-payment cards like interswitch Verve, Visa, Mastercard enables you to make payment for goods and services via Point of Sales (PoS) without handling cash. For example after buying something from supermarket you will just swipe your card on the PoS device and you authorize the payment which will then be transferred from your account to the merchant account. E-payment cards also enables you to shop online. Go ask your bank for one today if you don't have it yet.




E-Payment Channels (PoS)
On the other hand if you own a business that either provide direct service or sales to customers, you should seriously consider going for Point of Sale (PoS) device. This will enable you accept payment from customers without cash. This will reduce the risk involved in handling cash and you won't have to pay charges depositing excess cash to your bank. If you own an online shop or service, you can check for payment processing gateways/platforms to enable you accept payments online.




Mobile Money
Mobile Money is the major drive of CBN's cashless policy. It allows you to create e-wallet and store funds in your phone. You can use it to pay for goods and services at merchant locations that support mobile money. Many mobile money services are available eg Glo Txtcash, GTBank MobileMoney etc check them out for steps to register for it.




Don't even consider keeping you money at home because it is more risky. Most financial institutions are working hard to improve on the security of these platforms so be rest assured that your money is save. Starting going Cashless or Cashlite now!

The hiccups in Sanusi’s cash-less policy

Written by Chris Agabi
culled from: http://sundaytrust.com.ng


It is no more news that the cash-lite or cash-less policy introduced
by the Central Bank of Nigeria to dissuade Nigerians from huge cash
transactions has begun. It is also no news that the pilot scheme
started in Lagos January 1, 2012. However, what may interest Nigerians
is the success or otherwise of the policy thus far. This is because,
the performance of the policy in Lagos will ultimately define how the
policy will be implemented in the rest of Nigeria commencing from June
1, 2012. In fact, it will tell if the project will succeed or fail.
These concerns have put promoters of the policy in the middle of the
storm following the barrage of criticisms that had greeted the policy
one year ago when it was first proposed by the Central Bank of Nigeria
(CBN) and Bankers Committee. Thus, for the operators, there is just
one goal – the policy must succeed.

What is cash-less policy?

By way of reminder, the cash-less policy is the migration from cash
based economy to electronic payment channels. The cash-less policy
does not in any way suggest there will no longer be cash in
circulation. The policy does not also prohibit withdrawals or deposits
above the stipulated amounts, but such transactions will be subject to
cash handling charges. The cumulative cash withdrawals/lodgements
daily limits are pegged at N150,000 and N1 million for individuals and
corporate organisations respectively. The limits apply to the account
so far as it involves cash, irrespective of channel (e.g. over the
counter, ATM, 3rd party cheques encashed over the counter etc) in
which cash is withdrawn or deposited (e.g. if an individual withdraws
N50,000 over the counter, and N150, 000 from the ATM on the same day,
the total amount withdrawn by the customer is N200,000, and the
service charge will apply on N50,000 - the amount above the daily free
limit). The limit also applies to cash brought through Cash-In-Transit
(CIT) licensed companies, as the CIT company only serves as a means of
transportation. Penalty fee of N100 per thousand and N200 per thousand
will be charged for individual and corporate organisation respectively
that transacts business above the limit. However, the charges shall
apply from March 30th 2012 in Lagos.

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