Business
CBN to keep Dormant Accounts Money in UBTF for investing in TBs
Justifying this move, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said that monies in dormant accounts in banks are susceptible to fraud.
The CBN Governor, Olayemi Cardoso says that the monies in dormant accounts and unclaimed balances with banks for at least 10 years will be warehoused in a dedicated account known as the Unclaimed Balances Trust Fund Pool Account (UBTF).
According to the Nigeria Inter-Bank Settlement System, the number of dormant bank accounts in Nigeria is over 19.69 million, with an estimated over N850 billion deposits.
According to the NIBSS data, dormant accounts remained above 19 million every month since February 2024, with December closing at 19,697,125 inactive accounts.
This represents an increase of 1,205,000 from January’s figure of 18,492,169, marking a 6.51 percent rise over the year.
The peak was recorded in May and June when the number reached 20.57 million before dropping slightly in the second half of the year.
The data further shows that there was an increase of 2.08 million dormant accounts between the first six months of 2024 before the CBN’s July directive on such accounts.
The apex bank explains that the funds from dormant accounts, and unclaimed balances may be invested in Nigerian Treasury Bills and other government securities.
The CBN, in its new guidelines, which is a review of the guidelines issued in October 2015, exempted dormant accounts and unclaimed balances under litigation and investigation.
The guideline reads, “CBN shall treat unclaimed balances (dormant accounts and financial assets) as follows:
“Open and maintain the ‘UBTF Pool Account’, maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.
“Invest the funds in Nigerian treasury bills (NTBs) and other securities as may be approved by the ‘Unclaimed Balances Management Committee.
“Refund the principal and interest (if any) on the invested funds to the beneficiaries not later than 10 working days from the date of receipt of the request and where it is imperative to extend the timeline, a notice of extension shall be communicated to the requesting FI stating reasons for the extension.”
Justifying this move, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said that monies in dormant accounts in banks are susceptible to fraud.
At the end of the 296th meeting of the Monetary Policy Committee in Abuja, Cardoso said,
“Concerning dormant accounts, what I found personally is if you leave accounts dormant in banks, sometimes more than when you don’t leave them dormant in banks. In fact, most times, they are more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money. So, that is a problem I think most money banks face.”
“The policy and the directive are meant to ensure that all those monies come to the central bank for safekeeping and it is at zero cost to the beneficiaries.
All that will happen is that the central bank will manage the money within our possession and when the rightful owner surfaces, the money is returned plus whatever income is accrued to you.”
Business
President Pledges Support for Fintech Companies As Flutterwave Seeks Listing on NGX
The CEO of Flutterwave, Agboola, said the company has made it easy for Nigerians to pay for some global services with Naira and provided payment platforms for Nigerians in the diaspora who are willing to send money to families and relatives in the country.
▪︎In picture: President Bola Ahmed Tinubu, Minister for Finance and Coordinating Minister of the Economy, Mr Wale Edun, Chief Executive Officer Flutterwave, Mr Olugbenga Agoola and CEO Alami Capital, Miss Olu Seun Olufemi-White, after a Meeting at the Presidential Villa Abuja.
President Tinubu said his administration will support businesses in the financial technology sector that provide payment infrastructure services for Nigerians and Africans.
He said this when he received the leadership of Flutterwave and Alami Capital in Abuja on Saturday afternoon.
Flutterwave, a leading Fintech company founded by young Nigerians and headquartered in Lagos, operates in the U.S., Canada, Nigeria, Kenya, Uganda, Ghana, South Africa, and 29 other African countries. Olugbenga Agboola, the CEO; Adeleke Adekoya, a co-founder; Oluwabankole Falade and Mitesh Popat, represented Flutterwave at the meeting.
Ms Oluseun Olufemi-White represented Alami Capital as its CEO. Minister of Finance and Coordinating Minister of the Economy Mr Wale Edun led the delegation to meet President Tinubu.
Dr. Armstrong Ume Takang, the Managing Director and Chief Executive of the Ministry of Finance Incorporated (MOFI), and Dr. Inuwa Kashifu Abdullahi, the Director General/ Chief Executive Officer of the National Information Technology Development Agency (NITDA), also attended.
President Tinubu said Nigeria is genuinely open to business, and as President, he is determined to remove all obstacles to allow companies to thrive.
He commended Flutterwave’s commitment to building capacity in the digital economy sector, especially as it is being made possible by energetic, young Nigerians.
He said he is honoured to be the President of a country with such a youthful and resourceful population.
He said the leadership Flutterwave provides in the digital world is what Nigeria needs today to grow its economy and make life easier for most of its population.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said Flutterwave has made significant progress since its establishment 10 years ago.
It has created jobs and helped diversify the economy by providing innovative digital platforms and payment services in Nigeria and across Africa.
The CEO of Flutterwave, Agboola, said the company has made it easy for Nigerians to pay for some global services with Naira and provided payment platforms for Nigerians in the diaspora who are willing to send money to families and relatives in the country.
He said Flutterwave, valued at over $3 billion, is a Nigerian export and brand employing over 1,000 Nigerians.
He said the company seeks to be listed on the Nigerian Exchange and solicited the President’s support.
The Managing Director and Chief Executive of MOFI, Dr. Armstrong Ume Takang, said that as Africa’s biggest economy, Nigeria must demonstrate its economic prowess by strategically positioning products and services by Nigerian companies, such as Flutterwave, in the homes of all Africans.
He said Flutterwave spends millions of dollars monthly on hosting services, but that money goes to other countries.
He suggested supporting Galaxy Backbone’s hosting services to enable it to handle companies like Flutterwave.
Business
FG Mandates IRWG to Revives over 700 Moribund Industries
The 22-member IRWG team was inaugurated in Abuja, on Thursday this week, by Senator John Owan Enoh, Minister of State for Industry, and co-chaired by Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN).
The Director-General of the Manufacturers Association of Nigeria (MAN) has affirmed that the recently inaugurated Industrial Revolution Working Group (IRWG) by the Federal Government, will go a long way in “waking up those more than 700 industries that have been shutdown for one reason or the other across the manufacturing sector and ensure that they don’t leave the country or be shut again”.
Ajayi-Kadir, expressed the confidence during the launch of the IRWG members team, saying that the group would ignite the revival in the sector and ensure the creation of an environment that is conducive.
The 22-member IRWG team was inaugurated in Abuja, on Thursday this week, by Senator John Owan Enoh, Minister of State for Industry, and co-chaired by Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN).
Other members of the group include the Permanent Secretary of the Ministry of Industry, Trade and Investment. , representatives from the Ministry of Power, the Ministry of Finance, MAN, the Nigeria Customs Service (NCS), the Nigeria Ports Authority (NPA), the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACIMMA), and others.
IRWG Mandates
The Minister said that the mandates of the revolution group are :
1. Rejuvenate, innovate, and elevate Nigeria’s industrial future.
2. The IRWG would focus on addressing regulatory bottlenecks, power supply issues, and customs procedures.
3. The IRWG should anchor its efforts on four pillars which include revitalizing dormant industries, infrastructure, and energy solutions, technology innovation, access to finance, and competitiveness.
4. Conduct meticulous audits of industries that once thrived but have since stagnated.
5. Formulating bespoke intervention strategies for their resurgence.
Business
Oppo launches slim $1,870 folding phone to rival Samsung, Huawei
When it’s folded shut, the Find N5 looks like a normal bar-shaped phone with a 6.62-inch display
Chinese smartphone firm Oppo has unveiled its new flagship folding phone Thursday, touting a slimmer body and artificial intelligence-focused features in a bid to compete with high-end foldable devices from the likes of Samsung and Huawei.
CNBC reports that the company’s Find N5 phone that can fold in half, will retail at a starting price of 2,499 Singapore dollars ($1,867.70).
When it’s folded shut, the Find N5 looks like a normal bar-shaped phone with a 6.62-inch display.
The device can then be folded outward to show a larger, 8.12-inch tablet. Most notably, the phone has an ultra-thin design.
When closed, it measures 8.93 millimeters thick, while when opened out in tablet form, the Find N5 has a depth of 4.21 millimeters.
That’s slimmer than Samsung’s Galaxy Fold 6, which the South Korean tech giant released last year. Inside the device is a razer-thin 5,600 milliampere-hour (mAh) battery that’s no bigger than a credit card.
Oppo said the battery incorporates a silicon-carbon material, which enables high battery capacity despite its small size.
Oppo is hoping it can win business from the likes of Samsung and Chinese tech giant Huawei, both major smartphone players seeking to shake the market out of an innovation slowdown with flashy new models that can bend.
Earlier this week, Huawei launched the Mate XT, a “trifold” phone with three screens, outside of China for the first time.
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