Business
CBN fixes N1m application fee for payment service firm
Anyone intending to set up a payment service holding company will have to pay a mandatory application fee of N1m, the Central Bank of Nigeria has announced.
This, it said, was part of the guidelines for the establishment and regulation of payments service holding companies in Nigeria.
Musa Jimoh, CBN’s director of payments system management department, stated this in a circular.
The guidelines require companies that intend to offer both switching and processing, and mobile money services to set up a PSHC structure.
“This arrangement would prevent commingling of activities, facilitate management of risks and enable the Central Bank of Nigeria exercise adequate regulatory oversight on all the companies operating within the Group (PSHC),” the circular stated.
The CBN said promoters of a PSHC would be required to submit a formal application for the grant of a licence.
But it said the application process would be in two phases: approval-in-principle (AIP) and a final licence.
According to the guidelines, the capital requirement to apply for an AIP is “a non-refundable application fee of N1,000,000.00 (One Million Naira only) or such other amount that the CBN may specify from time to time; payable to the Central Bank of Nigeria, through electronic transfer.
“Not later than six (6) months after obtaining the AIP, the promoters of a proposed PSHC shall submit an application to the CBN for the grant of a final licence.
“The application shall be accompanied with non-refundable licensing fee of N5,000,000.00 (Five Million Naira only), or such other amount that the CBN may specify from time to time, payable to the Central Bank of Nigeria by electronic transfer.”
The apex bank explained that a PSHC would be set up for the purposes of making and managing equity investment in two or more companies being its subsidiaries, which are payments service providers across three categories: mobile money operations, switching and processing, and payment solution services.
It said, “PSHC shall be non-operating, existing solely to carry out investment in approved subsidiaries without engaging in the day-to-day management and operations of subsidiaries.
“It shall have a board size of between 5 and 10 or as determined by applicable CBN Corporate Governance Guidelines.”
The CBN added that no PSHC is allowed to borrow from the Nigerian banking system for the purpose of capitalising itself or any of its subsidiaries.
Business
Dollar crashes against Naira at official market
Dollar crashes against Naira at official market
The Naira on Wednesday appreciated at the official market, trading at N1,459.02 to the dollar.
Data from the official trading platform of the FMDQ Exchange, revealed that the Naira gained N61.38.
This represents a 4.04 per cent gain when compared to the previous trading date on Tuesday, when the local currency exchanged at N1,520.40 to a dollar.
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Also, the total daily turnover increased to 289.14 million dollars on Wednesday up from 128.76 million dollars recorded on Tuesday.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,593 and N1,401 against the US dollar.
Dollar crashes against Naira at official market
Business
Nigeria’s inflation rises further to 33.69%, highest in 28 years
Nigeria’s inflation rises further to 33.69%, highest in 28 years
Nigeria’s inflation rose to its highest in 28 years as it hit 33.69 per cent in April 2024, up from 33.20 per cent in March.
A report by the National Bureau of Statistics revealed this on Wednesday. It showed the food and non-alcoholic beverages category continued to be the biggest contributor to inflation.
Food inflation, which accounts for the bulk of the inflation basket, reached 40.53 per cent in annual terms, against 40.01 per cent in March.
The galloping inflation is attributed largely to President Bola Tinubu administration’s removal of petrol subsidy and naira devaluation due to foreign exchange rates unification.
Reuters in a report recalled that the Central Bank of Nigeria had raised interest rates twice this year, including its largest hike in around 17 years, as it struggles to contain the price pressures.
CBN Governor Olayemi Cardoso has indicated that rates will stay high to bring down inflation.
The bank holds another rate-setting meeting next week.
Price pressures have left millions of Nigerians grappling with the worst cost of living crisis in decades as they struggle to meet their basic needs.
To ease the pressure on government workers, Tinubu recently introduced a wage award of N35,000 and direct cash transfer to the vulnerable.
Auto
150 OEMs, others set for Lagos motor fair, Africa autoparts expo
150 OEMs, others set for Lagos motor fair, Africa autoparts expo
Arrangements have been concluded for the hosting of the 18th edition of the Lagos Motor Fair and 11th Africa Autoparts Expo in Lagos.
BKG Exhibitions Limited, organisers of the annual event, stated this, adding that it would be a bumper package as 50 Original Engine Manufacturers (OEMs) from different parts of the world had confirmed their participation at the fair.
Chairman of the organising committee for the show, Mr. Ifeanyichukwu Agwu, said at a press briefing in Lagos that the event is scheduled to hold on June 4-7, 2024 at the Federal Palace Hotel, Victoria Island.
Agwu, who is also BKG managing director, declared, “Over 150 confirmed Original Equipment Manufacturers from all over the world are already preparing to be at the show.
“From the financial sector, auto financing and acquisition facilities and schemes shall be on display at the various stands of the firms from the sector.
“Those interested in enjoying the synergy existing between the automobile industry and the Insurance sector will get the best and latest from reputable Insurance Companies at the fair arena.
“Some of the automobile dealers will showcase their own in-house finance/ acquisition schemes.”
He said almost all the major vehicle manufacturers and dealers in Nigeria would be participating at the fair.
Notable banks and insurance companies, major oil companies; manufacturers and dealers in auto spare parts and accessories have booked to participate in the event, he added.
There will also a conference/workshop session featuring germaine industry issues and key stakeholders.
Agwu said, “The aim of this segment is to inform, educate and contribute to policy decisions and implementation in the sector.”
“The fair will be a landmark and a benchmark in auto show business in the entire West African subregion as the all-inclusive event has been packaged to ensure that all stakeholders have a rewarding experience.
“Each of the days that the fair will last is loaded with activities and events that will make this edition remarkably different and we intend to improve and add on this in subsequent editions,” he said.
Visitors can also update their knowledge about Fleet Management from experts in the field that would be on the ground at the fair.
He also said, “We have carefully put in place a lot of crowd-pulling activities all geared toward driving much traffic into the fair. “These include but are not limited to performances by popular artists, cultural and fashion displays, models/automobile parades and a roadshow.”
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