The Central Bank of Nigeria has threatened to impose fines on erring players in the financial sector over cash scarcity at Automated Teller Machines.

This announcement was made by the CBN Governor, Olayemi Cardoso, on Friday at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria in Lagos.

There have been reports of cash scarcity at banks in recent times both at ATMs and over the counter in banks.

Cardoso stated, “We also recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.

“To address this, we are conducting spot checks across the Deposit Money banks, and we impose penalties on the underperforming institutions. Effective December 1. 2024, customers are encouraged to report any difficulties with joint cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.

“Guidelines will be distributed widely to raise public awareness. We will also urge full regulative compliance by all stakeholders, including mobile money operators and POS agents, to promote digital transaction channels and improve service delivery. I repeat, financial institutions found engaging in malpractices or sabotage will face changing penalties.

“The CBN will continue to maintain a robust cash offering to meet the country’s needs, particularly during high demand periods such as the festive season and year-end.”

The CBN governor also stated that so far, nearly N1tn has been recovered from development programmes.

Cardoso had announced the discontinuation of intervention programs at the 2023 Bankers Dinner and revealed that CBN pumped over N10tn into the economy through different initiatives in sectors ranging from agriculture, aviation, power, youth and many others.

He said, “As previously noted, the Central Bank’s return to orthodox monetary policy means that we will refrain from direct intervention in developmental initiatives. That said, I am pleased to report that as of October 2024, nearly N1tn has been recovered or repaid under previous development finance programs, thanks to the enhanced monitoring and enforcement of the guideline.

“Our focus remains on ensuring the effective utilization and recovery of outstanding loans within the framework of established guidelines. While development finance has a role in the economy of Nigerians, it must be approached with proper governance to achieve meaningful impacts.”

“On the outlook, Cardoso projected that with the improved framework for deploying products targeting the Nigerian diaspora and efforts to establish a well-founded FX market, “We anticipate increased diaspora and foreign investment over the next 12 months building on more resilient and liquid FX markets.”

He added that the apex bank has in its sight a monthly inflow of $1m in diaspora remittance.

“I recall when we took the view that it was important to focus on the diaspora remittances, and at that time, we said double. People thought it was an impossible thing to do, and it happened. As a result of that, we are even more happy to look at a target of $1m per month in the not-too-distant future,” he added.

Meanwhile, the CIBN conferred fellowship of the institute on the CBN governor and the governor of Lagos State, Babajide Sanwo-Olu.

Some dignitaries at the event include the Minister of Budget and Economic Planning of Nigeria, Atiku Bagudu, Chairman, the Senate Committee On Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru, among others.

As of Thursday, November 28, 2024, the exchange rate for the U.S. dollar to the Nigerian naira at the Lagos Parallel Market (Black Market) is as follows:

Buying Rate: N1745 per dollar
Selling Rate: N1750 per dollar
It is important to note that these rates are based on information gathered from sources within the Bureau De Change (BDC).

The Central Bank of Nigeria (CBN) does not recognize the parallel market and recommends that individuals looking to exchange foreign currency approach their respective banks for official rates.

Official Exchange Rate (CBN Rate)
Buying Rate: N1679 per dollar
Selling Rate: N1680 per dollar
Please be aware that the exchange rates in the parallel market can fluctuate, and the actual rates for buying or selling foreign currency may vary from those listed here.

The Major Energies Marketers Association of Nigeria, MEMAN, has elaborated on the various factors that affect petrol pricing in Nigeria.

MEMAN noted that key cost elements consist of the jetty location, specifically mentioning ASPM, along with a standard product quantity set at 38,000 metric tonnes.

The Chief Executive Officer of MEMAN, Clement Isong, made this information available on Wednesday during a quarterly webinar hosted by the association for energy reporters.

The CEO of MEMAN, during a discussion on ‘Fuel Pricing,’ said, “The pricing methodology relies on the Argus Gasoline Euro-Bob benchmark for West African deliveries, combined with an average premium.

“The exchange rate is derived from the Central Bank of Nigeria’s (CBN) weighted average rate within the Nigerian Foreign Exchange Market (NFEM), which significantly impacts the final price.

“Other local charges include those imposed by the Nigerian Ports Authority (NPA) for services, such as towage, berthage, and cargo handling, as well as contributions to NIMASA at two per cent of local freight and regulatory fees from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which add a combined one per cent levy.”