The naira declined to N1,450 at the parallel section of the foreign exchange (FX) market on Wednesday.

The current FX rate represents a 1.4 percent depreciation from the N1,430 traded on May 6.

Currency traders, also known as bureau de change (BDC) operators, put the buying rate of the greenback at N1,410 and the selling price at N1,450 — leaving a profit margin of N40.

At the official window, the local currency depreciated by 1.98 percent to N1,421.06 on May 8 — from N1,416.57 on May 7.

During trading, the dollar recorded a high of N1,440 and a low of N1,335, according to data from FMDQ Exchange, a platform that oversees FX trading in Nigeria.

On May 7, the Central Bank of Nigeria (CBN reviewed its directive on the repatriation of export proceeds by international oil companies (IOCs).

Earlier in February, the regulator had placed limits on the transfer of proceeds from crude exports by IOCs to offshore parent company accounts as part of reforms to curb the volatility in the FX market.

The CBN had said the transfer of funds by the IOCs has an impact on liquidity in the domestic FX market, hence the need for the measures to reverse the trend.

“The initial 50% of the repatriated proceeds can be pooled immediately or as at when required. Banks may submit the request for cash pooling ahead of the expected date of receipt, supported by the required documentations, for approval by the Central Bank of Nigeria,” the CBN said, announcing the policy review.

“The 50% balance of the repatriated export proceeds could be used to settle financial obligations in Nigeria, whenever required, during the prescribed 90-day period.”

The apex bank said the IOCs can also utilise the balance for cash calls, domestic loan principal and interest payments, transaction taxes (including Nigerian Content Development (NCD) levy, education tax, and forex sale at the FX market.

In a notable policy update, the Central Bank of Nigeria (CBN) has extended the suspension of processing fees on significant cash deposits until September 30, 2024.

This decision impacts cash deposits exceeding ₦500,000 for individuals and ₦3,000,000 for corporations, which were initially subject to fees of 2% and 3% respectively.

The extension, outlined in a letter from the CBN’s Acting Director of Banking Supervision, Dr. Adetona S. Adedeji, dated May 6, 2024, follows a previous directive that had temporarily halted these charges.

The initial suspension, as reported by Nairametrics on December 11, 2023, was a relief to depositors handling large sums, aiming to promote financial inclusion and ease the burden on large transactions.

Nairametrics reported that banks were poised to resume processing charges as the initial suspension period neared its end.

However, the CBN’s latest directive extends this relief, ensuring that depositors will not incur additional costs when making substantial cash deposits for an extended period.

The directive read in part

“The Central Bank of Nigeria (CBN) hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024.

Consequently, all financial institutions regulated by the CBN should continue to accept all cash deposits from the public without any charges until September 30, 2024.”

The Central Bank of Nigeria (CBN) has updated the list of deposit money banks operating in the country.

This was disclosed in a circular published on May 7 on its website and titled ‘List of Deposit Money Banks and Other Financial Institutions as of 26th April 2024’.

Newsmen observed the number of deposit money banks moved from 34 in 2020 to 44 in the latest list.

Also, the CBN disclosed Union Bank‘s licence was downgraded from international to national.

Globus Bank, Premium Trust Bank, and Optimus Bank upgraded their licence to the national category.

A further breakdown of the latest list of DMBs by the CBN shows seven banks are under the commercial banking category with international licences, 15 banks with commercial banking licences are under the national category, and four are authorised for regional operations.

Also on the list are four non-interest banks with national licences and six banks with merchant banking licences with national authorisation.

CBN disclosed Nigeria has seven financial holdings companies (HoldCo), while the country has one representative office called the Mauritius Commercial Bank Representative Office (Nigeria) Limited.

Full list of banks and their categories

International Lenders

1. Zenith Bank
2. Guaranty Trust Bank
3. First City Monument Bank (FCMB )
4. Access Bank 
5. United Bank of Africa (UBA)
6. Fidelity Bank 
7. First Bank of Nigeria (FBN)

National Licenced

1. Citibank Nigeria
2. Ecobank Nigeria 
3. Heritage Bank 
4. Globus Bank 
5. Keystone Bank 
6. Polaris Bank 
7. Stanbic  IBTC Bank 
8. Standard Chartered Bank 
9. Sterling Bank 
10. Titan Trust Bank 
11. Union Bank 
12. Unity Bank 
13. Wema Bank 
14. Premium Trust Bank 
15. Optimus Bank

Regional Licenced 

1. Providus Bank
2. Parallax Bank 
3. Suntrust Bank 
4. Signature Bank 

Non-Interest Lenders

1. Jaiz Bank 
2. Taj Bank 
3. Lotus Bank 
4. Alternative Bank

Merchant Licenced 

1. Coronation Merchant Bank
2. FBN Merchant Bank 
3. FSDH Merchant Bank
4. Greenwich Merchant Bank 
5. Nova Merchant Bank 
6. Rand Merchant Bank

Financial Holding Companies 

1. Access Holdings
2. FBN Holdings
3. Guaranty Trust Holdings
4. FCMB Holdings
5. FSDH Holdings
6. Stanbic IBTC  Holdings
7. Sterling  Financial Holdings

Representative Office 

1. The Mauritius Commercial Bank Representative Office (Nigeria) Limited.

On March 29, CBN announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks.

The apex bank said the increase was necessary due to prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks.

CBN advised banks unable to meet the required capital base to downgrade their licence.