Echotitbits – Nigeria News

Tag: banking regulation

  • Regulators Mandate Fast Refunds for Failed Electronic Transactions

    Regulators Mandate Fast Refunds for Failed Electronic Transactions

    According to Premium Times, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have finalized a joint regulatory framework to address the persistent issue of failed airtime and data purchases. The new policy mandates that subscribers who are debited without receiving value must be refunded within a specified short window, significantly reducing the current resolution time which often stretches into days.

    The framework introduces a Central Monitoring Dashboard, which will be co-hosted by the two regulators. The dashboard is designed to provide real-time visibility into transaction failures across Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs), ensuring providers are held accountable for technical glitches and system downtimes.

    Stakeholders including Value Added Service (VAS) providers and financial institutions participated in months of negotiations to reach the agreement. Regulators say it responds to a surge in complaints about “hanging” funds during network instabilities, which has eroded trust in the digital economy.

    The Punch reports that banks and telecom operators have been given a March 1, 2026 deadline to fully implement the new refund framework, while BusinessDay highlights the technical target of near-instant refunds for failed airtime and data purchases to match the pace of modern fintech competitors.

    Echotitbits take: This is a major win for consumer rights in Nigeria’s digital space. By integrating NCC and CBN monitoring systems, the policy reduces the long-running “blame game” between banks and telcos. If implemented well, it could lift digital transaction volumes as confidence improves.

    Source: The Punch – https://punchng.com/ncc-cbn-unveil-refund-framework-for-failed-airtime-data-transactions/ 2026-01-09

    Photo Credit: The Punch

  • Nigeria bank NPLs jump to about 7% after CBN rolls back COVID-era forbearance

    Nigeria bank NPLs jump to about 7% after CBN rolls back COVID-era forbearance

    2026-01-02 06:00:00
    Figures cited by Punch show Nigeria’s banking sector recorded a rise in non‑performing loans (NPLs) in 2025 after the CBN ended key regulatory forbearance measures introduced during the COVID‑19 period.

    The CBN’s macroeconomic outlook puts the NPL ratio at an estimated 7%, above the 5% prudential limit, raising concerns about asset quality and how quickly lenders can rebalance risk without choking credit.

    Analysts say the shift forces more realistic loss recognition and provisioning, but also increases pressure on earnings and capital—especially for lenders with heavy exposures in vulnerable sectors.

    BusinessDay reports NPLs rose to “an estimated seven percent,” breaching the prudential threshold, following the withdrawal of forbearance. The CBN’s published outlook states the “Non‑performing Loans (NPLs) ratio stood at an estimated 7.00 per cent” relative to the 5% limit.

    Echotitbits take: This is where recapitalisation and risk management collide. If banks tighten too aggressively, SMEs and consumer credit will feel it; if they don’t, provisioning will eat profits. Watch quarterly disclosures for sector-by-sector stress, and whether the CBN introduces targeted transitional guidance.

    Source: The Punch — January 2, 2026 (https://punchng.com/banks-bad-loans-spike-after-cbn-withdraws-forbearance/)
    The Punch 2026-01-02

    Photo Credit: The Punch

  • Court Sums Up Banking Tensions as CBN, NDIC Face Summons Over Licence Revocations

    Court Sums Up Banking Tensions as CBN, NDIC Face Summons Over Licence Revocations

    2025-12-30 18:00:00

    Reporting by The Nation indicates the dispute over the revoked operating licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc has moved deeper into court, with CBN and NDIC drawn into legal proceedings.

    The regulator’s action followed claims of financial distress and insolvency concerns, while NDIC began depositor verification and resolution steps as liquidator.

    The episode is significant for the mortgage-bank segment, where confidence is sensitive and depositor-protection messaging is crucial to preventing panic.

    The Guardian reported the CBN said the revocation “took effect on December 15, 2025,” citing relevant legal and regulatory provisions. Legit.ng reported that “the NDIC was appointed as liquidator,” and said depositor verification and payments were being initiated.

    Echotitbits take: The key risk is depositor confidence. If NDIC payouts are fast and communications clear, spillover stays limited; if not, rumours can spread quickly. Watch timelines for verification, payout caps, and any court orders affecting resolution steps.

    Source: The Nation — December 30, 2025 (https://thenationonlineng.net/justice-nwite-summons-cbn-ndic-over-revoked-licenses/)

    The Nation 2025-12-30

    Photo Credit: The Nation

  • CBN Pushes Banks: FirstBank ATMs to Accept International Cards

    CBN Pushes Banks: FirstBank ATMs to Accept International Cards

    Photo Credit: The Punch
    2025-12-25 09:15:00

    In an update published by The Punch, FirstBank says its ATMs will be enabled to accept international cards in line with a Central Bank of Nigeria (CBN) directive, a step aimed at improving foreign-card usability for travelers and visitors. The bank said the change is part of broader compliance work across Nigeria’s payment infrastructure.

    For customers, the biggest impact is convenience: foreign-issued cards should be able to withdraw cash (where permitted) and complete ATM transactions more smoothly, reducing friction for diaspora visitors and business travelers—especially during peak travel seasons.

    For banks and switching/payment processors, the directive implies backend reconfiguration, routing, and compliance checks to ensure international schemes work reliably across channels.

    Supporting reports show the regulator set deadlines and scope: Vanguard quoted the directive saying banks must “configure their ATMs to allow foreign cards” by “February 28, 2025,” while The Guardian reported the goal is for ATMs to accept “Visa, MasterCard, and other foreign cards.”

    Echotitbits take: This is a pro-diaspora, pro-tourism signal—but reliability is everything. Watch for early hiccups (declines, FX conversion disputes, downtime), and whether fees and FX spreads become the next consumer pain-point.

    Source: The Punch — December 25, 2025 (https://punchng.com/firstbank-atms-to-now-accept-intl-cards/)

    The Punch 2025-12-25

  • CBN tightens rules for foreign-card withdrawals as banks told to enable seamless use

    CBN tightens rules for foreign-card withdrawals as banks told to enable seamless use

    Photo Credit: The Punch
    2025-12-21 06:45:00

    Figures cited by The Nation show the Central Bank of Nigeria has directed banks and non-bank acquirers to configure ATMs, POS and virtual terminals to accept foreign-issued cards while applying stronger authentication above set thresholds.

    The circular instructs institutions to implement multi-factor authentication for foreign card withdrawals and online transactions above $200 per day, $500 per week, and $1,000 per month, and to maintain high system availability for smoother processing.

    Banks are also told to clearly disclose exchange rates and charges before completing transactions, and to strengthen transaction monitoring and KYC/AML controls for merchants handling foreign card payments.

    Premium Times reported the circular requires institutions to ensure terminals are configured to accept international cards and maintain availability to avoid failures, noting users should be shown terms before completion. Vanguard quoted the CBN directive: “implement multi-factor authentication for all withdrawals and online transactions exceeding $200 per day, $500 per week, and $1,000 per month.”

    Echotitbits take:
    For diaspora visitors and tourists, this could reduce declined transactions—if banks implement it cleanly. Watch for short-term disruption (higher declines during recalibration), plus how quickly institutions standardise FX rate disclosures and complaint-resolution timelines.

    Source: The Nation — December 21, 2025 (https://thenationonlineng.net/cbn-asks-banks-to-configure-atms-pos-terminals-for-foreign-card-transactions/)
    The Nation 2025-12-21

  • FCMB targets a ₦400bn capital raise as Nigerian banks brace for tougher buffers

    FCMB targets a ₦400bn capital raise as Nigerian banks brace for tougher buffers

    Photo credit: THISDAYLIVE — FCMB logo

    2025-12-20 12:20:00

    According to Punch, FCMB Group is preparing a major capital-raising programme reportedly up to ₦400 billion as the sector responds to recapitalisation pressures and risk-buffer expectations.

    The move reflects a wider banking reality: growth ambitions now require bigger cushions amid FX volatility, higher compliance costs and tougher risk management demands.

    Investors will be watching the structure—rights issue, public offer, private placement or a mix—because dilution and pricing will shape sentiment.

    In the broader market, large raises can act as a confidence test: strong subscription signals trust in earnings outlook, while weak uptake raises questions about macro risks and sector fundamentals.

    An NGX filing referenced shareholder authority to “raise up to N400,000,000,000,” aligning with the reported target.

    Leadership also reported FCMB’s recapitalisation-driven raise plan as part of a broader sector-wide capital push.

    Echotitbits take: Timing and pricing will matter. If offers are priced aggressively, investors may demand clearer earnings visibility. Also watch for consolidation pressure among mid-tier banks—recapitalisation cycles often trigger mergers and strategic exits.

    Source: THISDAYLIVE — December 20, 2025 http://thisdaylive.com/2025/12/19/fcmb-group-secures-shareholders-approval-to-raise-n400bn-fresh-capital/

  • Lawmakers Move to Place CBN Operations Under Tighter Oversight

    Lawmakers Move to Place CBN Operations Under Tighter Oversight

    Photo Credit:Punch Newspapers

    The House of Representatives is considering a bill that would subject key operations of the Central Bank of Nigeria to stronger legislative oversight and transparency requirements. Sponsors of the proposal say recent controversies over foreign‑exchange management, Ways and Means financing and intervention funds justify clearer rules and reporting obligations.

    While acknowledging the need for central‑bank independence, proponents argue that accountability to the Nigerian people through parliament cannot be compromised. The bill could reshape the balance between monetary authorities and elected officials, with implications for banking regulation, inflation management and investor confidence.

    Source: Punch Newspapers – 12 Dec 2025

    2025-12-12 10:00:00 Punch Newspapers – 12 Dec 2025 2025-12-12