Business
Accounts Update: CBN Extends Deadline To Jan 31
The Central Bank of Nigeria (CBN) has extended the account revalidation exercise for customers of Deposit Money Banks (DMBs) by one month to January 31, 2011.
The move, it said was to allow more customers of DMBs to update their records.
The apex bank had on November 29, 2010, given bank customers one month to update their bank records or face the risk of being barred from having access to such accounts.
The period had commenced from December 1 and expired on December 31, 2010.
The CBN Deputy Governor, Financial System Stability, Dr. Kingsley Moghalu, had while giving the directive, denied insinuations that the decision was to witch-hunt any politician.
He said rather, it was part of the ongoing reforms aimed at sanitising the banking sector for effective service delivery.
He said that DMBs had, in the past, faced challenges in their quest to obtain necessary information from customers as required by the apex bank, owing to two reasons.
The reasons, he said stemmed from the fact that information already obtained over the years was either out of date or inaccurate, or that customers were reluctant to supply the required information primarily because they were not aware of its importance.
Customers of the DMBs had, last Friday in a move to beat the December 31 deadline, made last-minute efforts to get their accounts updated.
Some of them, who could not update their records owing to the large crowd that besieged the banks, had urged the apex bank to extend the deadline.
The CBN, in a statement on Monday, directed all financial institutions to ensure compliance with the revised deadline.
“Having reviewed the progress made so far and the response of the banking public, the CBN has extended the deadline for the information update of bank accounts from December 31, 2010 to January, 31, 2011.
“The bank has, therefore, directed all financial institutions to ensure compliance with the revised deadline and suspend operations of all accounts with un-updated information with effect from 1st February, 2011.
“The account update is part of the Customer Due Diligence, which involves Know Your Customer compliance, which is accepted worldwide as a tool for the fight against money laundering and terrorism financing as well as protecting the interest of customers. All banks are required to ensure compliance.”
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
-
News11 hours agoRSG Reiterates Commitment To Youth Dev
-
Business9 hours agoNSCDC Discloses Illegal Dump Site In Ikwerre Community
-
Rivers9 hours agoPolice Launch Community-Centred National Day Celebration In Rivers, Today
-
Business9 hours agoYenagoa’s Radisson Hotel Ready December — NCDMB, Other
-
Maritime9 hours agoMWUN Raises Alarm Over Port Security Lapses In Lagos
-
Maritime9 hours agoNNS Hands Over Two Suspected Stowaways to Immigration Service
-
Environment9 hours agoFG Alls For stronger Partnerships, Women Inclusion In Water Governance
-
Environment9 hours agoWDC: Rivers State Deputy Governor, Prof. Odu Call Inclusion Of Woman And Girls Decision Making