SIX UNDER CONSIDERATION TO REPLACE SANUSI AS CBN GOVERNOR

Six Under Consideration to Replace Sanusi as CBN Governor

The CBN Job

By Obinna Chima

As the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, prepares to step down in June 2014, frontline contenders for the job have started to emerge, investigations by THISDAY have revealed.

The foremost contenders in consideration can be put into two groups comprising three outsiders, who will steer a new direction for CBN and its monetary policies.

They are the Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr. Mustafa Chike-Obi; the Group Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Aigboje Aig-Imoukhuede; and Managing Director/Chief Executive Officer, First Bank of Nigeria Limited (FBN), Mr. Bisi Onasanya.

The second group are insiders who share similar views with Sanusi on monetary policies and are expected to ensure continuity.

They are the three Deputy Governors of the CBN: Dr. Kingsley Moghalu, Mr. Tunde Lemo and Dr. Sarah Alade.

Whoever succeeds Sanusi next year will be the 11th central bank governor in Nigeria, following in the footsteps of Roy Pentelow  Fenton  (1958 - 1963); Alhaji Aliyu Mai-Bornu (1963 - 1967); Dr. Clement Nyong Isong (1972 - 1975); Mallam Adamu Ciroma (1975 - 1977); Mr. Ola O. Vincent (1977 - 1982); Alhaji Abdulkadir Ahmed (1982 - 1993); Dr. Paul A. Ogwuma (1993 - 1999); Chief (Dr.) Joseph O. Sanusi (1999- 2004); Prof. Chukwuma C. Soludo (2004 - 2009); and Mallam Sanusi Lamido Sanusi (2009 to date).

As specified in the CBN Act 2007, the central bank governor is in charge of the official bank of the Federal Government of Nigeria and provides economic advice to the federal government.

Apart from appending his signature to every denomination of Nigeria’s currency, the governor among other duties, oversees the country’s banking sector.

Alongside the Monetary Policy Committee of the CBN, the governor also determines the monetary policies of the country, which have an impact on the financial system and the macroeconomy.

In a country aspiring to attract investments, create jobs and plug the infrastructure deficit, a major consideration when appointing a central bank governor is understanding his economic philosophical underpinnings.

Will the central bank governor’s monetary policies be targeted at attaining price stability and bolstering the local currency that will be driven by a tight monetary policy stance as epitomised by Sanusi or will he adopt an expansionary approach that will lower interest rates, drive investments and create jobs?

With the North holding the CBN governorship for four times, it is expected that the post will go to the South.

The contenders are:

Mustafa Chike-Obi

Chike-Obi played a huge role in the resolution of the banking crisis that almost led to the collapse of the financial sector in 2009. AMCON under Chike-Obi bought all the non-performing loans of banks which helped to restore sanity in the financial system.

In fact, AMCON’s job which was to stabilise the banking industry was even extended to the restructuring of bad debts. The corporation had over 12,000 individual bad loans to deal with and was able to approach that without the mentality of a liquidator by supporting ailing industries that were once indebted to banks.

Chike-Obi until his appointment as the AMCON’s helmsman was the founder and managing partner of Madison Park Advisors, a financial service advisory and consulting firm in New Jersey, USA, specialising in hedge fund and private equity investment advice.

He has also held senior positions in various Wall Street firms including Goldman Sachs, Bear Stearns and Guggenheim Partners, among others.

He graduated from University of Lagos with a First Class degree in Mathematics and holds an MBA from Stanford University Graduate School of Business.

Pros

• Unlike Sanusi, he will pursue a monetary policy regime that is more expansionary.

• He will work towards lowering the Monetary Policy Rate (MPR), thereby allowing more credit to flow through the banking system to create job opportunities and support SME and real sector growth.

•  By his nature, he will be more accessible and transparent in the position.

• He will only be the third governor from the South-east.

Cons

• Has been absent from Nigerian banking for a while, though his role in AMCON has helped him to catch up.

• Does not fully understand the dynamics of Nigerian politics.

• Regional considerations may count against him, given that the Minister of Finance, Director General of the Securities and Exchange Commission (SEC) and CEO Nigerian Stock Exchange are from the South-east.

(This could also be a strategic calculation on the part of President Goodluck Jonathan to retain the South-east in his support base

Aigboje Aig-Imoukhuede

Aigboje Aig-Imoukhuede’s banking career spans over two decades. He spent over 10 years at Guaranty Trust Bank Plc (GTBank) and resigned in 2001 to lead a dynamic team of accomplished bankers as the Managing Director/Chief Executive Officer of Access Bank Plc, with the mandate to transform the bank into a world-class financial services provider.

Aig-Imoukhuede’s leadership inspired Access Bank’s rapid and unprecedented growth over the past eight years which have seen the bank rank amongst the top six banks in the country.

He holds LL.B and BL from the University of Benin and the Nigerian Law School respectively. Aigboje serves on the sub-committee of the Bankers Committee on Professional Ethics.

Pros

•  He is a seasoned banker who understands the dynamics and workings of the Nigerian banking system.

• He is a ruthless risk manager, much in the same mold as Sanusi, but also pro-growth and in support of women and SMEs.

•  He is on several technical committees at the heart of Nigerias economic transformation from banking to equity and debt.

• He is a member of the economic management team with regional and global reach.

• He will only be the second governor from the South-south.

• Like Sanusi, he can be firm.

Cons

• He will be coming with the baggage of an owner-manager of a bank that he would have to supervise. But THISDAY checks reveal that upon leaving Access Bank, he intends to divest his shares in the bank to invest in a new venture.

• There might be a strong lobbying against him by the oil marketers who he indicted.

 

Bisi Onasanya

Mr. Bisi Onasanya, a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), has been the Managing Director/Chief Executive Officer of First Bank of Nigeria Limited (FBN) since April 2009. Onasanya also serves as Chairman at Kakawa Discount House Limited. 

Onasanya boast over 23 years post-qualification experience and until his appointment as MD/CEO of FBN, was Executive Director, Banking Operations and Services. He joined FBN Holdings Plc (formerly known as First Bank of Nigeria Plc) in 1994 as a Senior Manager and was previously Deputy General Manager/Group Head, Finance and Performance Management Department, Coordinator, Century 2 Enterprise Transformation Project, as well as founding MD/CEO of First Pension Custodian Nigeria Limited, a subsidiary of FBN Holdings Plc.

Pros

• Would be bringing a wealth of experience garnered in the banking and financial services sector.

• If pedigree is anything to go by, Onasanya will be following in the footsteps of Joseph Sanusi and Sanusi Lamido Sanusi, who were previously managing directors of FBN, Nigeria’s oldest bank.

• His appointment will assuage the feelings of marginalisation in the South-west under Jonathan.

• He will only be the third governor from the South-west.

Cons

• The choice of another CBN governor from First Bank could raise eyebrows over the reluctance by government to beam its searchlight on other banks (although Ogwuma was from Union Bank of Nigeria Plc).

• He is not an economist.

•  He is by nature insular and may be less accessible.

Kingsley Moghalu

Kingsley Moghalu has been the Deputy Governor, Financial System Stability since 2009. He led the implementation of far-reaching reforms to enhance the quality and stability of banks and other financial institutions, the management of systemic risk to Nigeria’s banking system.

Moghalu is a member of the Board of Directors, the Monetary Policy Committee, and the Committee of Governors of the CBN, and is also a member of Nigeria’s Economic Management Team. He is a member of the board of directors of AMCON.

He obtained an LL.B (Honours) degree in Law at the University of Nigeria, Nsukka in 1986, a BL from the Nigerian Law School, Lagos, an M.A. from The Fletcher School of Law and Diplomacy at Tufts University, USA, and a Ph.D in International Relations from the London School of Economics (LSE) at the University of London, UK. He also obtained an International Certificate in Risk Management from the Institute of Risk Management, London, UK.

Pros

• He contributed significantly to the resolution of the banking crisis which is vital for the job.

•  He is experienced in risk management.

• His experience as a deputy governor of the central bank could work in his favour.

• He will only be the third governor from the South-east.

Cons

• Although it should not matter for a job that requires a keen sense of economic management, regional considerations may count against him.

• The presidency may be more favourably disposed to looking for Sanusi’s replacement from outside the CBN.

Tunde Lemo

Lemo, who is currently the Deputy Governor Operations, has been a deputy governor at the CBN since 2004. He is presently driving the industry-wide shared services initiative towards achieving efficient banking services with 30 per cent cost savings for the Nigerian banking industry and greater penetration of banking services. Prior to this, he was Deputy Governor, Financial Systems Surveillance. He is an experienced and versatile public officer and financial manager.

Prior to his appointment as deputy governor, he had led the transformation of Wema Bank Plc as MD/CEO between 2000 and 2003 resulting in the bank’s performance which ranked it as one of the top 10 most profitable commercial banks in Nigeria in 2003.

He is a fellow of the Institute of Chartered Accountants of Nigeria as well as fellow of the Chartered Institute of Bankers with significant leadership and top management experience in both the public and private sectors spanning over 26 years. He obtained a First Class Bachelor of Science degree in Accountancy from the University of Nigeria, Nsukka in 1984 where he won seven academic laurels, including the best overall graduating student in the faculty.

Pros

•  If appointed, he will be coming to the position with extensive banking experience, reinforced by his experince at the central bank.

•  Although it should not matter for a job that requires a keen sense of economic management, regional considerations may work in his favour.

• He will only be the third governor from the South-west.

Cons

• Some have continued to question the role he played under the former CBN governor, Professor Chukwuma Soludo, when the rot in the banking system was not uncovered.

•  The presidency may be more favourably disposed to looking for Sanusi’s replacement from outside the CBN.

Dr. Sarah Alade

She has been the Deputy Governor, Economic Policy since 2007. She attended the University of Ife, Ile-Ife (now Obafemi Awolowo University) where she obtained a B.Sc (Hons) degree in Economics in 1976. She also obtained an M.Comm degree at the University of Melbourne, Melbourne, Australia in 1983 and a Ph.D in Management Science (Operations Research) from the University of Ilorin in 1991.

She joined the CBN in 1993 as an Assistant Director in the Research Department where she served as Head, State Government Finance Office (1993-1996), Head, Federal Government Finance Office (1996-2000) and Head, Fiscal Analysis Division (2000-2004).

Alade has served on the teams of major economic policy studies, and has been involved in the preparation of the CBN’s Monetary and Credit Policy Proposals over the years. She was actively involved in the drafting of the Medium-term Economic Programme (MTP) for Nigeria and the IMF staff Monitored Programme/Standby Arrangement.

Pros

• If appointed, she will be the first female CBN governor.

•  She is a qualified economist.

•  Regional consideration may favour her.

• Her experience as a deputy governor of the central bank could work in her favour.

• She will only be the third governor from the South-west.

Cons

• The presidency may be more favourably disposed to looking for Sanusi’s replacement from outside the CBN.

• Some could question the role she played under the former CBN governor, Professor Chukwuma Soludo, when the rot in the banking system was not uncovered.

UBA Gives e-Commerce a Boost

UBA Gives e-Commerce a Boost 

 UBA House

By Obinna Chima

E-commerce which is a big business globally, especially in developed economies, is gradually gaining ground in Nigeria.

Presently, a higher percentage of consumers, especially those residing in urban centres make online purchases.

This form of business was even strengthened with the aggressive drive for a cashless economy by the Central Bank of Nigeria (CBN) and the increasing growth shopping malls in the country.

Thus, in line with its commitment to further encourage the growth of e-commerce in the country, the United Bank for Africa (UBA) Plc recently went into partnership with Netplus Advisory Limited to deploy a robust web payment solution for U-Mall, a new e-commerce platform for small and medium scale enterprises.

U-Mall is a revolutionary product in the e-commerce space and is designed to help SMEs set up own online stores in a bid to extend reach and ultimately drive growth of their businesses.

The platform was designed to host several stores across various retail categories. Merchants will be able to open virtual stores to display an inventory of their products to potential Shoppers on the internet. UBA Plc, known for its e-banking proficiency is supporting U-Mall with an integrated payment gateway.

 

Product Description

According to UBA, U-Mall is a revolutionary product in the retail and e-commerce space in the country. The bank explained that the platform leverages the power of the web and mobile to provide an e-commerce platform that affords the convenience of shopping to consumer and the ease of selling and reconciliation to merchants.

“The platform is expected to host several stores in several retail categories. Merchants open virtual stores to display an inventory of their products to potential shoppers on the internet.

“Consumers in turn are able to browse from one store to another looking for products and bargains. A consumer can add items to their cart across multiple stores and once submitted the product requests are sent to the merchants and logistics partners via email notifications who will be able to coordinate with the consumer for payments and exchanges,” the bank explained.

Throwing more light on the product, the Divisional Head, e-Banking, UBA, Mr. Yinka Adedeji said a core proposition of U-Mall is the removal of entry barriers to SMEs owning online platforms.

He emphasised that U-Mall leverages the power of the web and mobile to provide an e-commerce platform that affords the convenience of shopping to customers and the ease of selling and reconciliation to merchants. Adedeji described the platform as a self-service solution which allows merchants to register their businesses online.

He also noted U-Mall has a robust logistics system for all purchases completed on the site, managed by the Logistics Partner, FedEx (RedStar Express Plc).

Also commenting on the product, the Managing Director Netplus Advisory and Technical Partners, Mr. Wole Faroun said: “U-Mall is set to revolutionise e-commerce and it is an honour to have UBA, a bank that has led many innovations in electronic Banking as our Payment Partner.”

Proposition to Merchants

The product has four unique propositions to merchants. These include the Webstore, payment, logistics and marketing.

For instance, the bank explained that each store on the platform has a micro-site also known as a Webstore. This it said is a unique set of pages for the store with urls that could be shared with customers for marketing purposes.

According to Adedeji, the product’s payment platform is integrated with UBA payment gateways. This, he said means that payment made by customers to purchase items throughout the platform, are made through cards and collected through a holding account from which settlement and reconciliation happens.

“The platform provides an integrated logistics solution for all purchases completed on the site. The logistics partner FedEx (RedStar Express Plc) picks up products from merchants and delivers to the customer usually within 24 hours for purchases in the Lagos metropolis and between 2-3days in most locations in Nigeria,” he added.

Continuing, he said: “One of the core value propositions of the platform is the exposure and brand promotion for the merchants. Through an integrated marketing strategy, the platform will use various marketing programs to promote the platform as a whole and individual categories and stores.

“Marketing tactics include Search Engine Optimisation (SEO), Search Engine Marketing (SEM), e-mail Marketing, Social Media Marketing, and offline programs including print, radio and television.”

According to him, the website is an open self-service platform that allows merchants to register their businesses by completing store registration and mobile money forms online. However, Adedeji said as part of the registration process; a platform admin will be required to activate the account in the backend.

“Merchants who have paid the subscription charges will be able to get assistance from the WebMallNG support team to setup/customize its store.

“Customers visit the site and can navigate to different stores to add items to cart and checkout. They are able to make payments using their bank cards or mobile money wallet. A completed transaction triggers email notifications to the merchants and the delivery/logistics partner and with those alerts, the merchants prepares the product(s) for pickup by the delivery agent,” he added.

Central Bank of Nigeria Approves Union Bank divestment plans

Union Bank announces Central Bank’s approval of its divestment plans

The bank is going through a transformation process.

The Union Bank of Nigeria Plc, on Friday, announced that it had received the Central Bank of Nigeria’s approval to divest its interests in its portfolio companies.

The bank noted that this was in line with Central Bank’s directive that banks divest their core banking businesses from other subsidiaries.

Union Bank also formally informed the Nigerian Stock Exchange, of Central Bank’s approval.

The divestment complies with Central Bank’s ‘Regulation 3’ on the Scope of Banking Activities and Ancillary Matters which requests banks to operate as Commercial, Merchant or Specialised banks. The regulation, issued in 2010, annulled the Universal Banking Model, which allowed banks to provide a broad range of financial services through subsidiaries.

Union Bank would divest its interests in its non-banking and portfolio companies, with the exception of Union Bank (UK) Limited, and operate as an International Commercial Bank.

The Group Managing Director of the bank, Emeka Emuwa, said the bank’s fulfillment of its ‘Regulation 3’ obligation to the Central Bank was coming at a crucial time.

According to him, the bank recently embarked on a transformation programme to upgrade and enhance its performance. Several initiatives were kicked off under this programme, including investments in technology, upgrade of infrastructure, strategic recruitment and the review of processes to make them more efficient for customers.

“Union Bank is currently on a journey of transformation, to return it to its position as one of the leading banks in Nigeria. Our ambition today is to be reliable – to be an institution which delivers the best service possible to its customers and which consistently creates value for all its stakeholders. The bank has therefore decided, as one of the many steps to the achievement of its transformation goals, to focus its resources on core banking functions,” he said.

According to the Executive Director and Chief Risk Officer of the bank, Kandolo Kasongo, apart from helping to achieve the bank’s goal, the post-divestment structure would, in accordance with the objective of the Central Bank regulation, significantly reduce the overall risk profile of the bank, while increasing the protection of depositors’ funds.

“It is also expected that the divestment would release capital to the bank to further strengthen its balance sheet and enable Union Bank generate better returns to its various stakeholders,” he said.

It is expected that the divestment process would be carried out with due process with proper consideration given to the characteristics of each portfolio company. A number of banks have already divested their business structures. These include First Bank, Stanbic IBTC and GTB, among others.

The Central Bank approval allows Union Bank eighteen months to implement its compliance plan.

The bank said it would ensure that only investors who were able to strategically drive the future of the portfolio companies were engaged, but added that, pending the conclusion of the divestment, it remained committed to all its portfolio companies.

The Ultimate Goal of Africapitalism

0. What is the ultimate goal of Africapitalism? Its primary goal is greater economic prosperity and social wealth, driven by Africa’s private sector — its domestic economies, markets, and businesses. There are three fundamental tenets of Africapitalism:
   1. Wealth Creation: The private sector in Africa — both foreign multi- nationals as well as African business leaders — must break free from the historical tendencies of exploitation and extraction of wealth (i.e., rent- seeking), and instead focus on generating pro!t through wealth creation. The Nigerian oil industry is a case in point — after 50 years of pumping out billions of dollars of crude oil and natural gas, there is no indigenous oil, and Nigeria still imports re!ned petroleum for domestic consumption.
   2. Funding Entrepreneurship: Leveraging private enterprise to solve problems must be a core area of focus not just for investors, but also for NGOs and philanthropists as described in detail in a 2012 report from the Monitor Group: From Blueprint to Scale: The Case for Philanthropy in Impact Investing. Some of Africa’s greatest private sector successes were launched with public and philanthropic funds. This entrepreneurial investment model should be the model for future philanthropy and aid in Africa. It should also be a guide for Africa’s own emerging philanthropists. 
   

AFRICAPITALISM: Key  Questions and Answers

What is Africapitalism?

Africapitalism is an economic philosophy: that the African private sector has the power to transform the continent through long-term investments, creating both economic prosperity and social wealth.

What are the key goals of Africapitalism?

Africapitalism is about creating value within Africa for the long-term. It is about transforming the continent in a way that is both profitable and sustainable. It is also a call-to-action for Africans to take primary responsibility for our own development and for non-Africans to evolve their thinking about how best to channel their efforts and investments in the region.

How is Africapitalism different to pure capitalism?

Africapitalism argues that all economic activity should be value-adding and have a social impact that creates wealth. Through long-term investment and the creation of social wealth, the private sector can solve Africa’s development challenges more effectively and with greater sustainability than either the philanthropic or public sector.

Is Africapitalism only for Africa?

Africapitalism is a transformation in the way business and investing are done, and we believe that this approach can help drive sustainable growth all over the world, not just in Africa. However, Africapitalism is currently focused on Africa because of specific challenges the continent faces, such as an economy that has traditionally been based on extraction and export; and misconceptions of risks that deter investors.

What is the origin of the idea?

The entrepreneur and philanthropist Tony O Elumelu developed the idea from his experience building one of the biggest banks in Africa – United Bank for Africa (UBA). The bank has created jobs, directly and indirectly, for tens of thousands of people. It also serves more than 7 million customers, empowering them to manage their own finances, as well as providing credit and capital to businesses. This thriving business is a model of how private sector investment can create catalytic and sustainable change at the local level, in a way that charity and aid cannot.

What problems can Africapitalism address?

By creating new economic wealth, Africapitalism can address almost every challenge facing Africa today, from healthcare, to education, to food security, and even national security and social stability. The more opportunity the private sector can provide, the more Africa will benefit from a stable and productive economic environment, as well as self-reliance in solving persistent socio-economic issues.

Why is Africapitalism important now?

For all Africa’s well-publicized growth over the last decade, much of it has been extractive and export-led, and it has had relatively little impact in terms of jobs and domestic wealth. Given current demographic trends—i.e., tens of millions of people will enter the workforce over the next decade—we are not creating private sector jobs nearly fast enough. We need a robust platform of private sector job growth and wealth creation within Africa, or we risk undermining Africa’s current growth trajectory.

Who is responsible for driving Africapitalism?

Africa’s business elite have the primary responsibility for implementing Africapitalism—it is on their shoulders. We believe that if the African business sector shows the way, governments and investors will follow, including Western and BRICs investors. We cannot expect non-Africans to act and invest differently if Africa’s own leaders aren’t.

Is there still a role for philanthropy in Africa?

Africapitalism is where philanthropy and business meet. Rather than rely on the good intentions and wealth required of philanthropy, Africaptialism introduces a business motive that ensures an inbuilt sustainability plan to the challenge being addressed. But there will always be a role for philanthropy. A more strategic approach to philanthropy allows for an element of risk which Africapitalism doesn’t, it also doesn’t require the same business accountability which means it can play a very different role. For example, philanthropy can be used to provide grants and subsidies that reduce costs and risks for new business. It can provide ‘free money’ to businesses to support their growth as well as co-invest with financial intuitions to provide guarantees and incentives. For some challenges, such as floods and other natural disasters, Africa will still need to rely on traditional philanthropy and relief aid because the private sector cannot solve 100% of our challenges.

What, if any, is government’s role in advancing Africapitalism?

It is government’s chief responsibility to create an enabling environment in which the private sector can engage in wealth-generating economic activity. Governments need to implement strong, long-term, stable policies, so that business leaders can invest for the long term. The right incentives from government will make short-termism unattractive and push business activity toward long-term investment and value addition.

CBN GOVERNOR KICK-STARTS FINANCIAL LITERACY PROGRAMME IN SCHOOLS

The CBN Governor, Mr. Lamido Sanusi, has kick-started the financial literacy programme in schools.

The programme provided Sanusi the opportunity to deliver a lecture on the importance of savings and investment to pupils of four secondary schools located in Abuja.

The schools are Model Secondary School, Maitama; Senior Secondary School, Jikwoyi; Senior Secondary School, Karu; and Government Secondary School, Kuje.

The CBN boss urged the pupils to be prudent in the management of their finances, adding that rather than spend their money on luxurious items, such should be kept in a savings account to yield interests.

He said, “Money is not an end in itself but you need money to do a lot of things. You should not borrow for the purpose of spending; rather, you can borrow to enable you invest. When you earn an income, the first thing you do is to pay yourself by setting aside at least 10 per cent as savings before using the remaining money to pay for other transactions.

“If your uncle or any other relation gives you money, since the money is not expected, you should save it in a bank for it to yield interest after a period of time.”

Earlier, the Director, Federal Capital Territory Secondary Education Board, Mrs. Yelwa Baba-Ari, described the session as a life changing occasion for the pupils.

She said, “The impact of this programme cannot be underestimated as our pupils require a lot of mentoring, motivation and inspiration.

“This opportunity provided by the CBN and the person of the governor is certainly going to be a life changing experience for these future leaders of this great nation.”

Cash-less policy goes live in Abuja and five other States

The Central Bank of Nigeria will on Wednesday begin the full implementation of its cash-less policy in the Federal Capital Territory, Rivers, Kano, Anambra, Ogun and Abia states.

This follows the end of a three-month moratorium on the charges given to customers who withdraw or deposit higher than the amount stipulated in the cash-less policy document.

The policy allows the CBN to peg the daily cumulative cash withdrawal or deposit limit for individual accounts at N500,000, while that of corporate accounts is fixed at N3m per day.

Addressing journalists in Abuja on the commencement of the policy in the FCT and the five states, the Deputy Governor, Operations, CBN, Mr. Tunde Lemo, said the imposition of the charges on withdrawals higher than the prescribed limit would ensure an effective implementation of the cash-less policy.

He said, “We will start applying the charges from October 2, which is Wednesday, because the three months moratorium would have expired.

“We are glad to announce that having worked with stakeholders, we have been able to ramp up facilities in Abuja and five other locations, and then, we are set to build up the critical mass requirement for the cash-less policy in those areas.”

He said any customer who deposited above N500,000 per day from Wednesday would be charged three per cent, while withdrawals above the limit would attract five per cent charge.

Lemo said, “For corporate bodies, the threshold is N2m. If you deposit or withdraw any money above the threshold per day, if it is deposit, it will attract three per cent charge, and if it is withdrawal, it attracts five per cent.

“Those are the charges that are already applicable in the Lagos area that we are now bringing to this location.”

He said customers needed not to pass through the onerous task of depositing and withdrawing money over the counter but should instead use electronic fund transfer.

The CBN deputy governor said electronic payment in Lagos accounted for 70 per cent to 80 per cent of high value transactions on daily basis.