‘Bank Verification Number Will Check Forex Arbitrage’

would show accountability, transparency, honesty, trust and overall confidence in the whole arrangement

“Kindly ensure that all audited accounts as at December, 31, 2013 or as at when due is published and approved at the statutory general meeting of the company. It is essential in the interest of investors’ confidence in the capital market.”

In a separate letter addressed to the Chairman, Board of Director of IHS, the association said that the company had no justification to say that the NSE is no longer relevant to it considering some remarkable achievements it has recorded within five years of its listing. “What compensation do you think will be enough for shareholders for the achievements recorded within five years of being on the Exchange? N3.70 proposed for cancellation of our shares is not adequate,” the association said. export revenues from oil – in some cases revenues have fallen by as much as 40 per cent. This shift, may force a renewed policy focus on those parts of oil and gas value-chain that create the greatest economic dividends in terms of value creation, and contribution to inclusive economic growth. Thus, it is likely that the drive for local content will continue in earnest. However, implementation of such policies, particularly in some of newer oil-countries may be tempered by the need to keep foreign investors incentivised in a lowprice world.” Akinkugbe said. Another notable highlight of the conference was the awards presentation where Akinkugbe was recognised as ‘Best African Oil & Gas Analyst of the Year’ as well as the Most Valuable Player on the Oil Patch for her commitment to the oil and gas industry. The Bank Verification Number (BVN) initiative, when fully implemented, will help to curb arbitrage in the foreign exchange market, an Executive Director at Sterling Bank, Mr. Abubakar Suleiman, has said.

Suleiman explained that with the BVN, each bank customer will have a unique identification, which will make it easy to prevent people from flouting the Central Bank of Nigeria’s (CBN) recent policy on the use of naira denominated debit cards for transactions abroad.

The policy reduced the spending limit on the usage of the naira denominated debit cards for transactions abroad, from $150,000 per person annually, to $50,000 per person annually. The daily cash withdrawal limit on the card was also fixed at $300 per person.

Managing Director/Chief Executive Officer, Union Bank of Nigeria Plc, Mr. Emeka Emuwa recently revealed that the central bank decided to reduce the limit on the usage of naira debit cards abroad because of some cases of card abuse abroad which was impacting exchange rate stability.

The spending limit on the usage of the naira denominated debit cards for transactions abroad was reduced from $150,000 per person annually, to $50,000 per person annually. But some industry watchers have argued that bank customers some could attempt to circumvent this policy by opening several bank accounts and using the naira debit cards they will be given to make withdrawals above the limit.

However, Suleiman noted that this will not be feasible when the BVN initiative is fully implemented, as each bank customer will have a BVN that will give him/her a unique identity that will be known to every player in the financial sector. Thus, when such a customer has reached the limit of his naira debit card spending abroad, he will not be able to use another card as the system will immediately recognise him.

The BVN, which is an initiative of the CBN and the Bankers’ Committee was launched on February 14, 2014. It is a unique identifier for each bank customer across the financial industry, making it possible to build and track customer financial history and activity. This will allow banks access to more reliable information that could inform decisions on customer loan and credit applications and other complex transactions.

The initiative is expected to boost financial inclusion as those who have typically stayed away from mainstream banking due to low literacy levels will be able to open and access their bank accounts using their biometric information rather than traditional identification methods.

As part of efforts to encourage enrolment for the BVN, the CBN had directed banks to only honour transactions over N100 million from customers with BVN from March 2015.

Such transactions, according to the central bank, include but not limited to, money transfers, loans, and contingencies, among others. The CBN also urged all bank customers to register for their BVN by June 2015, warning that any bank customer without a BVN would be deemed to have inadequate Know-Your-Customers by that date.