CBN extends BVN registration, adjusts naira rate for 4th time this year

The Central Bank of Nigeria on Tuesday extended the deadline for the Bank Verification Number registration by four months from June 30 to October 31, 2015. The central bank disclosed this in a circular issued to all Deposit Money Banks operating in the country. The circular dated Tuesday, June 30, 2015, with reference number BPS/DIR/GEN/CIR/02/008, was signed by the Director, Banking and Payment Systems Department, CBN, Mr. Dipo Fatokun. The CBN stated in the circular that the extension of the deadline became necessary in order to give customers of DMBs more time to participate in the enrolment exercise. It added that since the registration exercise had elicited a lot of interests from customers who had been crowding banking halls in the last few days, there was a need to extend the deadline so as to ensure a smooth completion of the registration process. The CBN further stated that in view of the fact that a lot of Nigerians in the Diaspora might not be able to take advantage of the current registration process, a new guideline for their enrolment would soon be issued. The circular read in part, “It has come to our notice that the BVN registration has elicited tremendous interest from Nigerian banks customers who crowd the banking halls in order to beat the deadline. “Furthermore, there is the need to give Nigerian banks customers in the Diaspora ample time to enrol on the programme. The guideline for their enrolment is being finalised and will be released soon. “In view of the foregoing, it has become imperative for the bank to extend the timeline for all bank customers to have the BVN. The deadline for enrolment is hereby extended from June 30, 2015 to October 31, 2015. This extension is expected to facilitate a smooth completion of the registration exercise.” The circular stated that any bank customer without the BVN attached to his account would be deemed to have inadequate requirement with respect to the Know-Your-Customer guidelines. Meanwhile, bank customers in Jos, the Plateau State capital, and environs have expressed joy over the extension of the registration for the BVN. Thousands of customers had thronged bank branches in Jos and Bukuru metropolis as early as 6am to beat Tuesday’s initial deadline for the exercise. At one of the second generation banks in Jos, workers had a hectic time controlling the unruly customers who wanted to register at all cost in order to beat the deadline. However, the customers were overwhelmed with joy when one of them read about the extension of the deadline to October 31 on the website of The PUNCH. In ecstasy, he announced to the weary crowd that the biometric registration of bank customers had been extended. Those who doubted him had to quickly go to the website and confirmed the development. As soon as they confirmed the extension, many of the customers felt relieved and left the banking hall promising to come back some other time. The Central Bank of Nigeria on Tuesday lowered the naira peg to 196.95 against the dollar from 196.90 it set last week. This made it the fourth time the CBN had adjusted the peg since it was introduced in February, Reuters reported. This happened just as the naira tumbled further to 228 against the dollar at the parallel market on Tuesday from 265 on Monday. Reuters reported that the yield on the Federal Government’s 2024 bond in the JP Morgan Government Bond Index rose by 40 basis point to 14.74 per cent. Traders said the move might indicate that the bank was beginning to think about how to loosen its currency regime. “There is no change to FX policy, therefore the locals are getting a bit nervous thinking that offshore investors will not be coming back any time soon,” Portfolio Manager at Aberdeen Asset Management, Mr. Kevin Daly, said. “Effectively, the bond market is starting to price in a much wider move on the currency,” he said. Traders had said on Monday that the negative outlook for inflation, which is hovering around the central bank’s upper limit of nine per cent, was one reason local investors were selling bonds. The most liquid five-year bond yield rose to 14.95 per cent, up from 14.71 per cent the day before the central bank unveiled the currency rules last week, but below 15.5 per cent on the eve of the presidential election in March. Experts and analysts had said the naira might hit 230 in coming weeks following the CBN new forex rule. Currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, had said the owing to the huge demand at the parallel market, the naira would experience severe pressure in coming weeks Copyright PUNCH