March 13, (THEWILL) – The Central Bank of Nigeria (CBN} has frowned against the use of outdated circulars and guidelines by Deposit Money Banks, DMBs, Licensed Non-interest banks and other authorized dealers at its discount.
The CBN has, therefore, directed them to use new (reviewed) circulars and guidelines in their dealing. .
The apex bank gave this directive following its discovery that some old circulars and guidelines are still being used despite being replaced by new ones.
The directive was contained in a circular signed by the Director Financial Market Department, CBN, Dr. Omolara Duke.
The CBN said:
“It has been observed that some superseded circulars/guidelines are still in use even though they have been replaced by newer circulars/guidelines.
“The CBN hereby directs deposit money banks, licensed non-interest banks, and other authorised dealers at the CBN Discount Window to adhere to the circulars/guidelines that supersede previous ones issued by the Bank.
“The effective circulars in use are as shown below.
“Accordingly, this circular highlights the superseding circular(s) for your information and compliance.
“Circular to All Authorized Dealers: Access to the Discount Window, with Ref:
FMD/DIR/PUB/CIR/001/006, dated October 7, 2022, supersedes the under listed: Access to the CBN Discount Window on Auction Days, with Ref: FMD/DIR/GEN/CIR/07/005, dated August 8, 2016,
“Review of the Revised Guidelines for Accessing CBN Lending Window and Repo Transaction, with Ref: FMD/DIR/GEN/CIR/03/006, dated August 1, 2012.
“Revised Guidelines for the Operation of Non-Interest Financial Institutions’ Instruments by the CBN, with Ref: FMD/DIR/PUB/GUI/001/002, dated June 9, 2022, supersedes the under listed: Introduction of Two New Instruments for Non-Interest Banks, with Ref:FMD/DIR/CIR/GEN/08/009, dated August 24, 2017;
“Guidelines for the Operation of Non- Interest Financial Instruments by the CBN, dated December 12, 2012; and The Guidelines on Accessing the CBN Standing Deposit Facility in Circular number FMD/DIR/CON/OGC/12/019 dated July 10, 2019 and reviewed on October 25, 2023 removed the cap on remunerable deposits.
“Consequently, all authorised dealers are hereby notified on the latest development and required to heed accordingly.”
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
