Economy
Use of Social Media Handles for Banks’ KYC not Necessary-Expert
A financial expert, Mr Ayotunde Bally, has faulted the Central Bank of Nigeria (CBN) directive on the inclusion of social media handles as part of commercial bank’s Know Your Customer (KYC) procedures.
Bally, Chief Executive Officer of Arvofinance, a fintech company, expressed the reservation in an interview on Tuesday in Lagos.
NAN reports the CBN issued the directive in its recently gazetted legislation titled, ‘Customer Due Diligence Regulations 2023’.
The bank said the objective of the regulation is to prevent financial crimes and terrorism while boosting the precision and thoroughness of customer identification.
According to the CBN, financial institutions will be required to identify their customers, regardless of whether they are permanent or occasional clients.
He urged the CBN to mandate banks to use already collected data sources like the Bank Verification Number (BVN), National Identity Number (NIN) and Tax Identity Number (TIN) to get more information about their customers.
The expert said that the new regulation would leave many Nigerians vulnerable to financial fraud as well as complicate financial inclusion in the country.
“Social media handles reveal a customer’s true identity and make it easier for fraudsters to carry out fraudulent activities.
“While BVN, National Identity Number, and Tax Identity Number provide an extra layer of security, social media handles break down that layer and increase the risk of bank fraud.
“Ultimately, people that will be mostly affected will be those at the Bottom of the Pyramid (BoP) as it will be difficult for them to access financial services,” he said.
The expert stressed that including social media handles as a requirement would only cause confusion and make the process more complicated as banks already collected NIN, BVN, and TIN as KYC.
He, therefore, urged the apex bank to focus on financial inclusion rather than implementing policies that would create more hurdles for Nigerians.
He said, “The use of financial credit modeling experts may prove to be a more effective approach.
“It is essential to engage stakeholders and the public in addressing these challenges to make financial inclusion a reality for all.
“This policy will only widen the gap and increase the already significant financial exclusion rate in Nigeria.
“It is imperative to educate the public on the potential problems that may arise from this social media handle as a KYC requirement and advocate for more innovative and inclusive solutions for a better financial future.”
This regulation, he added, could exacerbate financial exclusion in the country as it was already a big problem.
“Firstly, a significant number of Nigerians are financially excluded, particularly those living in rural areas.
“They lack access to commercial banks due to poor infrastructure and high transportation costs.
“Additionally, many are not tech-savvy and cannot afford smart phones or the high cost of data in Nigeria.
“This new policy will further complicate financial inclusion efforts and disenfranchise more people,” he said.
Arvofinance is a fintech company that provides quick online loans to consumers without collateral or guarantors.(NAN)
Mr Adegboyega Oyetola, the Minister of Marine and Blue Economy says upgrading the Maritime Academy of Nigeria (MAN), Oron to a university, will unlock opportunities in the maritime economy.
Oyetola made the expression at the 2024 MAN cadets graduation ceremony in Oron, Akwa Ibom on Saturday.
Represented by Mr Babatunde Bombata, the Director, Maritime Safety and Security, the minister said the Federal Government was working assiduously to unlock opportunities within the marine and blue economy.
He said that the ministry was already collaborating with the Ministry of Education and the Nigerian Universities Commission to ensure MAN’s seamless transition to a university.
“It is our hope that this upgrade will unlock new opportunities for advanced learning, cutting edge research and innovation within the marine and blue economy fields,” he said.
Oyetola urged the graduating cadets to be innovative, resourceful and forward looking in their future endeavours.
“The maritime and blue economy sectors are filled with opportunities, so your contributions to the sector will be instrumental in ensuring a brighter future.
“The government is committed to fostering excellence and innovation in these fields, and we eagerly anticipate the positive impact you will make in your careers,” he said.
He further said that the Federal Government was working on developing a national policy on marine and blue economy.
“This policy will serve as a strategic framework to drive economic diversification, attract investments, create jobs and youth empowerment.
In his remarks, Gov. Umo Eno of Akwa Ibom, said the state government would continue to collaborate with the academy to develop the maritime sector.
Represented by the Commissioner for Internal Security and Waterways, Gen. Koko Essien, (Rtd), Eno urged the graduating cadets to utilise their training in developing the maritime sector.
“I am hopeful that you will utilise the training you have acquired here to further your career as seafarers and in the development of our blue economy,” he said.
Eno commended the Acting Rector, Dr Kevin Okonna and his management team for their commitment towards repositioning the academy for greater results.
Earlier, Okonna said that graduates of the institution had contributed immensely to the growth of Nigeria’s maritime and blue economy.
“Today, we have an opportunity to celebrate a new set of well-trained personnel to the maritime and allied industries.
“We pride ourselves as the pioneer maritime training institution, this is because of the institution’s contributions to national development,” he said.
The acting rector urged the graduating cadets to made effective use of the knowledge gained during their training to make meaningful impact on the growth of the maritime sector.
Report says that awards were given to graduating cadets who distinguished themselves in character and learning. (NAN)
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
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