Business

Naira Redesign: Rich Nigerians deposit bales of cash in banks

Published

3 years ago

November 5, 2022

admin

Less than one week after the Central Bank of Nigeria, CBN, announced the redesign of the N1,000, N500 and N200 notes, with a directive that the current notes be remitted to the commercial banks, wealthy individuals and organisations with huge cash stashed away have begun depositing them, according to reports.

Sources in many commercial banks said that even though there has yet to be any rush by customers, there was a gradual increase in the volume of cash and amounts being remitted by customers.

It will be recalled that the Governor of the CBN, Mr Godwin Emefiele, while announcing the issuance of the new naira notes on October 26, said bank customers should start paying their current notes to enable them to withdraw the new bank notes once circulation begins on December 15, 2022.

Emefiele said the apex bank had become concerned over some daunting challenges in the management of the existing banknotes in circulation, especially those outside the banking system, noting that such portend some consequences for the integrity of the CBN and the country.

Among the challenges that informed the decision, he lamented the “significant hoarding” of the banknotes in which case N2.73tn out of the N3.23tn currency in circulation as of September 2022 was outside the vaults of the commercial banks across the country. He also cited the worsening shortage of clean and fit banknotes; increasing ease and risk of counterfeiting evidenced by several security reports and compliance with global standard to circulate new legal tender every five to eight years.

He noted further that the naira redesign would help to rein in the currency outside the banking system and make its monetary policies more efficacious, deepen its cashless economy drive and minimise incidents of terrorism and kidnapping as the access to large sums used for ransom payment.

He noted, “On the basis of these trends, problems, and facts set out above, and in line with provisions of Sections 2(b), section 18(a) , and section 19, Subsections a and b of the CBN Act 2007, the Management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500, and N1,000 levels.

“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022 after its launch by President Muhammadu Buhari. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender.”

Huge cash deposits

Meanwhile, indications have emerged that individuals have begun depositing huge cash sums stashed away with the commercial banks.

A top banker with one of the first generation banks, who spoke on condition of anonymity, said there was a gradual increase in the sums of money being deposited by some customers. “We have seen an increase in the amount being brought to some of our branches by some customers,” the source said.

The source added, “The amounts vary, but we have seen people bring between N5m and N20m cash. It’s only rich customers that can have huge sums stashed away. The poor live on daily income and can hardly have enough to save.”

He said it was easy to identify the money stashed away for a long time because of the smell, the dates on them and other elements she refused to disclose. “There are ways to identify them but I don’t want to go into that because the focus of the CBN policy is to rein in the volume of cash in circulation. The regulators would deal with the rest.”

Another source confirmed that there was already a rise in the amount of cash being deposited by some customers.

She said, “The normal deposit by average income earners and businesses continues, but some customers have been coming with huge sums to deposit. We have seen some persons bring N2m cash and there have been higher and lesser amounts respectively from some other branches.”

Meanwhile, a senior staff at the headquarters of another first generation bank noted that feedback from some of their branches showed that some customers brought in billions, some in millions and some in hundreds of thousands.

“We have to protect the customers, even if you suspect the possible source of such funds. The information from some of our branches indicate that in the last few days, specifically since October 26 when the CBN made the announcement, there have been individuals who brought in billions while some came to deposit millions.

“From what the CBN governor said in his briefing, he said about 85 per cent of the cash in circulation was outside the bank vaults and that alone is over N2tn, which shows that we might even see more billions being brought to the banks for remittance in the coming days.”

“But I can tell you that across all the financial institutions, there has been a surge in deposits. It’s not natural; the naira redesign and the fact that the Economic and Financial Crimes Commission has been going after some people has made it so. How come we have over N2tn in people’s hands?

“I have had interactions with some of my colleagues in other banks and they confirmed that it’s the same in their banks. The deposit has been in billions. It might come as a surprise to many, but it’s the reality. I came across a report that some states are considering paying salaries in cash, because they have stashed away huge cash and they need to expend it.”

Related Topics:Banks CBN Huge deposits Naira

Up Next

US court to sentence Hushpuppi Monday

Don't Miss

Nemesis: Man electrocuted while destroying campaign billboard in Ibadan

Click to comment

Business

Wema Bank launches Hackaholics Accelerator 2026 Cohort with ten startups

Published

7 days ago

March 13, 2026

admin

Wema Bank, Nigeria’s most innovative bank and the pioneer of Africa’s first fully digital bank, ALAT, has launched the 2026 Hackaholics Accelerator Program, welcoming ten startups into the cohort.

The Hackaholics Accelerator, a selective growth program under Wema Bank’s Hackaholics platform, is designed to help promising Nigerian startups strengthen their business foundations and prepare for sustainable scale and investment.

After six years of driving innovation through Hackaholics, Wema Bank is extending its support beyond ideation and competition into hands-on startup building through Hackaholics Accelerator. The initiative provides founders with the structure, mentorship, and ecosystem access they need to turn strong ideas into viable, scalable businesses.

The 2026 cohort comprises ten startups in total, drawn from the top 10 performing finalists from Hackaholics 6.0. The startups include Farmslate, Ploy, Stocmed, Feest (Chao), Varsityscape, MamaAlert, Sane, Cyclex, Kieva, and Loocomo.

Commenting on the evolution of Hackaholics and the second edition of its Accelerator program, MD/CEO of Wema Bank, Moruf Oseni, said it reflects the Bank’s commitment to supporting founders beyond ideation and helping promising innovations grow into sustainable businesses.

“Over the past six years, Hackaholics has grown into more than a competition; it has become a platform that reveals the depth of innovation and entrepreneurial potential that exists across Nigeria,” Oseni said. “With this second edition of Hackaholics Accelerator, we are taking the next step by supporting founders beyond the ideation stage and into the process of building sustainable businesses.

The startups selected for this cohort represent some of the most promising solutions emerging from the Hackaholics ecosystem, and we are committed to helping them refine their models, strengthen their foundations, and scale their impact.”

Speaking on the ten startups selected for the cohort, Babatunde Mumuni, Chief Transformation Officer, Wema Bank, added that the Accelerator will guide founders through a structured process to strengthen their businesses and prepare them for sustainable growth.

“The startups selected for this cohort already have strong foundations, with products already in market, early traction, and clear potential for growth,” Mumuni said. “Each of the selected startups brings a unique solution to real challenges across different sectors. What Hackaholics Accelerator provides is the environment to strengthen those foundations through hands-on mentorship, strategic guidance, and access to the right networks. Over the course of the program, we will work closely with these founders to refine their models, deepen market traction, and prepare them for sustainable scale.”

All 10 startup founders will undergo a series of training sessions led by industry experts across key areas critical to startup growth. Facilitators for the programme include the Chief Transformation Officer, Corporate Transformation & Innovation, Wema Bank, Babatunde Mumuni; Head, Strategy & Investor Relations, Wema Bank, Femi Akinfolarin; Head, Data Transformation, Wema Bank, Olamide Jolaoso; and Team Lead, Corporate Social Investment, Wema Bank, Oluwatoyin Adetunji.

Other facilitators include the Managing Director, Impact Hub Lagos, Idowu Akinde; Managing Director, B4B Partners, Napa Onwusa; Startup Advisor and Scout, Onaopemipo Dara; Mentor at Google for Startups, Rosemond Phil-Othihiwa; Head of Growth, Africhange, Tega Ogigirigi; and Startup Advisor and Mentor, Ademola Adewuyi.

Hackaholics Accelerator is supported by Wema Bank’s broader innovation infrastructure, including IDEAx Labs, the Bank’s innovation and venture platform, and its corporate venture programme, which focuses on enabling startup growth through partnerships, infrastructure, and capital access.

Since its launch in 2019, Hackaholics has grown into one of Nigeria’s most influential youth innovation platforms, attracting over 15,000 applicants and supporting hundreds of digital solutions across multiple industries.

Through the Hackaholics initiative, Wema Bank has disbursed over $400,000 in funding to young innovators and startup founders across Nigeria.

Startups, such as Feegor, Myitura, and Bunce are among those that have participated in previous editions of the program, reflecting the Accelerator’s focus on supporting growth-ready companies across diverse sectors. This second edition builds on that progress by helping startups move decisively from innovation to growth.

Business

Banks to charge 7.5 VAT for mobile transfer, PoS transaction fees

Published

2 months ago

January 15, 2026

admin

Banks are set to commence the deduction of 7.5 percent value-added tax (VAT) on banking services, including point of sale (POS) transaction fees, mobile banking transfer fees, from January 19.

In an email to customers, Moniepoint Microfinance Bank said the charge stems from a government-endorsed regulatory change.

According to reports, the VAT is charged on the N50 stamp duty and does not affect the actual amount being transferred or withdrawn.

The proceeds of the charge will be remitted to the Nigerian Revenue Service (NRS).

“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” Moniepoint said.

“From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS) (formerly known as the Federal Inland Revenue Service).

“VAT will apply to certain banking services that include: electronic banking charges such as POS transaction fees, mobile banking fees (transfers), USSD transaction fees, POS activation fee, card issuance fee and Moniebook subscription.”

According to the bank, the charge also applies to other fees, such as loan processing and documentation fees.

“Services that DO NOT attract VAT include: interest on loans and advances, and interest on deposits and savings,” Moniepoint said.

“Please note: This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).

“The NRS has communicated a deadline of 19th January for all financial institutions (commercial banks, microfinance banks and electronic money transfer operators) to start collecting and remitting VAT.”

The bank clarified that VAT applies only to banking or service fees and not to interest, adding that the charge will be listed separately on transaction reports and statements.

The new tax laws retain the VAT rate at 7.5 percent.

Business

Wema Bank Launches Upgraded Version of ALAT Banking App

Published

2 months ago

January 12, 2026

admin

…introduces Voice Banking, Tap and Pay and Uptime Prediction

Wema Bank, Nigeria’s most innovative bank and pioneer of Africa’s first fully digital bank, ALAT, has launched the upgraded version of its flagship digital banking platform, ALAT by Wema. Designed as the next phase in digital banking, the upgraded version of ALAT delivers a smarter, faster, and more intuitive experience, reinforcing Wema Bank’s leadership in technology-driven financial services.

Tagged ALAT: The Evolution, the upgraded version represents a significant advancement in how customers interact with their bank.

It enables seamless banking through intelligent features such as voice banking (called SAW), which allows customers to carry out banking activities using natural voice commands, reducing friction and improving accessibility. It also introduces Tap and Pay for quick, secure, and convenient contactless transactions, alongside uptime prediction that enhances transparency, reliability, and confidence around service availability.

Together, these innovations are designed to simplify everyday banking while anticipating customer needs in real time, reinforcing Wema Bank’s commitment to trust, efficiency, and customer-centric digital experiences.

Announcing the upgraded version, the Managing Director and Chief Executive Officer of Wema Bank, Mr. Moruf Oseni, said, “ALAT: The Evolution is more than an upgrade. It is a clear demonstration of our commitment to redefining digital banking in Africa.

” By understanding the future of banking and listening closely to our customers, we have upgraded ALAT by Wema to a digital banking platform that is smart, intelligent and dependable.

“This evolution reinforces our promise to deliver innovation that genuinely enhances how people live, work, and transact everyday.”

He added that migrating to the upgraded app is seamless. “Existing customers can simply visit the Google Play Store or Apple App Store to update their existing ALAT app and sign-in with their existing login details (All their account information and transaction history remain intact on their profile and they will also gain access to new features that make banking faster, more intuitive, and more reliable).

For new customers, all they have to do is visit the Google Play Store or Apple App Store to download ALAT by Wema app and click the Get Started icon to onboard seamlessly.

Speaking on the technology in the upgraded ALAT by Wema, Mr. Olusegun Adeniyi, Chief Digital Officer at Wema Bank, explained, “With ALAT: The Evolution, we set out to enhance not just functionality but the overall banking experience. By integrating voice banking, contactless payments, and predictive reliability, we are delivering a platform that is built on powerful technology and responds intelligently to customer needs. This upgrade reflects our long-term digital vision to create a digital bank that is adaptive, intuitive, and consistently available.”

Built on speed, intelligence, and user-centric design, ALAT: The Evolution redefines everyday banking through intuitive features such as voice-enabled transactions, contactless payments, and predictive service reliability. Designed to anticipate customer needs in real time, the platform delivers a smarter, more seamless, and dependable digital banking experience that reflects Wema Bank’s vision for the future of finance.

With the upgraded version of ALAT, Wema Bank continues to strengthen its position as a digital-first institution, delivering innovative solutions that empower individuals and businesses to bank with confidence in an increasingly digital economy.