With regard to the new scheme by Sterling Bank, Group Head, Digital Banking of Sterling Bank, Oladipo Alabede said that the Ajo Scheme could be initiated by an interested customer who will invite family and friends to join the scheme. He further revealed that all participants must be registered users on OneBank and must accept the invitation request.

Recently, it was also reported that Sterling Bank is working with Google to offer digital checking and savings accounts to its customers. It was reported that the digital checking accounts were to be built on BMO’s existing infrastructure, with Google providing the front-end technology and user interface.

In this regard, Felix Lin, vice president of payments ecosystems at Google told the media, “Customers were increasingly looking for ways to simply and securely manage their money”. Working with the likes of Sterling National Bank paved the way for customers to “introduce a smarter way to the bank, manage their finances and stay on top of their spending all from within Google Pay.”

Last year, A new digital bank called Sparkle has started its operations in Nigeria after receiving an operating licence from the Central Bank of Nigeria (CBN). Sparkle is launched by the former chief executive officer (CEO) of Diamond Bank and tech entrepreneur Uzoma Dozie.

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According to the apex bank, banks that do not comply with the new policy will see their Cash Reserve Ratios (CRR) being increased. To make sure they meet the deadline, Tier-1 Nigerian banks with assets greater than or equal to N1 trillion are now luring borrowers in Tier-2 banks with attractive interest rates. Some of the banks in the Tier-1 category include First Bank, Access Bank, Zenith Bank, United Bank for Africa, and Guaranty Trust Bank.

Ada Ufomadu, senior analyst at a leading credit rating agency told the media that, “Most Tier 2 banks comply with the new loan to deposit ratio minimum requirement, but not all Tier- 1 banks have complied with the Central Bank of Nigeria’s policy and short timeline for the policy implementation remains a challenge.”

According to her, the industry loan to deposit ratio stood at 80.1 percent in 2016; 75.1 percent in 2017 and 66.4 percent in 2018. In the last couple of years, banks have not been aggressive when it comes to lending. With the introduction of the new policy, the Central Bank of Nigeria aims to improve market liquidity and at the same time encourage banks to increase their lending to the productive sectors of the economy.

Nigeria’s President Muhammadu Buhari has asked the apex bank to stop providing foreign exchange for importation of food into the country. His instructions are in line with the country’s efforts to improve Nigeria’s agricultural production and attain full food security.

Nigeria’s central bank also released guidelines for the payment of lower denominations of the Naira through microfinance banks.

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