₦airaland Forum

The Central Bank of Nigeria (CBN) has created a new category of Bank Verification Numbers (BVNs) known as BVN Lite, saying this would help to capture financially excluded people in the country.

Governor of CBN, Mr Godwin Emefiele, made this disclosure on the sidelines of the of the 11th annual Bankers Committee retreat held in Ogere, Ogun State last week.

According to Mr Emefiele, the requirements for the registration of this new BVN would be lesser than the previous one carried out some years ago in the banking industry. He said those captured under the BVN Lite would be limited to certain financial transactions.

“We now have about 40 million people on the BVN platform. We think that because of the benefits of the BVN to bank customers and the economy there is a need to consolidate and move BVN to a new level, something like 2.0,” he said.
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“What it entails is to reclassify and segregate transactions that can be held by BVN. For instance, we have two classifications. The existence BVN requirement that we have in the system has almost about 18 lines of information that are required, and where your 10 prints and fingers are taken to ensure that all transactions that you take are within the banking system.

“We have decided to classify that as BVN classic and BVN premium. But we agreed that there should also be a system where people who are today financially excluded can now be financially included. Here, we are talking about creating another segment called BVN Lite.

“Here, minimal information about the person will be held. What is means is that if you are classified a BVN Lite, then there is a limit to the kind of transactions you can conduct in the banking sector, maybe in terms of deposit or loans,” Mr Emefiele added.
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He explained that this move was part of the CBN’s efforts to drive modern financial accessibility and inclusion to rural communities who are excluded from the banking system and through the collaborative efforts with the National Communication Commission (NCC), they will able to conduct certain transactions.

“There are people who are currently financially excluded, like people in our rural communities that carry phones but not having financial services. With the collaboration of NCC, we are putting this BVN arrangement to allow them to conduct minimal financial services.

“It should be possible for us to migrate this person into the BVN Lite arrangement where they can conduct minimal financial services, not just banking services, but minimal financial services, insurance and anything you want to conduct in terms of finance whether electronic payment or anything, you can do it with the aid of your phone.

“Some of our brethren that are doing the Anchor Borrowers’ Programme or the Social Investment Programme, we believe we can use the BVN Lite as an arrangement so that everybody can be financially included.

“Now as you bring them into the financial system, what it will do is that it will help to increase our rate of financial inclusion and reduce the exclusion rate,” he said.

One billion shares worth N14.6 (N15) billion exchanged hands in 14,974 deals on the floor of the Nigerian Stock Exchange (NSE) last week in contrast to a total of 952.7 million shares valued at N12.774 billion transacted the previous week in 17,279 deals.

Business Post gathered shares of Union Diagnostics and Clinical Services Plc, United Bank for Africa Plc and Guaranty Trust Bank Plc accounted for 379.1 million shares worth N3.1 billion in 1,704 deals, contributing 36.30 percent and 20.96 percent to the total equity turnover volume and value respectively.

During the week, investors were more interested in financial stocks, contributing 53.33 percent and 38.81 percent to the total equity turnover volume and value respectively. A total of 556.9 million shares in the sector valued at N5.678 billion were traded in 8,267 deals in the week.

The Healthcare industry followed with 215.0 million equities worth N122.6 million in 412 deals, while the third place was occupied by the conglomerates industry with a turnover of 89.6 million shares worth N466.3 million in 874 deals.

A total of 18 equities appreciated in price during the week, lower than 19 stocks in the previous week, while 44 shares depreciated in price, higher than 35 equities in the previous week, with 103 equities remaining unchanged, lower than 111 equities recorded in the preceding week.

Presco was the best performing stock, rising by 14.93 percent to close at N43.50 per unit, while Dangote Sugar followed with a 10.33 percent growth to finish at N16.55 per share.

Axa Mansard Insurance grew by 9.09 percent to end at N1.80 per unit, AG Leventis Nigeria improved by 8.33 percent to close at 39 kobo per share, while Eterna appreciated by 7.14 percent to settle at N3.00 per share.

On the other hand, the worst performing stock in the week was Chams. The stock price depreciated by 18.92 percent to finish at 30 kobo per unit.

Union Diagnostic fell by 15.38 percent to end at 22 kobo per share, GlaxoSmithKline declined by 12.50 percent to settle at N5.25 per share, Cutix dropped 11.69 percent to finish at N1.36 per unit, while Daar Communications depleted by 10.00 percent to trade at 36 kobo per share.

A look at the overall performance of the nation's stock market last week showed that the All-Share Index (NSE) and the market capitalisation depreciated by 1.19 percent to close 26,536.21 points and N12.808 trillion respectively.

All other indices finished lower with the exception of NSE Pension, NSE Insurance, NSE-AFR Div Yield, NSE MERI Value and NSE Oil & Gas indices which appreciated by 0.02 percent, 0.03 percent, 2.09 percent, 2.06 percent and 0.03 percent respectively.

spokesboy:
A market mediocre reporter @ dipoolowoo
The correct subject is "Stock Market Capitalisation declined by N71billion....". Your subject is misleading and capable of causing panic. Is it you or your villagers who lost that amount?
To help you understand better, the same week your report is referring to, the market value traded by the Top 10 firms (representing 74% of the total market trades) totalled N19billion for both buy and sell. So pls explain how in the same week we lost "N71bn".
The "market cap" and "ASI index" are both market directional indicators and not a replica of the actual value traded, gained or lost.
This is my second time of correcting you. Next time will be much harder. Beware!!!