The National Pension Commission (PENCOM) has officially lifted its suspension on Pension Fund Administrators (PFAs) regarding investments in commercial papers, following the development of new regulatory guidelines by the Securities and Exchange Commission (SEC).

In a circular issued on Tuesday, PENCOM announced that the decision to lift the restriction was made after SEC introduced draft rules and amendments to Rule 8 (Exemptions), aimed at regulating the issuance of commercial papers by its regulated entities.

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Abdulqadir Dahiru, the Head of PENCOM’s Investment Supervision Department, explained the rationale behind the move.

“The commission has noted that the Securities and Exchange Commission has developed draft rules and an amendment to Rule 8 (Exemptions) to regulate the issuance of Commercial Papers by its regulated entities,” Dahiru said in the circular.

He further highlighted that SEC’s new framework addresses PENCOM’s concerns about the involvement of non-bank Issuing and Paying Agents (IPAs) in commercial paper transactions, bringing them under appropriate regulatory oversight.

“Accordingly, the SEC is addressing the commission’s concern about the role of non-bank IPAs in commercial paper transactions by bringing them within regulatory boundaries,” Dahiru added.

With the lifting of the suspension, PENCOM seeks to encourage capital raising while maintaining market stability.

However, the commission has advised Licensed Pension Fund Administrators (LPFAs) to carry out thorough legal and financial due diligence on all commercial paper prospectuses and offer documents before making any investments.

This is in line with the guidelines set out in Section 2.9 of the Regulation on Investment of Pension Fund Assets.

The Central Bank of Nigeria (CBN) has warned financial institutions to address the ongoing cash scarcity at Automated Teller Machines (ATMs) or face penalties.

This warning comes as Nigerians continue to experience difficulties accessing cash both at ATMs and over-the-counter services at banks.

CBN Governor, Olayemi Cardoso, made the announcement during his address at the annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria on Friday.

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He acknowledged the widespread challenges with cash availability, particularly in the lead-up to the festive season, which has exacerbated frustrations among ordinary Nigerians.

Cardoso said, “We recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians. To address this, we are conducting spot checks across deposit money banks, and we will impose penalties on underperforming institutions.”

Cardoso also revealed that, starting December 1, 2024, customers will be encouraged to report any issues they face while withdrawing cash directly to the CBN through designated phone numbers and email addresses for their respective states.

The CBN will be distributing guidelines to ensure the public is aware of these reporting channels.

The Governor also emphasized the need for full regulatory compliance by all stakeholders in the financial sector, including mobile money operators and POS agents.

The CBN is urging the promotion of digital transactions as a means of improving overall service delivery, especially during high-demand periods like the festive season and year-end.

“Financial institutions found engaging in malpractices or sabotage will face severe penalties,” Cardoso warned, signaling the CBN’s commitment to ensuring a reliable cash flow system across the nation.

The United Bank for Africa (UBA) has inked a deal to deploy its full banking brand in France.

This was revealed in a statement late Thursday, in which Africa’s global bank attributed the feat to a business cooperation agreement with the French Finance Minister, Antoine Armand, as part of President Bola Ahmed Tinubu’s state visit to France.

During the visit, the Chairman of UBA Group, Tony Elumelu, in the presence of Tinubu and the President of France, Emmanuel Macron, signed the agreement indicative of support by the French Government for the deployment of UBA’s full banking operations in France.

During the signing ceremony, Elumelu said, “This partnership reinforces our commitment to seamless international banking services for our customers, not just across the 11 Francophone African countries we serve, but Africa as a whole and French and European customers transacting with Africa.

“Expanding into France is a natural progression, with Paris serving as our European Union hub as we continue to bring Africa and the world together through innovative financial solutions. Paris will join London, New York, and Dubai as a critical component of our unique global network.”

With this agreement, UBA joins the elite crop of tier-1 banks in Nigeria, running with a banking presence in France.

Tinubu arrived in France on Thursday for a two-day state visit, with both sides looking to deepen their economic and diplomatic ties.