The Nation Newspaper

Category: Money

  • FIRS mulls charges on ATMs, WhatsApp

    FIRS mulls charges on ATMs, WhatsApp

    By Collins Nweze

    The Federal Inland Revenue Service (FIRS) says Nigerians will pay stamp duties on WhatsApp messages, SMS, and messages via any electronic platform acknowledging receipt of funds.

    The revenue service, according to a report by TheCable, also stated that stamp duties would be paid on “POS receipts, fiscalised device receipts, Automated Teller Machine (ATM) print-outs”.

    According to a circular published by the agency, Nigerians will also be required to pay stamp duties on SMS acknowledging receipt of funds.

    FIRS gave illustrations of situations where Nigerians are expected to pay stamp duties, one of them says: “ABZ Ltd’s chief accounting officer, after receiving a cash payment of N500,000 from Mr. XYZ on behalf of ABZ Ltd., composed a message which reads: ‘receipt of N500,000 is hereby acknowledged’ and sent same to Mr. XYZ via WhatsApp messenger.

    “In this case, the WhatsApp message acknowledging the receipt of N500,000 constitutes a receipt for which stamp duty is payable.

    Read Also: FIRS: The burden of leadership

    “Mr XYZ is required to make a disclosure of the details of the transaction using FIRS e-stamp duty platform or to the relevant stamp duties Commissioner. This will lead to assessment and payment of appropriate stamp duties and a consequential issuance of a stamp duty certificate or an acknowledgement.

    “Such certificate or acknowledgement will suffice as evidence that stamp duties have been paid and that the electronic receipt has been stamped appropriately.”

    The agency adds that “all electronic dutiable instruments or receipts”, including e-mails, short message service (sms), instant messages (IM), any internet-based messaging service, are subject to stamp duty.

    The circular, issued in April, clearly stated that “all printed receipts” and “all electronically generated receipts and any form of electronic acknowledgement of money for dutiable transactions” are liable to duty payment.

  • Access Bank to customers: beware of scams

    Access Bank to customers: beware of scams

    By Collins Nweze

    Access Bank has urged its customers to be on the lookout for fraudsters who are using new methods to rip people off by preying on the distress that comes with the nation-wide lockdown.

    It said fraudsters contact their potential victim via mail, phone call or text to request for their bank details with the promise of crediting their account, after which they proceed to withdraw the money in the victim’s bank account.

    They often come under the guise of government officials, social advocates and false non-governmental organisations(NGOs) allocated to share the relief fund that was promised by the government.

    This, unfortunately, is a fraudulent scheme and given the state of affairs, an easy scam to fall for, it said.

    The bank’s Executive Director, Retail Banking, Victor Etuokwu, said: “Access Bank is imploring its customers to be wary of any message, demanding their personal or bank details.

    Read Also: Bonds yields dip, naira strengthens after rate cut

    Customers must remember that the bank will never ask for their BVN, full card PAN, PIN, mobile app activation code, OTP or password as it is readily available to the Bank via its database.

    Any call, email and text message, claiming to be from Access Bank and demanding for any of these details is certainly a scam.

    “Also, customers are advised to refrain from sharing user generated codes when migrating from the old Diamond Bank app to the Access More app.

    With knowledge of this pin, these fraudsters can gain entry to your bank app, and from there have access to the money in your account.’’

    Etuokwu advised customers to be vigilant and report suspicious activities to the bank.

  • FirstBank promotes virtual account

    FirstBank promotes virtual account

    By Collins Nweze

     

    First Bank of Nigeria Limited has reinforced its technology to enable anyone open an account through their mobile phones, without visiting any of its branches.

    The account can be opened on its *894# USSD banking, FirstMobile as well as through the Direct Sales Executive (DSE) application installed on their mobile phone, ATMs and the bank’s over 55,000 FirstMonie Agents spread across the country.

    With FirstBank’s *894# USSD banking, various banking are carried out on a mobile phone – across the four major GSM network operators in the country – without the use of the internet.

    The FirstMonie Agent Banking is an agent banking initiative from the bank that is designed to take banking closer to people, thereby bridging the gap between the banked and unbanked.

    FirstMonie is a channel through which various banking like FirstBank account opening, funds transfer, bill payments, data and call credit recharge services, amongst others are carried out.

    The Agent Banking initiative has also contributed to reducing poverty, being responsible for the indirect employment of over 150,000 people across the country.

    According to Chuma Ezirim, Group Executive, e-Business & Retail Products, First Bank of Nigeria Limited, “beyond opening an account in any of our over 700 branches, we are delighted with the investments at reinventing our business processes over the years, especially with the use of technology.

    This has been critical to staying relevant in the industry for over 126 years and being the financial partner of the first choice to all our customers and Nigerians, irrespective of where they are.”

     

  • Health sector a money spinner, says Polaris Bank chief

    Health sector a money spinner, says Polaris Bank chief

    By Collins Nweze

     

    THE health sector holds immense potential to create wealth, if an enabling environment is put in place for it to thrive, Polaris Bank Chief Executive Officer (CEO), Tokunbo Abiru.

    He said this during a webinar hosted by the bank on: ‘Managing healthcare business during & Post-COVID-19’.

    He said: “Despite these unfortunate realities, with the right policies and legislation, the health sector has the potential to create wealth for the country.

    This will include exploring ways to make medical services affordable by providing a well-defined and incentivised insurance framework to cover the formal and informal sectors.

    He further noted that Nigeria’s large population offers a huge demand potential for turning the health sector into a money-spinner for the country.

    “If the right legislation is in place, medical tourism can be a thing of the past while providers of capital would have the comfort to bridge funding gap thus getting the sector to work optimally.”

    The quality assurance adviser of Medical Credit Fund, Dr. Abiodun Oyenuga,who spoke on the ‘Overview of the pandemic and its impact on healthcare business’, noted: “There is a decrease in the ability to afford healthcare as a result of the business shutdown; loss of income and loss of jobs, among several drawbacks.

    He however urged financial institutions to provide more credits; and  a renewed focus by the government in reviving healthcare as these would improve patient satisfaction as well as profit.

    On coverage expansion,  access to primary health care, the Chief Technology Officer of MeCure, Adil Shaikh, explained that telemedicine provides patients the opportunity to access online consultation, prescription and delivery of prescribed drugs from certified pharmacies across Nigeria.

    Shaikh noted, however, that telemedicine comes with challenges, especially for providers of medical services who wish to explore the field; ranging from technology infrastructure, user education and general awareness and connectivity issues on the part of the consumer.

    He identified three major areas financial institutions could help to bridge the gap including: leveraging reach to generate awareness, innovating on digital payments, and partnerships with health institutions.

    Managing Director Medbury Medical Services,Itunu Akinware, advocated effective collaborations within the health sector drawing from the saying, “You shouldn’t let a good crisis go to waste”.

    She emphasised that ‘now that a lot of light has been shone on the health sector and we can see the gaps in infrastructure, processes, and systems, this is the time for all of us to work together and ensure that we can improve healthcare in Nigeria”.

    Akinware added: “We have developed a three-pronged strategy: to increase or maintain revenue; reduce or re-align cost and manage cash.”

    Divisional Head, Medical & Technology, Hygeia HMO, Omoshola Yusuf, who spoke on how the increasing cost of care is being moderated by the HMO scheme  urged Nigerians,  employers, as well as individuals, to embrace the scheme.

    Directorate Head, Lagos Business, Polaris Bank, Segun Opeke, spoke on the product offering of the bank to the health sector.

    “The Polaris Healthcare Loan has two variants: what can be available as overdraft facility for working capital purposes; purchase of consumables; discounting of invoices, etc. Interest is very competitive while Loan amount is subject to the applicant’s capacity,” she said.

  • ‘Integration key to building resilient economy’

    ‘Integration key to building resilient economy’

    By Chikodi Okereocha

     

    Nigeria and other African economies need to do more to integrate their regional economies to make them more resilient to shocks, such as the COVID-19 pandemic, the Africa Regional Integration Index (ARII 2019) has said.

    The 2019 Index, which builds on the first edition published in 2016, provides up-to-date data on the status and progress of regional integration in Africa. It also helps to assess the level of integration for every Regional Economic Community (REC) and their member countries.

    The report observed that although 20 countries scored above average, no African country can be considered well integrated in its region. Even the most integrated country, South Africa, scored 0.625 less than two-thirds of its potential on the scale.

    The second ARII 2019 was launched at the weekend by the Economic Commission for Africa (ECA), the African Development Bank (AfDB) and the African Union Commission (AUC), with a call to action to African economies to deepen their integration.

    Overall, the Index, which was accessed by The Nation, over the weekend, showed that levels of integration on the continent were relatively low with an average score of 0.327 out of one.

    “Whereas the Index edition we released today has data cut off points in 2019, the present COVID-19 pandemic has re-opened the question of whether enough is being done in advancing regional integration as a means to help Africa withstand systematic shocks, such as the one being experienced today,” Regional Integration Division Director for ECA, Stephen Karingi, said.

    Karingi, who explained that the Index was both a measurement exercise and a call to action to build resilient economies through integration, added: “It will identify the solutions needed to truly build an integrated Africa.”

    The Acting Director of the AUC’s Economic Affairs Department, Jean-Denis Gabikini, welcomed the collaboration in producing the Index. He noted that the Index covers issues of intellectual property, competition policy, investment and digital trade.

    According to him, these are issues critical to the successful negotiations of Phase II and III of the African Continental Free Trade (AfCFTA).

    “To achieve an integrated, prosperous and peaceful Africa, representing a dynamic force in the

    concert of nations, this ARII report will support AU Member States and RECs to address industrialisation and value addition priorities for the development of the continent,” Gabikini said.

    Read Also: ‘COVID-19 dropped Lagos economy by N2.3tr’

     

    With the establishment of RECs and the creation of AfCFTA, Africa has reinforced regional integration as a major development priority for the continent under the 2012 Boosting Intra- African Trade (BIAT) Action Plan.

    The Index ranks the level of integration of African countries within their respective RECs and also with the rest of the continent. It scores across five key dimensions: trade, productive capacity, macroeconomic policy, infrastructure, and free movement of people.

    AfDB’s Director for Regional Development and Regional Integration, Moono Mupotola, said the

    Index was a useful tool for tracking progress on the regional integration front and would help countries identify priorities to improve integration.

    “The crippling effects of COVID-19 illustrate the need for enhanced production of African finished goods and services that can readily be traded across the continent,” Mupotola said.

    For Africa to succeed in its long-standing efforts towards closer economic integration, ARII 2019 recommended improving regional networks of production and trade by enhancing countries’ productive, distributive, and marketing capacities.

    Others include building innovative, regional value-chain frameworks in different sectors using improved technology, higher-quality inputs, and updated marketing techniques; full implementation of the AfCFTA to remove non-tariff barriers, which remain a major challenge for regional integration; enhancing African workers’ competencies to match the technology and production capacities of today and tomorrow to succeed in the global economy.

    It also recommended improving infrastructure through increased public–private partnerships, tapping into national resources and using regional and global infrastructure development funds and other innovative financing tools, accompanied by rigorous competition and transparency in procurement and construction processes.

    The ARII 2019 also said there is need to implement the Protocol on the Free Movement of

    People, which will enhance economic growth through increased opportunities for tourism, trade and investment, human capital mobility, and allow firms to find skills more easily, in turn driving productivity.

  • Bonds yields dip, naira strengthens after rate cut

    Bonds yields dip, naira strengthens after rate cut

    By Collins Nweze

     

    THE Federal Government’s  five-year bond yield dropped by more than 200 basis points on Friday, after the Central Bank of Nigeria (CBN) cut Monetary Policy Rate to 12.5 per cent from 13.5 per cent.

    Bonds yields fell across maturities with the most liquid five-year paper fell to 6.5 per cent.

    The naira also strengthened at the parallel market, appreciating from N460 to dollar to N450 to dollar.  The CBN had cut its benchmark lending rate to stimulate growth in the economy.

    The strengthening of the naira has also been linked to planned  reopening of Bureaux de Change (BDCs) after several weeks of closure had hampered supply of dollars and driven buyers to the unofficial market.

    “Flow from BDCs helped the naira appreciate in the parallel market from 460 to 450 per dollar this week. Support also comes from the CBN taking measures to boost forex liquidity amid higher oil prices and resumed exports,” one analyst said.

    Read Also: Naira exchanges at N450 to dollar

     

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has asked foreign exchange buyers not to patronise street traders  because of the dangers with such transactions.

    In a notice  to BDC operators and directors,  ABCON President, Alhaji Aminu Gwadabe, advised the  public not to go into panic buying, hoarding  and partronising  the street traders as  the CBN has enough reserves to sustain supplies when the BDCs return.

    The CBN had also acknowledged the contributions of BDCs in promoting stable exchange rate in recent months, despite challenging circumstances facing the Forex market due to drop in crude oil prices.

    Gwadabe advised BDC operators to observe strict guidelines on the preventive measures on the dangers of the COVID-19, wear their mask, gloves, and frequent washing of hands.

    “We also want to advise members to  strictly  comply with their regulatory obligations on their daily operation. If you are trading be cautious not to fall under the hand of security agencies. Do not be involved in giving black market rates street trading  as doing so might create regulatory breach,” he said.

    Gwadabe said the CBN/Nigerian Financial Intelligence Unit (NFIU) is tracking large movements of funds within the financial sector and the need to be cautious.

     

  • Access Bank plans more loans for health care

    Access Bank plans more loans for health care

    Collins Nweze

    Access Bank Plc is set to disburse loans through the Central Bank of Nigeria (CBN) credit support scheme to boost the pharmaceutical and healthcare industries.

    The loan’s interest rate was set at a maximum of five per cent yearly and will apply up to February 28, 2021. The interest rate will, however, revert to nine per cent from March 1, 2021.

    In a statement, the bank bank said the loan disbursement became  necessary as the country continues to tackle the evolving crisis of the Coronavirus pandemic. The Bank is reaffirming a  long-held and proven stance on fostering sustainable development across the country.

    The loan scheme is part of a six-point palliative by the CBN, of which Access Bank is a participating financial institute (PFI). It was developed to provide funding to indigenous pharmaceutical companies and other organisations in the healthcare value chain, enabling them to increase capacity to meet the increasing demand for healthcare arising from the pandemic.

    Access Bank’s Group Managing Director, Herbert Wigwe, reassured the public of the bank’s commitment to address the needs of the nation in these uncertain times.

    “It has become clear to all and sundry that Nigeria’s healthcare sector is in dire need of revitalisation and Access Bank, under the auspices of the Central Bank of Nigeria, will be investing heavily in this sector in the coming months. We would be looking to grow Nigeria’s capacity to not only manufacture drugs and other medical supplies locally but also encourage entrepreneurs to take advantage of the opportunities that lie within the sector,” Wigwe said.

  • CBN cuts OFIs loan rates to 5%

    CBN cuts OFIs loan rates to 5%

    By Nduka Chiejina (Asst. Editor), Abuja

    The Central Bank of Nigeria (CBN) has reduced interest rates on its facilities through participating Other Financial Institutions (OFIs) from nine percent to five per cent yearly for one year from March 1.

    This, the bank said, is to mitigate the impact of the coronavirus (COVID-19) on households, businesses and regulated institutions

    The CBN, in a circular  signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, yesterday in Abuja, said: “CBN intervention facilities obtained through participating OFIs- Microfinance Banks (MFBs), Primary Mortgage Banks, and Institutions, among others, will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020.”

    According to the circular, OFIs have been “granted leave to consider temporary and time limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently-issued guidelines for restructuring affected credit facilities in the OFI sub-sector.”

    CBN’s Director, Corporate Communications Department, Isaac Okorafor, said: “The Management approval for the restructuring of credit facilities in the Other Financial Institutions (OFI) sub-sector was in line with the bank’s desire to alleviate momentary strain on households, businesses and regulated institutions triggered by the lockdown due to COVID-19.”

    He added that the CBN “would continue to monitor developments and implement appropriate measures to safeguard financial stability and support stakeholders impacted by the COVID-19 pandemic”.

    Meanwhile, the Monetary Policy Committee (MPC) meeting of the CBN holds tomorrow.

  • MPC slashes interest rate to 12.5%

    MPC slashes interest rate to 12.5%

    By Nduka Chiejina (Asst. Editor), Abuja

    The Monetary Policy Committee (MPC) of Central Bank of Nigeria has reduced Monetary Policy Rate (MPR), to 12.5 per cent.

    The MPR is the instrument used by the Central Bank of Nigeria through the MPC to control interest/ lending rates

    This is the second MPC meeting in a row that will be held under COVID-19 protocols. While delivering the communique, CBN Governor, Godwin Emefiele said other monetary policy parameters remained unchanged.

    Emefiele, said the MPC resolved to retain the Liquidity Ratio at 30 per cent, Cash Reserve Requirement (CRR) at 27.5 per cent and the asymmetric corridor at +200/-500 basis points around the MPR.

    A few weeks back Asiwaju Bola Ahmed Tinubu had called on the CBN to reduce interest rates so that investors and manufacturers can access fund at a cheaper rate.

    Emefiele also hinted that Nigeria may escape another recession if determined efforts are made to boost domestic production and export, saying, “this is the most potent time to diversify our economy. We must follow through our policies on diversification and there’s no better time than now. Over 40 countries have banned export of goods from their countries.

    To the bank’s efforts to save Nigeria from recession, Emefiele revealed that “under the N100 billion healthcare intervention fund, the bank has approved and disbursed N10.15 billion for some projects for the establishment of advanced health centers and the expansion of some pharmaceutical plants to make essential drugs and intravenous fluids.”

    He added that “from the N1 trillion intervention targeted at the agric and manufacturing firms, the bank has disbursed N93.2 billion under the real sector support fund to boost local manufacturing and production across critical sectors. It consists of over 44 greenfields and brownfield projects. The bank has also approved N10.9 billion to 14,331 beneficiaries.”

    With regards to the N50 billion Targeted Credit Facility (TCF), for households and SMEs Emefiele stated that N4.1 billion has been disbursed to 5,868 successful applicants.”

    The MPC he said has reached out to banks to help facilitate the disbursement of those loans to priority sectors of the economy so as to stimulate aggregate demands and create more jobs.

    Another strategy for avoiding recession Emefiele said will be to urgently come up with better tax collection measures to help diversifying the economic base of the country.

    He lamented that the COVID-19 pestilence, which started as a health challenge in 2019 escalated into “a global economic crisis that disrupted the global supply and other catastrophes that vandalized economies across the world.”

    With regards to rice export, the CBN Governor was optimistic that President Muhammadu Buhari’s decision to stop the importation of rice into the country and support local production was a right decision.

    This is because “rice exporting nations have halted export as local demands have risen to 70% because they’re running out of stock. They didn’t farm due to COVID-19. Same thing with those exporting drugs”, he said.

    The CBN Governor said the apex bank stopped selling forex to Bureau De Change (BDCs) “as a strategy to curb the nefarious activities of some of them. if people say they want forex to travel and there is a travel ban, it means some people got naira somewhere and want to buy dollars and keep for themselves”, he said.

    He however disclosed that forex sales to Bureau De Change (BDCs), would resume soon.

  • Ernst & Young to induct Maduka into Hall of Fame

    Ernst & Young to induct Maduka into Hall of Fame

    By Collins Nweze

     

    Ernst & Young (EY), a global tax advisory firm, will be inducting the founder and President of Coscharis Group of Companies, Cosma Maduka, ‘EY World Entrepreneur Of The Year’ Hall of Fame’.

    Maduka will join  60 other entrepreneurs, representing 51 countries across the world to be inducted into the ‘Ernst & Young (EY) World Entrepreneur Of The Year’ Hall of Fame and compete for the world title.

    This year’s winner will be announced virtually due to COVID-19 travel restriction on June 4.

    Maduka, winner of 2020 EY Entrepreneur of The Year Award (EOY) in West Africa, will be recognised alongside other 60 country winners for their exceptional entrepreneurial achievements and vie for the award at the global level.

    EY Entrepreneur of The Year Leader for West Africa,  Ashish Bakhshi, said the award was not only designed to celebrate and honour the contributions and achievements of successful entrepreneurs but also serves to inspire today’s successful entrepreneurs so they could share their incredible entrepreneurial stories.

    He added: “On behalf of EY Body of Partners and entire staff, I want to wish Maduka very best of luck and hope he brings the coveted award to West Africa. We are proud of his achievements in the business world not only in Nigeria but on the African Continent”.

    One of the most interesting and unique features about this year’s edition is that the entire process of the event will be conducted virtually.

    The overall winner will be chosen by an independent judging panel of distinguished former EY Entrepreneur Of The Year winners and other well-known entrepreneurs drawn from the business circle world-wide.

    The award is given on the basis of six criteria: entrepreneurial spirit, financial performance, strategic direction, innovation, global impact and personal integrity/influence), allowing all country winners an equal opportunity to compete.

    CEO and Group Managing Director of Equity Bank, Kenya, James Mwangi, was the first and only African to win the prestigious EY World Entrepreneur Of The Year award. Other past winners were Hamdi Ulukaya, Founder and CEO of Chobani Inc (USA); Olivia Lum, Group CEO and President, Hyflux Limited (Singapore), Guy Laliberté, Founder and CEO, Cirque du Soleil (Canada), Narayana Murthy, Founder and Chairman of Infosys Technologies Limited (India) and Cho Tak Wong, Chairman, Fuyao Glass Industry Group (China), among others.

    EY Entrepreneur Of the Year award program started in 1986 in Milwaukee, Wisconsin, in the US. By 1987, the program was held across 11 US cities and in 1993, it started to expand internationally. The program was introduced in West Africa (Nigeria and Ghana) in 2011.