Category: Money

By Collins Nweze

Access Bank Plc has reiterated its commitment to helping the economy grow. For some time now, banks have been intensifying their efforts towards financial inclusion and meeting the needs of their retail customers. Daily, there is a new campaign promoting a reward scheme or product – an evidence of a structural shift in business models even as banks are adopting new strategies.

Access Bank’s Group Managing Director/CEO, Herbert Wigwe said the bank is also helping to lift the economy through its retail operations. He said the bank has changed from being primarily focused on wholesale – where they only had to work majorly with large or medium corporations – to retail banking, ensuring payments are seamless from top to bottom.

According to him, this shift by Access Bank to retail banking operations, has seen the bank increase its credit facilities options. The primary objective of retail banks is to be the one-stop-shop for financial services for its consumers. In line with this, Access Bank offers services such as current accounts, savings accounts, investments, personal loans and so on. Also, all of these services are fast and digitally led.

A part of the bank’s strategy is to provide customers with digital services, using certain key strategic levers like automation, connectivity, simplicity and convenience.  In this vein, Access Bank has leveraged technology to create instant and remote solutions to deploying digital services across all its subsidiaries.

The bank’s retail innovation journey has led it to expand its digital loan offerings to other multi-tenured variants to fit the needs of its diverse retail customers. Between 2018 and 2019, Access Bank disbursed over N30 billion in loans to 1.5 million individual requests. This was made possible through the bank’s QuickBucks application, which basically houses all its quick loan products.

Read Also: Wigwe: why we funded Access Bank Lagos City Marathon

Wigwe also shared that the bank disburses an average of N200 million to 4,600 customers daily, having set a target of N400 million daily to at least 20,000 customers. On the QuickBucks application, users have access to PayDay Loan, Salary Advance, Small Ticket Personal Loan, and Device Financing. Outside of the app, customers can access mortgage loans, vehicle financing, Maternal Health Service Support, school fees advance, an auto loan, and creative sector loans.

It would seem quick lending loans are fast becoming the lifesavers in the retail banking sector. Salary earners who have accounts domiciled in Access Bank can access these loans in times of emergency, and simply have the money deducted from their accounts later. Considering the hassle of seeking loans elsewhere, these are no-collateral loans.

Across the industry, banks have become more aggressive with their attempts to maintain relevance in their retail market segment. As signs and research point towards retail banking being the future of the financial services industry globally, many banks are committing resources to research, capacity building, and the development of infrastructure in harnessing its vast consumer banking potential.

Access Bank has shown great effort in this regard – a feat that was rewarded as the bank was rated third in terms of customer experience in 2019 by KPMG’s banking Industry customer experience survey.

Prior to its merger with the defunct Diamond Bank, Access Bank had built a solid wholesale business with a strong treasury and was renowned for strong risk management. Diamond Bank had its strengths in micro-Small and Medium enterprises (SMEs) and individuals, with a strong digital institution of about 17 million customers.

Following the 2019 Access-Diamond merger, Access Bank became the largest bank in Nigeria by customer base and is continuously upgrading its systems to provide the same high level of service to its over 31 million customers post- merger.

Good for the economy

The growth of the financial sector plays a huge role in economic development. Countries with more developed financial systems grow faster over long periods of time. What this means is that financial development is not simply an outcome of economic growth; it contributes to this growth.

Across sub-Saharan Africa, mobile money has grown by 23 per cent in 2011, and 43 per cent in 2017. Around the world, people are calling the rise of digital banking in Africa within the last decade “the golden age of fintech”. At a time when Nigerians were finding it difficult to save or spend as a result of a recovering economy, Access Bank’s retail operations have proven to be vital in the positive upturn of financial transactions and the economy through its product and service offerings.

Access Bank’s retail offerings promote saving and investment among young Nigerians, as most of these products are digital, they target rural and semi-urban customers that were previously disenfranchised by traditional banking operations. Today, millions of customers conveniently send and receive funds on the bank’s digital platforms.These transactions, one way or another, have helped with the growth of small and medium-sized enterprises (SMEs) by providing access to finance.

Access Bank’s popular Unstructured Supplementary Service Data (USSD) code, *901#, has made it possible for people to access financial services using their mobile phone without internet service. Quite a number of these innovations accelerate economic growth by leapfrogging over bottlenecks. In sub-Saharan Africa, this mobile model has proven itself as a useful tool for enabling financial inclusion as a result of its low operating costs and banking fees – in comparison to traditional banking methods. Also, products like the QuickBucks app and AccessAfrica help accelerate financial inclusion, achieving scale across borders and documentation of the economy.

Access Bank’s creative sector loan, in partnership with the Central Bank of Nigeria (CBN), aims to build capacity and create employment for individuals and businesses. It is available to people in the fashion, information technology, movie production, and movie distribution industries. With this loan, creative entrepreneurs can buy equipment and materials, pay workers, and produce more efficiently.

In a statement, the bnk’s Executive Director, Retail Banking, Victor Etuokwu said: “Acquiring loans in Nigeria has always been known to be limiting – either due to access, collateral issues and the duration of the approval process. With our obligations to our customers, especially during difficult economic periods, we are emphasising Access Bank’s position in offering lifestyle products and services that meet their financial needs.”

Access Bank has been able to establish itself as a reliable bridge between individuals and corporate bodies looking to invest, those who need fast cash for business or personal reasons. By promoting economic growth through capital accumulation and technological progress – increasing the savings rate, producing information about investment, facilitating and encouraging the inflows of foreign capital, as well as optimising the allocation of capital – the bank is moving a step further by using its network, expertise, and experience to pull its weight in growing the economy.

By Collins Nweze

Standard Chartered Bank (StanChart) participated as a Gold sponsor at the annual Global Trade Review (GTR) conference titled: GTR West Africa Conference 2020, which held in Eko Hotel & Suites, Victoria Island, Lagos.

The event attracted over 300 delegates, including major local corporates, multinationals, multi-lateral and development Finance Institution, regulators, insurance companies, government bodies and export credit agencies.

It focused on several topical issues affecting the trade finance landscape and market leading experts gave useful insights on how to leverage the Africa Continental Free Trade Area (AFCFTA) as a key engine of economic growth, industrialisation and sustainable development of the West Africa region; ways of generating alternative financing of agribusiness; and how to harness opportunities in the huge infrastructural gap in West Africa through Export Credit Agencies (ECA) and public sector investment.

Read Also: Standard Chartered unveils Women in Tech programme

Managing Director, Chief Economist, Africa & Middle East , Razia Khan and Head of Trade and Transaction Banking, Nigeria & West Africa, Ibiyemi Okuneye, both from Standard Chartered Bank participated as speakers during the event.

Razia while delivering her key note said that “2020 is a year of uncertainty due to the global outlook, nevertheless Sub-saharan West Africa region is on track for a growth recovery with the biggest opportunities for Nigeria”

At the panel discussion titled on ‘Digitising Trade: A root and branch opportunity to revitalise economic growth’, Ibiyemi emphasized on how innovative digital solutions can be used to transform the entire value chain for farmers and small scale businesses from the point of enhancing farmers agric output and reducing post-harvest wastages, to creating more efficient logistics services and ultimately providing platforms for easy accessibility to financing opportunities.

Standard Chartered Bank continues to remain a strong market player in the trade finance space in Nigeria and our engagement at such industry events further cements our position as an expert on trade finance trends and leader in providing innovative digital trade solutions.

By Collins Nweze

The Nigerian-British Chamber of Commerce (NBCC) is set to host this month’s Breakfast Meeting tomorow at the Oriental Hotel, Lekki-Epe Expressway, Lagos.

Speaking on the theme “Public-Private Partnerships – How to make it work in Nigeria” are CEO of Standard Chartered Bank Nigeria, Lamin Manjang; Senior Partner, KPMG Nigeria & Chairman, KPMG Africa, Kunle Elebute; Director-General, Infrastructure Concession Regulatory Commission, Chidi Izuwah and  Managing Director/CEO Lekki Concession Company, Yomi Omomuwasan.

Read Also: KPMG survey aligns with CBN’s directive on lending more to SMEs

The meeting is sponsored by Standard Chartered Bank Nigeria and KPMG Nigeria.

Facing constraints on public resources and fiscal space, while recognising the importance of investment in infrastructure to help the economy  grow, the government is  turning to the private sector as an alternative source of funding.

With a panel discussion on the importance and risks of PPPs by the speakers, the  meeting seeks to explore ways to ensure that PPPs are as profitable.

It will be attended by the business community, government institutions and stakeholders in the PPP sphere.

Collins Nweze

 

FIDELITY Bank Plc on Monday rewarded its savings account customers with N18 million  prizes and other consolation prizes in its ongoing Get Alert in Millions (GAIM) promo Season 4 in Lagos.

The winners emerged across various regions in the country, including Southsouth, Southwest, Southeast, North, Abuja.

The N1 million winners include Imo Amamkem, Ogboada Adonyeofori, Abonyi Chukwudi, Ngozi Omeise, Nwankwo Chinonso.

The N2 million winners are Salisu Mohammed, Adepeju Adepoju, among others while the N3 million winners are Uju Ejindu and Mojeed Tijani.

The winners who were selected through a computerised and transparent simple random system, were picked from the bank’s branches across the six geo-political zones.

The e-raffle draw, which  held at the bank’s head office in Lagos,   was witnessed by the relevant regulatory bodies, including the National Lottery Regulatory Commission (NLRC), Lagos State Lotteries Board (LSLB) and Consumer Protection Council (CPC). The lucky customers cut across all regions.

The bank doled out several consolation prizes in form of fridges, television sets and power generating sets.

Managing Director/CEO, Nnamdi Okonkwo, noted that it was a way of celebrating the customers at the Valentine season.

Okonkwo, represented by the bank’s General Manager in Charge of Operations/Vice-Chairman of the Promo Committee, Matins Izuogbe, said existing and new customers could win by topping their account with N10,000 or opening a new account and building it up to N20,000.

He further disclosed that to qualify for the star prize of N3 million, one should build his account to N50,000 while those aspiring for the grand prize of N10 million, should grow their accounts to N200,000.

Collins Nweze

 

WEMA Bank’s ALAT has excited travellers with the ALAT airport mural.

The ALAT mural sprang out of an understanding of how travelling evokes different emotions in different people – excitement, paranoia, fear, anxiety, to list a few, and the need for them to hold on to the memories that matter to them.

The ALAT brand has positioned itself and been known to be the brand that no only offers Nigerians convenient banking services but that also supports their lifestyle.

The bank’s Chief Communications Officer, Funmilayo Falola, said for ALAT and Wema Bank, marketing is more than just the direct sale of a product or service, it is about creating an experience for the customer.

She stated that infusing conversations and storytelling into advertising and marketing communications is one of the strategies the bank is applying to engage existing customers and gain new ones.

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The ALAT airport mural is one of the many ways the bank expresses its interest in the stories and overall lifestyle of its expanding customer base.

It is dedicated to the many and widely varying Lagos experiences across both the Mainland and the Island.

The new boarding gate look at MM2 gives boarders a walk-through of iconic places in Lagos for travelers, who are often filled with a mirage of emotions at the point of leaving a place for another. At the ALAT mural, they can identify places they are familiar with in Lagos, maybe have a flash of unforgettable memories they’ve had in those places or remember what those places mean to them and have a pretty background to take one or two selfies before they board to fly out of Lagos.

 Nduka Chiejina, Asst Editor

 

THE controversy over who will collect stamp duty has finally been rested.

Henceforth, the Federal Inland Revenue Service (FIRS) will be the sole collecting agency of stamp duty in the country.

Before now, the Nigeria Postal Service (NIPOST) had protested to the Minister of Finance demanding that it be collecting agency of stamp duty in the country.

However with the passage of the 2019 Finance Act, the responsibility of being the sole collector of stamp duty now resides with the FIRS.

A statement from the FIRS said Executive Chairman, Mr. Muhammad Nami, confirmed this yesterday.

“The FIRS is now the sole government agency tasked with the collection of Stamp Duty on behalf of the Federal Government,”  he said when he  launched a national tour of the six geo-political zones to sensitise the nation, especially taxpayers, on the 2019 Finance Act.

Read Also: FIRS sole collector of stamp duty- FG

The first leg of the tour started yesterday in the Southwest where Nami met the Ogun State Governor, Mr. Dapo Abiodun, as well as FIRS officials from Ogun, Oyo and Osun states, in Abeokuta, the state capital.

Nami went on the tour with a select group of top FIRS management staff members as well as the Member representing the South West on the FIRS Board, Chief Wale Ogunyomade.

A statement from the FIRS signed by Director, Communication, Dr. Abdullahi Ismaila Ahmad, said Nami solicited the support of the Ogun State government in meeting the N8.5 trillion revenue target set for the Service by the Federal Government.

He said: “This comes back to the states and local governments as monthly allocations, which states and local governments apply to provide public infrastructure in your respective territories.”

 

 

 

By Colins Nweze

The Chartered Institute of Taxation of Nigeria (CITN) and stake-holders in the tax industry have discussed key issues that needed to improve tax revenue for the country.

Some of the issues discussed at the business luncheon which attracted key players in the tax industry include ways of addressing multiple taxation, taxing Small and Medium Enterprises (SMEs), tax exemption for businesses, among others.

In her opening remarks, CITN President, Dame Gladys Olajumoke Simplice,  said the business luncheon presented opportunity for stakeholders to criticise, address and influence tax policies  that affected them in the past but were not addressed in the new Finance Act.

She said aim of the luncheon was to produce a feedback from stakeholders on how to move the tax industry forward.

“The feedback on issues in the tax system will be be taken back to government for appropriate action. It is a great opportunity for us to discuss what affects us as institution, players and tax practitioners. We want feedback we can take to government  for effective implementation,” she said.

According to her,  CITN remains a key institution in the tax industry, and has consistently made major inputs into Nigeria’s tax administration.

Also, CITN Vice President, Adesina Adedayo, said there was need for Small and Medium Enterprises (SMEs) to have effective information exchange with tax authorities to guide decisions on taxing them.

Read Also: ARMTI seeks support for small scale farmers

“SMEs should know what they achieved in a particular year. If you cross a N25 million threshold in 2019, you can tell the tax office on the basis of openness, I achieved N25 million plus in 2019, whether you will be able to achieve it in 2020, is subjective. That information management will become the basis for dealing with you and you need to be transparent, truthful and straightforward,” he said.

Adedayo said the way SMEs share information with the tax authorities must be based on the truthful part of their transaction. “There could even be a year that you did not do any business in a large part of the year, you also need to inform the tax authorities. The challenge is when business owners want to play a fast game on Federal Inland Revenue  Service (FIRS), which has enough capacity now to determine how you are able to make income,” he said.

 

By Colins Nweze

The Group Chief Executive Officer (GCEO) of Ecobank Transnational Incorporated (ETI), Ade Ayeyemi, has said Nigeria has the capacity to feed Africa’s estimated 1.2 billion people if it harnesses the gains of the agricultural value chain.

According to him, success in Nigeria’s agricultural sector means the reduction in the demand for foreign exchange to import food items into the country and  the development of the agribusiness value-chain with a resultant  effect in the creation of a new breed of entrepreneurs as well as jobs for the teeming population.

Ayeyemi spoke at the Ecobank Agribusiness Summit in Lagos. The summit had its theme Unlocking Productivity and Investment Opportunities Across Nigeria’s Agribusiness Value Chain.

According to Ayeyemi, Ecobank decided to create a platform of a summit to enable thought-leaders who are passionate  about  agricul ture and its importance to Nigeria’s economy put heads together and find ways to maximise the significant potential gains of boosting agribusiness in Nigeria.

Also speaking, Minister of Agriculture and Rural Development, Alhaji Mohammed Nanono affirmed that the admini-stration of President Mohammadu Buhari is committed to finding a lasting solution to issues bothering on food security affecting the country.

Read Also: AfDB refutes World Bank’s debt report on Africa

Nanono who was represented by the Hon. Minister of State for Agriculture and Rural Development, Mustapha Baba Shehuri, also stressed on the need for viable synergy and collaboration between relevant stakeholders in the agricultural sector, so as to further promote its contribution to the Gross Domestic Product (GDP) of the country.

“The aim of this submit is indeed very apt as it would contribute on creating a sustainable economy through the development of rural agricultural enterprises. It is gladdening that this forum has brought together small-holders, input dealers, agro-processors, development finance agencies, policy makers and the captains of industries under one roof to discuss the problems and challenges facing the sector, with the view to finding solutions and way forward.

Read Also: AfDB refutes World Bank’s debt report on Africa

“This summit also marks another milestone attraction in the journey of economic diversification in line with the vision of the economic recovery growth plan of the current administration of his Excellency, President Mohammadu Buhari, to boost agricultural production prosperity, promote innovative technologies and investment in the agricultural sector, in order to achieve poverty reduction and job creation.

“Nigeria’s potentials and prospects, makes the agricultural sector a pilot for economic stabilisation, diversification and growth in the country. Indeed, the sector is a major contributor to the national Gross Domestic Product (GDP), contributing about 27 percent to the GDP and the biggest in job creation in the non-oil sector”.

By Colins Nweze

The World Bank President David Malpass has said some Multilateral Development Banks, including the African Development Bank (AfDB), have a tendency to lend too quickly and in the process, add to the continent’s debt problems.

But the AfDB in a statement, said the claim was inaccurate and not fact based. It impugns the integrity of the African Development Bank, undermines our governance systems, and incorrectly insinuates that we operate under different standards from the World Bank. The very notion goes against the spirit of multilateralism and our collaborative work. ( For the record, the AfDB maintains a very high global standard of transparency. In the 2018 Publish What You Fund report, our institution was ranked the fourth most transparent institution, globally. The AfDB provides a strong governance program for our regional member countries that focuses on public financial management, better and transparent natural resources management, sustainable and transparent debt management and domestic resource mobilisation. We have spearheaded the issuance of local currency financing to several countries to mitigate the impacts of foreign exchange risks, while supporting countries to improve tax collection and tax administration, and leveraging pension funds and sovereign wealth funds to direct more monies into financing development programs, especially infrastructure. The African Development Bank’s Africa Legal Support Facility (ALSF) supports countries to negotiate terms of their royalties and taxes to international companies, and terms of their non-concessional loans to some bilateral financiers. We have been highly successful in doing so.  The World Bank, with a more substantial balance sheet, has significantly larger operations in Africa than the AfDB. The World Bank’s operations approved for Africa in the 2018 fiscal year amounted to $20.2 billion, compared to $10.1 billion by the AfDB.

Read Also: Oyo, 16 other states get World Bank’s N220 billion loan

With regard to Nigeria and South Africa, the World Bank’s outstanding loans for the 2018 fiscal year to both countries stood at $8.3 billion and $2.4 billion, respectively. In contrast, the outstanding amounts for the AfDB Group to Nigeria and South Africa were $2.1 billion and $2 billion, respectively, for the same fiscal year. With reference to the countries described as “heavily indebted,” ‘’our bank recognises and closely monitors the upward debt trend. However, there is no systemic risk of debt distress’’. According to the 2020 African Economic Outlook, at the end of June 2019, total public debt in Nigeria amounted to $83.9 billion, 14.6 per cent higher than the year before. That debt represented 20.1 per cent of GDP, up from 17.5 per cent in 2018.