The Nation Newspaper

Category: Money

  • Diversifying economy boosts investor confidence, says Olowu

    By Collins Nweze

    Nigeria’s plan to diversify the economy away from crude oil earnings is expected to boost foreign investors’ confidence in the economy, President/Chairman of Council, Chartered Institute of Bankers’ of Nigeria (CIBN) Dr. Uche Olowu has said.

    Speaking on Thursday at the at the Finance Correspondents Association of Nigeria (FICAN), 2020 Economic Outlook powered by Polaris Bank Limited, in Lagos, he disclosed that as soon as the economy is diversified, the country will see higher accretion to the foreign reserves and improved confidence in the economy.

    He said opportunities in the agricultural sector should be explored to improve the country’s capacity to export agric products.

    He said the country has so much to gain by investing in agriculture, which will boost  foreign reserves.

    Olowu added that access to credit is also a key factor that will lead to economic growth and development.

    Olowu also spoke about the Federal Government’s policies in 2019, saying bankers are now deploying  manpower to get highest returns.

    He said the banking industry is now open to creative minds that are ready to explore untapped areas in the economy.

    According to him, the issue of Non-Performing Loans (NPLs) has been taken care of at the top level in the industry as there is no hiding place for serial loan defaulters.

    Read Also: Myth, realities and a foreign loan

    Olowu further stated that Nigeria’s economy would experience a gradual growth in Gross Domestic Product (GDP) as impact of agric investments begin to materialize.

    He therefore, called on the Federal Government to allow the Private Sector rebuild the country’s economy for optimum growth.

    “ The only way government can boost the country’s economic growth is to be market oriented, that is, by allowing the private sector to do more. There is no way the public sector can sustain the rebuilding of this economy. We need a level playing field, a healthy competition that will be fair, transparent and open to rule of law,” he said.

  • Ecobank to lend N70b to agric value chain

    By Collins Nweze

    Ecobank Nigeria has announced an Agriculture Businesses Finance Scheme where it plans to disburse additional loan of N70 billion for practitioners in different value chains of agriculture within the next two years. This announcement is coming just as the bank is set to organise Nigeria’s Biggest Agribusiness And Food Summit in February 2020.

    The Agribusiness summit is part of its determination to further showcase the potentials in the agricultural sector of the nation’s economy in partnership with Vanguard newspapers, The Economic Forum Series and Nigeria Agribusiness Group (NABG).

    READ ALSO: Minister directs NBC to implement measures to reposition broadcast industry, create jobs

    The summit with the theme: Unlocking productivity and investment opportunities across the Agribusiness value chain is scheduled for February 13, at the Grand Banquet Hall, Civic Centre, Ozumba Mbadiwe, Victoria Island, Lagos.

    Head, Agribusiness, Ecobank Nigeria, Mojisola Oguntoyinbo, said the summit is part of the bank’s continuous contribution to the growth and development of the agriculture sector of the nation’s economy.

  • Imo allocates land to Afreximbank for Quality Assurance Centre

    By Collins Nweze

    The African Export-Import Bank (Afreximbank) has received the certificate of occupancy for a five-hectare plot of land granted to it by the Imo State government for the development of an internationally accredited quality assurance centre in the state.

    Afreximbank is supporting the establishment of such internationally accredited African Quality Assurance Centres (AQACs) across Africa to support the continent’s industrialisation by ensuring that African products are manufactured to international standards and are able to trade in international market. The project seeks to raise the confidence of importers in African products and to enhance the competitiveness and attractiveness of “Made-In-Africa” products.

    Imo State Governor Emeka Ihedioha, who presented the certificate of occupancy to Afreximbank President Prof. Benedict Oramah on 6 January during a meeting at the Imo State Government House in Owerri, pledged the commitment of the government and people of the state to seeing to the successful execution of the project.

    Ihedioha said that the state planned to take full advantage of the opportunities that would be created by the project, which, he noted was coming at a time when the state had resolutely embarked on a transformation programme through industrialisation.

    He listed some of the other projects being executed by the government to include the completion of cargo facilities at the Sam Mbakwe International Cargo Airport in Owerri and the setting up of an industrial park.

    Responding,  Prof. Oramah thanked the government and people of Imo State for the parcel of land granted to the bank and said that the AQAC would generate new employment opportunities in the state.

    Prof. Oramah said that the AQAC project was aimed at addressing the key barriers affecting trade in Africa by strengthening compliance with international trade standards and with the technical requirements of export markets.

    He pledged that Afreximbank would work with African governments and sub-sovereigns committed to making the lives of their people better and was ready to work with the Imo state government on the development of some of the projects it was pursuing, including the dry port, which would open the state.

    Read Also: Access Bank steps into IVF financing to assist families

    Following the meeting, Gov. Ihedioha led the Afreximbank delegation to visit the land, which is located at Egbelu Obube along Sam Mbakwe International Cargo Airport Road in Ngor-Okpala Local Government Area.

    He used the opportunity to formally hand the land over to Prof. Oramah during a ceremony witnessed by Bede Eke, the member of the House of Representatives representing the Aboh Mbaise/Ngor-Okpala Federal Constituency, chiefs and members of the community.

    The AQAC in Imo State will become one of the three being developed by Afreximbank in Nigeria. The others are being developed in Ogun and Kaduna States. The Imo AQAC will offer conformity assessment services, including testing, inspection and certification and will include a training academy to transfer know-how in conformity assessment to the local market.

    Afreximbank announced the AQAC initiative in October 2019 to tackle non-compliance with international standards and technical regulations. The emergence of AQACs across Africa is expected to support the implementation of the African Continental Free Trade Area agreement by making it possible for local entities to obtain international accreditation.

  • FirstBank CEO Adeduntan gets global recognition

    By Collins Nweze

     

    • First Bank of Nigeria Limited has under its Chief Executive Officer, Adesola Adeduntan positioned the brand as a clear leader in promoting financial inclusion in Nigeria. The bank has continually reached the underbanked and un-banked population to reduce poverty, bolster economic growth and development of Nigeria.

    These milestones have earned Adeduntan the 2019 Cranfield University School of Management Distinguished Alumnus of the Year Award. The Award is the School’s highest honour and recognises his significant success within the banking industry and sector while upholding the highest standards in business practice.

    The 21st century has been remarkable in many aspects. It witnessed the rise of a global economy and increase in power of private enterprise that gives individuals power to run businesses successfully.

    It is a century where visionary men dared, achieved and moved longstanding businesses to enviable heights. These private sector leaders succeeded where others feared to try.

    Adesola Adeduntan, the Chief Executive Officer of First Bank of Nigeria Limited and Subsidiaries is one of such leaders.

    Adeduntan who took the role to run one of Nigeria’s biggest Tier-1 bank since January 1, 2016 has kept in on a path of sustainable growth and contributions to the nation’s domestic economy.

    Prior to his appointment, he was an Executive Director and Chief Financial Officer for the Bank since 2014 when he was appointed to the Board of the Bank. Before joining FirstBank in 2014, Adeduntan was a Director and the pioneer Chief Financial Officer/Business Manager of Africa Finance Corporation (AFC).

    He has served as a Senior Vice-President & Chief Financial Officer at Citibank Nigeria Limited, a Senior Manager in the Financial Services Group of KPMG Professional Services and a Manager at Arthur Andersen Nigeria, among other exciting career paths.

    The bank chief with several years of banking experience has contributed immensely to sustaining FirstBank’s position as a leading Tier-1 bank in the Nigerian financial services space.

    Adeduntan is the recipient of the 2019 Cranfield University School of Management Distinguished Alumnus of the Year Award, United Kingdom. The Award is the School’s highest honour and recognises those individuals who have achieved significant success within their industry and sector while upholding the highest standards in business practise.

    The astute banker has carved a niche for himself by positioning the FirstBank brand as a clear leader in promoting financial inclusion in Nigeria given the significant strides the bank has made in reaching the underbanked and un-banked population designed to reduce poverty and importantly bolster economic growth and development of Nigeria.

    As a global thought leader, Adeduntan is well-sought after and has shared his experience and expertise at notable events across the world espousing and even envisioning financial inclusion in the next 125 years.

    These events include the 2019 Ethical Finance Conference in the UK which had in attendance over 500 leading finance practitioners from all over the world including with Sarah Breeden, Bank of England; Dame Susan Rice, Banking Standards Board; Gary Gillespie, Chief Economist, Scottish Government; a keynote speaker at 2019 University of Edinburgh Sustainable Business in Africa Forum; The Africa CEO Forum 2018, Abidjan; the London School of Economics and Political Science (LSE) Annual State of Nigeria Conference as well as 2019 LSE Africa Summit.

    Adeduntan has won other laurels due to his sustained professional achievements; significant economic and social impact; leadership qualities as well as a role model. These include the 2018 African Banker of the Year in African Leadership Magazine Persons of the Year Award in South Africa.

    Analysts believe that the award of the 2019 Cranfield University School of Management Distinguished Alumnus of the Year Award, United Kingdom to Adeduntan was in recognition of key milestones the bank has achieved under his leadership.

     

    Agent Banking Milestones

    First Bank has under Adeduntan expressed its commitment to continue to drive financial inclusion through its over 37,000 Firstmonie Agent Network present in 99 per cent of the 774 local government areas and has processed over N2 trillion through the initiative.

    FirstBank’s Firstmonie service provides financial/banking solutions to rural and semi-urban locations across the country. Such solutions include account opening, cash deposit, cash withdrawals, airtime purchase, bill payments and much more. Through this channel, the bank is committed to providing convenient services that engender and provides ease of access to banking products, thereby saving time and travel costs for users of the network.

    While speaking at the Firstmonie Agent Banking National Award ceremony, held in Lagos, Adeduntan said the firstmonie agent network is a channel through which the bank expresses its unalloyed commitment and passion to promote opportunities of financial services for every Nigerian , especially within the low-income segment.

    He said: “The initiative has witnessed several changes in the operating structure and value proposition of FirstBank. In December 2017, the bank ran a pilot test with over 400,000 transactions processed and following the success of the first run, it re-launched in 2018.”

    According to Adeduntan, through Firstmonie, the bank has remained at the forefront of driving nation-wide inclusion, given our belief that access to financial services is part of lifting people out of poverty and fostering collective national economic development.

    Adeduntan said: “The key strengthen of the bank’s services is to look at the gaps in the society and develop products and services that address the gap. As an integral part of our strategy, we believe in working with the CBN to improve financial inclusion index of the country. We would, at FirstBank, assist Nigeria to address poverty and hunger, thereby promoting security of life and property. Because when people are gainfully employed, the implication is that they will think less of crime,” he said.

     

    Banking with Technology

    Banking and technology are becoming inseparable. FirstBank under Adeduntan is driving growth and customer services with technology. The 2019 Financial Technology (Fintech) Summit organised by the bank was an opportunity for the bank to emphasise the need for technology in e-business, digital offering, agent banking, wholesale/ transaction banking, retail/consumer lending and Small and Medium Enterprises (SMEs) productivity.

    He noted that as a Tier-1 lender, which celebrated its 125th anniversary last March, the bank had been able to maintain its leadership position in the industry by leveraging technology to offer innovative solutions through its product offerings.

    According to him, the theme of the summit, “Banking + Tech = Solving Real Problems,” reflects the reality that technology can be applied to add value in all spheres of life. He pointed out that despite the remarkable progress recorded by Nigerian banks through the use technology, there is still a lot to be done in that regard.

    Adeduntan said FirstBank remained committed to putting its customers first with excellent financial services and devising new ways of effectively meeting customers’ financial needs.

    “Customer experience and innovation are key in our approach to satisfying our customers. As a leading banking services solutions provider, FirstBank has continued to set the pace in the financial services industry, coming up with new initiatives to provide financial products and services with greater speed, accountability and efficiency. Evidently, Financial technology is causing positive disruption in the financial services industry. The impact of technology in lifestyle business and other areas of today’s customer is huge. We are therefore following global trends in collaborating with Fintechs and other big technology companies on several transformational initiatives to be able to satisfy our customers’ needs,” Adeduntan stated.

     

    Cash-less banking milestones/ Youth Empowerment

    FirstBank is also under the current leadership, taking advantage of the opportunities created by cash-less banking to innovate and give value to customers. The bank has introduced the Visa Multi Currency Card, an All-in One-Card and first of its kind to be offered by any financial institution in Nigeria. This card can be linked to four currencies: Naira, United States dollar, Euro and British Pounds Sterling accounts.

    With the Visa Multi-Currency card, FirstBank customers – within and outside Nigeria – can now enjoy the luxury of having their local and foreign denominated accounts in any currency, linked to a single debit card. The Visa Multi-Currency Card is designed to ease the daily cashless transactional needs of customers regardless of where they are across the world.

    The bank is also taking its financial inclusion and youth empowerment drives to institutions of higher learning, targeting the students in financial institutions in its XploreFirst Savings Account campaign.

    In alignment with its financial inclusion drive, FirstBank has completed a campaign for rewarding its youth segment customers for using their FirstBank’s XploreFirst Savings accounts and encouraging healthy savings. The promo, which kicked off last October 1 ended on March 30, this year.

    XploreFirst account was designed for students between 18 and 29. A minimum amount of N1,000 is required to open the account and account holders are to maintain a balance of N200.

    FirstBank recognises the impact of a healthy savings culture in promoting financial inclusion among individuals, especially the youth. And with the saying, the youth are the leaders of tomorrow, we believe that with XploreFirst account, the youth are well positioned to take the lead in their financial activities through the exciting benefits the account offers.

    Industry Position

    Adeduntan said despite the regulatory headwinds and business shocks, FirstBank’s fundamentals have remained very strong with the group’s asset quality.

    He said the bank has under his leadership, focused on loan and remedial management, voluntary reduction of Single Obligor Limit (SOL) and increased board oversight by significantly raising the bars of credit approvals through the Board Credit Committee to remain viable despite the daunting business environment.

    Adeduntan said the lender has over the years built an enduring brand that is immediately recognisable as dynamic, dependable, lasting and innovative. “And we have completed millions of transactions, received billions of deposits and given out trillions of loans and advances- that’s what makes us a bank. But it’s the smiles, the laughs, the handshakes and the spontaneous hugs from the satisfied customers that keep us going and make us part of the community we serve and a member of the world we live in,” he stated in a statement to mark the bank’s 125 years of operation.

    Adeduntan said: “Our heritage as the nation’s foremost and largest developmental financial institution is apparent in the Group’s contributions to economic growth and development. Our developmental philosophy is reflected in our business policy and is self-evident in the composition of our loan book as diversified in the nation’s major economic development sectors. These include agriculture, manufacturing, oil & gas, services and public sector, among others.

  • Polaris Bank named Best DMB in consumer protection

    By Collins Nweze

     

    Polaris Bank has emerged the Best Deposit Money Bank (DMB) in consumer protection.

    The award was in recognition of the bank’s strong leadership in prompt resolution of transaction issues within the industry.

    The award was presented to the bank at the Jos Bankers forum— an Annual Dinner and Award event organised by the Central Bank of Nigeria (CBN), Jos branch, to recognise and reward DMBs for their performance in 2019.

    Speaking on the award, the Managing Director/CEO of Polaris Bank, Tokunbo Abiru, thanked the organisers for their due diligence in selecting Polaris Bank, among other awardees and “recognising its stellar performance in promptly resolving customer complaints”.

    On the challenges faced by customers over issues bothering on response to various customer complaints including ATM cash retract, excess charges and other e-channels dispute received from the CBN for resolution, Abiru noted in particular steps being taken to resolve some of these issues.

    He stated with emphasis that these occurrences, which experts ascribe to infrastructure deficit, remain the most common pain points among customers who engage in banking transactions. He noted that banks and relevant stakeholders are doing all within their powers to ameliorate these issues for the benefit of customers.

    Additionally, the top banker said that “for us at Polaris Bank, because we know how embarrassing cash retract and other payment service challenges can be for customers, we ensure that their complaints are promptly and satisfactorily resolved with feedback to the CBN.”

  • Foreign reserves drop to two-year low at $39.84b

    By Collins Nweze

    The foreign exchange reserves have hit two-year low at $39.84 billion, an Economic Report by Financial Derivatives Company Limited, has shown.

    The report also said that quarterly oil revenue could hit $15 billion at the new oil price of $68 to $69 per barrel as the market awaits Iran response to the killing of its military commander, Qassem Soleimani.

    The foreign reserves level stood at $39.65 billion by November 21, 2019, compared to $40.33 billion as at end of September 2019.

    The CBN data showed that the reserves were at $43.83 billion at end of December, 2012 as against $68 billion in August 2008 before the global financial crises impacted negatively on them.

    The CBN had consistently maintained that inflow into the reserves was not consistent with the oil prices and, this underscores the need for tighter fiscal controls around oil revenues.

    The apex bank has also said there was urgent need to pursue policies that would foster macro-economic stability, economic diversification as well as encourage foreign capital inflows.

    It said a higher rate of retention of oil revenues should facilitate the efforts at maintaining exchange rate stability as an antidote to imported inflation even without excessive reliance on monetary tightening measures.

  • KPMG SME Report: FirstBank named biggest mover in 2019

    Capital is crucial in driving sustainable Small and Medium Enterprises’(SMEs’) growth and uplifting the economy. FirstBank of Nigeria Limited, as part of the launch of its specialised SMEs’ propositions, has continually supported SMEs through diverse initiatives. The bank says its support for SMEs is in line with the Central Bank of Nigeria’s directive on improved funding for SMEs to ensure economic growth and development, writes COLLINS NWEZE.

     

    THE economies of great nations thrive on the strength and performance of Small and Medium Enterprises (SMEs) seen as engine of growth.

    For Nigeria, the Central Bank (CBN) defines SMEs as enterprises with asset base (excluding land) of between N5 million and N500 million and labour force of 11 and 300 people.

    The benefits of funding SMEs have attracted many banks with eye on the future to invest and support SMEs in the interest of the economy.

    For SMEs to achieve these goals,  operators’ easy access to credit must be promoted.

    FirstBank of Nigeria Limited is one of the banks that is investing and supporting SMEs. Following  research by the bank over the years, it identified these seven strategic pillars that are essential to the sustainability and growth of the SMEs.

    These include access to infrastructure, access to talent, capacity building, policy and regulation, access to resources, access to market as well as access to finance.

    The bank has also held its SMEs’ Week in Lagos, Abuja, Port Harcourt, Ibadan, Kano and Owerri. The week-long event was rounded off with a live seminar, and facilitated by Gbenga Shobo, the bank’s Deputy Managing Director.

    According to the Shobo, “FirstBank has, over the years, been at the forefront of supporting businesses, especially the SMEs, as we recognise that the SMEs are the engine of the economy.

    We are committed to ensuring that we leave no stone unturned as we connect with them in their continued contribution to national development in terms of the employment opportunities they create as well as their contribution to the nation’s GDP amongst many economic values.

    “The FirstBank SME Week is driven to promote the Bank’s SME proposition, thereby having SMEs across the country optimally enlightened on how to plug in. We believe this will help SMEs bolster their contribution to the growth and development of the economy.

    The 2019 Nigeria banking industry customer experience survey report recently published by KPMG Nigeria showed that in the retail segment, the top two performers have remained the same for the fourth consecutive year.

    GTBank, Zenith Bank are top-rated bank in the 2019 ranking. Sterling Bank, FirstBank and UBA are the biggest movers in 2019, coming in third, fifth and seventh places.

     

    Commitment to fashion and entrepreneurship

     

    FirstBank of Nigeria also sponsored the Sixth Africa Fashion Week, which held last December  in Lagos.

    The Week themed ‘’Africa Unites’’is a convergence of fashion entrepreneurs and the public to promote the creativity and innovation of Nigerian and African brands through worldwide visibility, distribution and manufacturing.

    Dignitaries at the event include wives of the Ekiti, Ogun and Kwara state governors, Mrs Bisi Adeleye-Fayemi, Mrs Bamidele Abiodun and Mrs Folake Abdulrazaq.

    The Ooni of Ife, Oba Adeyeye Enitan Ogunwusi; former Director-General of Nigerian Tourism Development Corporation,Mrs Omotayo Omotosho; television presenter and model, Idia Aisen; model and beauty influencer, Whitney Madueke were also there. FirstBank was represented by Helen Ogboh, Business Manager, Corporate Banking.

    The Group Head, Marketing & Corporate Communications, FirstBank of Nigeria Limited, Folake Ani-Mumuney, said: “We are pleased to identify with Africa Fashion Week Nigeria as it showcases creativity by African fashion designers to the teeming public, leading players and enthusiasts of African fashion while promoting their contribution to the growth of the fashion industry.

    “We will continue to drive advocacy for this as it can create jobs that will deepen opportunities for the revival of our textile industry resulting in SMEs’growth along the value chains especially, with the growing demand in the fashion industry.”

    Recently, the bank promoted the use of local fabrics with a ‘What If’ campaign to commemorate the country’s Independence. It ran across the social media channels, Twitter, Instagram and Facebook, focusing on the creativity of sewing local fabrics as a national symbol vis-a-vis our outfits, clothing accessories, household furniture, in line with the bank’s celebratory 125th Anniversary, themed, “Woven into the Fabric of Society”.

    Ani-Mumuney said the bank would continue to empower the society, including the support for small businesses and promotion of the growth of the entertainment industry.

    She said Street Souk was designed to encourage the youth to channel their talents to genres as music, arts and fashion.

    “It’s a platform that identifies opportunities, which promote the innovative spirit in youngsters,” Ani-Mumuney added.

    Read Also: SMEs urged on online, offline adoption

     

    She noted that Street Souk was tied to the FirstBank’s initiative to empower the society, including  small business owners.

    According to her, the initiative is also tied to the promotion of the entertainment industry.

    Manager XIIG Glover, a merchant at the Street Souk, Mr Obembe Abiola, said he was happy to be part of last year’s street trading.

    “We are here to showcase what we also have as a brand which is African made and to reach out to people to know about the brand.

    Last year, we were also here and it was a great time out to meet up with new clients, customers and to meet up with other brands and this year is a lot more better than last year.

    We are large in number, new faces and everything is going on fine,” Abiola said. He commended FirstBank for organising the event aimed at encouraging entrepreneurship.

    Also, Creative Director, Dmf Designs & Shopwith5k, Adebayo Bankole, a participant, said she was glad to showcase her brand to people. “I have finally found my target audience here, people that are interested in street Souk culture in Nigeria. They are my target audience,” Bankole said.

    She stated that sales had been very amazing and that it was worth-while being part of this year’s Street Souk.

    “I really appreciate the fact that FirstBank is doing this because most banks go for ankara or made- in-Nigeria but this is promoting a different culture in Nigeria. Street trading is not common in Nigeria, the fact that FirstBank is able to support the promotion of street Souk in Nigeria is amazing,” Bankole added.

    The bank also said it would remain committed to the Federal Government’s diversification drive with the development of agricultural value chain to boost employment.

    FirstBank Chairman, Mrs Ibukun Awosika, stated this at the bank’s last year’s edition of ‘Food Souk’, in partnership with Eventful Limited, an events management firm,  held in Lagos.

    Mrs Awosika said the bank would continue to support the agricultural value chain from production to consumption to create opportunities for SMEs in the food sector to create job opportunities.

    “As you have noticed, we have been doing a chain of Souks with Eventful. It is critical for the economy of the nation that we encourage the SMEs sector across different industries,” she said.

    According to her, the Food Souk was introduced to diversify the economy through agricultural development.

    “When we have 200 million people, food is big business because everybody will eat. So, what we are trying to do is in support of the nation’s building. We are seeking to encourage small, medium and big enterprises in different sectors of the economy.

    “One is to help create jobs because if we think that 65 per cent of our population is made up of people under 40 years and the highest unemployment rate is within the segment that is between 20 and 35, so you need to create jobs.

    “But you will only create jobs when you create entrepreneurs, as we create more businesses you are creating job opportunities,” Mrs  Awosika said.

    She added that the bank’s focused on the growth of the economy with the hope it would benefit from it as a provider of financial services. “As we grow the economy, as we build lives of Nigerians, as we support the government’s investment in the diversification of the economy and help to create jobs through the enterprises we will ultimately benefit,” Mrs Awosika stated.

    The chairman said FirstBank, the largest retail bank in the country, would continue to support growth and development of SMEs. “A lot of big businesses of today that grew in Nigeria are businesses we supported from scratch.

    “We are starting with different generations of new businesses and events like this help you to see the trends. It helps you to see the companies that need nurturing.

    “It helps you to see the companies that you can support. It also gives you information about how you can best support them and engage them in their terrain to see businesses and understand their feelings to create the kind of product that will support their businesses,” Mrs Awosika said.

    A food vendor, Ms Ijeoma Ebeneme, the Chief Executive Officer, JEM N Iris, commended FirstBank for putting the event together.

    Ebeneme said she was at the fair to make profit, meet new clients  as well as create the needed publicity for her brand. Food Souk, formerly known as Fiesta of Flavours, is a food and wine fair, that holds yearly at Harbour Point in Victoria Island, Lagos, since its premier edition in 2015.

    The fun food and beverage fair hosted by Eventful provides an avenue for attendees to experience the entertainment, art and business of food.

    It showcases the best in local and international cuisine, cutting-edge food technology and cooking techniques, and the best beverages, wines and spirits the world offers.

    It provides management and training seminars, food demonstrations and performances.

     

  • Ecobank CEO urges youths to embrace savings culture

    By Collins Nweze

    The Managing Director, Ecobank Nigeria, Patrick Akinwuntan, has called on students and youths to imbibe the habit of saving, stressing that it would make them financially responsible and stable.

    He spoke at a lecture to mark World Savings Day at Ahmadu Bahago Secondary School, Minna, Niger State.

    Represented by the Zonal Head of Operation, North Central, Mr. Sadiq Adeyemi, Akinwuntan defined saving as money set aside for future use, adding that it is also an income earned that is not spent.

    “I urge you to give priority to saving a portion of funds that come your way. This should be deliberate and intentional. Savings will create room for your financial independence, and it will enable you to handle emergency situation, pay for accommodation, education, self development, retirement and vocational lifestyle, while also ensuring a guaranteed future,” he said.

    Read Also: KPMG survey ranks Ecobank high on SMEs financing

    He pointed out that savings would create room for financial independence and helps in times of emergencies; it also helps address vital needs such as accommodation, education, self-development, retirement and vocational lifestyle.

    He urged the students and staff of the school to approach a financial institution to open a savings account, stating that such savings would in turn earn them interest. “To the students, learn to save at least 10 per cent of your pocket money and watch your money grow by way of interest payment by your bank.”

    He said saving in a bank would give them access to loans. He appealed to parents to encourage their wards/children to save their money in a bank at their young age, saying such behaviour would not only make the children financially prudent but will also discourage them from social vices such as stealing.

    He observed that money not saved in bank is prone to theft, misplacement and could get lost in the event of fire outbreak.

    The World Savings Day (WSD) initiative is set up by the Bankers’ Committee through its Financial Literacy and Public Enlightenment Sub Committee (FLSC) for children and youths in secondary schools nationwide, both public and private, with the aim to educating them on the essence of saving.

  • CBN deepens e-payment adoption with new PoS rule

    By Collins Nweze

    The Central Bank of Nigeria (CBN) is taking steps meant to get more people embrace e-payment channels, especially Point of Sale (PoS) machine.

    The Nigeria Interbank Settlement System (NIBSS)  data showed the total volumes of PoS transactions for 2017 stood at 146.3 million, which was worth N1.4 trillion; 285.9 million transactions in 2018 worth N2.3 trillion and 187.7 million for six months-January to June 2019 worth N1.4 trillion.

    The apex bank has, therefore, reviewed the messaging format for PoS machine transactions to ensure more acceptance for the e-payment channel.

    A statement signed by CBN Director, Payment System Management Department,  Musa Jimoh said the move was part of its commitment to facilitate the development of the Nigerian payment system and deepen the adoption of various electronic payment options available to users.

    Read Also: Retail outlets shun CBN’s directive on N50 PoS fee

    The apex bank has also identified the predominant use of single messaging format for PoS transactions as an obstacle to the use of pre-authorisation as a mode of payment in Nigeria.

    According to the apex bank, merchant acquirers are required to obtain Acquirer Device Validation certification or the applicable testing completion notification from the CBN licenced card schemes.

    “By this directive, all PoS terminal must have the capability for transaction pre-authorisation and sales completion. All card issuers are required to build the capability and enable the processes for pre-authorisation and sales-completion of transactions. Card schemes are also required to provide online simulators for acquirers and issuers to test their systems, when necessary,” the circular said.

    This circular takes immediate effect, but with a deadline of July 31, 2020, for full compliance, after which appropriate sanctions would be imposed for contraventions and non-compliance.A

  • AMCON: Banks need to study airline business before lending

    Collins Nweze

    The increasing number of bad loans recorded by banks in the aviation sector has been attributed to poor understanding of airline business by banks rushing to lend to the sector, Managing Director/CEO Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru has said.

    The AMCON chief said failure of many airlines in Nigeria and why those that are still operational are struggling for survival is attributable to several problems including greed exhibited by airline owners, financial rascality, overbearing charges and taxation by regulatory agencies, unpredictable and unstable forex, non-existent good corporate governance principles and lack  lack of due diligence procedure among others.

    Kuru spoke in Lagos at the weekend also heaped further blame on banks who rush into the business of funding aviation without the requisite knowledge or understanding of the aviation business. He was speaking at the Aviation Leadership CEO’s Roundtable to commemorate the 10th anniversary of Aviators Africa magazine in Lagos.

    Delivering the keynote address at the event in a paper titled “Aircraft Financing: The Issues & Challenges of Asset Management Corporation of Nigeria (AMCON),” the AMCON boss, who was represented by Tajudeen Ahmed, a top official of AMCON also called on the federal government and indeed all stakeholders to take a wholistic review of the business of aviation in Nigeria because of the critical role the sector plays in the growth of any economy.

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    He said, “In my opinion, the aviation sector, which is a critical component of the transport, is perhaps one of Nigeria’s most challenging sectors; especially in the light of the massive need for infrastructure development in air, rail, road and sea transport to ensure seamless movement of people and cargo. Regardless of the mode of transport – the aviation sector has proved to be a catalyst for the economic development of nations. It is the wheel that drives economic activities. The air transport sector facilitates trade, tourism; boosts productivity in the economy; improves efficiency in the supply chain; it is an enabler for investments; can spur innovation, facilitate commerce and provide fast and reliable delivery of cargoes and services.”

    According to him, a sector as strategic as aviation must be given all the necessary policy backings by the government to enable the sector to take its pride of place in Africa. He disclosed that AMCON’s experience with its intervention in aviation has made it clear to him that there was need for a total overhaul of the modus operandi in the sector. In a passionate submission, the AMCON CEO, who was a former managing director of a bank, said, “From what we now know, there are serious issues in aircraft financing because our people dabble into the business of aviation with the wrong capital mix.

    On the other hand, the banks who are the primary source of funding also have short term views about the business.

    Banks that have attempted to fund the business in the past neither had the deep expertise nor carried out proper due diligence before committing their funds.

    Banks lack both the financial capacity as well as the expertise in personnel to critically analyse the business and its associated risks before throwing their money into aircraft/aviation financing.