The Nation Newspaper

Category: Money

  • CIN, CNAS partner on Lagos, Abuja parley

    The Compliance Institute Nigeria (CIN) is partnering the Centre for a New American Security (CNAS) to host a two-day in-depth workshop on North Korea Sanctions and Counter Proliferation Compliance  for compliance officers in Nigeria.

    Slated for Lagos and Abuja,  it will hold between  August 21 and 22 respectively.

    In its effort to enhance the knowledge, skills and expertise of  Anti-Money Laundering and counter- terrorism financing with a view to preparing the country’s compliance officers for the forthcoming FATF Mutual evaluation, the CIN would on August 22, launch its collaborations  with Association of Certified Anti-Money Laundering Specialists (ACAMS), the largest international membership organisation dedicated to enhancing the knowledge and expertise of  financial crime detection and prevention professionals.

  • Presidential anti-graft unit seeks transparency in forex trading 

    The Anti-Corruption and Transparency Monitoring Unit, Presidential Villa, Abuja has called for transparency and ethical dealing in forex trading.

    Speaking at the MBA Forex and Capital Investment Limited’s “Bare2Blue Revolution” Business Banquet in Lagos at the weekend, its Chairman,  Ahmad Sulaiman, said transparency and ethical dealings will enhance the growth of the forex trading in the country.

    He said ethical business tailored to the policy direction of the current administration remain the way forward in building a fraud free forex market that will stand the test of time.

    According to him, the energy of the Nigerian youths needs to be channeled into a sustainable and legitimate business to reduce the unemployment currently plaguing the country.

    He said part of the drives, if adequately monitored and regulated by policy makers to tame unemployment in Nigeria is foreign exchange trading.

    “Part of the drives to provide employment, create opportunity for Nigerian youths to be able to trade and engage themselves legitimately is Forex businesses,” Sulaiman said.

    He added that MBA Forex and Investment Limited have been certified by necessary regulatory agency in Nigeria saying that the company unlike others before it is not a ponzi scheme.

    In addition, he said MBA’s modus operandi is in tandem with the anti-corruption and transparency drive of the current administration.

    “Unlike before when we have this MMM and other different ponzi schemes, MBA has shown seriousness and is doing things differently and that is why we are here today in support of their business,” Suilaman said.

    Furthermore, he advised Nigerians against going into business that is ethically deficit. He noted that any business lacking in transparency should be shunned as the current administration is out in its anti-corruption war.

    Also  speaking, the MBA Forex Chief Executive Officer, Mr. Maxwell Odum, reiterated the company’s commitment to transparency and ethical dealings.

    According to him, the presence of government monitoring in the business would make it impossible to legitimise a ponzi scheme.

    Odum added that there are necessary licences binding the company to operate ethically in the market and ensure investors money and other investments are safe.

    “MBA FX market is not a Ponzi scheme because our company is incorporated. When you are talking about ponzi, you are talking about a company not incorporated and a name without a company,” he said.

  • CBN: NPLs rate drops to 9.6% in 40 months

    Commercial banks  recorded their first single digit Non-Performing Loans (NPLs) rate of 9.36 per cent in 40 months, Central Bank of Nigeria (CBN) Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad, has said.

    In her statement in the last Monetary Policy Committee (MPC) meeting in Abuja released yeatreday, she said  the  banking industry soundness indicators remain positive with NPL ratios turned single digit at 9.36 per cent in June 2019 for the first time in 40 months.

    According to her, industry capital adequacy, liquidity and profitability remain robust. “However, several months of low credit to the private sector amidst burgeoning treasury securities activity prompted the Central Bank of Nigeria’s (CBN) policy statement on July 3, mandating DMBs to build up their minimum loan to deposit ratio (LDR) to 60 per cent over a three-month period, with additional incentives (150 per cent weighting) for newmall and medium enterprises, retail, mortgage and consumer loans,” she said.

    Ahmad said focus on the minimum industry LDR is expected to stimulate additional private sector credit growth, reduce credit concentration in energy assets and large corporates and lower the cost of credit – which has remained sticky downwards despite recent decreases in treasury yields. This expanded finance for individuals and small businesses will create jobs, enhance consumer spending and stimulate growth. Whilst some DMBs are gradually increasing credit to retail, MSMEs and the informal sector through innovative products and technology platforms, the policy initiative seeks to replicate this focus, and ramp up SME credit growth momentum across the entire industry.

  • FirstBank unveils Verve Global card in U.S.

    FirstBank of Nigeria Limited has launched Verve Global Card in the United States (US).

    The Verve Global Card is a new entry to the array of card products by FirstBank. It was done in partnership with the VerveInterna-tional (Interswitch Group) and Discover Financial Services.

    Deputy Managing Director FirstBankGbenga Shobo said: “In partnership with Verve International, we are pleased to launch the Verve Global Card as it reinforces our commitment to putting our customers first with innovative and state of the art financial products and services that promote seamless transactions regardless of where they are across the globe.

    Read Also: FirstBank promotes financial inclusion

    “I enjoin every FirstBank customer and the public to visit the nearest FirstBank branch and request for the card to enjoy seamless cashless transactions.’’

    Shobo caried out the first transaction with the Verve Global Card at Swarovski Shop.

    At the event were FirstBank’s Deputy Managing Director Gbenga Shobo; Group Executive, eBusiness & Retail Products Chuma Ezirim; Head, Card & Messaging Business, Folasade Femi-Lawal and Interswitch Group’s Founder/GMD, Mitchell Elegbe and Divisional CEO, Verve Mike Ogbalu.

    Others were Discover Financial Services’ Senior Vice President Payment Services, Joseph Hurley and Executive Vice President, Payment Services, Diane Offereins.

  • CBN’s report: AMCON N3.8tr Bonds mature 2023

    The Asset Management Corporation of Nigeria (AMCON) N3.8 trillion six-year Notes will mature in 2023, a report by the Central Bank of Nigeria (CBN) has shown.

    According to the CBN’s Annual Activity Report, the AMCON Bond was issued in December 2014 at six per cent interest rate and have remained outstanding as at last December.

    The bond, which were taken up by the CBN, were issued during a restructuring.

    AMCON, which is expected to wind down by 2021, is working hard to recover over N5 trillion debts owed it.

    Its Managing Director/Chief Executive Officer Ahmed Kuru said the corporation was working with other sister agencies, such as the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), the Nigeria Deposit Insurance Corporation (NDIC) to produce a television documentary on the corporation’s recalcitrant obligors.

    The AMCON MD, who was guest speaker at the Breakfast Meeting, organised by the Nigerian-American Chamber of Commerce (NACC), said the idea was to document for the future  the debtors.

    He said, unlike what happens in other climes,  these obligors still manipulate their way to emerge as top government functionaries.

    Read Also: CBN deputy governor to chair AMCON

    Kuru added: “Sadly, these are the calibre of people we respect in Nigeria but these people are not role models. How can you be a role model when you cannot honour a simple obligation? That is why I have been consistent in the call for the return of the failed bank act. The way we are handling the issue in the country suggests that we are encouraging a lot of financial rascality. People have to be held accountable for their actions, which, I believe, would serve as deterrent to others.

    “Economies all over the world depend on the financial infrastructure for growth. If we allow or encourage the destruction of the basis of our financial structure, then the economy would not grow. These are men and women who go to banks borrow money with no intention to pay and in the process bring down banking institutions. It takes a lot for a bank to fail. AMCON just rescued Skye Bank with an investment of nearly N1trillion. In a decent society, those who are responsible are supposed to be held accountable.

    “We are talking about recovering over N5trillion debt, which sits with the Central Bank of Nigeria (CBN) and we know that the Federal Government through the CBN cannot afford to write the debt off so we just have to recover. With such huge recovery, the country can do a lot in the areas of infrastructure development in energy, rail line, health, road construction, and lot more. To enable you understand the magnitude of what we are talking about, only 350 individuals account for 80 per cent of the debt amounting to N4.6trillion.’’

    On why AMCON cannot deal with these obligors, Kuru said the Act establishing the corporation does not empower it to arrest and prosecute people like some other agencies of the government. “As AMCON, we have no power to arrest these ‘powerful’ people as we depend largely on judicial processes to recover and we all know the slow pace of judicial processes. Given our sunset date, which is around 2013/24; we are determined to go after these obligors within the ambit of the law in line with the AMCON Act.

    ‘’Already, we have changed our strategy to more of enforcement, because the negotiations have failed. We want to go a step further by working with the ICPC and the EFCC, which will enable us to investigate the credit processes. If we do not establish this deterrent, we are likely to go round the era of NPL circle again,” Kuru stated.

    The AMCON boss urge NACC to lead the campaign for the strengthening of corporate governance structures in both the financial services industry and other sectors of the economy as lack of it destroys institutions and organisations. Again he said, “Your chamber must be in the forefront to champion good corporate governance structures; you must preach that people must learn how to meet their obligations; people must obey the rule of law and be transparent in their dealings with others. Above all, we must promote the culture of holding people accountable, especially the leadership class in both politics and business.

  • I&E Forex window attracts $1.9b in one week

    ActivitIES at the Investors & Exporters (I&E) window advanced by 55.7 per cent to $1.9 billion last week, a report by Afrinvest West Africa, has shown.

    The figure is an improvement on the $1.2 billion recorded in the previous week.

    Before the introduction of the forex window, which allows foreign investors to sell dollars at rates of their choice, provided they can find buyers, the local equities market and the foreign exchange (forex) market were in a shambles.

    The All Share Index (ALSI) was shrinking and the naira weakened against other currencies, especially the dollar.

    The I&E window has become the attraction, making many of the business concerns to take another look at their exit from the country.

    The introduction of the window was followed by continuous interventions by the CBN which enabled banks and BDC operators to meet forex demand at the retail end of the market. Thus, the window has become a life-saving pill for the domestic economy as it has attracted about $60 billion into the market, enhanced transparency and made forex available to the end-users.

    The operations of companies, especially manufacturing, has been on the upward swing with an improvement in inflation figures as well as equities market performance.

    According to the CBN, the “Investors’ & Exporters’ FX Window” is boosting liquidity in the forex market and ensuring timely execution and settlement for eligible transactions by all parties.

    Before the stability in the forex market and naira, the economy witnessed a depressed Gross Domestic Product (GDP) growth, which culminated in a recession in 2016.

    “There was also rising inflation, which peaked at almost 19 per cent in January 2017 and a persistently rising unemployment rate to 14.23 per cent in 2016 fourth quarter from 6.41 per cent as at 2014 fourth quarter.

    There was also a significant depreciation of the exchange rate, reaching N525 to $1 in February 2017 and witnessed a fast depletion of the reserves which was drained down from about $23.6 billion in October 2016 from as high as $40 billion in January 2014.

    it said: “The I&E Forex window, seen as a ‘willing buyer, willing-seller window’, allows foreign investors to bring in dollars into the economy at any price of their choice, provided they could find buyers at such rate. The figure at the window has also impacted positively on the Purchasing Managers’ Index (PMI).”

    Managing Director Financial Derivatives Company Limited Bismarck Rewane, described the I&E forex window as the best policy implemented by the CBN.

    Managing Director, Afrinvest West Africa PlcIke Chioke said the window has won the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets leading to impressive appreciation in the equities market and stabilising the naira.

    Before the introduction of the window, foreign investors’ appetite for local assets waned significantly on the back of currency crisis which in turn fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability.

     

  • CIBN to induct 2070 students

    No fewer than 848 students who have completed the professional examinations of the Chartered Institute of Bankers of Nigeria (CIBN) will be inducted into the Associateship of the institute.

    Also, 1,222 will be certified as professional Microfinance Bankers, at the CIBN Graduation Ceremony/Prize Awards of the professional body scheduled on Saturday, in Lagos.

    The inductees will include 34 Chartered Banker MBA candidates and 37 others with various certificates in banking.

    The event will also feature the presentation of prizes  to students  who passed very well  the in 2018 examinations and a lecture titled, ”Repositioning for relevance in a competitive environment’’ will be delivered by Mr. Patrick Akinwuntan, Managing Director/CEO, Ecobank Nigeria Limited.

    The special guest of honour will be Adebisi Shonubi, Deputy Governor, Central Bank of Nigeria (CBN) and Uche Olowu, President/Chairman of Council (CIBN) will chair the occasion. ‘Seye Awojobi, Registrar/CEO will be chief host.

  • Lifting cash-less banking with multi-currency card

    Cashless banking was introduced with fanfare seven years ago and has remained impactful to the financial inclusion and efficiency target of banks and other financial institutions. The scheme has provided opportunity for banks to be more creative on their product offerings as seen in FirstBank introduction of the Visa Multi Currency Card, that allows customers link their cards to their naira, dollar, Euro and British Pounds Sterling accounts. The card was designed to meet the cash-less transactional needs of customers anywhere in the world, writes COLLINS NWEZE.

     

    THE introduction of the cash-less banking was one of the biggest news that hit the sector in January 2012. The objective, the Central Bank of Nigeria (CBN) says, is to change the cash-driven economy and reduce the rising cost of banking.

    The policy was also designed to promote financial intermediation, financial inclusion, minimise revenue leakages, eliminate robbery and encourage e-payment in any currency around the world.

    The policy was initiated against the backdrop of cash dominance in the payments system, a development which encouraged the circulation of huge sums of money outside the banking system and imposed huge currency management cost on the economy.

    The policy was meant to ensure price stability through effective monetary policy; sound financial system and efficient payments system. It was a critical part of the payment system modernisation, designed to promote the use of Automated Teller Machines, Point of Sale (PoS) terminals, web payment, online transfers and even mobile money in banking transactions instead of relying on cash.

    Seven years after the scheme was unveiled, banks are taking advantage of the opportunities it created to innovate and give value to customers. FirstBank of Nigeria Limited, 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.

    Amongst the many benefits of the Visa Multi-Currency card are Point of Sale and Online purchases, access to and use of ATMs worldwide. There is no cash collateral requirement prior to its issuance.

    Speaking on the product, Group Executive, e-Business & Retail Product at FirstBank, Chuma Ezirim, said the lender takes pride in pioneering the Visa Multi Currency Card in the country, as we remain committed to providing products and services that are designed to ensure the banking convenience of our customers regardless of their location.

    “This card is designed to make traveling fun for our customers and ensure they have a seamless transaction experience during their vacation, tourism and other business-related trips around the globe.

    “Traveling abroad for summer, walk into any FirstBank branch today for your Visa Multi Currency Card,” he said.

    According to the bank, the card can be used  to make purchases online, pay bills and access cash at ATMs worldwide. “ It is secured by Chip & Personal Identification Number technology with a lifespan of three years, requires no cash collateral before issuance, global acceptance on ATM, PoS and web as well as additional protection for web-based transactions with “Verified by Visa(VbV),” the lender said

    It has a limit of N150,000 for local ATM, and $1,000 on international transactions; on PoS, current account limit on local transactions is N2.5 million, and N500,000 on savings account while international transaction limit is $2,500. On web transactions, it has a limit of N1 million on local transactions and $6,250 on international transactions.

    On FirstBank Visa Gold card, customers enjoy higher daily spending limit on ATM ($1,000) , POS ($10,000) and WEB ($5,000) anywhere in the World with your Visagold card. Access to international emergency services with your Visagold card i.e. Emergency Card Replacement & Emergency Cash Advance in situations where your card gets lost or damaged,” the bank said.

    Also, on the FirstBank Naira Master Card, customers enjoy increased limits for international transactions. “Customers can spend $5000 monthly with their FirstBank Naira Master Card on all channels, with a daily ATM cash withdrawal limit of $300. The customers should change their PIN before travelling out of the country to avoid transaction failures / invalid card and must  not swipe their cards on any terminal, rather, should insert card and use their PIN. In the UK, customer can tap with their Naira MasterCard contactless cards to make payments for their transport fares among other benefits.

    “Customers can activate or deactivate their cards for all types of transaction, using the Card-in-Control Service on Firstmobile or the Unstructured Supplementary Service Data (USSD) option. See steps below.

    These products have enabled the bank to issue  10 million cards to customers across the country. The bank is now among two other African banks to achieve the milestone.

    Other banks are also making card payment a priority. For instance,  Access Bank has migrated its entire network of ATMs to CR2’s ATM driving and card switching solution. The project also includes the migration of the lender’s card management system, according to a company press release.

    As part of the deal, CR2, which is headquartered in Dublin, Ireland, will be responsible for the largest ATM network in the entire West African country, which includes more than 3,000 ATMs.

    The move follows the lenders deployment of CR2’s BankWorld, a digital banking platform. The software, which enables banks to tailor their branding and messages to customers via the ATM, is fully certified for Verve Card issuing and acquiring. Verve is an ATM debit and payment card used exclusively in the Nigeria.

    Additionally, the platform supports all local requirements for the Nigerian payment systems and services market,

    CR2 is one of only two switch vendors running an ATM network for banks in Nigeria, according to the bank.

    United Bank for Africa Plc says it has issued over three million Near Field Communication technology-enabled contactless cards to its teeming customers.

    “UBA has revolutionised the payments landscape in Nigeria in 2015, with the introduction of contactless payment cards which enable customers pay with ease by leveraging the NFC technology,” it said in a statement.

    The NFC technology allows wireless communication between devices that are a few centimetres apart. The NFC payment Card uses microchips/antenna to transmit data via shortwave radio frequencies.

    Usually, when one NFC-enabled device is close enough to another NFC device, a connection can be established and data shared between them. The card communicates data to the reader to initiate and complete the transaction using the NFC technology.

    “In addition to the contactless cards,  the bank has issued well over 10 million debit and prepaid cards, serving both customers and non-bank customers in its countries of operation,” it added.

    UBA’s Group Head, Cards, Yinka Adedeji, was quoted as saying: “We are delighted to reaching this milestone. Our customers have found out that with our contactless cards, they make payments for everyday essentials and other things that money can buy the contactless way, and these cards can be used across all the channels where you use your regular card – ATM, PoS and Web.”

    Also, about two years ago when the bank in December 2015 and May 2016, FirstBank was the first financial institution in the country to achieve sustained alternative channels transaction volumes of 100 million transactions in December 2015 and May 2016.

    According to the Managing Director/Chief Executive Officer, First Bank of Nigeria Limited,  Adesola Adeduntan said: “Delivering to this feat at this time, is a testament to the bank’s drive in delivering to its brand promise – putting customers first and continuously improving our business to serve them better. One of the ways by which we were able to sustain this winning edge is the use of our Instant issuance/Instant activation technology, which we pioneered about 10 years ago.”

    “We have also consistently maintained the highest active Card ratio in the industry. This feat also implies that our customers are becoming more technology savvy and we would continue to encourage this attitude with our commitment to world class service delivery. Therefore, we must work to ensure optimal performance and availability of all our channels such as ATM, FirstMobile etc. to guard against customer dissatisfaction.”

    In addition, FirstBank recently bagged a hat trick of awards, which are clear signs that the giant strides taken by the pan-African leading bank-brand towards fostering its banking technologies are well aligned to the fast paced technological advancement in modern day banking.

    First Bank of Nigeria Limited has also won three awards in the Interswitch Connect Sales Dinner & Awards Night held this year in Lagos.

    The event, which had Mrs. Ibukun Awosika, Chairman, FirstBank of Nigeria Limited as keynote speaker, was convened to recognise excellent partners and institutions that are front liners at bolstering cashless transactions and payments in Nigeria, while promoting financial inclusion, thus bridging the gap between the banked and unbanked in the nook and cranny of the country.

    The awards won by FirstBank at the event are; Most improved Mobile Application, Highest Transacting Bank (across interswitch’s solution) and Highest Number of Verve Transacting Cards (Unique Cards) for respectively having the highest total volume of transactions to the tune of 95.1 million transactions across three services (Airtime, Bill payment and transfers), its outstanding performance in revenue generation (as regards having highest transactions across Interswitch’s solutions) and being the Bank with the highest and outstanding performance in the issuance of unique Verve cards. FirstBank has issued a total of 7million unique Verve cards.

    Receiving the awards on behalf of FirstBank, Mrs. Folasade Femi Lawal, the Bank’s Head, Card Business said “We are pleased to be recognised for these awards, especially as they add to the spice of an eventfulness 2019, the year of our 125th anniversary.

    The awards are indeed a reflection of the trust by Nigerians on our digital channels as we leave no stone unturned at reinventing ourselves, products and services with a view to remain steadfast at being a frontrunner at promoting digitisation of the industry bearing in mind that we are that very institution that have since 1894 witnessed the various facets and growth that defines banking in the country. We commend Interswitch for their giant strides at being a gateway to promote a cashless Nigeria.

    Only recently, FirstBank was recognised for its high transactional volume and leading role at promoting cashless transactions and financial inclusion in the country by winning two awards – Cashless Driver: Highest Volume in Bill Payments and Cashless Driver: Highest Transaction Volume in Real-Time Payments –  at the CBN Electronic Payments Incentive Scheme (EPIS) Efficiency Awards.

     

  • Ecobank trains graduates

    NEW set of Graduate Trainees have commenced their entry level development programme at the state of the art Ecobank Nigeria Academy in Lagos.

    The programme, launched in July this year is an intensive eight-week medley of learning interventions for fresh graduates. The first set of 67 Trainees will graduate at the end of the month and will be absorbed into different roles in the bank.

    Speaking at the commencement of the training on, Managing Director, Ecobank Nigeria, Patrick Akinwuntan said the programme was in line with the transformation agenda to make the Bank the most preferred financial institution in the country, noting the Ecobank will continue to head hunt for brilliant fresh graduates, train them on professionalism and Ecobank culture and inject them into its workforce.

    He further explained that the various bank’s development programmes are part of its talent development strategy to continue to churn out excellently trained banking professionals at various levels of the industry to feed into her talent pipeline and the banking industry, stating that they are founded on global best practice that prepare the participants for banking careers in positions aligned with their potential, competencies and experience at the entry point of functional pre-managerial roles.

    According to him, “Our training programmes are our way as a Bank to invest in creating future leaders for the Nigerian banking industry. We are investing in the people to accomplish our vision both as a Bank and a country. The staff of banks must be well trained and knowledgeable so that they can ensure that funds in the banks are effectively deployed,” stressing that for us at Ecobank, we must also ensure that we deliver on our promise as a financial institution of choice not only in Nigeria but the whole of Africa. We, therefore, take the development of adequately trained manpower as a “must do” in striving to achieve our goals,” he stated.

    He advised the trainees to participate actively in all the training exercises, noting that their future is bright with Ecobank.

    According to the Head, Human Resources, Ecobank Nigeria, Gloria Byamugisha, the first set of Trainees at the Academy demonstrated a high level of commitment and orientation towards the banking profession, noting that the training is essentially to improve the financial literacy of participants who may be coming from other disciplines, or who may have non-financial and banking related academic backgrounds.

  • Polaris unveils collateral-free salary advance solution

    POLARIS Bank has launched a quick credit solution called “Polaris Salary Advance”.

    Polaris Salary Advance is a customer-led product that enables employees to get up to 50 per cent of their net monthly salary to meet basic needs before their next payday. The product is designed to provide short term financing to its customers via convenient and accessible digital channels such as the mobile phone.

    Explaining the key features that set the new solution apart from competition, the Bank’s Group Head, Products and Markets Development, Adebimpe Ihekuna disclosed that the product is designed to provide leverage for consumers to meet pressing financial needs such as paying their child/ward school fees, emergencies requiring funding, bill payments, amongst other needs.

    “Beyond the financial empowerment that Polaris Salary Advance offers to our customers, access to such soft loans improve consumer lifestyle and help them to be in charge of their resources rather than banking on uncertain sources”.

    Continuing, Adebimpe noted, ‘The social impact of the Polaris Salary Advance solution cannot be over-emphasized given its ability to meet customers’ needs on the go”.

    On the process of accessing the funds, she explained that it has been affirmed to be the fastest in the industry as one can easily access the salary advance solution and get his/her account credited in a minute, with no documentation required. Customers can access up to 50 per cent of their net monthly salary capped at N500,000 for a 30-day tenor or next salary date by dialing *833*12#.