The Nation Newspaper

Category: Money

  • More GTCrea8 customers win Mini Cooper Car

    More GTCrea8 customers win Mini Cooper Car

    Guaranty Trust Bank   PlC (GTBank)is set to hold the third edition of the GTCrea8 Mini Cooper giveaway. The promo which  was launched in 2013 provides a platform for the bank to reward one lucky GTCrea8 customer with a brand new Mini Cooper car.

    At the raffle draw for the Mini Cooper giveaway prize held in Lagos at the weekend, Hassan Jamiu Olawale from the Kwara State University,  emerged the lucky winner for this year.

    Since the launch of the campaign, two other lucky GTCrea8 customers have been rewarded with a brand new mini cooper car. In 2013, Shalom Wigwe Elisha, a second year student of medicine at the University of Lagos, became the very first recipient of the prestigious car. Maryam Adebiyi, a student of Lagos State Polytechnic, was the next to win the car in 2014. In addition to the car giveaway, 90 undergraduates have been rewarded with scholarships worth N150,000 each over the last three years.

    This year, GTBank has continued its tradition of rewarding loyal customers with amazing prizes such as laptops, smart phones, free mobile data and cosmetic kits for aspiring make-up artists. The bank has also awarded monthly scholarships totalling N900,000 to six lucky students since the beginning of the year.

    CEO/Managing Director of GTBank, Segun Agbaje,  said: “The younger generation holds the key to our economic future and as such must develop a habit of planning ahead, saving, and investing wisely. The GTCrea8 platform is structured to assist students with their daily and future financial plans by enabling them develop valuable financial literacy and money management skills which subsequently prepares them for greater responsibilities in the years ahead.”

  • FCMB supports SMEs’ funding

    FCMB supports SMEs’ funding

    The Group Managing Director/Chief Executive of First City Monument Bank (FCMB) Limited, Ladi Balogun, has urged Nigerian women to take advantage of the opportunities provided by various initiatives of the government and the bank in the Small and Medium Scale Enterprises (SMEs) space to enhance their well-being and that of the country.

    He assured that the bank would continue to deepen its support to existing and upcoming women-owned SMEs through increased lending, capacity building, advisory and value-added products as well as service deliveries that would enhance customer experience.

    Balogun made these known while speaking at a capacity building session in Lagos which was organised by FCMB for women entrepreneurs on the N220 billion Central Bank of Nigeria intervention meant for SMEs’ development.

    The programme was in partnership with WEConnect International and Poize Magazine. FCMB is one of the financial institutions appointed to disburse the fund which requires that 60 percent of it should be channeled to women-owned businesses. So far, the bank  which grants over 20,000 monthly loans to individuals and companies and over 2,000 women-owned businesses (non-collateralized lending), has disbursed over N1.7 billion to SMEs in the intervention scheme.

    The capacity building session was attended by women entrepreneurs who operate in various sectors of the economy. It is part of FCMB’s strategies to reach out to the operators,  educate them on how to access the fund and equip them with relevant skills to take their business to greater heights. The development formed part of the bank’s contributions to the growth of SMEs and promote financial inclusion.

    CBN’s Assistant Director, Developmental Finance, Mr. Jonathan Tobin told the women entrepreneurs to be committed and show passion in their businesses. While advising that they could start small and grow, he stressed that, “CBN is determined to partner with FCMB to ensure you grow your businesses to achieve your business dream”.

     

  • CIBN holds seminar on economic inclusion

    CIBN holds seminar on economic inclusion

    The Chartered Institute of Bankers of Nigeria (CIBN) has concluded arrangements to organise the third Annual Seminar on Gender Economic Inclusion to address key issues that will make them economically active and relevant in the financial services industry.

    The seminar is scheduled for Tuesday, December 1, in Lagos is part of the public enlightenment programmes organised by the institute to uplift the lives of Nigerian women in the banking and financial services industry and it is expected to attract women working in the banks and other financial institutions and those who left active service.

    Participants will brainstorm on key sub-themes such as “An overview of Gender Structure in the Nigerian Financial Services Industry”; Financial Inclusion: A Veritable Tool for Achieving Gender Equality and Women. Economic Empowerment; and “The Imperative of Change in the Financial Services Sector: X-raying the Gender Dimension.

     

     

     

     

     

     

     

  • Govt pushes for 20% tax to GDP ratio, says CITN

    Govt pushes for 20% tax to GDP ratio, says CITN

    The Chartered Institute of Bankers of Nigeria (CITN) has disclosed Federal Government’s plans on achieving a 20 per cent tax to Gross Domestic Product (GDP) ratio for the economy.

    The CITN President, Dr. Olateju Somorin, who disclosed this at the 33rd induction ceremony of the institute, held in Lagos at the weekend, said achieving this would require that tax administrators and professionals to navigate the tax laws on behalf of tax clients to ensure equity and fairness in its application and compliance.

    She said the task falls on professionals who must continually update and display the requisite skill set in order to offer top notch services to their clients and the general public.

    Somorin said the institute on its part, recognises the need for continuous provision of a strong manpower base for the tax system and would contribute its fair share in this regard.

    “It is pertinent to emphasise the place of taxation in national development at this juncture. This has become even more imperative in the face of falling crude oil prices and underperforming budgets as a result of paucity of funds from federal allocations. At the federal and state government level, there have been increased activities geared towards increasing internally generated revenue with different strategies being employed,” she said.

    The CITN boss said while some states have given effect to the institute’s call for autonomy for revenue administration, others attempt to resort to self-help by making summary pronouncements on what tax payers should pay.

    “For the avoidance of doubt, imposition of taxes is based on assessments, as is the convention with tax laws. These assessments provide the basis for arriving at the taxes being demanded. This makes for a better understanding and position of trust between the taxpayer and tax administrator. Let me equally reiterate our call that only tax professionals should head and administer agencies charged with revenue generation, especially at the Federal and States Boards of Internal Revenue,” she said.

    “Only people  possessing the right  skills in taxation should do the job.This has become necessary if government is to be taken seriously in addressing the issue of low tax compliance and increased revenue generation.

    “We recognise that as an institute, we do not possess compulsive powers to make government tow this line. However, we will continue to make our voice heard at every opportunity to drive home the message of professionalism”.

    Dr. Somorin explained that as part of the mandate of the institute to standardise taxation practice in the country, the Nigeria Taxation Standard Board (NTSB) was inaugurated  with the mandate to, amongst others, ensure standardisation of taxation practice and administration in Nigeria by narrowing down areas of differences in the treatment of tax matters.

    “In accordance with our institute’s resolve to carry out its mandate with integrity and service, I find it very useful and appropriate here today to inform you that our institute, as a professional body, does not condone any form of unprofessional behaviour or unethical practice among its members. This is a statutory responsibility to which all of us subscribe. Just as a violation of the law in the larger society always invariably attracts commensurate sanctions, so is non-compliance with the provisions of the institute’s Code of Conduct,” she said.

  • CBN pegs BDCs’ minimum capital, caution deposit at N70m

    CBN pegs BDCs’ minimum capital, caution deposit at N70m

    The Central Bank of Nigeria (CBN) has issued new guidelines for the operation of Bureaux De Change (BDCs). According to the apex bank, the minimum capital base and cautionary deposits for new operators  at N70 million.

    The guideline, which is in line with the exercise of the powers conferred on it by the Central Bank of Nigeria Act of 2007 and the Banks and Other Financial Institutions Act 2004 (BOFIA), also stipulates a non-refundable application fee  of N100,000 and  non-refundable licensing fee  of N1 million.

    Meanwhile, the naira was trading at a new low of 260 to the dollar among most retail money exchange operators on Friday as against 255 on Thursday. On the official interbank market, it traded at 199 at 1227, close to a rate at which it has been pegged since February. The circular, which will come into effect in January, orders retail money exchanges to deposit a mandatory cautionary deposit of N35 million in an account with the CBN, in addition to a minimum capital requirement of N35 million.

    The CBN has been struggling to shore up its naira currency hard hit by the plunge in oil prices, which started late last year. The new guideline is the latest measure which has cramped dollar demand and the banking sector.

    The intending BDC operator is also to provide non-refundable annual licensing renewal fee of N 250,000 and a non-refundable change of name fee of N100,000.

    The new guideline, released at the weekend, said no person shall carry on the business of BDC in Nigeria, except with the prior authorisation of the CBN.

    It also stipulates that a BDC shall be construed as any company that is licensed to carry on small scale foreign exchange business in Nigeria and whose sole object is the carrying on of such business on a stand-alone basis.

    It said the application for BDC licence shall be processed in two stages, namely: approval-in-principle (AIP) and final licence.

    For the AIP, a formal application to the CBN Governor to grant the promoters an AIP to carry on the business of a BDC in Nigeria is required. Also, a non-refundable application fee of N100,000 or such other amount as may be determined by the bank from time to time in bank draft payable to the CBN.

    “There also should be an evidence of payment of the prescribed minimum capital of N35 million or any other amount as may be determined by the CBN from time to time, into the designated CBN account. The bank shall refund this amount with interest after the proposed institution has obtained its final licence,” it said.

    The guideline, also said that not later than six months after the grant of AIP has been secured, the promoters of a proposed BDC shall submit application for the grant of a final licence to the Governor, with evidence of payment of a non-refundable licencing fee of N1 million, only or any other amount as may be determined by the CBN from time to time among other conditions.

    “There should also be evidence of payment of N35 million mandatory caution deposit, or any other amount as may be determined by the CBN from time to time, into a designated CBN account and evidence of having suitable office accommodation for the operation of the proposed BDC,” it said.

    It stipulates that the qualifications and experiences of the Managing Director/CEO shall be first degree or its equivalent in any discipline with three years post-graduation while the minimum qualifications and experience shall be first degree or its equivalent in any discipline with two years post-graduation experience.

    “One of the management staff appointed above should be designated as compliance officer for the purpose of ensuring compliance with all regulatory guidelines and circulars,” it said.

    It said any individual wishing to sell foreign currency above $10,000 or its equivalent to a BDC shall be required to disclose the source. “The maximum amount per transaction for a BDC shall be determined from time to time by the CBN with respect to business and personal travel allowances. The maximum amount for Personal Travel Allowance and Business Travel Allowance (BTA) per quarter is $4,000 and $5,000,’’ it added.

  • Access Bank plans $120,000 prize for Lagos marathon top winners

    Access Bank plans $120,000 prize for Lagos marathon top winners

    Three top winners in the Access Bank Lagos City Marathon slated for February 6, next year will go home with $120,000, the bank’s Executive Director, Personal Banking Division, Victor Etuokwu has said.

    Speaking at a briefing ahead of the competition, he said the project, sponsored by the bank, will succeed because of the commitment of the Lagos State Government and other stakeholders involved in it.

    He said the first winner would go home with $50,000; first runner up, $40,000 and third winner would get $30,000. There would also be other cash prizes for the first 10 winners, he said.

    Etuokwu said: “As a banker to the Lagos State government, we felt the marathon is something we can support. Marathons help to showcase economic potentials of cities where they are held. It will boost the Lagos economy.

    “Marathon brings people from all walks of life together to a state and creates a platform on which the city is showcased. People see the vibrancy and the friendly nature of the city when they partake in a marathon. While a business conference may bring in the people, marathon does more in showcasing a city.

    “This is why as a bank, we have decided to be part of it and also because the Athletic Federation of Nigeria and the International Association of Athletics Federation have endorsed it.”

    Lagos State Sports Commissioner, Ayodeji Tinubu, said the first 20 Nigerians to cross the finish line will get prizes starting from N1 million each. He said the 42 kilometer international marathon,  will to start from the National Stadium, through Ojota to link up with the Third Mainland Bridge, through Ikoyi to the Lekki Toll Gate to link Bonny Camp and end at the Eko Atlantic City.

    Tinubu noted that as the first full marathon to be run in the country, Access Bank and its partners were set to make it an international event by ensuring “that every little detail that should be done is done to make it sure that it is the best in Africa. “It is going to be a marathon of international standard and part of what we have done to make it of international standard is to ensure that every single runner will have a tracker that will tell us where they are at every point in time,” he said.

  • GTBank unveils virtual MasterCard

    GTBank unveils virtual MasterCard

    Guaranty Trust Bank Plc has reaffirmed its position as a leading provider of e-payment gateway solutions with the recent launch of its Virtual Prepaid MasterCard.

    The card, which is issued instantly via Internet banking, provides an added comfort for security conscious online shoppers who prefer not to use their regular debit/credit cards when making online payments.

    The GTBank Virtual card has all the security features of a physical card and can be used to make both international and local online payments. It also serves as a fall back option for customers who have forgotten or lost their card, but need to perform urgent online purchases.

    The introduction of the virtual card has bridged the gap between traditional e-wallets and bank accounts by providing a low cost alternative to physical debit cards. Customers also have the option of converting the virtual card to a physical card.

    The bank’s Managing Director / Chief Executive Officer, Segun Agbaje said: “This marks another milestone in our quest to make banking more seamless for our customers. As a bank, we remain firm on our objective to deliver value adding services that are tailored to meet the diverse needs of our ever-growing customer base by leveraging technology to make banking more convenient for all our customers.”

    He further stated that “the launch of this product, attests to our commitment towards encouraging a cashless culture in our country by promoting the use of alternative payment channels for transacting both locally and internationally. Our desire to be at the frontier of banking excellence enables us to pioneer innovative products aimed at making banking more simple and attractive to the unbanked and unserved.”

     

  • Skye Bank, KIA Motors sign auto finance pact

    Skye Bank, KIA Motors sign auto finance pact

    Skye Bank Plc and Kia Motors have signed a strategic auto finance agreement to enable customers of Skye Bank who wish to purchase brand new Kia vehicles do so without difficulty. The arrangement covers Kia models like Picanto, Rio, Cerrato, Optima and Sportage.

    Speaking at the agreement signing in Lagos, Head, Retail Banking Group, Skye Bank Plc., Nkolika Okoli, said Skye Bank, as a retail focused bank, is always on the lookout for ways to add value to its customers and the partnership is to provide avenue for customers to easily acquire brand new cars.

    Okoli said Kia brand is one of the fastest growing brands in Nigeria’s automobile industry today and she described Kia cars as very popular to average Nigerians. She also said that Kia spare parts and Kia service centres are readily available across the country, thereby offering convenience to the teeming car owners.

    On “who is eligible?”, Okoli said, salary earners and business owners can acquire cars under the partnership with down payment as low as 20 per cent of the total cost of the car. So, rather than opt for fairly used cars popularly called ‘Tokunbo’ in local parlance,  customers are encouraged to provide 20  per cent equity contribution for a brand new car while the balance can be repaid over a four year period. Okoli also noted that there is no need for salary domiciliation for salary earners; they can meet monthly repayment using post-dated cheques.

    Kia Motors’ Chief Commercial Officer, Mr. Sandeep Malhotra, described the partnership as an important one given Skye Bank’s customer centric orientation.

     

  • $64b debt profile comfortable, says DMO D-G

    There is no cause for alarm over Nigeria’s $64b debt profile,  Debt Management Office (DMO) Director-General Dr. Abraham Nwankwo said yesterday.

    Nwankwo said the country’s $64b debt profile is 84 per cent internal and 16 per cent external.

    He said the country can afford to borrow $25 billion annually for the next 10 years.

    Nwankwo, who spoke when he appeared before Senate Committee on Local and Foreign Debts, said: “We have been sensitising Nigerians that we need to do better because our tax- Gross Domestic Product (GDP) ratio is very low compared to countries in our debt role.

    “Their entire GDP ratio is about 18 per cent whereas for Nigeria, it is about 6 per cent, which means that we are not being effective in collecting taxes to reflect the size of our economy.

    “This has implications for debt service. Certainly there is the need to be careful even though there is space we need to relate debt service to revenue. The solution is that we have a big gap to fill because when we move upward from the 6 per cent tax-GDP ratio, we will have a lot of money to solve our problems including servicing our debts.

    “For now our debt servicing-GDP ratio is still very low, but we are optimistic because there is room to collect tax from the existing level of economic activities.”

    Nwankwo also justified the loans taken by the country, saying repayment period for most of the loans is spread for 40 years.

    The Senate committee expressed concern about the use of borrowed funds at the meeting. It said the Federal Government should take any form of misapplication of borrowed funds seriously.

    A member of the committee, Senator Philip Gyunka (Nasarawa North), demanded to know how the loans obtained by the country are applied and whether they were applied for the purposes they were sourced.

    Gyunka noted that he believed that if the facilities were applied for the purposes they were obtained, the country would have been better.

    He noted that instead of applying the loan judiciously, some of them were misapplied without punishment being meted to those involved.

    The lawmaker said the present generation of Nigerians must not allow a situation where the upcoming Nigerians would accuse the older generation of mortgaging their future.

    Gyunka also frowned at the situation where the solid mineral sector of the country is left untapped.

    According to him, the government should take the issue of diversification seriously in the interest of the development of the country, insisting that the debt profile of the country is low.

  • Naira falls to N253 on dollar shortage

    Naira falls to N253 on dollar shortage

    The naira yesterday weakened further in the parallel market, coming down 0.59 per cent to N253 to dollar after the Central Bank of Nigeria (CBN)’s exclusion of some bureaux de change operators from its dollar sale on Wednesday, which  created a shortage of dollars.

    The local currency was quoted at an unofficial 253 to the dollar, down from 251.5 at the previous day’s close. The local currency was trading at 198.97 to the dollar on the official interbank market, close to a rate at which it has been pegged since February.

    The CBN had sold $30.5 million to 1,017 bureaux de change agents on Wednesday, but excluded about 1,801 others from its weekly sale. That led to a shortage of dollars on the unofficial market and pushed the naira lower, said Aminu Gwadabe, president of Nigeria’s bureau de change association.

    “We are in contact with the Central Bank to resolve issues around the exclusion of some of our members from the forex sales and we are expecting positive response,” Gwadabe said.

    A bureau de change operator,  Michael Odoh, said: “The Central Bank has reduced the amount of dollar sold to bureaux de change at its twice-weekly intervention, which has also been cut to once a week now.”

    He said the reduction in volume of dollar sales by the apex bank coupled with year-end surge in demand for foreign currencies by importers, have impacted negatively on the naira. The naira fall was intensified after the CBN mandated BDC operators to get Bank Verification Numbers (BVNs) of customers buying foreign exchange. The policy implementation, which started on November 1, has reduced the volume of dollars sold by BDCs and created dollar scarcity in the market.

    However, the CBN has been able to keep a grip on the local currency movement on the interbank market.

    The apex bank has insisted that the adoption of BVN as a condition for forex purchase is expected to reduce the incidence of multiple purchases, round tripping and illicit transfer of funds, facilitate enforcement of authorised limits of forex sales to  end users, sanitise the retail segment of the market and engender policies that will facilitate better allocation of the forex, based on genuine demands.

    It insisted that the BVN provides the unique identity of each customer for the purpose of achieving effective “Know Your Customer” (KYC) principle and fraud prevention.