The Nation Newspaper

Category: Money

  • Interbank rate flat as market liquidity crosses N1tr mark

    The overnight lending rate remained flat at one per cent for a third consecutive week on Friday, as money market liquidity rose to over one trillion naira ($5.05 billion) after budgetary disbursal to government agencies, traders said.

    Nigeria disburses revenue from crude exports among its three tiers of government – federal, states and local – on a monthly basis and a portion of state and local government funds passes through the banking system.

    Dealers said over N221 billion belonging to state and local governments hit the banking system this week. Market liquidity was also boosted by Central Bank of Nigeria (CBN) refunds on Friday of about N400 billion cash set aside by banks to buy dollars.

    Traders said the Central Bank for the first time in three months sold about N47 billion this week in Open Market Operation (OMO) bills, but the impact on market liquidity was minimal due to further cash inflows from other sources.

    “Since the Central Bank has shown willingness to resume issuance of OMO bills, we expect an aggressive mopping up of liquidity next week to further reduce excess cash in the system,” one trader said.

    The secured open buy-back (OBB) – the rate at which lenders can borrow from the interbank market using treasury bills as collateral – closed at 0.5 percent, far below the central bank’s benchmark rate.

    Overnight placement closed flat at one per cent on Friday.

    Banking system credit stood at about N1.2 trillion on Friday, up from N571 billion last week. The Central Bank had last week lowered the cash reserve ratio for commercial banks to 20 percent from 25 per cent, in a move to encourage banks to lend money to the productive sector and stimulate growth.

  • Naira crashes to N246 in unofficial market

    Naira crashes to N246 in unofficial market

    The naira, yesterday, fell 1.22 per cent against the dollar on the unofficial market as 1,700 bureaux de change (BDC) operators failed to get dollar supply at a Central Bank of Nigeria (CBN) sale due to incomplete documentation.

    The naira was quoted at 246 against the dollar on the unofficial market, weaker than 243 the previous day.

    About 1,700 BDC agents out of 2,818 operators were denied access to participate in the forex sale on Wednesday, limiting dollar supply, Aminu Gwadabe, president of Nigeria’s bureau de change association, disclosed.

    “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,” Michael Odoh, a bureau de change operator said.

    He said the reduction in volume of dollar sales by the CBN 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 in the interbank market.

    The CBN has insisted that the adoption of BVN as a condition for the purchase of forex 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 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.

    It said the BVN is neither a payment instrument nor an account number and could therefore, not be used to access any account by unauthorised users. The banks, BDC operators and regulators use the BVN to validate the identity of a customer, using some biometric information such as finger prints and photographs obtained at the point of enrolment.

  • CIBN, RIMAN, Fed Poly seal linkage programme pact

    CIBN, RIMAN, Fed Poly seal linkage programme pact

    The Charted Institute of Bankers of Nigeria (CIBN) and Risk Management Association of Nigeria (RIMAN) yesterday facilitated a linkage agreement with the Federal Polytechnic, Oko, Anambra State.

    The agreement, signed in Lagos, will enable RIMAN to train the school’s students on risk management matters.

    CIBN President, Mrs. ‘Debola Osibogun, who facilitated the agreement, explained that with the pact, RIMAN has the CIBN’s stamp of authority to train students on risk management matters.

    The CIBN boss said RIMAN has met the requirements as stipulated by the Institute’s Linkage Committee and the Central Bank of Nigeria (CBN) in compliance with the competency framework instituted by the apex bank.

    Osibogun said the pact will open more routes for intending CIBN members to come on board and write the institute’s professional examinations. She said it took over a year for the pack to be sealed.

    RIMAN President, Jude Onye praised the CIBN for the efficiency it has brought to the banking profession. He said: “It is good to come on board when everything is ready,” he said.

    Onye  said the CIBN has made all the arrangement and tidied up process to ensure that the exercise is a success. He said the agreement will lead to the emergence of better qualified graduates in the country, which will also be of immense benefits to the economy.

    He said the certified risk management programme will enable RIMAN provide a credible and standard platform for certification of risk management; provide continuing professional education for risk professionals and strengthen the practice of risk management through enhanced risk knowledge and skills across the industry.

    “The exercise would help develop sound and competent risk managers, who are globally competitive and nationally relevant,” he said.

    The management of Federal Polytechnic, Oko, Anambra State, expressed delight that the school was selected, describing the partnership as strategic. It said the programme will enhance student’s competencies in risk management.

    Central Bank of Nigeria (CBN) Director, Risk Management, Folakemi Fatugbe, said the pact was a step in the right direction, and will promote sound risk management processes in the country.

  • 12 finalists compete for N2.25m UBA grants

    12 finalists compete for N2.25m UBA grants

    UBA Foundation, the corporate social responsibility arm of United Bank for Africa (UBA) Plc, has announced the names of the 12 finalists for the 2015 edition of its National Essay Competition (NEC).

    The finalists emerged after a rigorous appraisal of entries for the annual competition, which opened on September 30.

    The Foundation received about 3,500 entries for the UBAF NEC 2015 edition from students of senior secondary schools all over Nigeria, representing 50 per cent increase over 2014.

    The entries were reviewed by a panel of judges made up of professors from reputable Nigerian Universities, who thereafter, shortlisted the 12 best essays.

    The 12 finalists are Ayomide Omole; Udochukwu Melvin Okonkwo; Emediong Uduak Uko; Jonathan Favour; Obiabunmo Precious and Starish Ugie-Oritse-Ete Enonuya. Others are Comfort Macaulay Uwem; Dada Oluwatobi Joshua; Osagiede Omosefe; Olaoye Promise Oluwatobiloba;Eze Ugochinyere Golden and Peter G Okon.

    Managing Director/CEO of UBA Foundation, Ijeoma Aso said: “Three best essays will be selected from the 12 finalists, who will now write a supervised essay at UBA House this weekend.”

    The first prize for the UBA National Essay Competition is a N1 million educational grant for the winner to study in any African university of his or her choice. The second and third prizes are N750,000 and N500,000 educational grants respectively.

    Meanwhile, three brilliant students have already emerged as winners in the 2015 UBA Foundation National Essay Competition in Ghana.

  • More millionaires in Skye Bank’s promo

    More millionaires in Skye Bank’s promo

    Skye Bank Plc has produced more millionaires in the on-going “Reach for the Skye Millionaire” reward scheme, which held its draw in Kubwa Market in Abuja last week.

    While three customers of the bank were rewarded with the sum of N1 million each at the monthly draw,   a total of four and 10 others smiled home with N250,000 and N100,000 respectively during the random electronic  selection  process.

    One of the lucky winners of the N1 million star prize, who lives in Gwagwalada, Abuja, Mr. Masat Solomon, a business man, expressed his deepest gratitude to Skye Bank for the initiative and promised to be a brand evangelist for the bank.

    “Initially, I did not believe that this could be real, but coming to Kubwa market I know that there is only one bank that can make it happen and that is Skye Bank,” he said.

    Solomon said: “I am indebted to Skye Bank for changing my life with this money. In Nigeria of nowadays, N1million naira is a lot to invest in business and I will ensure that I multiply this money in so many ways because I want to continue to appreciate this gesture all the days of my life.”

    Speaking on the promo, Head, Retail Banking Group, Skye Bank Plc, Nkolika Okoli, said the reward scheme was in fulfillment of the promise made by the Bank at the beginning of the scheme, which started in June to reward customers, who qualify to participate.

    She informed customers of the Bank and other dignitaries  present that the scheme is aimed at encouraging savings and financial inclusion through rewards and other benefits. ‘’It is also a way to say a big thank you to our esteemed customers for being invaluable partners in progress,’’ Nkolika added.

    Encouraging Nigerians to take full opportunity of the reward, she said: “We will continue to encourage our teeming customers to save for the raining days and other Nigerians, who desire to live better to join the lucky customers and bank with us because this Skye is big enough for everyone to enjoy its fullness.”

    Speaking further on the scheme, the Regional Director, Commercial, Abuja/North Central, Skye Bank Plc. Osazuwa Igbinoba said: “We are clear with what we want to use this initiative to achieve in that we want to build a people, who think first about their nation’s economy and how they can invest in it.”

  • Stanbic IBTC Bank expands retail network

    Stanbic IBTC Bank expands retail network

    Stanbic IBTC Bank has opened a new branch at Satellite Town in Lagos. The new branch is expected to serve the financial needs of individuals and businesses in Satellite Town and its environs, in fulfillment of the bank’s promise to bring banking closer to the people by expanding its service channels.

    The Satellite Town branch will avail customers of Stanbic IBTC Bank as well as prospects the opportunity to enjoy quality and efficient banking services through innovative financial solutions.

    The commissioning demonstrates the bank’s commitment to strengthening its business banking portfolio and add value to businesses, said Mr. Obinnia Abajue, Executive Director, Personal and Business Banking, Stanbic IBTC Bank. Only recently, the bank commissioned two cash offices at Orile-Coker and Computer Village, Ikeja, both in Lagos.

    “The new branch reinforces the bank’s promise to bring banking services closer to the people for convenience and accessibility. It ties in with our brand proposition and focus to add value to the small and medium enterprises sector in Nigeria,” said Abajue, adding: “Our target is to ensure a wide network of access points where quality and efficient service delivery is available to our clientele as well as prospects.”

    According to Abajue, the bank invested significant resources into establishing the Satellite Town branch because of its strategic importance as a centre of commerce. He said the new branch will accommodate traditional as well as electronic banking services and will render full banking services to meet the growing financial needs of individuals and businesses in the area.

    He assured residents of Satellite Town that the bank is there to stay while reiterating its determination to move them and their businesses forward by providing financial solutions that add significant value.

  • Foreign reserves drop below $30b

    The nation’s foreign reserves dropped to below $30 billion for the first time in five months, putting more pressure on the Central Bank of Nigeria’s (CBN’s) bid to defend the naira and avoid devaluation.

    Gross reserves slipped to $29.92 billion on November 30, the first time they have fallen below $30 billion since July 13, according to data from the CBN.

    They have fallen by 20 per cent since the end of June 2014, when Brent crude prices began a more than 60 per cent plunge, hammering Nigerian finances.

    The foreign exchange reserves fell to $30.04 billion by November 26 from $30.10 billion the month before. The reserves were down 18.6 per cent on the year from $36.9 billion in the same period last year.

    Also, the reserves fell to $30.13 billion by October 27, down 0.84 per cent from a month ago, the CBN data also showed. The fall in reserve reflects the sale of dollars by the central bank to defend the naira currency which has been hit by the plunge in oil prices.

    The dollar reserves have been hit by a plunge in crude prices and the central bank’s decision to defend the currency.

    “With the oil price remaining low, the pressure isn’t dissipating,” said Ikechukwu Iheanacho, who manages N40 billion ($202 million) of stocks and bonds for Lagos-based Chapel Hill Denham Securities Ltd. “It raises questions about how long the central bank can continue defending the naira.”

    The naira has been all but fixed at 197-199 per dollar since early March after Governor Godwin Emefiele restricted bank access to foreign exchange, even as other major oil exporters such as Russia, Colombia and Angola let their currencies weaken.

    In June, Emefiele stopped importers of about 40 items, including toothpicks and glass, from obtaining dollars.

    Emerging-market investors including Aberdeen Asset Management Plc, AllianceBernstein and Investec Asset Management have sold Nigerian bonds and stocks this year to avoid what they see as an inevitable devaluation, which would cause losses on their holdings in foreign-currency terms.

     

  • ANAN, IFAC partner to promote accountancy

    The President of the association of National Accountants of Nigeria (ANAN) Anthony Nzom has said the association trusts that its relationship with the International Federation of Accountants (IFAC) would bring progress to the accountancy profession.

    He spoke while receiving  officials of IFAC during their visit to the Nigerian College of Accountancy (NCA) in Jos.

    According to the statement, IFAC officials were in the college to address the students and conduct a facility tour of the college. “We sincerely believe that this visit is just the beginning of a mutually-beneficial relationship between our association and IFAC,’’ Nzom said.

    He said the visit by IFAC was indeed a significant one being the first visit after the association’s enlistment as member of IFAC.

    “Moreover, it is a very significant visit because the inspection of our college facilities by this apex global accountancy organisation is pre-emptive of better days ahead for the association.  Since our admission into the membership of IFAC, ANAN has reasoned that the best way to appreciate this achievement is by endeavouring to be a key player in driving the process of growth and development in the Accountancy profession in Nigerian and globally,” he said.

    The ANAN president said the association had undoubtedly created a lot of impact in the Nigerian economy, brought about innovations and notably a pace setter in some areas.

    The Chief Operating Officer of IFAC, Ms Alta Prinsloo urged Accountants to always work harder, saying that there was no substitute for hard work. The IFAC boss urged Accountants to dream big.     “You have a responsibility to be ethical and the desire of the professional  Accountant is to do what is right,’’ she said.

  • Access Bank’s conference to promote financial innovation

    Access Bank’s conference to promote financial innovation

    A stellar line-up of global business and political leaders will next week descend on Lagos for the 2015 Access Leadership Conference which is being organised by Access Bank Plc.

    This year’s Access Conference which holds on December 10, is titled “Leading in a transformational world – the imperative of innovation” and features a host of speakers from around the world who will discuss the major issues facing Africa, the global economy and the social transformation which is being wrought by technological change.

    In both Nigeria and around the world every industry is grappling with the disruption that accompanies technological innovation. The financial system is no exception and faces changes that will fundamentally alter not just the operations of banks, but the nature of their relationships with customers.

    A statement from the Bank indicated that public office decision-making is rarely straightforward. “Competing interests, rapidly changing circumstances and electoral dependencies mean that uncertainty is the only reliable constant in public policy. The discussion will look at what it takes to make bold, and sometimes unpopular, decisions in the face of complexity and opposition.”

  • 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.”