The Nation Newspaper

Category: Money

  • ‘Money laundering, terrorism hurt economy’

    The Director-General,   West African  Institute for Financial and Economic Management (WAIFEM), Prof. Akpan Ekpo, has said money laundering and terrorism damage the political  and socio-economic life of Nigeria.

    He spoke at the 20th anniversary of DataPro, which held in Lagos. According to him, the processes, inter-connectedness and the mechanisms for laundering stolen money are so complex and complicated that  fighting against them requires committed political sagacity.

    “The perpetrators of  money laundering are sometimes those in political power or have access to  political power, thus making efforts at anti- money laundering to  be rudimentary,” he said.

    He added: “It is crucial to build capacity continuously to combat money laundering and its derivatives. It is in this aspect that DataPro and its team have excelled themselves. Men and women responsible for curtailing money laundering must be trained to identify an activity that  looks genuine on the surface, but on further analysis, may have the features of money laundering.”

    The guest speaker and Group Managing Director of Access Bank Plc, Herbert Wigwe, said: “To make any positive impact on the fight against money  laundering and  terrorist financing, there must be global commitment by all  government and  relevant institutions saddled with the responsibility for  pursuit of the  objectives.

    Founder of DataPro, Abimbola Adeseyoju, thanked the guests for their contributions during the discussions, adding: “Today, DataPro is entering another phase in its  development; the age  of maturity. We have resolved more than ever to invest in sustainable practices instead of looking for shortcuts and short term gains. We will remain committed to meeting and exceeding the expectations of   our stakeholders.”

  • FirstBank unveils SME offerings

    FirstBank unveils SME offerings

    FirstBank of Nigeria Limited has unveiled its new SME campaign specially designed to help Small and Medium Enterprises grow with diverse product and service offerings.

    The lender said it started small and having grown through various stages, has understood the business journey for SMEs.

    It also said it is passionate about supporting them to ensure continuous business growth.

    “Over the years, we have displayed an unwavering commitment to the business success of SMEs in Nigeria with its cocktail of products and bespoke solutions, specifically designed to help grow and sustain SMEs. Given that SMEs are pivotal to national development, we are committed to ensure sustained business growth as well as provide the necessary services to grow businesses and Nigeria’s economy at large,” he said.

    He said the bank provides the right product mix and services with professional staff designated to work with the business owner to provide flexible and dependable services, helping SMEs to achieve consistent growth and success in every area of business.

    According to the bank’s spokesperson, Folake Ani-Mumuney, businesses require more than loans, and the Bank makes available non- financial services to its customers such as access to administrative assistance, translation services, conferences, seminars, forums and other business support services.

     

  • Stanbic IBTC Bank secures term loans

    Stanbic IBTC Bank secures term loans

    Stanbic IBTC Bank has secured its maiden syndicated term loan facility. The one-year transaction, led by MashreqBank  as co-ordinating bank and sole Bookrunner, was oversubscribed.

    Stanbic IBTC closed the syndication within six weeks of launch at a competitive pricing threshold, given the prevailing market conditions.

    The eight-bank syndicate comprised long-standing relationship banks of Standard Bank Group, Stanbic IBTC Holdings’ parent company, that included MashreqBank psc, The Commercial Bank (Q.S.C.) and ING Bank N.V. as Mandated Lead Arrangers and Bookrunners, while Al Ahli Bank of Kuwait K.S.C.P., Al Khaliji France S.A., Commerzbank Aktiengesellschaft, Filiale Luxemburg, Doha Bank Q.S.C. and SBM Bank (Mauritius) Limited participated in the facility as mandated lead arrangers. MashreqBank psc is also acting as the facility agent for the transaction.

    Chief Executive, Stanbic IBTC Bank, Yinka Sanni said the bank was delighted with the reception of the syndicate banks to its debut deal. “We appreciate the confidence that the syndicate has in Stanbic IBTC, as it reinforces our market leadership position in corporate and transactional banking and our commitment to supporting Nigeria’s economic growth.

    “It will also help to boost our operations in Nigeria in line with our business objective of organically growing our footprint in the retail banking space,” he said.

  • CBN orders banks to build buffers against bad loans

    CBN orders banks to build buffers against bad loans

    •Banks’ credit with CBN hits N622b

    The Central Bank of Nigeria (CBN) has ordered deposit money banks to double provisions on performing loans to two per cent to build adequate buffers against unexpected losses.

    General provisions on performing loans had been fixed at one per cent before the new regulation, said the CBN circular which came into effect last week.

    “In recent times, the adverse macro-economic environment has been a source of concern in the financial sector,” the bank said.

    Meanwhile, the interbank lending rate held steady for the second consecutive week at 0.5 per cent after the CBN injected matured Open Market Operation (OMO) bills into the system, traders said.

    Banks’ credit balance with the CBN opened at N622 billion ($3.13 billion) on Friday, compared with a surplus of about N514 billion last week.

    The secured open buy-back (OBB) – the rate at which lenders can borrow from the interbank market using treasury bills as collateral – held steady at 0.5 per cent same level last week, far below the CBN’s 13 per cent benchmark interest rate.

    Traders said about N179 billion in matured OMO bills was injected into the system on Thursday. They also expected an unspecified amount of refunds from cash that banks had deposited with the central bank for forex purchases to hit the banking system on Friday.

    Traders said although about N70 billion for bond purchases and N18 billion debited for cash reserve requirements left the system on Friday, the market remained substantially liquid.

    “The market is highly liquid and we are not seeing any change in the lending rate at the interbank market in the near term unless the central bank resumes the issuance of OMO bills as is being speculated in the market,” one dealer said.

    A few commercial lenders were transacting overnight placements at one per cent on Friday, the same level last week, but most are still insisting on secured lending, traders said. “We expect the system to remain liquid next week and interbank rate trading at the prevailing level,” another trader told Reuters.

     

  • FCMB sponsors youth entreneurship scheme

    FCMB sponsors youth entreneurship scheme

    First City Monument Bank (FCMB) Limited is for the second consecutive year sponsoring the 2015  edition of the fashion-to-entrepreneurship reality competition tagged, ‘’Dare2Dream (D2D)’’.

    The contest, which is organised by Kinabuti, a Nigerian-based Italian fashion label, and Pulse.ng, provides an opportunity for young and aspiring women across the country, especially students, who desire to take up career in modelling and fashion, to showcase their skills and live their dreams.

    The initiative is also designed to discover, empower and encourage them to realise their aspirations through the sponsorship platform provided by the FCMB brand, while raising the profile of the Nigerian fashion industry.

    This year’s competition will kick off on November today with a campus activation that would involve a selection programme of contestants who are students in three universities.

  • Access Bank hosts anti-fraud forum

    Access Bank hosts anti-fraud forum

    Access Bank Plc will host stakeholders involved in anti-fraud functions in various banks at a forum in Lagos.

    The forum, with the theme: “Fraud Management – The need for a Harmonised Approach” is an initiative of the lender to engage stakeholders on how to proactively solve the industry’s fraud challenges and to minimise frauds with active collaboration amongst stakeholders.

    The forum is expected to also provide an opportunity for anti-fraud officers of banks to further interact on ways this menace (Fraud) can be curbed by their joint collaboration.

    The bank’s Chief Internal Auditor, Yinka Tiamiyu said: “The Anti-Fraud forum is another way Access Bank demonstrates its commitment to go the extra mile towards using collaboration in fraud prevention.”

    Representatives from the Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), Inspector General of Police, Price Waterhouse Coopers (PWC), Akintola Williams Deloitte House, Ernst & Young, KPMG and Nigeria Interbank Settlement System (NIBSS) are expected to attend the forum with other participants from various banks.

    The forum holds this week Thursday.

  • Stanbic IBTC Bank inaugurates loyalty scheme

    Stanbic IBTC Bank inaugurates loyalty scheme

    Stanbic IBTC Bank has launched a two-month nationwide loyalty campaign in which both existing and prospective customers are offered new  opportunities, while also delighting them with valuable gifts for their patronage.

    Executive Director, Personal and Business Banking, Stanbic IBTC Bank, Obinnia Abajue, said the initiative, the third in the series,with the theme ‘Never Stop Moving Forward,’ is designed to encourage Nigerians to freely express the traditional African hospitality in the festive season by showering gifts and love on one another. The list of such gifts, he said, should not be limited to conventional items but should include financial gifts.

    “Besides showcasing the essentials of the festive season, the highpoint being the sharing of gifts, the promotion fits into Stanbic IBTC Bank’s purpose of making progress real to deepen financial inclusion in Nigeria by making financial services and products easily accessible to even a greater number of people, wherever they may be. In doing so, we help in moving the largely unbanked and under-banked segments and communities into the financial mainstream.” Abajue stated, while announcing commencement of the campaign in Lagos.

    The initiative, he added, also aims at encouraging payment card usage for transactions on the bank’s over 400 Automated Teller Machines (ATM) points across the country, its numerous POS platforms and online channels. It will also encourage low-income Nigerians and the younger generations to imbibe a culture of financial planning and savings, which will put them in good stead for future comfort.

    Head of Marketing and Communications, Stanbic IBTC Holdings, Nkiru Olumide-Ojo identified that the key element of the season is the outdooring of the Stanbic IBTC gift card which is a prepaid card that can be used on all payment terminals.

     

  • UBA unveils contactless cards

    UBA unveils contactless cards

    The United Bank for Africa (UBA) Plc has unveiled contactless payment cards. The product, the lender said, makes it convenient for its customers to pay for goods and services.

    The bank said it has built its competitive edge around offering the very latest in convenient banking options to its customers.

    Its Divisional Head, Digital Banking, Dr. Yinka Adedeji, said:  “With our contactless cards, you can make payments for everyday essentials and other things that money can buy the contactless way.”

    The new payment cards work with Near Field Communication (NFC), enabled Point of Sale (PoS) and Automated Teller Machine (ATM) terminals by simply touching the card against the reader without slotting it into the terminal.

    Customers can also use the cards to pay on regular PoS terminals. “UBA contactless payment cards can be used across all the channels where you use your regular card – ATM, PoS and Web,” explained Dr. Adedeji.

    He said all the contactless cards use the Combined Data Authentication EMV Chip “which is currently the highest standard for chip technology used in payment cards to ensure that UBA contactless cards are absolutely safe.

    “Ideally, for low value transactions, contactless payment card holders are not required to input their PIN but the Central Bank of Nigeria (CBN) currently mandates that all transactions on the PoS require PIN entry.

    “So, for now, customers will still be required to input their PIN even for low value transactions. However, contactless payment cards still offer a superior level of convenience compared to the traditional payment cards.”

     

  • Equities lose N114b as investors await fiscal direction

    Quoted equities lost N114 billion last week as investors remained cautious, waiting for clear fiscal and monetary direction from the newly constituted Federal Executive Council (FEC). President Muhammadu Buhari last Wednesday swore in and allocated portfolios to ministers.

    Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) dropped by N114 billion to close the week at N9.915 trillion as against its week’s opening value of N10.029 trillion. The All Share Index (ASI)-the value-based common index that tracks prices of all quoted equities, declined by 1.14 per cent to close at 28,841.67 points as against the week’s opening index of 29,175.35 points. There were 38 decliners against 29 gainers.

    Total turnover stood at 2.06 billion shares worth N23.4 billion in 14,992 deals last week as a total of 1.95 billion shares valued at N17.34 billion traded in 15,762 deals in previous week. The financial services sector accounted for 1.484 billion shares valued at N14.555 billion in 8,406 deals; representing 71.90 per cent and 62.21 per cent of the total equity turnover volume and value respectively.

    Analysts attributed the low market performance to lack of clear fiscal and monetary policy direction. “Although we are moderately bullish on personalities of the aforementioned ministers to drive policy initiatives, the fact that the appointments were delayed for five months in a period of deteriorating macroeconomic fundamentals has set expectations high for them. Important policy decisions lie ahead and the market would expect the Finance Minister to work out a coordinated policy framework along with monetary authorities to respond to the macroeconomic challenges of slow growth, heightened inflationary pressure, declining reserve buffers and exchange rate uncertainty,” analysts at Afrinvest Securities stated.

    Analyst noted that the new Minister of Finance during her screening at the Senate backed the CBN’s FX administrative measures in the FX market. The President, at the swearing-in ceremony also restated his support for the CBN, noting that, “the CBN has also implemented country-specific and innovative policies that have helped to stabilise the exchange rate and conserve our reserves’’.

    “It remains to be seen how the current CBN’s strategy will be balanced with the expected expansionary Fiscal 2016 budget. Already, investors in the fixed income market are already pricing in a possible tightening of liquidity by the CBN post-cabinet inauguration, resulting in sell-down pressure across FGN-bond tenors towards the end of the week. Although there has been no official communication from the CBN on resumption of OMO auctions, we do not foresee any monetary policy tightening in the short term given the deteriorating macroeconomic fundamentals,” Afrinvest Securities stated.

  • Paga processes 17m transactions, wins award

    Paga has processed over 17 million transactions worth over a billion dollars. The mobile payments service company, has been named winner of the “Outstanding Growing Business” category at the 2015 Africa Awards for Entrepreneurship (AAE). It emerged winner in its category based on its demonstrated business excellence, integrity and contribution to socio-economic development.

    Also nominated in this category were other globally recognised African brands Snapplify – a content and media technology company and Africa’s largest eBook aggregator; and Logiciel Limited – an innovative technology and services company that delivers core banking, mobile banking and cash management mobilisation platforms in Ghana.

    Speaking on the company’s latest recognition, Paga founder and CEO, Tayo Oviosu said:  “There is no greater honour than to be recognised by other Africans looking to inspire social and economic change through the channel of entrepreneurship. Being chosen amidst so many other well deserving companies is yet another testament of the contribution Paga is already making and will continue to make towards the development of Nigeria and the prosperity of Africa.

    Supporting the next generation of entrepreneurs is vital for the development of our continent and we understand only too well how tasking the journey can be. The challenges faced by entrepreneurs within the continent are unique and sometimes staying true to a purpose or vision can be hard.  We hope that the Paga story and the support we can provide in terms tools and opportunities to create and grow a business as part of our ecosystem will help make many more African entrepreneurial dreams a reality.”

    On what next for Paga, Oviosu said:  “Our focus is to make it easy to pay and get paid. Our team will continue to work diligently with our banking partners to achieve this goal”.