The Nation Newspaper

Category: Money

  • Skye Bank workers donate N20m to displaced people

    Skye Bank workers donate N20m to displaced people

    Employees of Skye Bank Plc have donated relief materials worth N20 million to the displaced people in Nasarawa State and the Federal Capital Territory.

    The employees under the aegis of the of its ‘Employees Volunteerism Initiative’, distributed relief materials to over 120 families consisting of about 800 individuals in New Karshi, Nasarawa State, in addition to reaching out to another 100 families of Chibok people at their camp in Kuje, Federaal Capital Territory.

    The relief materials include 2000 bags of rice, 2000 bags of Indomie noodles, beverages, blankets, tooth paste, pampers, semovita, sanitary pads, among others. Skye Bank partnered with two non governmental organisations that have been working with the displaced people, Likeminds Initiative and Ombus Organisation, to achieve the feat.

    Speaking during the distribution of the items to the beneficiaries, the Executive Director, Abuja and Northern Directorate of Skye Bank Plc,  Idris Yakubu, said the bank  staff took the noble initiative to positively affect the lives of the displaced people who have gone through tough times and trauma.

    Yakubu said the employees’ compassionate gesture demonstrated their love and empathy for the less privileged in society and urged other associations and organisations to emulate the gesture.

    He urged the workers not to end their philanthropic gesture but to continue to give until there are no more distressed people.

    In his remarks, Skye Bank’s Head of Human Capital Management, Mr. Taiwo Olupeka, explained that the employees embarked on the ‘giving’ initiative in order to help the needy in the society and put smiles on their faces.

    According to him, the harrowing experiences which the displaced people have passed through over the years called for public support, emphasizing that the ‘Employee Volunteerism Initiative’, in its fifth year, had supported various causes ranging from public education, youth empowerment.

  • FCMB promotes export growth

    FCMB promotes export growth

    First City Monument Bank (FCMB) Limited has said it will continue to support export of local products through funding initiatives.

    The bank’s Executive Director, Business Development, Mr. Adam Nuru, disclosed this at the Customer Forum on Export Trade with the theme: Enhancing Capacity for Export Growth, organised by the bank.

    The forum was organised by FCMB in partnership with the Nigerian Export Promotion Council (NEPC), Nigeria Export-Import Bank (NEXIM), Bank of Industry (BoI), National Agency for Food and Drug Administration and Control (NAFDAC), Nigeria Customs Service (NCS), Nigeria Agricultural Quarantine Services (NAQS), Federal Inspection Agency for Solid Minerals (FIASM).

    Nuru said that the lender has created opportunities to assist Nigerian exporters benefit optimally from products export. He listed some of the offerings of the bank in this regard to include pre and post-shipment financing/refinancing and discounting, provision of market information as well as advisory services.

    He explained that, ‘’the customer forum is another way we demonstrate not just how much we value our customers, it is also an opportunity to inform the market that we are truly on ground to support government and stakeholders in their efforts towards driving and growing export trade to boost non-oil revenue in the economy. Our alignment with the Nigerian Export Promotion Council and other sister agencies is a proof of the commitment to go the extra mile to contribute significantly towards the realisation of the business aspirations of our customers and that of the country’’.

    Speaking at the event, Evelyn Obidike, Deputy Director at Nigeria Export Promotion Council (NEPC) said there are several factors that work in favour of Nigerian exporters and should be explored to maximise their export potentials.

    She said the large population of Nigeria remains veritable tool to be leveraged by exporters to do better. Obidike also urged exporters to give the best to the packaging of their products to attract both local and international consumers. She said that packaging remains a silent selling strategy explored by wise exporters to achieve mileage in their businesses.

    Also speaking at the event, Director of Small and Medium Enterprises (SMEs) at Bank of Industry (BOI), Waheed Olagunju, said the lender values SMEs by looking at the levels of risks and opportunities in the businesses that need funding.

     

     

     

  • FirstBank restates support for trade fair

    FirstBank restates support for trade fair

    FirstBank has reiterated its support for the 35th edition of Lagos International Trade Fair.

    During the 10-day fair, the bank’s broad clientele and prospective customers will benefit from its expert financial advisory services, on-line-real-time banking, internet and mobile banking, Automated Teller Machine (ATM), card products, mobile payment platforms and money transfer services.

    The trade fair which   kicked off last Friday will also have participants from Rwanda, Tanzania, Zambia, India, Egypt, Chad and Niger Republic in attendance.

    This year’s edition themed: “Enhancing Value Addition in the Non-Oil Economy” was formally declared open over the weekend  at the trade fair ground – Tafawa Balewa Square, Lagos. Over the years, the fair has attracted both local and foreign exhibitors and has continued to provide avenue for various trade groups and professionals to present new products and ideas as well as tap into business opportunities that exist in the country.

    Its GMD/CEO,  Bisi Onasanya, said the bank is proud to be a sponsor of the Lagos International Trade Fair, as this demonstrates our commitment to promoting trade and development in the nation.

    ‘We would continue to promote the industrialisation of the Nigerian economy and the global economy at large through valuable partnerships’, Onasanya added. FirstBank has been a consistent sponsor of the annual trade fair since its inception 35 years ago.

     

  • CBN: Oil, gas sector owes 23.8% of N13.5tr bank loans

    CBN: Oil, gas sector owes 23.8% of N13.5tr bank loans

    Oil and gas owes 23.8 per cent of the N13.5 trillion loans given by banks to key sectors of the economy, the Central Bank of Nigeria (CBN) has said.

    The statistics, contained in the Financial Stability Report released by the CBN said 50 per cent of the oil and gas loans were on default, noting that after a top-down (TD) balance sheet stress tests on the 22 licensed banks (DMBs), the industry is still resilient.

    Its Director, Financial Policy and Regulation Department, Kelvin Amugo, said the report, which is for last June, indicated that although the proportion of credit to the sector declined by 0.6 percentage points against December last year position, credit to the sector grew by 26.3 per cent in absolute terms, similar to the rate of the total credit growth.

    He said the industry Capital Adequacy Ratio (CAR) remained above the prudential hurdle rate at 13.55 per cent but was 0.52 percentage points lower than it was in December under the same scenario.

    He said the stress tests assessed the resilience of banks to a wide range of risk factors, including credit, interest rate, foreign exchange rate and liquidity risks.

    The stress tests quantified the impacts that shocks on these risk factors, based on historical antecedents and expert judgments, could have on the capital positions of the banks. Resilience of the banking system to the shocks was assessed against defined prudential hurdle rates.

    The TD stress tests are usually applied on a bank-by-bank basis and on an aggregate basis to determine the impact of specific stress scenarios on the banks.

    He said vulnerability to credit concentration in the oil and gas sector manifested under the shock scenario of a 100 per cent credit default. Under this shock scenario, industry CAR declined to negative 0.45 per cent, reflecting 3.68 percentage point decrease compared to the same situation in December last year. This deterioration in the industry resilience was driven by increased vulnerability of the large and medium banks to credit concentration in the oil and gas sector.

    Furthermore, banks were classified into three broad groups for systemic and peer assessment. Banks in the “large” category had assets greater than or equal to N1 trillion. The “medium” category comprised banks with assets less than N1 trillion but more than N500 billion while the “small” category comprised  banks with assets less than N500 billion.

    Furthermore, the test showed that capital position of ‘three small banks’ have fallen below regulatory threshold. The CARs of the affected banks were below five per cent regulatory position. The three banks are not among the domestic systemically important banks (D-SIBs).

    CBN Deputy Governor, Financial System Stability, O. J. Nnanna, said the goal of financial system regulators remains the enhancement of the stability of the financial system and its resilience to withstand unexpected adverse shocks while contributing to the growth of the real economy.

    “A stable financial system should facilitate economic growth and development necessary for improved standard of living. This edition of the Financial Stability Report has highlighted the need for effective coordination among fiscal, monetary and regulatory authorities, which would help in the achievement of policy goals and targets while ensuring sustainable economic growth,” he said.

     

  • ANAN to states: Survive on IGRs

    The President, Association of National Accountants of Nigeria (ANAN), Anthony Nzom, has said states have the potential to survive on Internally Generated Revenues (IGRs) if they manage their revenues prudently.

    Speaking during the group’s annual conference in Abuja, he said states should focus more on IGR to ensure self-sustainability.

    He also urged the government to move away from being a mono-product economy depending on crude oil by exploiting alternative sources of revenue generation. He said state governments could achieve that by shifting attention to other sectors of the economy such as solid minerals, tourism, agriculture and others that could create jobs.

    He added that the annual conference had historical significance as the group has been admitted as a full member of the International Federation of Accountants (IFAC).

    “I must quickly say that attaining IFAC full membership is no end in itself but in fact a means to an end and that implies an assiduous drive toward constantly meeting international best practices,’’ Nzom said.

    He lauded the support of the government and stakeholders, such as the Central Bank of Nigeria (CBN), Africa Development Bank (AfDB) and Bank of Industry (BoI), in encouraging Small and Medium Scale Enterprises (SMEs) to thrive by availing them of finance.

    The President, Certified Public Accountants (CPA) Ireland, Brian Purcell, in a goodwill message said the partnership by both bodies was built on friendship, mutual respect and trust, adding that this informed the association’s recommendation of ANAN for membership of IFAC.

    Chairman, Conference Committee, Chief Napoleon Adda, said professional accountants should exercise professional judgments in carrying out  their duties.

    The Governor of Jigawa State, Alhaji Badaru Abubakar, said ANAN’s membership of IFAC was a clear testimony of the association’s credibility and worth in global accounting profession. The governor was represented by the Secretary to the State Government, Alhaji Abdulkadir Adamu.

    He commended the Federal Government for putting the nation’s economy on the path of recovery, adding that the nation was in need of economic redemption to achieve sustainable development.

  • Mobile money: Digital transfer is the future

    Mobile money: Digital transfer is the future

    Gabriella Poczo is the Chief Technology Officer of WorldRemit, a global money transfer company. She explains the company’s commitment to ensuring that money transferred across the world is sent digitally as mobile airtime top up, bank account transfer or as mobile money. Poczo tells COLLINS NWEZE that WorldRemit offers same-day transfers to banks in Nigeria from more than 50 countries, adding that there are more ways to receive money digitally.

    Global trends in connectivity show that the future of financial services will be mobile. For Gabriella Poczo, the Chief Technology Officer of WorldRemit, the company’s goal is to help people use online services to send money to friends and family living abroad, using the computer, smartphone or tablet.

    On online transfers, Poczo said WorldRemit is built on strong partnerships with banks, telcos and other pay-out networks.

    “Our service connects to a myriad of different payment systems, both in the send and receive countries. Technically, that means allowing our partners to query our systems through an API, processing transfers as quickly as possible, and updating both senders and recipients about the progress of their transfers. Sometimes that requires “high touch”, especially when we are dealing with partners at different levels of technical sophistication,” she said.

    She said remittances are one of the last frontiers of the internet, adding that in a world where one shops online, books travel online, or listens to music online, people have begun sending and receiving money online.

    “Right now, the vast majority of remittances are still sent and received at bricks-and-mortar agents. WorldRemit is built to disrupt this archaic industry, and take sending money online. With us, all money transfers are sent digitally, and a growing proportion are received digitally – as mobile airtime top up, bank account transfer or as mobile money,” she said.

    Poczo, one of Silicon Valley’s engineering heads, who oversaw Skype’s move from desktop to mobile, was hired by WorldRemit to revolutionalise its mobile money services.

    Her appointment underlines WorldRemit’s status as the leading player in mobile money transfers – with a mobile-first strategy for senders and the largest selection of mobile money wallets for recipients.

    “This company is so far ahead of the game in terms of mobile money transfers. While others are still talking about the opportunity, WorldRemit is sending hundreds of thousands transactions to mobile devices across Africa and Asia,” said Poczo.

    “They know this space better than anyone. Now it’s time to take our service to the next level – integrating more Mobile Money partners, and providing enhanced apps for our senders.”

    On the global mobile money integration and the impacts on emerging markets, Poczo said there are more than 260 mobile money services in the world, the vast majority of which operate in emerging economies and have seen rapid growth.

    “Across many emerging markets, there are two billion people who don’t have a bank account today, and Mobile Money will be their first and only means of accessing financial services. With a few exceptions, however, those services are for domestic person-to-person transfers only. There is no underlying infrastructure to move money from a VISA card in the United States or in the United Kingdom, to an MTN mobile wallet in Tanzania, for example,” she said.

    “So that’s where WorldRemit is offering a convenient solution to connect Diaspora communities with mobile wallets back home in emerging markets”.

    On the strength of WorldRemit’s Application Programming Interfaces (APIs) and what distinguishes them from those of other competitors, she said the company’s focus on a mobile experience is unique and simple.

    “We have used our APIs and our platform to directly integrate with a large number of mobile money services – offering customers the option of sending money instantly from a Smartphone to a mobile wallet. We have a large, truly global footprint, allowing people to send money from more than 50 countries to over 125 destinations,” she said.

    “Our strength lies in simultaneously offering the technology as well the robust compliance platform to potential partners. As a financial services company, we are heavily regulated and compliance factors in as an integral part of our technical development process. Technology ultimately allows us to scale many of the compliance checks we are doing for our customers”.

    As the CTO of WorldRemit, Poczo said he mission is to enhance the use of instant messaging and Voice over Internet Protocol services like WhatsApp, Viber, or Skype have fundamentally changed the way we communicate and connect with people.

    “Compare that to today’s financial services, which have remained archaic and cumbersome. People genuinely still fill out paper forms or queue in line, when they really shouldn’t have to. WorldRemit has the technology in place to offer a financial service on par with today’s communication technology – we make sending money as easy as sending an instant message,” she said.

    “And it doesn’t stop there: We are continuing to improve on the user experience to offer customers the service they want – quick, simple, and intuitive”.

    Speaking further, she said WorldRemit is already ahead of the game in remittances to mobile money. “We have the largest market share in international remittances going to mobile wallets, and have secured the right strategic global partnerships to keep our momentum. At the same time, we are poised to expand our partnerships with Mobile Money services across the world,” she said.

    “There are more than 260 live services – and we want to partner with all of them. Already, we have set the standards to scale our integrations, and we have a fantastic track record: We’ve seen double-digit monthly percentage growth with existing partners”.

    She explained that sending money home has for too long been a frustrating experience for migrants. The company, she said, is using technology to bring real change to an industry where migrants have traditionally faced high fees, costly trips to high-street agents, long queues, and disappointing customer service.

    “WorldRemit lets people use an app to send money – and customers love it. One of our customers recently said that being able to send money instantly makes her feel like her friends are “right next to her.”

     

    Mobile money challenges

     

    Poczo admitted there are challenges ahead for the company’s partners in the mobile money space. However, she said telcos are increasingly investing in better infrastructure and laying the fibre to expand coverage and bring down the cost of data.

    At the same time, we also need more education on the security and ease of use of Mobile Money. Consumer awareness will in turn drive increased demand for better connectivity on mobile devices.

    She said the company launched low-cost money transfer in The Gambia and Burundi. According to her, the company already has on offer, same-day transfers to banks in Nigeria from more than 50 countries, and we are always looking to expand our service by partnering with new correspondents and offer more ways to receive money.

    She said mobile money service providers have a big role to play in raising awareness and educating customers about the convenience and security of mobile money.

    “In countries where WorldRemit sends to mobile wallets, we help increase the viability of Mobile Money as a service. International remittances can help overcome the problem of getting money into the digital ecosystems: Compared to a small peer-to-peer transaction of $10 or $40, the typical international remittance transfer is between $200 to $300,” she said.

    Poczo says WorldRemit already sends to 12 mobile money services across Africa. “In Zimbabwe, where we partner with the successful EcoCash wallet, more than 80 per cent of our transactions go to mobile phones. In Kenya, the huge success and adoption of MPesa has meant that more than 90 per cent of transfers go to mobile money,” she said.

    “At the same time, we have also been expanding our Mobile Money partnerships beyond Africa: In recent months, we launched instant transfers to mobile wallets in Armenia, Fiji, Samoa, Sri Lanka, and Tonga”.

    She said mobile money has grown exponentially all over the world. “Active users of mobile wallets have shot up from only 30 million in 2013 to more than 100 million at the end of 2014. Mobile money already is WorldRemit’s fastest-growing receive option and we fully expect growth to continue,” she said.

    “The growth of active users of Mobile Money, along with increasingly affordable smartphones and data connections, will only make it more attractive to send money to a mobile phone. We offer an industry-leading service and are primed to offer the best possible experience to new customers”.

    She said the majority of those sending money with WorldRemit already use a smartphone or tablet to make a transaction, and we already see the impact of voice and instant messaging services on recipients. “We’ve been described as the “WhatsApp of Money” in the press, which is a nice comparison. Our customers are constantly connected by messaging, and now by money,” she said.

     

    Mobile App

     

    WorldRemit recently launched the global rollout of its new mobile App, enabling customers to send fast, secure and low-cost money transfers from their Android devices. The App makes it possible for people to send money to more than 110 countries across six continents. Transfers can be received as a bank deposit, cash pickup, Mobile Money or mobile airtime top-up, depending on the recipient’s country.

    WorldRemit has gained recognition as a leading player in the shift to mobile-based financial services.

    Founder and CEO of WorldRemit, Ismail Ahmed, said:  “When WorldRemit started sending money online it freed people from transfer agents.  Our mobile App means you can now step away from the computer and send anytime, anywhere.

    “This is part of a wider mobile revolution.  On the receiving end, the number of transfers going to Mobile Money services is growing while mobile airtime top-ups are also increasing.  The future of remittances and all financial services is clearly mobile.”

    WorldRemit predicts that the majority of its customers will use the service via mobile Apps in the near future. In the UK, mobile web traffic to worldremit.com has already overtaken that coming from desktop.

    The move to mobile for remittance senders is mirrored on the receiving end with a growing number of money transfers going to mobile devices.

    In Kenya, 82 per cent of WorldRemit transfers are received on M-Pesa Mobile Money, while 60 per cent of all transfers to Zimbabwe are sent to EcoCash Mobile Money. Overall, more than 50 per cent of all WorldRemit transfers to Africa are received as mobile money or airtime top-ups.

  • ‘Why FBNQuest was unveiled’

    The Managing Director, FBN Capital, Kayode Akinkugbe, has said the introduction of FBNQuest, the new brand identity of FBN Holdings Plc, is to enable the group convey a more unified company vision to customers and build lasting relationships.

    At the 2015 annual FBN Quest Investor Conference, in Lagos, he said the FBNQuest include FBN Merchant Bank Limited, FBN Capital Limited, FBN Securities Limited, FBN Capital Asset Management Limited, FBN Trustees Limited, FBN Funds Limited and FBN Capital Partners Limited. They will now operate under one brand identity.

    “The new brand identity does not alter the existing ownership and governance structures of all the companies within the group. FBNQuest, allows us to offer our broad range of services to our clients in a simplified way. It also conveys a more unified company ethos and vision that seeks to create value-driven connections with clients and build lasting relationships,” Akinkugbe said.

    He said the conference, with  Re-inventing the Nigerian Economy: Beyond the Rhetoric as its theme, was quite topical at this time, particularly with the wind of change sweeping across the country.

    “We want to explore what initiatives and policies are necessary to unlock the inherent potential in the Nigerian market. We want to do more with less and boost revenue whilst instilling fiscal discipline; where we have examples of successful reforms; and how we unlock private sector funding sources,” he said.

  • BDCs begin BVN validation on NIBSS’ portal

    Bureaux De Change (BDC) operators have begun the validation of their customers’ Bank Verification Numbers (BVNs) on a portal created by the Nigeria Interbank Settlement System (NIBSS).

    The BVN, which captures customers’ biometric data, such as fingerprints, provides unique identification number for the customers and protects their accounts from unauthorised access, identity theft and fraud.

    NIBSS Managing Director Ade Shonubi, who disclosed this said the firm developed the platform to enable BDCs comply with the Central Bank of Nigeria (CBN) directive that BDCs customers provide their BVN before buying foreign exchange.

    The CBN had ordered that, with effect from November 1, customers desiring to purchase forex through all channels must provide their BVN, which shall be validated by the CBN authorised forex dealer through the NIBSS  platform before the transactions are consummated.

    The regulator said any authorised forex dealer that fails to provide the required information in its returns or provides a wrong BVN would be penalised; this may include the termination of the forex dealership authorisation.

    The policy, Shonubi said, is in line with CBN’s drive to stabilise the forex market, stem the rampant cases of forex leakages and illicit money transfer from the country.

    He said NIBSS had deployed two services on the Web and phone that would make BVN verification for BDCs customers and others as easy as possible.

    Explaining the process for the exercise, he said in accessing the phone for the verification, the first step is for customers to dial *565*1#, enter the BVN code type, date of birth and click on send. While for the Web portal, the customer need to type: www.nibss-plc.com.ng, a space will show where to enter the BVN code, date of birth and send.

    Shonubi said customers are charged N10 for phone transaction and N20 for the web portal which the customer would be required to pay either with credit card or internet banking.

    According to him, the essence of the verification is to checkmate sharp practices among BDCs operators and customers. He, however, noted that once a customer carries out the verification either on phone or the Web portal, such customer does not need to verify again when dealing with the same BDC operator.

    Data obtained yesterday from the NIBSS which handled the project, showed that over 2.5 million customers have so far enrolled on the BVN network and had their numbers linked to their accounts.

     

  • ‘Why we rebranded Union Bank ’

    ‘Why we rebranded Union Bank ’

    The Managing Director/CEO of Union Bank Plc, Emeka Emuwa has said the lender is rebranding to reflect a new phase in its transformation and drive to attract a new base of customers.

    Speaking at the unveiling of the lender’s new brand identity in Lagos last week, he said the refreshed brand is in line with the bank’s strategic ambition to become a highly respected provider of quality financial services in the country.

    “Union Bank has been a trusted name for Nigerians for nearly a century and we will continue to leverage our heritage as we embrace a rapidly changing world,” Emuwa continued.

    Also speaking at the event, the bank’s Chairman, Udoma Udo Udoma, said, “I am very proud of the strides the bank has made during my time as Chairman and I commend the Board, Management and staff on their hard work over the years and I am sure the bank will continue succeed as it embarks on a new phase with a refreshed brand identity.”

    The highlight of the event was the unveiling of a massive replica of Union Bank’s iconic white stallion in its new form and Union Bank’s new logo. Speaking on the new identity, Head, Corporate Affairs & Corporate Communications, Ogochukwu Ekezie-Ekaidem, said:  “Union Bank is one of the longest standing financial institutions in Nigeria and our new identity pays homage to our past and carries with it our proposition for the future.

    “In developing the new identity, remaining true to our brand proposition of simplicity was foremost on our minds. Our iconic white stallion, which represents strength and passion, is now in motion, cantering forward with energy and dynamism.”

  • ANAN president kicks against naira devaluation

    ANAN president kicks against naira devaluation

    •Foreign reserves drop to $30.1b

    The Association of National Accountants of Nigeria (ANAN) President, Anthony Nzom, has advised the Federal Government not to further devalue the naira.

    He spoke against the backdrop of ongoing arguments on the fate of the naira. “We have to be careful about further devaluation of the naira, especially when people outside the country are encouraging us to do certain things,” he said.

    Nzom spoke after a forum with ANAN Walk Against Corruption for a Healthier Economy and Longevity as its theme. More than 2,000 members of the association participated at the forum.

    “Further devaluation of the naira in the interest of who? He asked rhetorically. He recalled that in the 1990s, the naira was exchanging at N80 to a dollar, saying today, the naira had been further devalued. He suggested that to fight corruption, no Nigerian should have a foreign account, adding that there should be no undergraduate studies abroad.

    On the Treasury Single Account (TSA), the ANAN president said those giving excuses about the TSA did not want to accept change. “Change is the only thing people do not accept. People want to see if government will soft-pedal. ‘These are people with hidden accounts here and there,’’ he said.

    According to him, the TSA does not stop agencies from paying salaries. “Let us see how, when and who the monies are going to. I support what the government is doing,’’ Nzom said. He said President Muhammadu Buhari could not alone fight corruption, adding that everybody should be involved.

    He also called for a reduction in food importation, saying Nigeria was blessed with various foods. He also spoke about elimination of tribal differences, adding that people could use such attitude to corner the financial resources of the nation.

    The ‘Health Walk’, he said, showed that the association was improving yearly. “We would carry that improvement to our places of work and build that strong team expected of accountants and resist any temptation. If we do this occasionally, we would have good health, ’’ Nzom said.

    Meanwhile, the foreign exchange reserves fell to $30.13 billion by October 27, down 0.84 per cent from a month ago, the Central Bank of Nigeria (CBN) data showed at the weekend.

    Foreign reserves were down 22.43 per cent year-on-year from $38.86 billion a year ago, the data showed. The fall in reserve resulted in the sale of dollars by the CBN to defend the naira, which has been hit by the plunge in oil prices.