The Nation Newspaper

Category: Money

  • No shaking over Nigeria’s exit from bond market, says DMO

    • ‘Bond market strong, reliable’

    THE Debt Management Office (DMO) has allayed fears that Nigeria’s delistment from the Global Bond Index by JP Morgan will harm the economy.

    Its Director-General, Dr. Abraham Nwankwo, said there was no cause for alarm.

    He said JP Morgan did not establish Nigeria’s bond market, but only recognised its effectiveness over the years.

    At a workshop for online publishers in Lagos last weekend, he said JP Morgan’s delisting did not mean the country’s bond market would die.

    “It was existing before JP Morgan observed and recognised it. The Nigerian bond market was built with indigenous Nigerian efforts. Over 99 per cent of investors in the market are local, Nigerian institutions and individuals,” he said.

    Nwankwo said JP Morgan was reacting to the collapse of oil prices, which is an external thing.

    “It is not reacting to any deficiency in the bond market itself.

    “So, the bond market remains strong, effective,” he said.

    He said Nigeria would work diligently to ensure that, in the next four years, it takes advantage of the shock caused by the collapse of oil prices to diversify the economy and set itself on a path of sustainable growth.

    “Nigeria’s economy does not depend on JP Morgan. We have explained to Nigerians that the JP Morgan is recognition of achievement of Nigeria in the bond market,” he said.

    ‘’Half the Nigerian bonds listed on JP Morgan’s emerging markets bond index (GBI-EM) were removed last month and the rest this month,’’ the United States’ bank said.

    The decision, which means investment funds tracking the index, will sell Nigerian bonds, adds to national borrowing costs from a sharp drop in oil revenues.

    JP Morgan based its decision on an illiquidity and currency restrictions in the financial market.

    In 2012, Nigeria became the second African country after South Africa to be listed in the index with a weight of 1.8 per cent. The estimated yield for Nigeria bonds on the index was quoted at 14.83 per cent as of September 25, marking the second highest yield after Brazil at 15.75 per cent, the bank said.

    Yields on the government bond spiked this month on the news of the index removal with the 10-year benchmark debt rising to as much as 16.68 percent, prompting the bond market regulator to widen spreads to calm volatility.

    The Central Bank of Nigeria (CBN), trying to stop the naira’s slide, has pegged its rate against the dollar, turning inter-bank trading into a one-way quote market whose lack of transparency has upset investors. JP Morgan said Nigeria would not be eligible for re-inclusion in the index for a minimum of 12 months.

     

  • Stanbic IBTC plans business leadership series

    Stanbic IBTC plans business leadership series

    The stage is set for the second edition of the Stanbic IBTC Business Leadership Series, an annual forum designed to help create deeper connections and build a new cadre of leadership among people and businesses in Nigeria. The event, with the theme Digitising Your Business for Sustainability, will hold in Lagos tomorrow.

    Speaking in Lagos, its Chief Executive Officer, Mrs. Sola David-Borha, said this year’s theme builds from insights from the maiden edition, which had the theme, ‘Leadership in The Digital and e-Commerce Age.’

    As Nigeria attempts to diversify her economy, especially by stimulating the growth of the small and medium enterprises sector, Mrs. David-Borha said there is every need to highlight the role of digital technology in economic development. Diversification of the economy has become imperative given the volatile commodities market among other reasons.

    With internationally acclaimed rocket scientist, motivational speaker and innovator, Siyabulela Xusa, and CEO and Founder of Interswitch Limited, Mr. Mitchel Elegbe, headlining the event, participants and the Nigerian business community will be availed strategic insights into today’s global digital economy and how to harness it for development of the Nigerian economy.

    Strategic indicators into opportunities from which SME operators, budding entrepreneurs and the Nigerian business community can gain valuable knowledge on how to successfully navigate today’s business landscape will be examined. The forum will also provide a platform for key thought leaders to discuss current economic issues.

    David-Borha said the initiative, reinforces Stanbic IBTC’s commitment to the attainment of Nigeria’s developmental aspirations, while also benefiting clients, businesses, professionals and the industry at large. “We will be looking at business leadership from various angles. Key focus will be given to leadership in the digital age and how e-Commerce is changing the face of business globally,” she added

    Participants, majorly Stanbic IBTC clients, are expected from both the public and private sectors, including experts, investors, regulators, captains of industry and the business community.

    Xusa, who won global acclaim for developing a cheaper and safer rocket fuel, is expected to engage stakeholders in discussions on how Africa can chart its own path and create prosperity for the continent. In an interview, he said, “I may not be able to predict what the future holds. But I am excited at how my engineering education will enable me to achieve my aspirations for Africa”. “My mother told me that even if a planet is named after you, you should always remain down-to-earth.”

    Mitchel Elegbe, often addressed as Mr. Cashless for his strident quest to modernise Nigeria’s payment system, will provide a scorecard on the journey to a cashless economy, while the story of Interswitch, which he has nurtured into a leading brand in Nigeria’s e-Commerce landscape, will further elucidate on the power of digital technology.

    His story was so compelling, the International Finance Corporation (IFC) wrote a book on him titled “Being the Change: Inspiring the Next Generation of Inclusive Business Entrepreneurs Impacting the Base of the Pyramid,” highlighting his accomplishments as an innovator and strategist.

  • How Nigeria, Kenya are tackling currency instability

    The threat of recession in Nigeria and weaker growth in Kenya may have prompted both countries’ policy makers to keep interest rates unchanged despite pressure on their currencies.

    The Central Bank of Nigeria (CBN) kept its policy rate at a record 13 per cent last month; its Kenyan counterpart left its benchmark rate at 11.5 per cent, matching the forecasts of most economists surveyed by Bloomberg.

    Nigeria and Kenya are among the African nations that have tightened their monetary policies since last year to bolster their currencies, bucking a global trend of lower interest rates. A plunge in commodity prices and weaker global demand, particularly from China, is putting the brakes on Africa’s growth, giving policy makers reason to pause.

    Kenya’s rate decision “has the impact of stabilising the market and does not curtail expansion of the economy because banks will not punish borrowers,” Fred Moturi, head of Fixed Income Trading at Sterling Capital Ltd., told Bloomberg. “It also shows that the need for growth won over the need to stabilise the currency.”

    Kenya’s shilling has weakened 14 per cent against the dollar, prompting the CBN to raise borrowing costs by 300 basis points since June. Economic growth has come under pressure, following a collapse in tourism and lower tea output, the nation’s biggest foreign-currency earners.

    CBN Governor Godwin Emefiele turned to foreign-exchange controls this year to stabilise the naira after the currency fell by almost 10 per cent against the dollar in the first two months of the year. The economy of Africa’s biggest oil producer is struggling after crude prices more than halved since June last year.

    Emefiele said the economy may recede next year if “proactive steps” aren’t taken to support key industries. TheGross Domestic Product (GDP) rose at the slowest pace in at least five years in the second quarter, expanding 2.4 per cent from a year earlier.

    The governor’s signalling of a recession is “a clear indication that the growth story has got to be a big focus going forward,” Manji Cheto, vice president of Teneo Intelligence in London, said.

    Emefiele has resisted pressure to devalue the naira, a policy stance that has undermined confidence in the Central Bank and may add to growth concerns as foreign-currency restrictions curb liquidity.

    “The strategy seems to be to keep controls in place until demand adjusts to meet available foreign-exchange supply,” Razia Khan, head of Africa economic research at Standard Chartered Plc in London, said in an e-mailed note to clients.

    “This is a contractionary growth stance. Demand for foreign exchange will only fall to the extent that the economy slows sufficiently.”

    The CBN kept borrowing costs unchanged even as inflation accelerated to 9.3 per cent in August, exceeding the Central bank’s six per cent to nine per cent target band for a third month. In Kenya, inflation eased to 5.8 per cent in August, bringing it closer to the middle of the central bank’s goal of 2.5 per cent to 7.5 per cent.

     

  • 10 students get N1.2m reward

    Diamond Bank Plc has re-ward to undergraduates with N1.2 million for operating customised savings accounts.

    The accounts, the bank said, exposed students to the huge benefits that savings and financial prudence offer in competitive adult life.

    The winners emerged through an online electronic draw, which was conducted among students and Youth Corps members who have Student-With-A-Goal (SWAG) accounts with the bank since the campaign for PocketMoney4AYear kicked off.

    The draws were witnessed by journalists, students and selected Youth Corps members serving in Lagos State.

    Each winner will receive N10,000  PocketMoney4AYear monthly which could be drawn at any Diamond Bank branch.

    The SWAG proposition is a customised bank account that fits into and enhances the lifestyle needs, culture of learning and freedom of the student and youth corps member that has a goal for the future.

    Product Manager, Diamond S.W.A.G, Chinenye Nwosu, said the initiative is designed to ensure that all account holders have a guaranteed sum deposited in their accounts every month, stressing that PocketMoney4AYear is a lifestyle- based savings account targeted at students of tertiary institutions and corps members under the Diamond S.W.A.G proposition.

    However, where this is not practicable, customers shall be duly informed by the deployer while the helpdesk contacts are adequately displayed at the ATM terminals.

    He said at the minimum, a telephone line should be dedicated for fault reporting and such telephone line shall be functional and manned at all times that the ATM is operational.

     

  • AXA Mansard confab holds October 14

    AXA Mansard Health Limited will on Wednesday, October 14 host human resource leaders’ conference.

    The event, with the theme: “Sustaining employees motivation through Integrated benefit planning” would identify and integrate concepts that would promote employee wellbeing in the country.

    The Chief Executive Officer (CEO)/Registrar, Chartered Institute of Personnel Management (CIPM), Sunday Adeyemi, would deliver the keynote address at the event where over 200 Head of HRs of large institutions were being expected.

    Chairman, AXA Mansard Health, Olusola Adeeyo,  noted that the conference demonstrates the commitment of the company to the good of human capital development in Nigeria and is positioned to stimulate a more dedicated, committed, patriotic and highly productive workforce for the nation.

    He said the various plenary sessions of the conference has been designed to assist and equip HR leaders with strategies and tools that can help deal with employees assistance programs.

    “The conference will broaden participant horizon on how best to go about the reinforcement of culture and corporate governance in their various organisations at large and also build a stronger and high performance  workforce for their organisations,” he added.

     

  • Lending rate falls on N197b CBN’s T-Bills refund

    Lending rate falls on N197b CBN’s T-Bills refund

    The overnight lending rates dropped from six to three per cent on Friday, the lowest in three months after the Central Bank of Nigeria (CBN) refunded N197 billion on sale of matured Treasury Bills.

    Banking system credit opened at N189 billion naira at the weekend before the inflow hit the system, lifting the sector’s total cash balance with the CBN to N386 billion. The apex bank did not issue fresh bills to mop up funds in a bid to keep borrowing costs low, traders said.

    Traders expected another N300 billion coming into the financial system after the apex bank cut Cash Reserve Ratio (CRR) to 25 per cent from 31 per cent last week.

    Also, the the secured open buy back (OBB), the rate at which lenders can borrow from the interbank market using treasury bills as collateral, fell to three per cent on Friday, 10 percentage points below the central bank’s benchmark interest rate of 13 per cent.

    Liquidity had dried up on the interbank market two weeks ago after authorities ordered banks to move government deposits into a single account at the central bank, part of an anti-graft drive. Some of the new funds were filtering into bonds. “Treasury bill yields are lower than bonds at the short-end hence locals are piling into bonds,” one trader at a commercial bank told Reuters.

    Domestic pension fund managers have been buying short-term bonds at higher yields as foreign buyers left the market after JP Morgan moved to evict Nigeria from a key emerging markets index. A CBN official had said midweek that the banking system had enough liquidity to take up what foreign investors might sell after JP Morgan removed Nigeria from its bond index.

    Yields on the benchmark 10-year bond, one of those to be delisted from the influential index, rose to 15.12 per cent, from 14.74 per cent last week. The most liquid three-year bond traded at 14.76 per cent while the one-year treasury bill was quoted at 13.84 per cent on Friday.

    The Debt Management Office (DMO)  said it will re-introduce the benchmark 10-year bond in its fourth quarter debt sale, after not issuing them in the previous quarter.

     

  • Heritage Bank to increase SMEs funding to N100b

    Heritage Bank has said it is targeting increasing loans to Small and Medium Enterprises (SMEs) from N23.5 billion to N100 billion by the end of next year.

    The bank’s Head of SME Product, Concept, Ideas and Development, Ekene Maduake made this known in Lagos at a yearly conference on SMEs in Lagos.

    Speaking on Heritage Bank’s  perspective on the theme of the conference, ‘Banks and SMEs in Nigeria: Prospects, challenges and success stories,” Ekene said the lender has supported SMEs to the tune of N23.5 billion within the  two and a half year of its existence.

    He said: “By the end of the 2016 financial year, we intend to grow this volume to about a N100 billion. We have already started working towards achieving this goal.”

    He said based on the understanding that SMEs are the engine of growth in any economy, the lender has supported various sectors in the SME space, especially those that have the potential of creating more jobs in the system.

    “We have supported SMEs operators in the area of bottled water production, printing companies, beverages, those in the agricultural sector and other operators in the SME space,” he said.

    However, in the process of engagement with the sector, it discovered certain challenges faced by operators. “One of such challenge is that an average SMEs operator in Nigeria do not have a streamlined book keeping and accounting records. As a result of this, it is difficult to get reliable records to base judgment on the true worth of their businesses.    In most cases, we are constrained to rely on the customers’ banking activities. What the bank is specifically doing to get them improve on this, is to render advisory services to them,” he said.

    According to him, the bank interacts with SMEs on day to day basis, and on monthly basis. “We organise advisory workshops where we take them through the rudiments of running businesses better, for the ultimate benefit of the economy,” he added.

    He explained that one of the areas the bank has helped SME operators, is how to differentiate between a company’s business operational cash flow and that of personal cash flow.

    “We do this to enhance shared value, because as their businesses get better, we also get better as a bank. It is also another way of reaching the unbanked,” he stated.

    The bank came into being in March 2013 as a result of the acquisition of banking license of defunct Societe Generale Bank.   Again, most recently, Heritage Bank acquired another defunct bank, Enterprise Bank.  This has made the bank bigger and better today.  At Heritage Bank, “we are committed to delivering distinctive financial services, building on innovation and partnership to create reserve and transfer wealth across generations.

    “With service at the centre of delivery, the bank applies superior market knowledge, operational excellence and the culture of integrity, he added.

  • GTBank gets corporate governance recognition

    Guaranty Trust Bank Plc has been recognised for good corporate governance during this year’s African Business Awards held on the sidelines of the United Nations General Assembly in New York.

    Launched in 2008 by African Business magazine, the African Business Awards has become the deûnitive business awards in Africa, recognizing leadership and excellence on the continent.

    The objective of the Awards is to highlight a successful and vibrant Africa that is open to local, regional and global business ventures. Now in its seventh year, the African Business Awards has grown into a platform that celebrates excellence in African business by recognising the individuals and companies that are driving Africa’s rapidly transforming economy and creating new economic opportunities for citizens and communities all over the continent.

    According to Omar Ben Yedder, Publisher & Managing Director of IC Publications: “We are proud of all our winners, their work and accomplishments in various sectors show what can be achieved on the African continent with hard work and single minded determination. In winning this year’s award, GTBank stands out in Africa and the rest of the world as a benchmark for good corporate governance, business ethics and adherence to international best practices.”

    On the award, Managing Director/CEO of GTBank, Segun Agbaje, said: “We operate in challenging business environments, but we believe that our stakeholders should be better off for partnering with us. Thus, we set high goals and benchmark ourselves against global standards which influence our service culture and product offerings, thereby enabling us to remain relevant to our customers while adding value to all stakeholders. For us, winning this award is an attestation of the hard work and dedication of our staff, management and Board towards conducting business in a manner that typifies our adherence to global best practices. It also is an indication that our business model, systems and management are recognised globally as a benchmark for good corporate governance.”

    He further stated: “Earlier this year, we became the first financial institution in Nigeria to obtain and fully implement the triple International Organisation for Standardisation certification by the British Standard Institute (BSI) as required by the Central Bank of Nigeria. As a bank, we will continue to ensure conformity of our processes with international best practices and global standards.

  • Keystone Bank deepens CSR drive

    Keystone Bank has charged professional drivers to pay attention to their health as a strategy to prevent road traffic accidents.

    Managing Director/CEO, Keystone Bank, Philip Ikeazor, who made the call in Lagos, said when the drivers are in good health, it would reduce the incidence of highway accidents.

    Ikeazor, who was represented by Mr. Hafiz Bakare, Executive Director, Corporate Bank and Treasury, spoke at the Health and Eye Screening project organised by Keystone Bank in partnership with the Federal Road Safety Corps (FRSC), Public Health Partners (PHP) and the Eye Foundation Hospital.

    The Keystone Bank health and eye screening initiative tagged Think Road Safety, Save Lives, is in line with the FRSC projection to reduce road traffic accidents by 50 percent by the end of this year.

    Similarly, it aligns with the United Nations General Assembly resolution of 2010 calling for a Decade of Action for Road Safety from 2011 to 2020.

    The health screening for long distant drivers held at the Ekesons Motor Park in Jibowu, Yaba and the Ojota New Garage Park, on Wednesday and Thursday last week.

    Hundreds of drivers from several motor firms operating in several motor parks participated in the screening exercise and majority whose vision were found to be deficient got free medicated eye glasses for improved vision apart from being counseled on healthy living.

    In an address titled, Health in the Driver’s Seat, Mr. Hafiz Bakare said the Keystone Bank’s Think Road Safety, Save Lives project is one of the Bank’s CSR initiatives. He said it is driven by the need to identify with and support the transport sector because “we believe that this would improve safety on our roads thereby saving lives.”

    According to him, the scope of the exercise is for interstate commercial transport drivers to check for diabetes, hypertension and cholesterol and to ascertain their blood group and the state of their eyes, while the Eye Foundation personnel conducted tests for glaucoma, visual and automated refraction.

    He Further stated that for “The bank, giving back to the community is well entrenched in the way we do business, which has led us to develop four cardinal pillars that guide our engagement with the different communities that impact our business as a financial institution, directly or otherwise. The four pillars are Health, Education, Women and Youth Development, and Staff Volunteering Scheme.”

    Dr. Ubiame Omas, Public Health Partner Limited, advised the drivers to avoid driving whenever they consume alcoholic drinks.

    Chief Route Commander of the FRSC, Uche Ugbebor, said coinciding with the ‘Ember’ months, the Keystone Bank’s health and eye screening is timely because it would contribute to the larger effort to reduce accidents on the road during the months heralding Christmas period.

  • Sterling Bank reiterates commitment to customers

    Sterling Bank has reiterated its commitment to meeting the needs of its customers through quality product offering and services.

    He said the yearly Customer Service Week, which started this week,  provides the right platform for the lender to achieve this.

    The bank’s Group Head, Strategy & Communications, Shina Atilola, announced plans to celebrate the customers of the bank who have remained loyal to the brand over the years.

    He said the customer service week is a global event which celebrates and recognises the loyalty of every organisation’s customers as well as staff who render excellent service. The week is planned to boost staff morale and encourage team work, while rewarding customers.

    This theme for the celebration this year is “Every day Heroes”. This according to Atilola was chosen to further reinforce this assertion by celebrating both customers and staff in a unique way.

    In Nigeria, numerous companies and organisations participate by giving back to their customers every day of the week. This reminds customers of the organisations’ commitment to customer satisfaction.

    As part of the plans, the bank has introduced what it called the Sterling Heroes. Campaign aimed at appreciating the uniqueness of its customers and celebrating the stories. Similarly, a “Sterling Cares” Campaign in partnership with Genesis Deluxe Cinemas who provided members of the public free movie tickets was kicked off on Independence Day in Lagos, Port Harcourt and Enugu.

    “This Heroes campaign would entail Staff nominating customers who have inspiring stories and deserve to be celebrated. The top 10 customers as voted by staff would be celebrated every day of the Customer Service Week and awarded gifts. Other walk-in customers of the Bank will also enjoy special treats at the Bank’s branches during the Customer Service Week,” he said.