The Nation Newspaper

Category: Money

  • Heritage promotes youth empowerment

    The Management of the National Youth Service Corps (NYSC) has praised Heritage Bank for its commitment to youth empowerment, especially in the area of promotion of entrepreneurial culture among youths in the country.

    Speaking during a courtesy visit by the NYSC top management team to the Heritage Bank headquarters in Lagos, the scheme’s Director General, Brigadier–General Johnson Bamidele Olawunmi said that youth empowerment is vital to the development of any country’s Gross Domestic Product (GDP).

    According to him, to tackle the rate of unemployment and enhance the economic growth of any country, the youth population segment must be encouraged and supported to develop entrepreneurial skills and self-reliance.

    This, he said, led to the establishment of the Skill Acquisition and Entrepreneur Development (SAED) by the Scheme as a way of channeling more concerted efforts to youth empowerment to achieve the desired results.

    Brigadier-General Olawunmi praised the bank’s management for recently offering employment to 30 ex-corps members in addition to granting of loan facilities to many others to start their businesses under its SME Loan Scheme.

    Managing Director of Heritage Bank, Mr. Ifie Sekibo praised the NYSC for having the foresight and humanitarian spirit to set up the Hope Alive Initiative.

    He said Heritage Bank’s gesture of supporting the scheme was informed by its belief that the future wellbeing of the country would be better guaranteed if all well meaning Nigerians and other stake-holders team up with the Federal Government to empower the youths to create wealth.

  • Review mobile money model, says Airtel’s CEO

    Review mobile money model, says Airtel’s CEO

    Managing Director of Airtel Nigeria, Segun Ogunsanya, has called for a review of the current mobile money model, saying a telco-led model will help expand retail banking, thereby driving financial inclusion in the unbanked segment.

    Currently, telecoms companies are not permitted to provide their own mobile money services as the current model approved by the financial regulator, Central Bank of Nigeria (CBN), empowers banks to provide mobile money services, while telecoms companies play only a supporting role.

    Ogunsanya, who spoke at the annual lecture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos,  said for the mobile money market to reach its full potential, it is important that restrictions on telcos’ activity in m-money are lifted.

    He said Agency/Agent Banking, as well as mobile money can help deepen penetration in retail banking in the country, adding that the mobile money sector is rather slow at this time because they are led by banks.

    “The overwhelming majority of the adult population is unbanked; however, mobile penetration is approximately 78 per cent. The market opportunity for mobile money is therefore vast. The number of mobile money transactions has increased at a rapid rate over the past three years – further adoption will be driven by increased awareness.”

    Ogunsanya also advised that for banks to expand their retail footprints, they must seek to develop simple products, push for transparency and ensure that their products and services are relevant to the target segment.

    Also speaking at the event, Chairman, Lafferty Group, UK and guest lecturer at the occasion, Michael Lafferty, said he is in support of retail banking becoming a profession,   pointing out that retail bankers should be required to act in the best interest of their clients at all times.

    “This means that retail bankers must be educated to a similar standard as accountants and lawyers, bound by a demanding ethical code and required to commit to continuing professional development,” he said.

    Hosted by the President/Chairman of Council, Otunba (Mrs.) Debola Osibogun, the lecture attracted various chieftains of the banking and finance industry, top public officials, foreign diplomats, academia, as well as top executives of the organised private sector.

    The CIBN annual lecture focuses on topical issues within the Nigerian economy and is aimed at highlighting key issues and ideas that would influence policy makers.

  • Sterling Bank to publish names of bad debtors

    Sterling Bank to publish names of bad debtors

    Sterling Bank has concluded plans to publish the names of individuals and institutions with non-performing loans on national newspapers, including social media if they fail to pay repay loans obtained from the bank.

    This is in line with a directive from the Central Bank of Nigeria (CBN) mandating banks to publish said names in at least three national daily newspapers.

    With non-performing loans in the industry totaling N390 billion in May 2015, the apex bank gave July 31 deadline for delinquent debtors to change the status of their accounts from non-performing to performing, failing which their names, including directors in the case of companies, will be made public.

    Sterling Bank admitted that some of its delinquent debtors had approached it after receiving formal notice for amicable settlement to avoid embarrassment. Part of the statement from the bank read thus: “Some delinquent debtors are making frantic efforts to repay their loans and avoid their names being published, while others are hopeful that the CBN will extend the deadline and are asking for more time to pay.

    “Our position on this remains that those who negotiate agreeable terms of repayment before the expiration of the deadline will not have their names published; while the names of other delinquent debtors will be published in compliance with the CBN’s directive”.

    The bank praised the CBN for alerting operators and the general public to the increasing volume of NPLs and for coming up with a solution to curb this potentially dangerous trend.

  • Mortgage Refinance Company eyes N440b bonds issuance

    Nigeria’s state-backed mortgage-refinance company plans to sell N440 billion ($2.2 billion) of bonds as it seeks to expand access to housing funds, its chief executive officer said.

    The Nigeria Mortgage Refinance Company will start with the sale of N10 billion of debt this week, the first step in a quarterly programme to raise N140 billion, Charles Inyangete, the chief executive officer, told Bloomberg.

    That’s “part of a bigger programme” over a five-year period, he said. The 15-year bond will be used to refinance existing mortgages that meet specified underwriting requirements and will be listed on the Financial Market Dealers Association trading platform, Inyangete said, declining to give further price information.

    Nigeria seeks to expand access to housing finance to help cut a deficit of 17 million houses. It needs investment of N3.5 trillion to build 780,000 housing units annually to help meet rising demand, according to Inyangete.

    NMRC, as the company is also known, is rated BBB+ by the Johannesburg-based Global Credit Rating Co., which provides debt evaluation and ratings across Africa, while its proposed bond, now in the process of price discovery, is rated AAA, as it’s backed by a Nigerian government guarantee, he said.

    While the NMRC has been able to provide a uniform underwriting standard for the country’s mortgage market, the absence of a foreclosure law is hampering quicker expansion, Inyangete said.

    “We see a need for a legal structure that is clear and simple for the creation of mortgages,” he said. The NMRC is taking a “state-based approach” as it tries to push for passage of proposed mortgage and foreclosure legislation. This includes creating mortgage boards for the respective states to simplify the process.

    The government-controlled mortgage company plans to sell shares to the public before the end of the year to dilute its ownership, according to the chief executive officer. “Our ideal scenario is to have every bank that is interested in providing mortgage financing to be part of it,” he said.

     

  • CBN approves Konga’s acquisition of Zinternet

    The Central Bank of Nigeria (CBN) has approved Konga’s acquisition of Zinternet Nigeria Limited (Zinternet) and its mobile money licence. The acquisition, which consolidates the apex bank’s cashless policy programme, entitles Konga to a 100 per cent ownership of the company’s assets.

    Zinternet is an innovative and inter-operable mobile banking and payment provider. Its payment solution, EzPayAfrica mobile payment service allows anyone with a mobile phone to send and receive money, electronically recharge their phone, pay bills & pay for good/services.

    Responding to news of the acquisition, Sim Shagaya, Konga CEO said: “We are excited to work with our banking partners to extend the reach of their services in driving the adoption of cashless payment solutions. As merchants ourselves, we know firsthand the frictions involved in processing transactions and we look forward to exploring how our banking partnerships could eliminate this friction not just for Konga, but also for SMEs around the country.”

    As a company, Konga.com has always been at the forefront of innovation, in a bid to attain its mission of being the engine of commerce and trade in Nigeria. In April 2014, Konga.com opened up its platform to SMEs and enabled them to sell alongside Konga through the Self-Fulfil model. Today, Konga is home to over 15,000 small businesses that trade on the Konga.com domain.

  • Paga achieves N154b transaction volume

    Paga, a payment company, has said it processed over 15 million transactions worth N154 billion since inception.

    Paga Founder and CEO, Tayo Oviosu said there is now significant rise in the adoption of its services and that the firm has over three million users using its agent and online/mobile payment channels to send and receive payments.

    The new milestone, he said, showed that the industry is making more progress than previously reported. “Looking forward, it is easier to see the role Paga and the rest of the industry will play in reducing the obvious issues around payments in Nigeria, boosting economic returns and promoting financial inclusion,” he said.

    Oviosu said less than eight months since announcing its last million user milestone, the firm reached two million users in November 2014.

    He traced the rapid growth to understanding the unique challenges faced by Nigerians looking for a simpler way to make payments.

    “For my team and I, the issues around payments are far reaching. It goes past being able to move money from point A to B. In the six years since Paga has been in operation, we have developed a relationship with our customers. We hear their stories and we know that every transaction that occurs on our platform is more than just money,” he said.

    “It’s someone trying to pay for something in a less stressful way. Whether it’s paying for a TV subscription; child’s school fees; a visa; people buying airtime to stay connected to the ones they love or a new business finally being able to accept payments from its customers. With every transaction there is some emotional connotation for the end user and our ability to relate to that and create solutions that make everyday life possible for Nigerians is the #1 reason people continue to choose Paga.”

    Founded in 2009, the company remains focused on building a payments ecosystem that can be leveraged by banks, businesses, and consumers. Paga’s agent network is at the core of that ecosystem. Paga now has over 8,300 agents in 35 states – the largest and most active network in Nigeria. The agents are located where people can comfortably go in to make payments within their community.

    Co-founder and Director of Business Development for Paga, Jay Alabraba said: “We believe strongly that accessibility still has a big role to play in the future of mobile payments and financial inclusion. With the unique challenges around connectivity in Nigeria, having a viable agent network remains key to ensuring that every Nigerian, irrespective of their location has access to finance. Our agent network is a key part of the Paga success story, and we currently have over 8,000 agents…and the numbers are growing every day”.

     

  • Delta Steel community accuses Receiver/Manager of neglect

    Delta Steel community accuses Receiver/Manager of neglect

    • Aribisala: its all digression

    The host community to the Delta Steel Company (DSC) Plc has said neglect of developmental projects that cater for community welfare prompted the Asset Management Corporation of Nigeria (AMCON) to change Receiver/Manager for the ailing steel company.

    The Ovie of Udu Kingdom, His Royal Majesty, E.B. O. Delekpe, alleged that the DSC Technical High School and DSC Camp Extension Hospital were neglected during the time that Chief Ajibola A. Aribisala (SAN) was the Receiver/Manager to DSC. This, he alleged, prompted AMCON to appoint Dr. Joseph Nwobike (SAN) acting for Premium Steel and Mines, a company owned by top businessman Sunil Vaswani, as the new Receiver/Manager.

    But when contacted by The Nation, Chief Aribisala said allegations of neglect against him by the community leaders are digression from more serious issues going on.

    He said he was appointed the Receiver/ Manager to DSC to prudently manage its assets, pay its debts, and not to serve the community. “I am not appointed to manage the host community. That is digression. That is diversion. The issue here is that I was appointed the receiver/manager by AMCON in 2011. And I have been acting. We went to court, took over the assets. It has not been easy for me because the company was owned by Indians.

    “The Indians used their assets to borrow money from banks and could not pay back. The banks sold the loans to AMCON. That was how I was appointed. I have no business with the host community,” Aribisala said.

    Continuing, he said “It is the AMCON MD that he petitioned for gross abuse of office. All the attack is not against AMCON, but against Mustapha Chike-Obi. I am not attacking AMCON. I am working for AMCON and will keep working for AMCON,” he said.

    On the schools, he said: “The school is one of the assets I need to sell to pay the debts. I am supposed to protect the assets of the company prudently, in order to realize the money that is being owed.

    I promised to give the host community concession for admission, but they have to pay school fees because no body will give service free”.

    Chief Aribisala said the alleged discharge of his appointment as Receiver/Manager of DSC is null and void, since Delta Steel Company, is by law a Public Liability Company and not a Limited Company. He maintained that he is the only one vested with the power to realize the charged assets of the company in receivership.

    But HRM Delekpe listed a hike in school fees from N25,000 per term to N40,000 and poor state of the hospital  as some of the issues the community holds against Chief Aribisala.

    Also, High Chief Steve Sokoh said he supports current step taken by AMCON to get the DSC up and running and urged the corporation to ensure that the demands of the community on developmental projects are met at all times.

    Likewise, Chief Samuelson Odibo said now is the time to salvage the company, and bring it to the global standard that will not only benefit the immediate community, but the entire country. He complained that preferences are not given to children of indigenes in the school.

    “The Udu Traditional Council (UTC) received the news on the appointment of new Receiver/Manager for Delta Steel Company with joy, and opens a better chapter in the management of DSC,” he said.

    Also, Principal, DSC Technical High School, Mrs. Mary Rose Ojukwu called for timely payment of teachers’ salaries. There were also calls on DSC managers to improve the condition of the hospital.

  • Group creates BVN registration awareness

    Group creates BVN registration awareness

    The Consumer Right Awareness Advancement and Advocacy (CRAAAI) has  urged Nigerians to go and register for their Bank Verification Numbers. Registration deadline is June 30.

    The Chairman of the CRAAAI, Mr. Moses Igbrude, who spoke  at a stakeholders’ forum on identity management in the economy, organised to enlighten Nigeria, said identity management is a broad administrative area that deals with identifying individuals in a particular system. He listed the system to include a country, a network, or an enterprise and controlling their access to resources within that system by associating, user rights and restrictions with the established identity.

    He added that the role of technology in modernising the banking sector has witnessed a paradigm shift from the traditional methods of banking to digital channels which involve enormous levels of electronic data capture (EDC) of customer’s information.

    “Everybody needs security; if people are identified before they commit any crime, the person will be identified easily. “

  • FCMB deepens CSR initiatives

    FCMB deepens CSR initiatives

    First City Monument Bank (FCMB) has continued to demonstrate its passion and commitment to the welfare of the physically challenged in line with its Corporate Social Responsibility (CSR) and Sustainability initiatives.

    The lender has sponsored Mr. Folawiyo Adisa, a para-badminton player, to participate at the first International Para-Badminton Championship organised by Houston Badminton Centre, USA last month.

    This marked the eight consecutive year the bank has been supporting the multiple Africa and world gold medalist in the sport.

    According to FCMB’s Group Head, Corporate Communications & CSR, Mrs. Uchenna Mojekwu, the bank’s support to Mr. Adisa stems from its belief that in every disability, there is ability.

    ‘’We acknowledge his exploits in the game of para-badminton over the years. As a bank driven by the culture of excellence, we will continue to encourage him and other physically challenged individuals to realise their dreams and bring more laurels to the country’’.

    ‘’FCMB has been a great pillar of support and motivation. The Bank’s support to me since 2008 has encouraged other physically challenged people to believe in themselves through the platform that badminton and other sports provide’’, Adisa said.

  • TEEP $100m scheme hosts entrepreneurs

    The Tony Elumelu Entrepreneurship Programme (TEEP), a $100 million Pan-African entrepreneurship initiative, will from July 10 to 12, hold a boot camp for 1,000 entrepreneurs.

    The participants, selected from over 20,000 applicants from all over Africa are expected to converge in Ota, Ogun State, at the largest ever gathering of emerging entrepreneurs on the continent.

    The boot camp, a milestone of the flagship programme of the Tony Elumelu Foundation (TEF), will see an interaction between established entrepreneurs from different sectors of industry, and the 1000 selectees of TEEP.

    TEEP Founder, Tony Elumelu, who has been vocal about entrepreneurship-led development and the push for a private sector-driven turnaround of Africa says:  “In empowering these emerging entrepreneurs, we are providing the capital, the networks, the training and support for them to drive economic and social transformation throughout Africa, providing solutions to its problems as well as securing their future and that of generations to come.”