Category: Money

The Centre for Social Justice (CSJ), a Nigerian knowledge Institution and leading advocate for fiscal transparency and accountability, has asked the Minister of Finance, Budget and National Planning, through the Budget Office of the Federation, to release the third quarter, fourth quarter and consolidated budget implementation reports of the last year’s budget.

The group also wants the  first quarter implementation report of the 2023 budget released, in strict adherence to Section 30 (1) and (2) of the Fiscal Responsibility Act, 2007.

In a report, CSJ Lead Director, Eze Onyekpere, said Section 30 (1) of the Fiscal Responsibility Act, requires the Minister of Finance, through the Budget Office of the Federation, to monitor and evaluate the implementation of the yearly budget.

This includes the crucial task of assessing the attainment of fiscal targets and providing comprehensive quarterly reports to both the Fiscal Responsibility Commission and the Joint Finance Committee of the National Assembly.

“Furthermore, Section 30 (2) mandates that the Minister of Finance ensures that the prepared reports, as per subsection (1), are published in mass media, electronic platforms, and on the official Ministry of Finance website no later than 30 days after the end of each quarter,” he said.

At present, Onyekpere said, only the first and second quarter implementation reports of the 2022 budget are accessible on the website of the Budget Office of the Federation.

This lack of transparency raises concerns about the government’s commitment to upholding fiscal responsibility and inhibits public scrutiny of budget implementation.

The CSJ emphasised that the release of these implementation reports is not merely a legal obligation but an essential step towards ensuring accountability and transparency in public finance management. Access to timely and comprehensive information allows citizens, civil society organisations, and other stakeholders to assess the government’s performance, hold it accountable, and contribute to the overall improvement of fiscal policies and practices.

“It will be most inappropriate, illegal and a big dereliction of duty for the Minister of Finance to leave office on May 29, 2023 without performing fundamental statutory duties while drawing down all her salaries, allowances, emoluments and perks of office,” Onyekpere said.

CSJ urges the Minister of Finance and the Budget Office of the Federation to fulfill its duty by releasing these overdue budget implementation reports of the 2022 budget, as well as the first quarter implementation report of the 2023 budget, in adherence to the stipulations outlined in the Fiscal Responsibility Act. We call upon the government to prioritise transparency and accountability in public finance management, as these principles are fundamental to fostering trust, promoting good governance, and achieving sustainable development.

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings PLC, on the approval of the Central Bank of Nigeria, (CBN) has become one of the banks processing specialised mortgage loans for pension contributors.

  The bank announced that its clients were among the first batch released by the National Pension Commission (PenCom), and that it has disbursed the mortgages.

Having commenced the validation  for RSA holders that had shown interest in home loans, Stanbic IBTC was excited to have made the first pay out to Mr. Kunle Oyetola and helped him achieve his dream of becoming a property owner in a short time.

This achievement confirmed the bank’s emphasis on enhancing the quality of life for Nigerians and aiding contributors in receiving greater value from their contributions prior to retirement.

Recall that PenCom had recently released the guidelines that allows contributors use up to 25 per cent of their contributions as equity to buy a home in their preferred location.

Chief Executive, Stanbic IBTC Holdings, Dr. Demola Sogunle, said: “Our efforts to ease the housing problem for individuals and families in Nigeria has just begun with this initial step. Housing is an essential human necessity, and our prompt action in taking advantage of the opportunity created by PenCom to close the accessibility gap demonstrates our dedication to providing value to Nigerians.

“Recognising that purchasing a house is a substantial investment for our customers, this programme is customised to address each client’s distinct financial requirements and assists them in promptly realising their aspirations of owning a home.

Sogunle added: “As one of the pioneer disbursers of this specialised mortgage solution, we are confident that we will provide the best possible value to our esteemed customers. The mortgage scheme is equipped with several characteristics, such as customisable terms, competitive interest rates, low financial entry barriers, and flexible repayment options. We also have a group of experienced mortgage specialists dedicated to guiding our clients through the process seamlessly and efficiently.”

Mr. Kunle Oyetola, the pioneer recipient of the equity contribution for a residential mortgage processed through Stanbic IBTC Bank, expressed his enthusiasm and gratitude to Stanbic IBTC Bank. He stated, “I was very excited to learn about the release of the guidelines by PenCom for accessing a portion of my pension for property equity. I quickly got in touch with Stanbic IBTC, and their team was very helpful and put me through the processes required. I was very impressed by the professionalism and industry knowledge displayed by their Personal Wealth team and their Home Loans team. They put me at ease and were able to work with me to overcome all the obstacles encountered being the first time this method was utilised. I am very happy to have my equity via my Retirement Savings Account (RSA) disbursed and I am glad I chose to go with Stanbic IBTC Bank.”

Stanbic IBTC has proven to be a Trusted Partner and through this scheme it has reiterated its commitment to providing affordable loan solutions to cater to housing requirements.

For more enquiries on this offer, please click here or visit www.stanbicibtcbank.com to get started.

Ecobank Kenya, part of Ecobank Group, has announced the launch of the Fingo Africa app, which is set to revolutionise financial inclusion for young people in Kenya and across Africa.

The app was developed in  collaboration between Fingo Africa, a Kenyan Fintech company and Ecobank. The launch of the app in Kenya will be followed by a roll out across Ecobank’s pan-African footprint.  

Chief Executive Officer, Ecobank Group, Jeremy Awori, said the deployment of the Fingo App was a game-changer in digital finance in Africa as it would bring many young people into the mainstream financial sector and caters to their needs and preferences.

According to him, by simplifying access to finance, the new app overcomes the entrenched issues that have often acted as barriers to entry for young Africans.

Chief Executive Officer and co-founder, Fingo Africa, Kiiru Muhoya, said it was a delight that its Fingo Africa app will accelerate financial inclusion for Kenya’s youth and empower them just by using their mobile phones.

“We are looking forward to rolling-out the app’s availability throughout Ecobank’s 33-country footprint, which will deliver on our vision of empowering Africa’s youth to create wealth in a way that is simple, fun and educative,” Muhoya said.

Managing Director, Ecobank Kenya and Regional Executive, Central, Eastern and Southern Africa, Ecobank Group, Josephine Anan-Ankomah, noted that the youth are a key pillar for any business and are an invaluable segment for Ecobank as the average age in Africa is 19 and it is forecast that by 2030 young Africans will be 42 per cent of global youth.

“As a bank, it is crucial that we provide products that have appeal and are user friendly to the young population who have an immense appetite for digital engagement. The Fingo Africa Appseeks to do exactly that, as we seek to deepen financial inclusivity among the youth in Kenya and beyond,” Anan-Ankomah said.

The Fingo Africa app is available in Kenya, prior to a wider roll-out across Ecobank’s entire 33-country sub-Saharan African footprint.

Accessing financial services can be a major challenge for young people in Africa today. Opening a bank account can be a lengthy process taking anywhere from two days to two weeks in some countries. Moreover, it may require multiple face-to-face interactions and the submission of physical paper documents. Often, consumers also face a steep fee when sending money to friends, loved ones, or businesses, in addition to other charges just to keep their account active.

The Fingo Africa app empowers Africa’s youth by enabling them to open a bank account via their mobile phone in less than four minutes, send money to other Fingo users for free and to M-Pesa users and paybills via Paybills and Till numbers at subsidised rates. Users therefore get instantly rewarded whenever they use the App for their day-to-day transactions. Opening the Fingo digital account is free, safe and easy. It attracts no minimum balance and no monthly fees.

Users of the Fingo Africa app can open a fully-fledged current account within four minutes as long as they have the relevant documents, a valid identity card or passport; send money to fellow Fingo users for free and to M-Pesa at a subsidised rates, pay their bills from the App, make utility payments and buy airtime, save money easily for set goals and set recurring transfers to the set goals to create a frictionless savings habit, easily create and send payment links with full payment details to ease receiving payments from those who owe you, receive funds using QR Code and earn a cash reward by completing a few simple actions after self-onboarding.

Fresh graduates serving under the National Youth Service Scheme ( NYSC) across 12 states have commended Polaris Bank for enhancing their digital literacy skills and preparing them for the emerging opportunities in Nigeria’s digital economy.

Polaris Bank, in partnership with the NYSC and NerdzFactory, had last November commenced a high-impact capacity-building workshop on digital skills targeted at 5,000 NYSC members across 12 states.

The six-month training programme aims to equip fresh graduates with the necessary skills to thrive.

Providing a progress report on the initiative, Polaris Bank’s Group Head, Strategic Brand Management, Nduneche Ezurike said that the programme aims to equip young Nigerians with relevant work-ready digital skills on innovation, creativity and digital skills, as well as develop their business acumen.

He further noted: “The bank understands the importance of digital literacy in the job market. That’s why we are committed to helping fresh graduates improve their skills through our training program. We believe that by doing so, we are helping them succeed in their careers and contributing to the growth and development of the national economy as a whole.”

Commending the programme, Halimah Usman noted: “I am grateful to the bank for providing me with the opportunity to improve my digital skills through their training programme. The skills I have acquired will help me secure a job in the digital marketing industry, and I am confident that with these skills, I will be able to succeed in my career.”

Eze Obioma, another Corps member participating in the training, said: “The bank’s training programme is a step in the right direction, and it is hoped that other organisations will follow suit in helping fresh graduates develop the digital skills they need to succeed in their careers.”

Another participant, Ajayi Adeyemi, added: “The trainers were very supportive, and they made the training programme very engaging. I enjoyed every bit of it and learned a lot of valuable skills that will help me in my future career.”

The high-impact training, which is running across two quarters, comprises courses such as; basic digital literacy; cyber security; data science; product design; software development (back end); product management; blockchain technology; mobile app development; 3D and virtual reality; and software development (front end).

Polaris Bank has recently earned accolades as a leading financial brand in innovation and digitization. The Bank was adjudged Digital Bank of the Year in 2021 and 2022 in BusinessDay’s Banks And Other Financial Institutions Award (BAFI). It also emerged as the best MSME Bank because of its ability to use technology to enable bottom-up support to the MSME sector.

Taking financial services closer to the grassroots comes with challenges and at heavy costs that make the move unattractive to investors. Although there are challenges making it difficult for stakeholders to bring financial services closer to the people, the activation of Payment Service Banks (PSBs) has further expanded access to financial services to grassroots population, writes Assistant Business Editor COLLINS NWEZE.

The easiest route to grassroots empowerment and poverty reduction is improved access to financial services especially at the informal sector dominated by grassroots savers.

The Central Bank of Nigeria (CBN) is taking major steps to ensure that  95 per cent of adult population have access to financial services from 63 per cent record at present.

The introduction of Payment Service Banks (PSBs) and their inclusion in channels for financial access to the grassroots has quickened the country’s journey to broader financial services.

According to the apex bank, the  PSB is a corporation that is permitted to use technology and agency banking to mobilise deposits and facilitate transfers from unbanked consumers in rural regions and any other location in Nigeria where they exist.

The MTN Nigeria received CBN’s final approval to conduct business as Momo Payment Service Bank Limited (Momo PSB). There is also the Moneymaster PSB, a Glo company, 9PSB, a 9mobile subsidiary, and Hope PSBank, among others.

However, to strengthen the PSBs, the CBN recently approved the sale of foreign currencies realised from inbound cross-border personal remittances to authorised foreign exchange dealers using the PSBs.

The supervisory framework for the sector authorised  PSBs to accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme; carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria.

The framework says the operators are expected to leverage on technology to provide services that would be easily accessed by the unbanked population and those who are in hard-to- reach areas of the country. 

The framework focuses on corporate governance, risks management of the PSBs, and safety of funds to the consumers of the Payment Service Banks’ products. 

This Framework also aims to ensure that sound risk management practices are embedded in the operations of the PSBs. 

The PSBs are also required to comply with relevant extant regulations and CBN’s prudential guidelines and circulars which are issued periodically. The CBN said PSBs are to operate mostly in the rural areas and unbanked locations targeting financially excluded persons, with not less than 25 per cent financial service touch points in such rural areas as defined by the CBN from time to time.

They are to  enter into direct partnership with card scheme operators. Such cards shall not be eligible for foreign currency transactions; they can also deploy ATMs in some of these areas; deploy Point of Sale devices and be at liberty to operate through banking agents.

The PSBs have also been authorised to roll out agent networks with the prior approval of the CBN; use other channels including electronic platforms to reach-out to its customers and establish coordinating centres in clusters of outlets to superintend and control the activities of the various financial service touch points and banking agents. 

The CBN also authorised the PSBs to accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme; carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria; sale of foreign currencies realised from inbound cross-border personal remittances to authorised foreign exchange dealers.

The CBN said the PSBs cam also issue debit and pre-paid cards on its name; operate electronic wallet; render financial advisory services; and invest in Federal Government of Nigeria  and CBN securities.

CBN said the PSBs were licensed to enhance access to financial services for low income earners and use technology to reach Nigerians in remote places where commercial banks find it difficult to operate.

According to the CBN guidelines, the PSBs are to offer smaller-scale banking operations and the absence of credit risk and foreign exchange operations.

In addition to operating current and savings accounts they can also offer payments and remittance services, issue debit and prepaid cards, deploy Automated Teller Machines (ATMs) and other technology-enabled banking services to the people, majority of whom cannot be reached by the conventional banks.

The PSBs are to facilitate high volume low-value transactions in remittance services, micro-savings and withdrawal services in a secured technology-driven environment to further deepen financial inclusion.

With N5 billion minimum capital requirement, the apex bank also authorised PSBs to sell foreign currencies (forex) realised from inbound cross-border personal (remittances) to licenced foreign exchange dealers.

The Enhancing Financial Innovation and Access (EFInA) says the impact of having more people save their funds in banks or other financial services or have more access to credit on the population and businesses, especially at the informal sector cannot be overemphasised.

For instance, Nigeria’s informal sector is a sleeping giant. The potential of the sector, estimated at $240 billion, is largely untapped. The billions of naira that circulate through the informal sector has a negative impact on the country’s economic growth and development.

The EFInA, a financial sector development organisation that promotes financial inclusion in Nigeria survey, indicate that 23 million adults save at home.

If 50 per cent of these people were to save N1,000 monthly with a bank, then up to N138 billion could be incorporated into the formal financial sector yearly.

Also, 34.9 million adults representing 39.7 per cent of the adult population were financially excluded. Only 28.6 million adults were banked, representing 32.5 per cent of the adult population.

The CBN through its National Financial Inclusion Strategy (NFIS) plans to ensure that 95 percent of Nigerian adults are included in the financial net by the year 2025.

The data by EFInA put Nigeria’s financial inclusion rate at 63.2 percent, meaning that as much 36.8 percent or about 40 million adults still lack access to financial services.

Unlike the formal economy, the informal economy has grown faster in size at an annual average rate of about 8.5 per cent between 2015 and 2019.

This growth seen in the informal sector and an increase in employment it provides implies higher household income and lower poverty. This underground economy is particularly large in Nigeria, with the International Monetary Fund (IMF) estimating it to constitute about 60 per cent of the entire Nigerian economy, representing about $240 billion.