The Nation Newspaper

Category: Money

  • Fed Govt revenues fall by 38% to N560.84b

    Fed Govt revenues fall by 38% to N560.84b

    Federal Government revenue dropped by 38.1 per cent to N560.84 billion in February, a Central Bank of Nigeria (CBN) economic report for the month released yesterday said.

    The figure, the apex bank said, also showed a decline of 21.1 per cent below the receipts in the corresponding period of last year.

    It said at N359.73 billion, oil receipts (gross), which constituted 64.1 per cent of the total revenue, were lower than the receipts in the preceding month and the corresponding period of 2014, by 39.8 and 26 per cent.

    The fall in oil receipts relative to the level in the preceding month, it said, was attributed to the decline in revenue from crude oil and gas exports, occasioned by the drop in the price of crude oil in the international market.

    “Non-oil receipts (gross), at N201.12 billion or 35.9 per cent of the total, was 35.0 and 10.4 per cent lower than the receipts in the preceding month and the corresponding month of 2014, respectively.  The development reflected, largely, the fall in receipts from National Information Technology Development Fund (NITDEF) and independent revenue of the Federal Government. Federal Government estimated retained revenue in February 2015 was N224.89 billion, while total estimated expenditure was N363.68 billion. Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N138.79 billion,” it said.

    It said the dominant agricultural activities in February, this year included: harvesting of tree crops, irrigation-fed vegetable and cereal production as well as clearing of land for the 2015 cropping season.

    Crude oil production, including condensates and natural gas liquids last February, was estimated at 1.90 million barrels per day (mbd) or 53.2 million barrels for the month.

  • Fidelity Bank to give out N700m cash prizes to customers

    Fidelity Bank to give out N700m cash prizes to customers

    Fidelity Bank Plc yesterday said it would in the next one year, give out N700 million cash prizes to its customers across the country, its Executive Director, Lagos & Southwest, IK Mbagwu, has said.

    He disclosed this during the presentation of N17.8 million cash prize to winners in the lender’s ongoing loyalty reward scheme.

    “We are presenting the first reward for our Savings Royalty Scheme with Sweeta and Fidelity Personal Savings Scheme (FPSS) of which N700 million will be won annually. We have regulatory approval for the exercise,” he said.

    He said the bank is trying to encourage savings culture which is one of the financial inclusion policy of the Central Bank of Nigeria (CBN).

    “We are ensuring the savings culture is promoted amongst Nigerians. It is not that the bank has so much money to throw around, but we want to encourage people to continue to save. Besides, we equally make money from the money they save with us. As we make money, we also give out to the society that is banking with us. So, that’s why we are doing this. It is open to both new and old customers but you must save with Fidelity Bank for you to qualify,” he said.

    Mbagwu also said of the total value is N700 million to be won yearly, yesterday’s reward scheme  was opportunity to present N17.8 million to Lagos customers alone, while N40 million was given out in the rest of the country.

    “So, what it means is that every month, we will be doing about N58 million,” he said.

    Some of the N500,000 winners are Nnenna Okeke; Chukwuemeka Prince, Asiegbu Joseph; Kelvin Ofuma, Chidi Izuegbu, Mukaila Anike among others. Those that won N150,000 are Samuel Obiyan, Chimaobi Onyensoro, Chukwuebula Agu, and Somtochukwu Egbosi.

    Delighted Okeke said she did not believe that a bank could give out so much money until yesterday’s presentation of the cheque to her. “I did not believe it till today. I am now excited after collecting my own cheque. I want everyone to come and bank with Fidelity Bank because the reward scheme is real,” she said.

    For Anike, the bank has really helped her to grow her business. She said the good gesture from the bank was an indication that it values its customers and would protect their interest.

    She promised to continue to bank with the lender and encourage her friends to do the same.

  • Experts urge tax reforms, diversification of economy

    Representatives from the international development sector, Nigeria’s public and private sector and economic and financial experts have stresed the need for tax reforms and the diversification of the economy as a way out of the economic menace the country is facing.

    They said the country’s long-term fiscal prosperity is only guaranteed if the country begins a shift away from its dependence on crude oil.

    They spoke in Lagos at a post-election conference on Nigeria’s economy, during a summit organised by a non-governmental organisation-Budget.

    Among discussants were: Chief Executive Officer of RTC Advisory Services Opeyemi Agbaje, who was of the opinion that fuel subsidy removal, is fundamental to economic growth, as is working to increase the number of taxpayers in Nigeria. “Tax rates are unrealistic. We will get better compliance with more realistic tax rates,” he said.

    He urged individuals to empower themselves with knowledge, bearing in mind that government will not solve all of its problems.

    “We can only hold government accountable based on the promises they made. They can also be made to explain what taxes are used for,” he said.

    Dr Agbaje called on government to reduce the cost of production for manufacturers by fixing power, which constitutes up to 40 per cent of the cost of production. He added that with 18 hours of  constant power supply, production cost will reduce, thereby making local manufacturers competitive and open opportunities of exporting their products to other countries.

    CEO Delta Energy, Ronke Onadeko, said an economy solely reliant on oil is not sustainable. “When crude oil goes into the refinery, it comes out with less value so it is not a revenue generator. She described oil as a small piece of with desperation to take from or all of it, even though the country makes adequate revenue but has been very trivial with its spending. She advised government to be more prudent in their spending and not borrow to pay salaries,” she said.

    Mr Vincent Nwani of the Lagos State Chamber of Commerce and Industry (LCCI) was of the view that arbitrary fees and fines is a major issue that need to be addressed by the incoming government if there is any hope of achieving success with tax reforms. He therefore called for the eradication of unofficial and undocumented taxation in Nigeria.

    Dr Yemi Kale, the Statistician-General of the Federation, Nigerian Bureau of Statistics, also spoke on the need for Nigerians to put in more interest in what forms government revenue and how it is spent.

    CEO, Proshare Olufemi Awoyemi; Yinka Ibukun of Bloomberg News and Africa Editor of The Economist, Jonathan Rosenthal also spoke at the event.

    A panel of discussants was set up. It was with the theme Expanding Nigeria’s Revenue Base and Developing Strategies for Efficiency and Transparency.

    Those who contributed to the discussion include: Partner, Tax and Regulatory Services, PricewaterCoopers Taiwo Oyedele; Ifeanyi Peter of the UK’s Department For International Development and Austin Ndiokwele of the UK-funded Federal Public Administration Reform Programme Nigeria. Mr Oyedele spoke on reforms and how Nigeria can save the much-needed funds. He suggested that states fund their representatives at the National Assembly to cut down the high cost of governance at the federal level. He gave statistics that the National Assembly’s budget of N150billion is larger than the individual budget of 21 states.

     

  • Only 20% N220b MSMEs’ fund disbursed, says CBN

    Only about20 per cent of the N220 billion Micro, Small, and Medium Scale Enterprises (MSMEs) fund has been disbursed to beneficiaries, the Central Bank of Nigeria (CBN) has said.

    CBN Director, Banking Supervision, Mrs. Tokunbo Martins, said the supervisory bank was working on ways of ensuring that more funds get to the critical sectors of the economy.

    Head, Relationship Management, MSME Development Finance Department, Tobin Jonathan, said CBN was jolted by the low access to the fund by operators.

    CBN, he said, is worried that since the fund was launched last August only an insignificant portion has been disbursed to operators because of stringent conditions for accessing the funds.

    MSME-operators, Ibrahim said, were complaining that the criteria were too difficult to meet, hence, CBN Governor Godwin Emefiele relaxed them to make the funds more accessible. He added that the CBN also addressed other complaints by participating financial institutions, including the spread of profit to cover their cost of operations.

    “So, they can collect the forms at two per cent and give it out at five per cent. So they have seven per cent spread which is good enough. That has encouraged so many of them to begin to apply,” Jonathan said.

    The Project Manager for Financial Infrastructure Project to the CBN, International Finance Corporation (IFC), Ubong Awah, said: “We are collaborating with the CBN to establish the National Collateral Registry which will be launched by June.”

    He said it is important as part of efforts to stimulate financing to the MSME sector in Nigeria, stressing that collateral registry would provide part of the infrastructure for pushing the initiative ahead.

  • ‘Nigeria to make list of top 20 economies by 2030’

    Bloomberg report on new world economic order has ranked Nigeria’s economy to be among top 20 largest in the world by 2030. Nigeria is the only African country on the forecast report, ranked 19th, just above Netherlands, which is 20th.

    Though the forecast falls below the 2020 projected by the Federal Government under former President, Olusegun Obasanjo to arrive at the top 20, this is the first time such report is projecting the country in the top global economies.

    Recent global economic reports have placed Nigeria as one of the fastest growing economy in the world, a report which tallied with last year’s rebased gross domestic product (GDP) figures placing Nigeria as the largest economy in Africa, pushing South Africa to second position.

    The Bloomberg report was derived from Economic Research Services (ERS), the United States international economic development research agency’s latest global economic research report. The ERS International Macroeconomic Data Se t provides historical and projected data for 189 countries that account for more than 99 per cent of the world economy.

  • Fidelity, Stanbic, Sterling go for N84b new capital

    Fidelity, Stanbic, Sterling go for N84b new capital

    Tough regulatory policies, especially the hike in Cash Reserve Ratio (CRR) and drive to finance more Small and Medium Enterprises (SMEs) are pushing banks into seeking additional capital, termed Tier-2 funds.

    The CRR is a portion of bank’s deposits kept with the Central Bank of Nigeria (CBN), and it is currently 75 and 20 per cent for public sector and private sector deposits.

    Three lenders, Sterling Bank Plc, Fidelity Bank Plc and Stanbic IBTC Holdings Plc are seeking a combined capital of N84 billion from investors to enable them fund expansion plans and stimulate balance sheet positions.

    Sterling Bank plans to raise between N20 billion and N30 billion this year to fund its expansion plans. Fidelity Bank Plc at the weekend signed off a N30 billion 16.48 per cent fixed rate bond due in 2022 while Stanbic Holdings Plc said it will raise N24 billion in a rights issue once shareholders approve the transaction.

    Stanbic IBTC, majority owned by South Africa’s Standard Bank , said it would seek approval at a general meeting on June 3. The bank’s first quarter pretax profit fell 46 per cent to N4.81 billion ($24 million) against the same period last year. Stanbic did not give a reason for the decline in profit but said in a statement that revenues rose to N33.73 billion for the period to end-March from N30.22 billion a year ago.

    Fidelity Bank Chief Executive Officer Nnamdi Okonkwo said the facility is part of the bank’s efforts at deepening the SMEs sector which, arguably, is the engine room of the economy.

    He spoke at the signing which had the full complement of the Board, Planet Capital Limited, Lead Issuing House/Underwriters, representatives from the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE), Registrars and Stock brokers.

    Sterling Bank’s Chief Financial Officer (CFO)/Executive Director Mr. Abubakar Suleiman said the bank was on track on its expansion targets which it unveiled in 2013 and would soon embark on another phase of its growth strategy.

    According to him, the bank currently has 1.5 million customers and has been able to achieve over three per cent market share from one per cent a few years ago. He revealed that from 84 branches in 2006, the lender’s branch network should hit the 200 mark by the end of the year adding that it would increase the number of its Automated Teller Machines (ATMs) to 1000 by the end of this year.  He also stated that the bank will soon deploy a new core banking application which would significantly boost the quality of its operations and service delivery.

    The Executive Director said that the bank’s goal was to be among the top five lenders in the industry not in terms of balance sheet size but in the areas of quality service delivery and compliance to regulations.

    He pointed out that there were banks with much bigger balance sheets which were not meeting customers’ expectations in key areas, stressing that as Sterling Bank expands and becomes a bigger financial institution, it will continue to outperform its peer group.

    As he put it, “We have consistently outperformed our peer group and we will outperform the next group. We want to be there when it comes to service delivery, in terms of compliance to regulations and how we are perceived as good corporate citizens.”

    The CFO noted that regulatory headwinds, especially the hike in Cash Reserve Requirements (CRR) on public sector deposits had impacted banks’ profitability and restricted their lending capacity to finance economic growth.

    He argued that the amount of bank deposits that the CBN had sterilized as a result of the 75 per cent CRR on public sector deposits and 20 per cent CRR on private sector deposit was “unprecedented” and had constrained banks’ capacity to lend.

    He pointed out that the deposit with the CBN were non-earning adding that not only does this impact banks’ bottom line but it also prevents lenders from funding businesses.  He however emphasised that   despite the tough operating environment Sterling Bank was still committed to meeting its expansion targets.

    Afrinvest West Africa Plc  Managing Director Ike Chioke said the limitation on public and private funds by the Central Bank of Nigeria (CBN) and the emerging deals within the corporate space, such as the power sector, have increased the need to shore up capital. According to him,  Eurobond issuances come at attractive rates relative to the domestic market and presently have many viable on-lending outlets.

    Chioke, who spoke on the theme: “Navigating growth in a challenging environment” admitted the danger of potential pressure that may arise upon the payment of coupon on Eurobonds raised by banks, adding that the lenders will require the dollar bi-annually to fulfill obligations to Eurobond holders.

    He insists the applauded privatisation of the power sector in 2013 may begin to reveal structural and financial challenges in the near term if not well-managed, given that approximately $2.5 billion was raised by the Bureau of Public Enterprises (BPE) from the privatisation of Power Holding Company of Nigeria (PHCN’s) generating (GENCOS) and distribution (DISCOS) companies.

    About $5.7 billion additional fund was raised by the Federal Government from last year’s sale of the National Integrated Power Plants (NIPP).A significant portion of the funding for the acquisition of these assets by private sector investors was provided by local banks with minimal equity contributions. This, Chioke said, has absorbed an enormous level of funds from banks.

    “This investment is, however, supposedly, yet to yield returns and has in part led to the rush for Eurobonds by banks in an attempt to restructure credit to the power sector. A major apprehension is the currency mismatch as cash flows from power assets are generated in naira,” he said.

     

  • Western Union signs pact with Skype

    Western Union, a global money transfer company,has announced an agreement that allows Skype customers to replenish their accounts at more than 50,000 Western Union Agent locations throughout the United States.

    A report by payments.com said Skype Credit, the payment service that enables calls to mobile and landlines worldwide — as well as text messages to mobile — on the Microsoft-owned video, voice chat and messaging service, is now able to be topped up through the Western Union Quick Collect service.

    The service facilitates consumer-to-business payments. While Skype-to-Skype calls are free, Skype Credit is required to call landline or mobile numbers.

    Western Union President for the Americas and European Union, Odilon Almeida, said, “The relationship is a logical one, as both Western Union and Skype have a mission to connect people when they are apart. Western Union is optimising its money transfer system to link cash and digital for money movement and payments across the globe. We are driving our innovation on the back of what our customers want. Skype is a classic example; where customers can enjoy full digital access with a walk-in payment option.”

    Director of Business Development at Microsoft, Enrico Noseda, said: “Through Skype, Western Union customers can stay in touch with loved ones to let them know about money transfers and share everyday experiences,” said.

    Western Union’s Skype partnership comes just a few weeks after it announced a new partnership with Hyperwallet, and a few months after Western Union announced it would accept Apple Pay at several flagship locations.

  • IMF pegs Nigeria’s exports to ECOWAS at $6b

    Nigeria’s exports to the Economic Community of West African States (ECOWAS) member-countries have been increasing yearly, according to the International Monetary Fund (IMF) Article IV Consultation Staff Report. They increased from $1 billion in 1990 to about $6 billion in 2013, IMF said.

    The report said the implementation in January 2015 of the Common External Tariffs (CET) for ECOWAS member-countries is expected to reduce incentives for informal trade and simplify Customs procedures, potentially increasing recorded trade volumes.

    “Moreover, the slowdown in Nigeria will adversely affect informal exports to Nigeria. Anecdotal evidence indicates that goods that are subject to import restrictions in Nigeria have become key export goods for neighboring countries. Those informal exports to Nigeria are important sources of income for some neighboring countries and outward spillovers may be nontrivial,” it said.

    It said growing cross-border activity of Nigerian-based banks has increased the scope for spillovers through financial channels, along with regulatory and supervisory challenges.

    It added that the depreciation of the exchange rate would add to inflation, reflecting the pass-through of higher domestic prices for imports, but the effect is likely to be contained, in part due to lower food prices from increased local production of staple food crops.

    The IMF said the outlook was compromised by low fiscal and external buffers, which have reduced the capacity to absorb shocks relative to the experience of the 2008-09 financial crisis.

    The lender said the government expressed its determination to implement appropriate measures to manage risks.

    “They agreed that the oil price shock is significant and, at least in part, permanent, but saw a smaller effect on economic activity than staff, owing to measures targeted at sectors critical for growth (agriculture, power, small enterprises) and the impact of remittances. They noted that rising food self-sufficiency would limit the pass-through to inflation and activity in housing construction would continue,” it said.

     

  • Mobile money will boost remittances, says WorldRemit

    Mobile money will boost remittances, says WorldRemit

    Senior Mobile Analyst at WorldRemit Alix Murphy has said mobile money will play a pivotal role in global remittances and help to reduce fees, improve speed and convenience for users. In an interview with The Nation, she says mobile money remains a key of financial inclusion and getting financial services to the unbanked. Murphy says there are two-and-a-half billion unbanked people in the world and that one billion of these people already have access to a mobile phone, a potential means of accessing financial services, reports COLLINS NWEZE.

    For the Senior Mobile Analyst at WorldRemit, Alix Murphy,mobile money remains the main or only means of accessing financial services. She said Nigerians in Diaspora are famed for their generosity, and keen adopters of new technologies including mobile money services.

    She said Nigerians are among the first to really embrace the technological revolution in money transfers. Using convenient online and mobile services, they are very likely to sustain the record in sending remittances.

    She said WorldRemit has been supporting commercial relationships with telecoms operators all over the world, as well as promoting mobile money opportunities in developing countries, including Nigeria.

    Murphy, before joining WorldRemit, was the market intelligence analyst for the Groupe Speciale Mobile Association (GSMA), where she analysed trends in mobile money and digital identity and consulted mobile operators on revenue opportunities.

    “That’s why WorldRemit has worked hard to connect to more mobile money services than any other money transfer firms,” she said.

     

    Global prediction

     

    Murphy reiterated World Bank’s prediction that the number of international migrants is expected to exceed 250 million this year. “So we shouldn’t be surprised that as long humans continue to go abroad for work or family reasons, we will continue to see increasing volumes in international remittances,” she said.

    She said that remittances create opportunities and that in Nigeria, as elsewhere in Africa, there is a huge appetite for business and there are countless examples of Nigerians receiving money from relatives abroad which they used to finance or set up small businesses at home.

    “Let me look at this from the perspective of international transfers: the Groupe Speciale Mobile Association actually noted that the average cost of sending money internationally using mobile money as a receive method was $4. That’s less than half the cost of sending money internationally to Africa by traditional money transfer firms,” she said.

    On how to boost mobile money businesses, he advised: “Establishing trust among customers is important for all financial service providers. Both banks and Mobile Money services have an important role to play in increasing awareness about the enhanced security and protection that digital financial transactions can bring. Cash is anonymous, whereas digital transactions necessarily have an audit trail from end to end, not to mention increased speed and reliability,” she said.

     

    Mobile money model

     

    On the right mobile money model needed by Nigeria, Murphy said every country has its own unique context which impacts the ability for Mobile Money to thrive. “Most of the successful Mobile Money services involve some type of partnership between banks and telcos, but one important thing to remember is that Mobile Money requires significant investments in technology, agent training, marketing, and customer education in order to succeed. We partner with both telcos and banks that have made this commitment to investing in customer education,” she added.

    She advised Nigerian shareholders not to be in a hurry to reap from mobile money businesses. “Shareholders who invest in Mobile Money must understand the very different dynamics of this industry compared to typical banking or telco services. The most successful Mobile Money services in other countries took several years to become profitable, but their shareholders made long-term investments which required patience and dedication in order to establish an excellent service,” she said.

     

    Poor network quality

     

    On tackling poor network in the industry, she said Nigerian operators should look to countries like Somaliland, Kenya, or Zimbabwe for a sense of the overwhelming success of mobile money services. “Clearly, there are major incentives for telcos to invest in network infrastructure. There is no doubt that investments in robust and resilient systems, as well as adequate customer education about coverage and network safety will ultimately allow telecom operators to drive mobile money adoption rates,” she said.

    Murphy said WorldRemit is looking at telcos, banks, and regulators to work in unison for a more inclusive financial services environment. “The World Bank noted that Mobile Money has contributed significantly to an increase in financial inclusion in East Africa, and we expect to see similar impact as Mobile Money services grow in other regions.  There are a number of instructive learnings from other African markets,” she explained.

    The company, she said, wants to enrich people’s lives by giving them the power to share money with friends and family – anytime, anywhere. She said traditional money transfer companies, with their brick-and-mortar business model and agent-exclusivity arrangements, have long since overcharged customers, while delivering an appalling customer experience.

    “WorldRemit is an online service that lets people send money to friends and family living abroad, using a computer, smartphone or tablet. It is a convenient, low-cost alternative to traditional money transfer companies that use high street agents and charge unreasonable fees.

    Around the world, WorldRemit offers customers the option of receiving money as airtime top-ups, bank deposits, cash pick-up, or Mobile Money. In Nigeria, WorldRemit currently sends to most major banks as well as providing airtime top-ups for phones on Airtel, Etisalat, GLO, and MTN,” she said.

     

    Expansion plans

     

    Murphy said that WorldRemit’s international business development team is already working with existing and prospective partners on the ground in Africa. As the business grows, we will most likely devote more and more resources to fast-growth markets.

    “As a business, we are growing incredibly fast and we now have more than 180 employees around the world. It’s important to make sure that we continue to work as smoothly and effectively as we have done in the past.

    “WorldRemit is shaking up the money transfer industry like no company has done before. We are working hard to launch our service in more and more countries, including the United States, where many Nigerians live. We are also adding more receive options.

    “For our existing and prospective customers, that means they will get to use a service as convenient and innovative as no other. In five years, we expect that, by and large, customers will be embracing the convenience of sending money online and from Smartphone to Mobile Money services – a true mobile-to-mobile experience,” she said.

     

    World Bank position

     

    World Bank said Nigeria received $21 billion last year, accounting for two-thirds of all remittances to sub-Saharan Africa, an online money transfer service.

    The global lender said Nigeria remains among the world’s largest recipients of remittances and that remittances to the region are projected to reach $36 billion in 2017. In 2013, remittances financed one-third of the country’s imports.

    In an emailed report titled: How Mobile Money will Power Global Remittances, it said global remittances will grow slowly this year, but accelerate again in 2016 and 2017.

    Furthermore, it said global remittances will this year, reach $586 billion at a slower growth rate of 0.4 per cent due to economic conditions but will accelerate again to reach an estimated $636 billion in 2017.

    The lender said fees are far too high and that the average cost of sending $200 to sub-Saharan Africa remains at 12 per cent of the amount, higher than the G20’s target of five per cent.

    This, it attributed to the cost of bricks-and-mortar agent networks of traditional firms.  “There is a huge potential for mobile technology to reduce costs on both the send and receive sides,” he said.

    According to the global lender, mobile money will grow to play a huge role in remittances and help to bring down fees.

    “Worldwide Mobile Money usage is exploding with 261 mobile money services now live across 89 countries with 103 million active users as of December 2014. More than half of these services currently in operation are in sub-Saharan Africa,” it said.

    Mobile money helps to reduce remittance fees, adding that the median cost of sending $100 via Mobile Money is $4, less than half the average cost to send money globally via traditional money transfer channels.

     

    Benefits to consumers

     

    Some of the benefits to the consumer include security, convenience, accessibility, speed and ease of transaction, competitive charges, access to quality advisory services, and integrity of transactions; the customer literally carries his bank in his pocket or bag wherever he goes.

    Other not-so-obvious benefits, which are nonetheless important, are better cash flow management, enhanced financial planning, and inculcation of sustainable savings habit, which boost financial security and comfort in retirement.

    “Mobile payments, which I perform on my phone, help to reduce my travelling costs,” a farmer in rural Nigeria who uses mobile payment services said.

    Mobile money also has the potential to galvanise economic activities, leading to higher socio-economic development, lower cost of transactions and reduction of cash handling costs, among other benefits.

     

    Role of regulators

     

    The Central Bank of Nigeria said over the next few years, the focus of the regulator will be to strengthen the institutional and regulatory frameworks to achieve improved financial inclusion.  The application of mobile technology for financial services especially in rural areas will ensure that a large percentage of the population outside the formal banking system would have access to financial services using one of the three models of card-based, account-based and virtual account.

    Nigeria’s telecoms subscriber base, put at 131 million as of last September by the Nigeria Communication Commission, should play a major role in bringing the unbanked into the formal banking system.

    With over 50 per cent of Nigeria’s adult population unbanked, mobile banking could be the catalyst that will help quicken the adoption of banking services by this critical segment of the population.

     

     

     

     

     

    Mobile money is the next thing expected to pex bank said.

     

     

  • CBN auctions N150.6b in Treasury Bills

    CBN auctions N150.6b in Treasury Bills

    The Central Bank of Nigeria (CBN) raised N150.60 billion ($756.78 million) in Treasury Bills, with yields mixed compared with the previous sale last month, the apex bank said yesterday. The yield on the three-month bill was stable at 10.09 per cent, the same as at the April 22, auction. The CBN sold N45.17 billion in the three-month paper.

    A total of N23.43 billion was sold in the six months paper at 12.89 per cent, higher than the 12.80 percent yield at the last auction, while N82 billion worth of the one-year paper was sold at 13.39 per cent against 12.99 per cent last month.

    Investors – mostly domestic banks and pension funds – submitted bids worth a total of N329.97 billion against N669.66 billion at last month’s auction.

    Meanwhile, Stanbic IBTC Holdings to raise N24 billion in a rights issue once shareholders approve the transaction, the lender said. Stanbic IBTC, majority owned by South Africa’s Standard Bank , said it would seek approval at a general meeting on June 3.

    The bank’s first quarter pretax profit fell 46 per cent to N4.81 billion ($24 million) versus the same period last year. Stanbic did not give a reason for the decline in profit but said in a statement that revenue rose to N33.73 billion for the period to end-March from N30.22 billion a year ago.