The Nation Newspaper

Category: Money

  • Nigeria, others lose $50b yearly from illicit financial flows, says EFCC

    Nigeria, others lose $50b yearly from illicit financial flows, says EFCC

    Nigeria and other African countries are estimated to be losing more than $50 billion annually in illicit financial flows (IFFs) annually, Executive Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Lamorde has said.

    He said Nigeria is ranked first among 10 African countries by cumulative illicit financial flows, which is about 30.5 per cent share in Africa’s total IFFs.

    Speaking during the Anti-Money Laundering Workshop organsied by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, he said the flows relate principally to commercial transactions, tax evasion, criminal activities like money laundering, drugs, arms and human trafficking, bribery, corruptions and abuse of office.

    He said: “If the report is not put in context of our immediate environment, and treated as any other body of statistics purveyed by ideal armchair academics and alarmist politicians, we are likely to completely miss the point”.

    He said the Global Financial Integrity, in its December, 2014 report, IFFs from The Developing World: 2003 to 2012, posited that developing and emerging economies lost $6.6 trillion in illicit financial flows from 2003 to 2012, while illicit outflows are increasing at a staggering average rate of 9.4 per cent per year-almost twice as fast as the global GDP.

    “These statistics all considered, are enough cause for worry as, Nigeria is in a very precarious position, considering our size, autochthonous cultures and deviant religious practices, which reinforce the practice of not looking a gift horse in the mouth, questionable business practices, weak regulations and peculiar enforcement environment.  If we throw in the myriad of other challenges that we have as a nation, then we would begin to see the faint outlines of the monstrosity that we face in money laundering,” he said.

    He urged every institution or agency represented here today to commit to apply our Ant-Money Laundering and Counter-Terrorist Financing (AML/CFT) measures.

    “It behooves all of us stakeholders therefore to put in more efforts to make the Nigerian AML/CFT regime the reference in the comity of nations.  But, even as we continually strive to get that which we desire, I believe that we would make an appreciable impact if we faithfully engage the AML/CFT regime that we currently have in place,” he said.

    He explained that while the crime of money laundering may be subtle and seemingly inscrutable, many of the crimes that predicate it are not so unobtrusive and certainly, the effects of each and every one of them are deleterious to the individual and the nation.

  • FirstBank director advises women entrepreneurs

    FirstBank director advises women entrepreneurs

    A Director of First Bank of Nigeria Limited, Mrs. Ibukun Awosika at the weekend taught women entrepreneurs the skills and knowledge needed to grow their businesses while keeping their homes.

    Speaking during the second in the series workshop for women-led Small and Medium Enterprises (SMEs) organied by FirstBank Sustainability Centre at the Lagos Business School, she said  the lender  promotes empowerment, entrepreneurship and financial inclusion among women through the event.

    She said aside having a good financial statement and cash flow, women-led SMEs can run into trouble when the husband is not carried along. “It is a big challenge where the woman entrepreneur fails to carry her husband along. Make your husband a stakeholder in your business and he will protect your interest,” she said.

    Mrs. Awosika who is the Founder of The Chair Centre Ltd, a market leader in the office furniture and banking security systems industries, said there must be a diplomatic balance between the home and business as none should suffer. “You can make business decisions but don’t lose sight of your home,” she told the participants.

    She encouraged women entrepreneurs to borrow from banks for the running of their businesses, but ensure that the funds are not put into other uses. “Women should be encouraged to borrow but must utilise the funds equitably. The banks want to ensure that the loan is repaid because it is depositors’ funds. Women entrepreneurs should learn how to keep proper records as such will help banks in granting them access to more loans,” she said.

  • FCMB shareholders approve N25 kobo dividend

    FCMB shareholders approve N25 kobo dividend

    Shareholders of First City Monument Bank (FCMB) Group Plc have unanimously approved the payment of a cash dividend of 25 kobo per ordinary share, for the year ended December 31, 2014.

    The approval came at the second Annual General Meeting (AGM) of the group in Lagos at the weekend. The Group, the Coordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended the Board and Management of the lender for the performance and dividend payment, despite the particularly challenging operating environment for banks in 2014.

    He said the increase in the Group’s profit from N16 billion in 2013 to N22 billion in 2014 is commendable. “It is a clear signal that things are looking up. We are also happy that FCMB has emerged as a strong player in retail banking and from what we have seen so far, we are optimistic that the Bank will continue to wax stronger,’’ he said.

    National Chairman of Shareholders’ Trustees Association of Nigeria, Alhaji Mukhtar Mukhtar, said, ‘’the result is very wonderful, despite the very harsh economic environment. The FCMB has been able to give us a wonderful result. We are very satisfied. The 22 kobo dividend is very encouraging. Profit after tax has gone up, total assets has increased. We are very impressed with the result. I congratulate the current executive management of the Bank for a job well done’’.

  • Skye, IFC partner on MSMEs’ devt

    Skye, IFC partner on MSMEs’ devt

    Skye Bank Plc has gone into a consultancy partnership with the International Finance Corporation (IFC), to evolve an effective lending framework for medium, small and medium enterprises (MSMEs).

    In a statement, the bank said the partnership would produce a new lending framework for Small and Medium Enterprises (SMEs) that would de-emphasise relying on collateral rather than evaluating business viability.

    Based on this new framework, when a business passes the viability test, the bank can consider non traditional collateral options outside real estate to reduce the difficulty faced by business owners in their bid to secure credit facilities from banks.

    It said the bank has also concluded plans to stop charging commission on turnover (COT) on all retail current accounts, well ahead of the deadline given by the Central Bank of Nigeria.

    The statement quoted the bank’s Head of Retail Banking Group, Nkolika Okoli, as saying that the bank’s new Retail strategy has necessitated a shift from its previous product led to a more segment led approach.

  • IMF plans risk-based approach to tackle money laundering

    IMF plans risk-based approach to tackle money laundering

    The International Monetary Fund (IMF) is developing a risk-based approach to Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT)  supervision in Nigeria, Acting Director, Nigeria Financial Intelligence Unit (NFIU), Francis Oka-Philips Usani has said.

    Speaking during a workshop organised by the Chartered Institute of Bankers of Nigeria (CIBN) on AML/CFT regimes in Nigeria, he said the determination to tackle the menace has resulted in the development of similar procedures across all regulatory authorities as well as the financial intelligence unit. This, he said involves the Central Bank of Nigeria (CBN), the Securities and Exchange Commission, (SEC) the National Insurance Commission and the NFIU.

    Usani, who spoke on ‘New International Initiatives in Combating Money Laundering,’ said the Presidential Committee with these agencies is at the fore of the national risk assessment to provide a basis for further developing the overall AML/CFT regime and strategic framework.

    He said more than 20 African countries including Nigeria have ratified the United Nations Convention against corruption, article 14 of which deals with measures to prevent money-laundering. “The Convention calls for all states to implement a regulatory and supervisory regime which minimises the possibility of money laundering through customer identification, reporting of suspicious transactions and record keeping,” he said.

    He explained that there is also a recommendation which requires that states establish methods to monitor the movement of cash and negotiable instruments across borders. “Like most of the other regional and global initiatives, the Convention calls all signatory states to criminalise the act of money laundering,” he said.

    The Financial Action Task Force (FATF) in October, 2013 removed Nigeria from the list of countries identified as jurisdictions with significant deficiencies in their AML/CFT regimes.

    This came on the heels of the 2012 and 2013 amendments of the MLPA, 2011 and the Terrorism (Prevention) Act, 2011 respectively. The global anti-money laundering body gave its countenance to Nigeria’s significant progress in improving its AML/CFT regime and noted that the country had established the legal and regulatory framework to meet its commitments in its Action Plan regarding the strategic deficiencies that the FATF evaluators had identified previously.

  • $50,000 card limit: CBN exempts domiciliary account holders

    $50,000 card limit: CBN exempts domiciliary account holders

    The Central Bank of Nigeria (CBN) yesterday said the $50,000 per person, per annum limit for use of naira debit cards for transactions overseas will not affect customers spending from their domiciliary accounts.

    Its Director, Trade and Exchange, Olakanmi Gbadamosi who gave the exemption via a circular, said debit/credit cards used locally are also not affected by the policy.

    He said the clarification became necessary because stakeholders have been giving different interpretations to the earlier directive cutting customer’s debit/credit card spending limit  from $150,000 to $50,000.

    The reduction had earlier been announced by Gbadamosi via a circular titled Usage of Naira Denominated Cards Overseas.

    According to the circular: “All authorised dealers and the general public are hereby informed that with effect from the date of this circular (13th April 2015) the existing limit on the usage of the naira denominated cards for transactions overseas has been reviewed downward.

    “Accordingly, the limit has been reduced from $150,000 to $50,000 per person, per annum. In addition, authorised dealers are to ensure that the daily cash withdrawal limit embedded in the cards per person, per day is pegged at $300. “

    It said authorised dealers are to ensure strict compliance with this new limit and render monthly returns of the transactions, adding that  the decision to reduce the limit was taken at the meeting of the Bankers Committee.

    Nigeria derives 90 per cent of export earnings and two-thirds of government revenue from oil. The economy has been hammered by a 47 per cent plunge in Brent crude prices since June. The naira has weakened 18 per cent against the dollar, more than any of the 24 African currencies tracked by Bloomberg.

    The CBN has been trying to bolster the currency since last year by limiting foreign-exchange trading and selling down its foreign reserves. They stood at $29.6 billion on April 9, according to apex bank data. That’s the lowest in at least a decade, according to HSBC Holdings Plc.

  • Fidelity Bank workers lift Navy

    Fidelity Bank workers lift Navy

    Workers of Fidelity Bank Plc acting under the auspices of Fidelity Helping Hands Programme (FHHP), a special vehicle for the lender’s Corporate Social Responsibility (CSR), has constructed water treatment plant and donated computers and other office equipment to the Nigerian Naval Medical Centre, Naval Dockyard, Lagos.

    Its Managing Director/Chief Executive Officer,  Nnamdi Okonkwo said the bank, as a socially responsible institution, takes pride in its humble accomplishment in entrenching the culture of true and responsible citizenship among workers members through regular trainings and integration exercises. “It is this passion for our country and our people that has motivated the staff driven initiative which we fondly call the FHHP,” he said.

    Okonkwo said the lender is the only bank in the country where workers contribute their salaries to embark on projects that impact on the lives of their host communities.

    “Fidelity Bank strives to reinforce strong, healthy community relations by identifying with communities in activities that are most relevant to them. We play a leading role in identifying with and seeking solutions to the problems of our host communities,” he said.

    He said although the CSR philosophy rests on a tripod – the environment, education and health/social welfare, the bank, through the  all-inclusive bottom-top CSR approach, has impacted positively on the lives of its host communities across the country.

  • FCMB lifts MSMEs with N122m

    FCMB lifts MSMEs with N122m

    First City Monument Bank (FCMB) Limited reiterated its support for the growth of Micro, Small and Medium Scale Enterprises (MSMEs) in the country by disbursing additional funds worth N122 million. The fund is expected to grow in the coming months.

    In a statement, the bank listed some of the latest beneficiaries to include, Health Products and Farms Limited, Midows Limited (both based in Lagos); Everlasting Hands Limited, in Kaduna State and God’s Will Technical Services Limited, located in Ogun State.

    It also pledged support for the Central Bank of Nigeria (CBN) N220 billion MSMEs’ Development Fund meant to provide loans at lower interest rate of nine per cent and over a maximum period of five years to MSMEs’ operators.

    FCMB said its increased support to SMEs is in line with its value as a helpful bank and contributing to the success of such businesses considering the key role they play in driving national economic growth and the well-being of the people, especially in the areas of employment and poverty eradication.

    Its Group Head, Business Banking, George Ogbonnaya, said the lender realised that SMEs play critical roles in the growth of the nation’s economy.

    As agents of growth, it is committed to helping these businesses thrive and contribute to the development of the country.

    He said: ‘’We understand that a number of factors combine to determine the success or failure of SMEs. We will continue to support our customers operating in the SMEs segment to overcome the challenges they usually face, especially at the take-off stage. We want to be part of their success story.’

    Mr. Ogbonnaya pointed out that with statistics showing that over 17million SMEs are registered in Nigeria and contribute significantly to the country’s  Gross Domestic Product (GDP), FCMB realises the strategic importance of this sector.

  • Five-year tenure for external auditors

    Five-year tenure for external auditors

    The National Code of Corporate Governance (NCCG) undergoing review is recommending a five-year mandatory rotation for external auditors posted to oversee companies’ accounts.

    The Chief Executive Officer, the Financial Reporting Council of Nigeria (FRC), Jim Obazee who spoke with reporter on the progress made by the Council in its quest to produce a NCCG for the country.

    He said the new rule on auditors, as contained in the NCCG document, is meant to ensure that the auditors do not become used to the company. “The NCCG code contains a five-year mandatory rotation for external auditors. This is because we discovered that after five years as an external auditor to a company, many of the auditors become part of the company and may not achieve the desired result,” he said.

    Obazee said Nigeria boasts of six different persuasive codes issued by six different regulators to meet the need of the entities they regulate. He said the six different persuasive codes were issued and are currently being applied by the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), the National Insurance Commission (NAICOM), the National Pension Commission (PenCom), Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC) and Nigerian Communication Commission (NCC).

    He however said modern society believes that the era of  weak and persuasive corporate governance codes is long gone due to the stiff competitive environment for foreign direct investment of which binding regulation is a major factor being considered by investors and stakeholders, hence the need for new code.

    He said provisions have been made for the development and enforcement of a NCCG in the Financial Reporting Council of Nigeria Act No. 6, 2011.

    He said  Section 50 of the FRC Act, 2011 provides that the objectives of the Directorate of Corporate Governance shall be to develop principles and practices of corporate governance; promote the highest standards of corporate governance; promote public awareness about corporate governance principles and practices; on behalf of Council, act as the national coordinating body responsible for all matters pertaining to corporate governance  and promote sound financial reporting and accountability based on true and fair financial statements duly audited by competent independent Auditors.

    Obazee said the Council shall enforce and approve enforcement of compliance with accounting, auditing, corporate governance and financial reporting standards in Nigeria”.

    Head of the Steering Committee on NCCG, Victor Odiase, said the National Code of Corporate Governance was developed on January 17, 2013 adding that the federal government is aware that the issuance of a national Code of Corporate Governance is a very important deliverable that can be used to enhance national competitiveness.

    He said the code will also address socio-economic issues including corruption and lack of corporate independence. “

    Public Sector and Not-for-Profit.

  • Domestic borrowing causing economic distortion, says LCCI

    Domestic borrowing causing economic distortion, says LCCI

    The Lagos Chamber of Commerce and Industry (LCCI) has blamed economic distortion being witnessed in the country on borrowing by government from the domestic market.

    Speaking with reporters during the presentation 2015 First Quarter Report in Lagos yesterday, its President, Alhaji  Remi Bello said the economic value derivable from the banking institutions is inherent in effective inter-mediation between institutions.

    According to him, this means  channeling of funds from the surplus segments of the economy to the deficit sectors which unfortunately is not happening to the degree that could impact positively on job creation.

    He said with double digit interest rates on treasury bills and government bonds, a lot of funds are being channeled into the purchase of these securities to the detriment of the real economy.

    Bello also called on the monetary and fiscal authorities to urgently review the yield on treasury securities to single digit.

    He said: “This is necessary to stem the crowding out effect of government borrowing in the financial market and also reduce the cost of fund in the economy.”

    On the harmonisation of taxes and levies, the LCCI chief lamented that previous efforts at streamlining taxes and levies in the country has not yielded fruits. He called on the the three tiers of government to harmonise taxes for ease of compliance and administration, adding that the protection of the rights of investors is a matter currently attracting global attention especially at the level of the World Chamber Federation.

    He said: “LCCI intends to lead the advocacy engagement to domesticate this initiative. Over the years, businesses have been subjected to all manner of adverse policies, impunity by regulatory agencies as well as arbitrariness in the formulation of economic policies. Investors need protection from policy inconsistency, arbitrary levies and charges, multiple taxation, abuse of monopoly powers, absence of level playing field and others.”

    He carpeted the Consumer Protection Council (CPC) over what he called the ill-advised steps it took to embark on the registration of products of manufacturing firms.

    Bello said the exercise was a duplication of what is already being done by the Standards Organisation of Nigeria (SON) and the National Agency for Food Drug Administration and Control (NAFDAC).

    According to him compelling businesses to register with the CPC is therefore unnecessary and an additional regulatory burden on the private sector. “We therefore call on the relevant authorities to prevail on the CPC to discontinue this course of action,” he said.