The Nation Newspaper

Category: Money

  • Foundation supports financial literacy

    Foundation supports financial literacy

    The Executive Director, Ovie Brume Foundation, Mrs. Iwalola Akin-Jimoh, has advised youths on the need to embrace financial literacy and other issues that deepen their knowledge on finance.

    In an interview in Lagos, she said companies can help the youths in advancing their knowledge on finance and entrepreneurship.

    The foundation is a non-governmental organisation focused on youth education and empowerment. Also, the group in partnership with Lafarge Nigeria, recently announced dates for literacy competitions that will take place in three regions across the country.

    She said: “This initiative is part of our strategy to encourage literacy and literacy appreciation amongst primary school students in Nigeria. The competitions are organised to mark the World Literacy Day which is held annually in September. It is a day set aside by UNESCO to celebrate literacy with the aim of eradicating illiteracy globally.”

    “We are also celebrating the results from our Books on Wheels Project that was carried out in different Lafarge sites around the country. Books on wheels is one of the many literacy programmes put together by the Ovie Brume Foundation to build writing skills, promote reading culture and improve the vocabulary of public primary school pupils within the country,” she added.

    The competitions will feature tests to assess reading and writing ability and spelling bees. Selected schools from various regions will provide two primary six pupils as their representatives at the regional level.

     

     

    The first two winners from each region will then proceed to represent the region at the finals.

    The competition has been scheduled to hold in Gombe for the North East region on November 1st; in Ibadan for the South West region on November 6th and in Port Harcourt for the South South region on November 13th 2014. The grand finale will take place in Lagos on December    3rd 2014.

    So far, 250 primary school children have benefitted from the Books on Wheels Project. Their reading skills at midline show an increase in reading levels ranging from nine per cent to 63 per cent in about 4 months of implementing the intervention. The Foundation has other literacy programs such as 100 Book Challenge; Mobile Reading Workshop; Read-a-thon; and Summer Reading Express. The book on wheels was piloted in Lagos, Ogun, Rivers and Gombe States in selected primary schools across five Local Government Areas.

     

     

  • Unity Bank boosts capital with N39.2b

    Unity Bank boosts capital with N39.2b

    Unity Bank Plc has listed the supplementary shares from its recent combined rights and special placement offers, adding N39.22 billion in new equity funds to its capital base and similar amount to its market capitalisation.

    Unity Bank listed a total of about 78.45 billion ordinary shares of 50 kobo each at par value at the Nigerian Stock Exchange (NSE), conclusively rounding off its rights issue of 38.45 billion ordinary shares and special placement of 40 billion ordinary shares, both of which were offered at par value. The supplementary listing significantly impacted on the capital base of Unity Bank and its market capitalisation.

    Speaking at the NSE, managing director, Unity Bank Plc, Mr. Henry Semenitari, noted that the bank’s offers were oversubscribed, an indication of the investing public’s confidence in the bank and its growth agenda.

    He pointed out that the rights issue went across the shareholders of the bank and the entire rights were taken by local investors as there were no foreign investors.

    He said the bank decided on the new equity funds in order to accelerate expansion and create value for shareholders.

    According to him, the new equity funds would be used for branch expansion, investing in human capital, and the development of information technology.

    He said the bank would undertake share reconstruction given the size of its current outstanding shares. Yesterday’s listing brought the bank’s total outstanding shares to 116.90 billion ordinary shares of 50 kobo.

    Semenitari said the bank would explore all avenues to recover debts including the use of the Economic and Financial Crimes Commission.

    He also noted that the bank’s capital adequacy ratio was in compliance with regulatory guidelines, adding that all the branches that the new management met when it came on board are operational and plans are ongoing to open more branches.

    In his remarks, managing director, APT Securities and Funds Limited, Mr. Garba Kurfi said Unity Bank has a bright future citing the third quarter result recently released by the bank.

    According to him, with the additional capital and the ongoing debt recovery by the bank, and with the bank’s results so far, the bank may likely reward its shareholder in the next two years.

    The third quarter result for the period ended September 30, 2014 showed that Unity Bank made a profit after tax of N11.05 billion, an increase of 856.83 per cent on N1.15 billion recorded in comparable period of 2013.

     

  • CBN vows to defend naira

    CBN vows to defend naira

    The central bank of Nigeria (CBN)has pledged to keep supporting the naira after the currency approached a record low amid declining oil prices.

    “We will continue to defend the naira,”  CBN Deputy Governor, Economic Policy, Dr. Sarah Alade told Bloomberg. “Yesterday, we saw the naira at a level we were not comfortable with. We increased dollar supply in the market and it calmed.”

    Since mid-September, the CBN has used foreign reserves to sell dollars outside of regular auctions held Mondays and Wednesdays, according to Standard Chartered Plc.

    It will keep using the auctions and direct dollar sales to banks to preserve the value of the currency, Alade said. The currency strengthened 0.2 per cent to 164.90 per dollar. It earlier weakened as much as 0.8 per cent to 166.42, a record low on a closing basis.

    The naira weakened 0.9 per cent this month as Brent crude fell to the lowest level in more than four years last week. Further losses would force Nigeria to choose between raising interest rates, eroding reserves or, eventually, devaluing the currency, according to Exotix Ltd., a London-based investment bank. The Federal Reserve is poised to end a program this month of asset-buying that drove investors to buy stocks, bonds and currencies in developing nations.

    The currency yesterday weakened as much as 0.4 per cent to 166.07 before rebounding. At auctions, the central bank offers the currency at 155 per dollar, plus or minus 3 percent.

    “We expect that investors will demand more dollars,” Alade said. “Our foreign-exchange reserves are still robust.”

    Nigeria’s reserves were $39.2 billion as of Oct. 21 from $43.6 billion at the end of last year. “The central bank has staked its credibility as an institution on the stability of the currency,” Bryan Carter, money manager at Boston-based Acadian Asset Management, said in an interview yesterday in London.

  • Fidelity Bank pledges more reward for customers

    Fidelity Bank pledges more reward for customers

    Fidelity Bank Plc has expressed its commitment to rewarding customers in the ongoing Save for Scholarship promo being organised by the bank.

    Its Executive Director, Shared Services, Mrs. Chijioke Ugochukwu, who spoke during the presentation of prizes to the winners of the second draw of the promo, said the lender will continue to fulfill its promises to customers.

    “At Fidelity Bank, when we make promises, it is always our delight to keep to our word. Last week, the draw was held and today, we are here to present the prizes to the winners. This presentation is taking place in all our branches across the country where the winners have emerged.

    “The reward today is the second of the promo and just the beginning because it will last for six months. Not only that, the reward will continue until a total prize scholarship of N80 million has been completely won by over 200 customers. We know it will not solve all the needs for education, but it will help,” she said.

    Thirty one customers of Fidelity Bank Plc last week won a total of N12.7 million cash and lots of consolation prizes in the ongoing ‘Save 4 Scholarship’ promo organised by the lender.

    Thirsty four customers had won N16.7 million during the first draw, adding that more N49.6 million will still be won in subsequent draws.

    Its Executive Director, Lagos and Southwest, Ik Mbalu said the promo is aimed at supporting government’s efforts at building sustainable educational standards in the country and providing financial empowerment to the general populace.

    Some of the winners are Kyrian Obiajunwa, Ohajianya Kelechi, Okoli Chinedu, Isu Agha won N210,000,  each; James Faith, a student living in Kaduna, Okoye Emeka, Aregbesola  Blessing, Adigun Fadeke among others won N500,000 each.

  • Skye Bank employees embark on CSR

    Skye Bank employees embark on CSR

    Employees of Skye Bank Plc have embarked on various corporate social responsibility (CSR) projects in the bank’s host communities across the 36 states of the federation. The projects which are basically in the education sector, seek to improve learning and teaching in public schools.

    According to a statement, the projects which will benefit 39 host communities in the current year are being undertaking in line with the United Nations Educational and Scientific Organisation’s (UNESCO) policy on World Literacy day, following the adoption of ‘Literacy Day’ by the employees as a foundation of their support for schools and learning.

    The employees said their objective was to establish the link which connects the trend of literacy, supporting schools with educational resources and improving on the reading culture of students which ultimately will affect productivity and national development in the long run.

    Some of the projects being adopted through renovation and rehabilitation by the employees, include the Inclusive section of State High School, Ogba, Lagos, where facilities for Autistic, Down syndrome, hearing impaired etc Pupils are being renovated.

    Others are the Air force Primary School, Victoria Island, Lagos; Government Secondary School, Hwak, Kuru; Junior Secondary Peyi, Abuja and African Church Comprehensive High School, Alagbaka, Akure, where computers, exercise books and text books were donated.

  • Stanbic IBTC forum reaffirms confidence in economy

    Stanbic IBTC forum reaffirms confidence in economy

    A new chapter in the systematic nurturing of new age business leaders opened last week with the debut of the Stanbic IBTC Business Leadership Series. The series is fully dedicated to facilitating the emergence of a new crop of business leaders dedicated to excellence, innovation and integrity.

    Speaking at the event, headlined by e-commerce innovator and founder of leading online retail chain, Konga, Sim Shagaya and South African motivational speaker, Vusi Thembekwayo, Yinka Sanni, Chief Executive, Stanbic IBTC Bank, said Nigeria has entered a critical phase in her economic evolution.

    This phase, he said, is one that makes innovative leadership increasingly critical, if Nigeria is to fully optimise the gains of the growth it continues to record year-on-year.

    While acknowledging challenges, Sanni said the ultimate goal of the conference is to inspire the next generation of Nigerian business leaders and entrepreneurs through knowledge sharing.

    “Stanbic IBTC will continue to spearhead efforts aimed at crystallising Nigeria’s economic development, and leveraging Standard Bank Group’s in-depth knowledge of emerging markets and understanding of investor behaviour to provide our clients with appropriate information to make the right decisions,” he said.

    Shagaya, who shared insights on the firm’s growth trajectory since it was established in 2012, stated that an unambiguous focus on customer expectations, supported by the appropriate strategy, is imperative for success.

  • Akwa Ibom proposes N492b budget

    Akwa Ibom proposes N492b budget

    Akwa ibom State has sent N492 billion draft budget for 2015 fiscal year to the State House of Assembly for consideration and approval.

    The amount which is N3.5 billion higher than the 2014 figure, showed that Capital Expenditure has N268 billion, as  against N336 billion for last year, while Recurrent Expenditure has N94.7 billion as against N74.2

    billion for the preceding year.

    The Commissioner for Finance, Akan Okon, who announced this on Tuesday at the Executive chambers of Governor’s Office, Uyo, said members of the state’s Executive Council presided over by the  Governor, Chief Godswill Akpabio, approved the draft budget.

    Okon, explained that the state government is committed to the completion of such flagship projects, as the Tropicana Entertainment Centre, roads, the Specialist hospital and four-point Sheraton Hotel, Ikot Ekpene, among others.

    Okon, who attributed the increase in Recurrent Expenditure for next year to the employment of additional 5,000 teachers and more civil servants, lauded Akpabio for his vision in embarking on, and completing the key projects, hoping that the next administration would sustain the projects.

    The Permanent Secretary, Directorate of Budget, Governor’s Office, Uyo, Pastor Nicholas Ekarika, thanked the Governor for not deviating from the 80 per cent for Capital Expenditure and 20 per cent for Recurrent Expenditure for many years now.

    He called on different ministries, agencies and parastatals in the state to be judicious in the implementation of the budget.

  • Sterling Bank launches One Bank, PETSS products

    Sterling Bank launches One Bank, PETSS products

    Sterling Bank Plc has launched two branded phones, called – One Bank and Personal Education Technology for Secondary Schools (PETSS), which serve all financial needs of customers, spread value and strategically intervene in the nation’s education sector.

    Speaking during the launch, the Executive Director, Strategy and Finance, of the Bank, Mr Abubakar Suleiman, said that the primary objective of the One Bank is to deploy a brand acquisition and embellishment tool to encourage new account openings.

    The One Bank, is also primed to improve mobile money application use and adoption as well as deepen brand and customer relationships, Suleiman said.

    He explained that the thinking behind the Sterling One Bank was the need to bring telecommunication, entertainment and finances together to enable customers to communicate, entertain, transfer and receive money; buy airtime, carry out interbank transfers as well as all financial needs.

    According to him, the One Bank has provided a single phone that can replace the token given to customers as a level of authentication; saying that the once a customer logs in with his password, he can do his business seamlessly.

    He said that irrespective of the customers’ network, the telecom, media content and finance work together, so it does not matter, customers can always access his bank.

    The One Bank is targeted at traders, students of colleges of education, artisans and under 11 children as a means of being in touch with their parents at a cost effective rate. The branded phone is affordable while customer who wants a high-end phone can visit the bank to pre -install and firm up the arrangement.

    “Suleiman said: “We have worked with an equipment manufacturer to do this and we are not selling it at a profit. The cost is lower than the market price and the customers are given the latitude to spread the payment of N3000 over a long period of time, by paying about N200 in a month.”

  • PwC faults bill seeking compulsory listing on NSE

    PwC faults bill seeking compulsory listing on NSE

    A Bill known as Private Companies Conversion and Listing Bill, 2013, is undergoing legislative proceedings at the National Assembly, Head of Tax at PricewaterhouseCoopers (PwC) Nigeria, Taiwo Oyedele, has said.

    In an emailed report, the tax expert, said the Bill seeks to compel private companies to convert to public companies by listing on the Nigerian Stock Exchange (NSE). The thresholds for the mandatory conversion are shareholders fund in excess of N40 billion turnover, or total assets of N80 billion, he explained.

    He said that compelling private companies to list their securities, contradicts extant laws, such as Section 25 of the Nigerian Investment Promotion Commission Act which states unequivocally, that “no person who owns, whether wholly or in part, the capital of any enterprise shall be compelled by law to surrender his interest in the capital to any other person.”

    Oyedele said that on its face value, the Bill looks like a good initiative, but a careful analysis suggests otherwise. “Nigeria with a Gross Domestic Product of $510 billion, is the largest economy in Africa, but the country’s capital market with a total capitalisation of about $80 billion is dwarfed by the Johannesburg Stock Exchange with market capitalisation of over $1 trillion, as at the end of 2013.

    South Africa did not achieve this by forcing private companies to list, but rather through impeccable regulatory enforcement. The country is ranked first in the world in terms of regulation of securities exchanges in the World Economic Forum’s Global Competitiveness Survey for 2013 to 2014,” he said.

    He said a private company that meets any of the thresholds, must be converted to a public company and be listed on the NSE within 12 months. As stated in the Bill, the conversion is aimed at promoting growth for both the company and the Nigerian capital market.

    But Oyedele said it is counterintuitive for the sponsors of the Bill to expect an increase in tax revenue by granting tax waivers that do not necessarily increase the country’s tax base.

    He said the Bill indicates that asset value of a company is based on the gross value of the company’s assets as recorded in its balance sheet at the end of the last audited financial year; and annual turnover is based on the gross revenue of the company arising from the sale and rendering of goods and services; and the use of the company’s assets in a manner that yields interest, royalties and dividends.

    Also, the Bill extends the definition of private companies beyond the provisions of the Companies and Allied Matters Act (CAMA) to cover any body corporate, firm or partnership or any other entity. A fine of 10 per cent of annual turnover and imprisonment of at least two years may be imposed for non-compliance.

  • ‘Why ECOWAS needs single currency’

    Economists and stakehold-ers in the global economy have highlighted the benefits of ECOWAS having a single currency by 2020.

    An economist at the Banque de France, Gilles Dufrénot, said in an online agency report: ‘Inter- Reseaux’ that the ECOWAS countries are on the way to establishing a single currency by 2020. Nigeria, he said, is poised to play a major role in this process.

    He explained that the “currency map” of West Africa comprises several different exchange regimes. “There is a monetary union, made up of the eight countries of the franc zone, whose currency is tied to the euro ; and a set of non-convertible national currencies whose exchange rates in relation to the dollar or the euro are fixed administratively to a greater or lesser degree,” he said.

    He explained that since different exchange regimes coexist in a small area does not back trade between countries due to the high transaction costs involved (for example, fees for currency conversion and the insurance costs incurred by importers and exporters to cover exchange risks).

    Also, for currencies not pegged to an international currency, the problems linked to the credibility of their exchange policies and the uncertainties linked to volatile exchange rates discourage stable foreign capital and investment over the medium and long term.

    He said the idea of introducing a single currency within ECOWAS is based on several historical observations. First, monetary unions tend to foster regional trade as long as they attain a critical mass. Second, regional trade is what drives economic growth, rather than transactions in the context of North/South specialisation. The reason for this is that regional trade most often involves the exchange of similar products, avoiding the pitfall of national industries evicted by imports.

    Lastly, the global economy is likely to take shape around currency poles in coming years. It will be important for African countries to have their own poles, alongside international currency poles (the dollar, the euro and the yen). The timetable for implementing a single currency in ECOWAS is outlined as follows.

    First, the countries that are not members of the franc zone will set up their own monetary zone called the West African Monetary Zone (WAMZ) in 2014, adopting a common currency, the West African Currency Unit.