The Nation Newspaper

Category: Money

  • FCMB inaugurates MasterCard

    First City Monument Bank (FCMB) Limited, has commenced a special offer to reward customers who use its Debit MasterCard for cash withdrawals, purchases or online payments within and outside Nigeria, with cash and unique gift items such as iPad-minis and android phones.

    The special incentive, which comes in two categories namely; Issuance/Activation and Usage and tagged, FCMB MasterCard Offer, commenced in September and will run till end of October, 2014.

    Under the Issuance/activation category, a customer issued the bank’s MasterCard for the first time, receives unique FCMB customised pens and key rings instantly, upon the activation of the card.

    For the card usage category, a customer who spends up to N500,000 within Nigeria to effect transactions on Point of Sales (PoS) or via the internet, gets up to 1.5 per cent cash back on total spend directly in his or her account. In addition, a total spend of N2 million and above outside Nigeria on PoS, ATM or the internet, will be rewarded instantly with gifts such as an iPad-mini, a Microsoft surface, an android phone, amongst others. The gift reward is contingent on the total amount spent.

    Speaking on the MasterCard offer, the Executive Director, Service Management and Technology, Mr. Nath Ude, said the FCMB MasterCard offer is another way FCMB appreciates its customers for embracing its array of innovative products and services. “We will continue to demonstrate our commitment in providing customers with easy, convenient and reliable channels to conduct financial transactions,” Mr. Ude stated.

     

  • Driving growth, profitability via money transfer

    Driving growth, profitability via money transfer

    Access Bank Plc is leveraging on the Central Bank of Nigeria (CBN) money transfer policy which raised money transfer limit to $5,000 from $2,000 to deepen its growth and profitability. The lender, which recently launched outbound money transfer services in partnership with MoneyGram, said the feat is boosting  money transfer market and adding value to its stakeholders, COLLINS NWEZE writes.

    With over $21 billion Diaspora remittances recorded in 2013, banks with eye in the future have to take money transfer services seriously. That explains why Access Bank, in partnership with MoneyGram, has launched outbound money transfer service.

    The bank’s Head, Personal Banking, Victor Etuokwu said the partnership has boosted the money transfer market.

    He said the outbound money transfer  service, marketed as “Naija Sends” allows Nigerians to send their naira abroad through any Access Bank branch, and the funds are received in the currency of the receiving country.

    He said: “What we promise our customers is speed, service and security. This means that we would offer them this service in a manner that is expeditious, quick, with minimal, but legal documentation; the service would be prompt and done in an environment that is secured. In other words, there would be no errors and there would not be fraud.

    “There were some discussions around the transfer limit. If you put the limit so low, you will cut off some micro entrepreneurs. So, it is a welcome development that the regulator is sensitive to some ideas that would grow the economy.”

    Head, Franchise Group, Access Bank Plc, Ola Isola encouraged Nigerians to see this as a platform to relate with their loved ones and business partners across the world.

    “So, be it payment for a child in school, medical payment, business purchases across the world, this is a safe and secured platform. This is a platform that the people within the bottom of the pyramid are conversant with. The charges are competitive when you compare them with the alternative platforms. But we have to always note the service because service that is not paid for is not sustainable.”

    MoneyGram Regional Manager for Anglophone West Africa, Mrs. Kemi Okusanya, said the launch of “Naija Sends” has further deepened the brands reach and service in Nigeria.

    In her remarks she noted “Over the last two decades MoneyGram has facilitated over 15 million transactions in Nigeria, enabling safe, convenient and reliable transfer of funds from the Nigerians in Diaspora to their loved ones. As Africa’s largest economy, with over 10 million migrants, we are glad we are able to offer this service in Nigeria today.”

     

    The CBN policy

    The new money transfer policy permits individuals who want to send money outside the country through the International Money Transfer Services, can now send up to $5,000 per transaction, 150 per cent above the initial allowed limit.

    The limit for transfers was reviewed upward from the initial $2,000 data from the CBN website showed. Although the CBN did not give any reason for the upward review, it specified that the new limit of $5,000 applies only to individuals, excluding corporate bodies.

    The circular which was signed by the CBN director, Trade and Exchange, Olakanmi Gbadamosi, reads, “authorised dealers and members of the public are hereby notified that the threshold of $2,000 per transaction has been reviewed upward.

    “Accordingly, the allowable limit for the outbound international money transfer of $2,000 per transaction has been increased to $5,000 of its equivalent per transaction. However, it is important to note that this service is only applicable to person-to-person transfer. For the avoidance of doubt, corporate entities are not allowed to use this product,” it said.

    Access bank has continued to take major steps that add value to its stakeholders, and these steps are already paying off.

     

    Third quarter performance

    Access Bank Plc has announced an profit of N44.2 billion for the nine months ended 30 September 2014 based on mproved efficiency, rising market share and strong risk management practices.

    The bank’s profit before tax (PBT) showed an increase of 20 percent from N35.1billion recorded during the same period in 2013.

    Access Bank Group unaudited IFRS nine results released to the Nigerian Stock Exchange (NSE) yesterday also showed gross earnings of N182bn, up 17per cent from N154bn in the corresponding period of 2013. The growth in gross earnings was driven by an increase in interest income from loans.

    The lender posted 21 per cent growth in operating income to N126bn from N104bn in 2013. Customer deposits increase by 11per cent to N1.5 trillion from N1.3 trillion in FY 2013. The bank’s asset quality ratios also improved as Non Performing Loan (NPL) ratio was down 20bps to 2.5per cent, from 2.7per cent in December 2013.

    Further analysis of the result indicated that Access bank continued to improve on its operating efficiency and steady income growth resulting in cost to income ratio of 61per cent in  third quarter 2014 compared to 75per cent in 2013. Total assets grew by 14per cent to N2.1 trillion from N1.8trillion in full year 2013. Loans and advances of N1.1trillion showed an increase of 33per cent compared to N811bn in full year 2013.

    Commenting on the result, Group Managing Director, Herbert Wigwe said “The Bank’s resilient 3Q 2014 results reflect consistent improvement in our balanced growth and target metrics. Our performance over the past three quarters demonstrates the effectiveness of our corporate strategy as the Bank continues to grow its market share in key segments whilst enhancing shareholder value.”

    “We have implemented a disciplined and conservative capital enhancement plan, designed to ensure we maintain our moderate risk appetite. This will ensure a stronger capitalised bank, enabling us to remain competitive and take advantage of significant.

     

    Diaspora remittances

    With a yearly growth rate of three per cent over the past five years and $21 billion inflow of personal remittances last year, Nigeria is the fifth largest remittance receiver worldwide in terms of volume, a KPMG report has shown.

    The Banking Industry Customer Satisfaction Survey 2014 by the firm obtained by The Nation showed that remittance to Nigeria accounts for 65.6 per cent of total flows into sub-Saharan Africa. The feat, it said, presents some avenue for banks that may want to tap into the opportunities created by this class of Nigerians who wish to transact banking business using their local bank accounts.

    In an online survey of 127 Nigerians resident in 12 countries who maintain local banking relationships, convenience was the overwhelming driver of value.

    According to the report, when asked for the most important factor in their banking relationships, 44 per cent of the customers selected the availability of internet banking. In particular, customers identified the ease of use of the internet banking platform as the most important factor followed closely by the quality of customer service.

    Seventy-seven per cent of those surveyed transfer money through formal channels – banks (48 per cent) or other money transfer agencies (29 per cent) – compared to 19 per cent who said they send money home through less informal ways – family and friends – travelling home.

    Also, on the effectiveness of the contact centre, the ease of complaints resolution was cited as a major area of dissatisfaction.

    It also showed that more than 50 per cent of customers who have used their bank’s contact centre have been dissatisfied with the promptness of issues resolution and quality of feedback. It cited one bank’s  response to a customer facing some debit card challenges that the customer should wait until his next visit home, for his query to be resolved.

    The increasing frequency and magnitude of cybercrime incidents globally make it apparent that cybercrime is here to stay. The Central Bank of Nigeria’s (CBN) report for the first half of last year noted that there were 2,478 fraud and forgery cases  banks worth over N20 billion. This, it said, represented an eight per cent increase over that of the previous year but a significant increase in value of over 200 per cent from 2012.

    In this year’s survey, two per cent of retail customers indicated that they had experienced a fraud  in the last year and while this number appears small today, it may signify the start of a potentially disturbing future trend.

     

    Eye on fresh capital

    Access Bank’s Deputy Group Managing Director, Obinna Nwosu said the lender will be raising N68 billion capital through Rights Issues. He advised shareholders to take up their rights when the issue begins, as the bank has proven its ability to deliver superior returns on investment.

    The bank chief also listed some of the major attributes that makes Access Bank an institution of choice for investors.

    Nwosu said the bank has Capital Adequacy Ratio of 21 per cent, and has seven banking subsidiaries. The lender also employs 3,192 professional staff working in 366 branches. The lender has 1,042 ATMs, with 11,846 Point of Sale channels.

    He said with a vision of becoming one of the most respected banks in Africa, Access Bank has grown to be the top five banks in Nigeria, stating that between 2002 and 2007, the bank ranked among the top 10 lenders in the country. “That feat was triggered by its role as a dominant trade finance bank; top three foreign exchange and money market bank and model of compliance in the banking industry,” he said.

    Nwosu, who spoke in company of other Senior officials of the bank, including the Executive Director, Commercial Banking, Roosevelt Ogbonna at a media briefing in Lagos, said that between 2007 and 2012, the bank emerged among the top five in the financial services group, adding that this was achieved based on its reference point of Service Delivery; leading e-business support bank; employee of choice in Africa; reference point for corporate governance; attainment of high independent credit rating and as a top five trade finance lender.

     

    Leader insustainable finance

    Access Bank is also a strong converser for the implementation of sustainable banking principles by lenders. Its Chief Risk Officer, Dr. Gregory Ovie Jobome recently called on stakeholders in the Nigeria Sustainable Banking Principles (NSBP) to follow uniform reporting standards for them to achieve the desired objective.

    Speaking at the NSBP Pre-Reporting Workshop held in Lagos, he said stakeholders needed to ensure that they formulate policies that will enable them achieve their sustainable banking objectives. The workshop was organised by Access Bank.

    He said operators needed to ensure that issues around human rights, environmental sectors to  the bank and other critical issues are reported uniformly.

    The Managing Director of Sustainable Finance Limited, Carey Bohjanen, said banks should think through the NSBP and implement them. She said the Nigeria Sustainable Banking Principle is a regulatory requirement that lenders have to adhere to because it is also cost-saving.

     

     

  • Nigeria targets $900b economy size in six years

    Nigeria targets $900b economy size in six years

    Nigeria is targeting a Gross Domestic Product (GDP) worth $900 billion by the year 2020. This is to enable her realise its vision of being among the top 20 economies in the world within the period, says the Managing Director, Financial Derivatives Company Limited (FDC), Bismark Rewane. The GDP measures the size and economic activities in a country at a particular point in time.

    A report from the FDC, said that as a result of the GDP rebasing, the size of the Nigerian economy has grown by 89 per cent to N80.3 trillion ($509.9 billion). This ranks Nigeria as the world’s 26th largest economy, and the largest in Africa, bigger than Angola, Egypt and Vietnam put together, and 12 times the Ghanaian economy. The 89 percent jump thumps the expectations and forecasts of analysts who projected an increase of between 40 and 60 per cent from the rebasing.

    Rewane said that the UN Statistical Commission (UNSC) recommends that countries rebase their GDP every five years, adding that Nigeria has been using 1990 base year until recently that it rebased to 2010.

    He explained that the heightened attention the rebasing has attracted suggests a need for a more structured argument for the exercise adding that investment is necessary for capital accumulation and economic growth.

    “In April 2014, Nigeria rebased its GDP and changed its base year to 2010 from 1990. As a result, Nigeria is now regarded as a medium income economy. The rebasing exercise helped incorporate the informal sector into the national accounts and this showed a great increase in activities of the service sector of the Nigerian economy,” he said.

    Rewane explained that rebasing has enabled the service sector to be better covered and has shown that economic activities such as wholesale and retail trade, information and communication, real estate services, human health and social services, professional, scientific and technical services have gained importance in the country.

    He said the service sector is expected to grow fastest and ahead of sectors such as industry and agriculture adding that while Nigeria is becoming slightly more diversified, the country is heading towards a more service-oriented economy.

    Speaking further, he said the FSS 2020 vision was developed to make Nigeria the safest and fastest-growing financial system amongst emerging economies. “It is made to strengthen the Nigerian domestic financial markets; enhance their integration with external financial markets; and engineer Nigeria’s evolution into an international financial centre (IFC),” he said.

    “In terms of performance so far, highest levels of achievement might have been recorded in the areas of predictable exchange rate, single digit inflation and financial (banking) soundness. At the other extreme end however, achievements in the areas of integrating informal financial sector, achieving a strong knowledge-based capital market and creating enabling environment and finance for SMEs can still be described as low. Also, in the other remaining areas, the levels of achievement can still be described as marginal and requiring much effort,” he said.

    On investment, he said investment entails additions to the economy’s capital stock. It involves the purchase of goods that are not consumed today but are used in the future to create wealth.

    He said investment can also be classified into domestic and foreign investments. The components of domestic investments are private domestic investment and public domestic investment, the latter being investments by government and public enterprises on social and economic infrastructures, real estate and tangible assets. Equally, foreign investment can be foreign direct investment (FDI) or Foreign Portfolio Investment (FPI). While the former is investment in tangible assets by foreigners, the latter is their investments in shares, bonds, securities among others.

    Rewane said all these forms of investments are complementary and necessary for economic growth and development of the nation.

    He said higher interest rate imply higher cost of capital and this tends to reduce domestic investment; however, it may also serve as an indication of return on the investments of foreigners thereby aiding foreign inflows.  He said increase in GDP is expected to increase domestic investment through what is known as the accelerator principle; it also encourages market-seeking FDI since higher GDP imply higher market size.

  • European stock markets rally as volatility abates

    European stock markets have staged a recovery after a week of precipitous falls and volatility.

    London’s FTSE 100 index was up nearly one per cent in mid-morning trading, while Germany’s Dax and France’s Cac 40 were both up 1.5 per cent.

    Concerns over a weakening European economy and downwardly revised growth forecasts from the International Monetary Fund (IMF) had unsettled investors.

    But better-than-expected United States (U.S.) industrial production data helped steady the ship.

    The FTSE 100 has fallen 10 per cent since early September, wiping £175billion off the value of listed businesses.

    Explaining the recent convulsions in the markets, Carl Weinberg, chief economist and managing director at New York-based consultancy High Frequency Economics, said investors had taken fright over the faltering European economy and a slew of weaker global economic data.

    Some “untested” economic indicators had given the impression the European market was recovering when it was not, Mr Weinberg argued.

    “The underlying economy is as bad now as it was a week or two weeks ago.

    “But the perceptions have changed and that’s causing turbulence in the markets,” he told the BBC.

    Steven Saywell, head of foreign exchange strategy at BNP Paribas, said the real concern over the faltering eurozone economy was inflation, currently running at 0.3 per cent.

    “We believe the risk is it could fall even further,” he said.

    BNP Paribas believes European Central Bank president Mario Draghi should take bold measures to buy sovereign bonds in an attempt to convince investors that the rate of inflation would increase.

    This period of volatility was no worse than it had been in the past, Mr Weinberg maintained, and was a necessary condition if markets were “to make money”.

    In recent years, central banks maintaining a policy of low interest rates had dampened market speculation, but now that it was a question of when rates would rise, rather than whether, this was stimulating investor activity, Mr Weinberg argued.

    But such speculation was countered by recent comments from Andrew Haldane, the Bank of England’s chief economist.

    He said UK interest rates should remain low to avoid long-term economic stagnation, after giving a downbeat assessment of the UK economy.

    Weaker global growth, low wage growth and financial and political risks contributed to his more cautious view.

    “This implies interest rates could remain lower for longer, certainly than I had expected three months ago,” he said in a breakfast meeting speech to business leaders.

  • Aig-Imoukhuede tasks stockbrokers on service delivery

    Aig-Imoukhuede tasks stockbrokers on service delivery

    •Pledges NSE support

    FROM the incumbent President of Council, Nigerian Stock Exchange (NSE), Mr. Aigboje Aig-Imoukhuede has come a charge to professionals in the stockbrokerage sub-sector: “Rededicate yourselves to duty as society’s expectation from you is very high.”

    The new NSE helmsman spoke as a guest of honour at a public forum organised by the Chartered Institute of Stockbrokers (CIS) in Lagos at the weekend.

    According to the immediate Group Managing Director of Access Bank Plc, as professionals, stockbrokers occupy a prime position in the scheme of things, especially in the running of the economy, which is why the society repose a lot of trust in them.

    Waxing philosophical, he said: “If you study statistics, geography and demography, one thing that you would conclude because statistical evidence supports it, the job called stockbrokering is the one that is reserved for privileged people. Not a small number of people but privileged people. And I would explain why. They thus carry a national trust of wealth creation. The burden of wealth creation at least from the financial market is imposed on the profession called stockbrokers.”

    Speaking further, he said: “If you look at the demography of professional earnings, stockbrokers are typically number one, two and worst case, number three of the professional hierarchy of earnings. And in terms of statistics in the proportion of earnings in a financial are typically in 20 per cent. So, it goes without saying that we need to position stockbrokering for better performance because better performance of stockbrokering means better performance of the economy, and very importantly, better performance for our pockets.”

    He also hinted of plans by the NSE to lend critical support to the CIS whenever the need arises.

    “As the President of the Council of the Nigeria Stock Exchange (NSE), I consider this community, my primary constituency. You’re significant repository of trust thrust upon you by virtue of your profession. You also have significant expectations from those who have been entrusted with running the Exchange. This interaction will give us the opportunity to create a win-win framework that would benefit the market and benefit you. ‘’I do look forward to much more detailed interactions between the Council and the management of the Stock Exchange and the entire body of the Chartered Institute of Stockbrokers. Rest assured that you can count on the Nigeria Stock Exchange (NSE) as one of your allies and partners particularly when it comes to the financial resources you need to pursue some of your engagements.”

    Responding, Mr. Albert Okumagba, President/Chairman of Council, CIS, thanked the NSE president for his commitment to the institute, stressing that as a body they look forward to mutually rewarding relationship with the NSE.

  • Access Bank gets ISO certification

    Access Bank gets ISO certification

    Access  Bank Plc has been awarded the International Organisation for Standardisation, ISO, 22301:2012 certificate for ‘Societal Security – Business Continuity Management Systems.’

    The award, the bank said in a statement,  was presented to the bank by the British Standard Institute, BSI, after about three months of rigorous business impact analysis across all the departments of the bank.

    Speaking during the presentation of the certificate in Lagos, Group Deputy Managing Director of Access Bank, Obinna Nwosu, said  the certification is based on international best practices deployed by the bank to manage business continuity.

    According to him, the ISO 22301:2012 specifies requirements to plan, establish, implement, operate, monitor, review, maintain and continually improve a documented management system to prepare for, respond to and recover from disruptive events when they arise.

    He said, “The ISO 22301 standardization certification will help improve the bank’s business by ensuring planned, effective Business Continuity Management at all levels, including: Organisation-wide identification and understanding of critical business processes and the impact of disruption, timely and orderly responses to incidents/business disruptions.

    Speaking at the event, Mike Purves, Acting Deputy  High Commissioner and Director, United Kingdom Trade and Investment, expressed satisfaction that the British Standard Institute is helping to improve standard in Nigeria.

  • Enterprise assures customers on quality service

    The management of Enterprise Bank Limited has reassured its customers that the emergence of HBCL Investment Services Limited (HISL) as the new owners of the bridge bank will not in anyway disrupt its operations but would rather strengthen its ability to provide better services to its customers.

    A statement from the Corporate Communications Department of the bank during the week said customers of the bank would continue to enjoy excellent service delivery, irrespective of the imminent change of ownership, following the full payment of the bid amount of N56billion by Heritage Bank Limited.

    According to the bank, “the transparency and successful sale of the bank by AMCON should serve as a guarantee to our esteemed customers that the combination of the two banks is a step in the right direction that will ensure increased potentials for further value addition to all stakeholders.”

    Undoubtedly, the synergies of combining Heritage Bank’s aggressive market focus and technology orientation with Enterprise Bank’s legacy and branch networks would produce a highly customer-centric institution.

    All structures, it continued, have already been put in place to engender a seamless transition to a new financial institution that will distinguish itself as a bank of preference in the industry. The bank encouraged everyone, including customers of the two combining entities to fully embrace the emerging bank.

     

     

  • NBS scores economy low in third quarter

    IF the outcome of the performance in key sectors of the economy in the last quarter is anything to go by, it is correct to say the economy is in doldrums.

    This is the verdict of the National Bureau of Statistics (NBS) which published the inflation estimate for September 2014 penultimate week, as the publication highlighted a 20bps decline in the Headline index to 8.3per cent in September from 8.5 per cent in August. This marked the first decline in the Headline Index after six consecutive increases.

    The Headline Index, sub divided into the Core Index and Food Index primarily reduced by a 30bps decline in the Food sub index to 9.7 per cent in September from a 13 months high of 10.0 per cent in August, while the Core Index stayed flat at 6.3 per cent.

    The Food Index constitutes approximately 50.0 per cent of the total basket and as such mild increases in the Food Index is likely to drive the Headline Index higher. The decline in the Food Index may be associated with moderate supply increases since the harvest season commenced.

    Despite the moderation in the Headline Index recorded in September, a long list of macroeconomic and socio-political headwinds still pose a challenge to price stability. For instance, the impending increase in systemic liquidity during the upcoming elections, expected food challenges due to deteriorating socio-political challenges, expected maturity of AMCON’s N978.35bn bond and recent capital reversals by FPIs are likely factors that may determine price levels in the medium term.

    Finally, the Naira has lost approximately 2.0 per cent within the last two months and poised to depreciate further; and considering the 13.0 per cent contribution of imported goods to the index, the inflation index is bound to tick higher in coming months.

    On the global scene, the bearish trend in the global equity market persisted for the fourth consecutive week on the back of concerns with the consistent decline in crude oil prices, sparking fears of a slowdown in global growth. Within the BRICS region, the China Shanghai Composite Index led the decline, shedding 1.4 per cent W-o-W followed by the Russian RTS and the India BSE Sens declining 0.8 per cent and 0.7 per cent respectively.

    However, the Brazil Bovespa gained 0.6 percent while South Africa JSE recorded a rebound from the previous week performance 1.6 per cent.

    In the developed market, both the UK FTSE and the US S&P 500 declined 0.3 per cent and 0.5 per cent W-o-W respectively, despite the rebound experienced.

    Similarly, within the Europe and Asia region, the Japan Nikkei dipped 5.0 per cent W-o-W, followed by the France CAC 40 and Hong Kong Hang Seng shed 1.0 per cent and 0.3 per cent W-o-W respectively. The Germany DAX gained 0.7 per cent W-o-W on the back drop of the U.S. Federal Reserve’s recommendation to postpone the end of the loose monetary policy.

    Within the African space, the Egypt EGX 30 led the decline by a substantial 10.0 per cent, the Nigerian ASI shed a significant 5.6 per cent while the Kenya NSE 20 closed flat.

    In a bid to calm the recent volatility of the Naira, the CBN increased its bi-weekly intervention at the Primary market this week, as it sold US$700.0m compared to US$400.00 sold last week.

    The CBN sold US$350.0m penultimate Monday at the marginal rate of 155.75/US$1.00 while it increased the marginal rate by 1kobo to N155.76/US$1.00 when it sold another US$350.0m.

    However, the FX market witnessed renewed pressure on Tuesday as the Naira weakened by a marginal 30kobo to 164.15/US$1.00.

    Despite the Dollar sales by Shell on Wednesday, the Naira sustained pressure, depreciating 45kobo to close N164.60/US$1.00. On Thursday, the Naira breached the N165.00/US$1.00 mark to close at its weakest position in eight months (N165.30/US$1.00). W-o-W, the Naira closed at N165.35/US$1.00 and N169.50/US$1.00 at the Interbank and BDC segments respectively on Friday, a 65kobo and 50kobo depreciation respectively.

     

  • Sterling backs social media awards

    Sterling backs social media awards

    Sterling Bank has attributed its decision to support the 2014 Social Media Award, Africa to the need to recognise and celebrate excellence, creativity and the impact of social media on human socio-economic development through its tools and platforms by individuals and organisations across the continent.

    The bank’s Group Head, Strategy & Communications Shina Atilola in a statement, said that the award also provides platform for the lender to further consolidate its position as a leading light in the social media space.

    He added that the bank cannot overlook the importance of social media in today’s society and the increasing role it plays in the lives of people on a daily basis, hence the need to identify with the Award.

    Sterling Bank recently won the Most Innovative Bank Award organised by the Nigerian Telecoms Awards courtesy of it’s Social Lender, a product that allows members of the social media community to obtain quick cash from the bank.

    Explaining the modalities for the award, Mr. Femi Aderibigbe, the Project Lead of the Award said that there are nomination opportunities into four categories of 15 awards, “interested individuals and organisations can nominate from October 1 till 27, 2014 for a chance to win any of the coveted awards. All entries will be judged on influence, originality, creativity, scalability and impact. The judging process will see winners emerge through an open and credible system involving the general public, a virtual council and jury”, he said.

    He listed the Award prizes to include dollar denominated cash prizes, professional and institutional trainings on social media and access to mentorship opportunities amongst other benefits for excellence and impact in social media practice.

     

  • BDCs demand $50,000 weekly forex sales

    BDCs demand $50,000 weekly forex sales

    Bureaux De Change (BDC) operators have urged the Central Bank of Nigeria (CBN) to increase the $15,000 weekly foreign exchange (forex) sales to each operator to $50,000.

    The BDCs also asked the regulator to extend its occasional intervention in the foreign exchange market to reduce demand pressure at the retail end of the market.

    Speaking under the aegis of Association of Bureaux De Change Operators of Nigeria (ABCON), the BDCs lamented that while over 2000 operators have laboured to comply with the N35 million mandatory caution deposits, the $15,000 weekly sale to each BDCs by the CBN is inadequate to cover operating costs.

    “Considering the difficulties that BDCs are currently facing, due to the volume of the weekly sales granted to BDCs as against the associated costs in the business, we are strongly suggesting that the CBN consider increasing the weekly sales to BDCs from $15,000 to $50,000, the Association said in an appeal letter to the CBN Governor. Making a case for extension of CBN forex intervention to BDCs, the Association said,” it said.

    The association also appealed to the apex bank to reduce the mandatory caution deposit to N15 million from N35 million, to free up cash for BDCs to meet day-to-day operations.

    “After the expiration of the deadline for the payment of the increased caution fee of N35million, we noticed that a good number of Bureau de Change Operators could no longer conveniently carry out their weekly trading due to lack of cash.

    “To avoid the possibility of such BDCs closing shop even after having made the effort to pay their caution fees, we are sincerely pleading that the Central Bank should consider the possibility of reviewing the caution fee from N35million to N15million in order to financially empower the BDCs to carry on their weekly trading”, it said.