The Nation Newspaper

Category: Money

  • FirstBank, MoneyGram partner

    FirstBank, MoneyGram partner

    First Bank of Nigeria Limited (First Bank) and MoneyGram International have announced the launch of outbound remittance service in Nigeria.

    In a stateet, the lender said since money transfers began in 1998, consumers in the country have only been able to receive funds via MoneyGram’s money transfer services. It said the launch therefore represents a significant milestone because it enables customers to send funds to family and friends around the globe in naira which can then be picked up in the currency of the receiving country where available.

    FirstBank is one of the first MoneyGram agents to offer this service in the country. With the launch, customers would be able to use MoneyGram’s new outbound service offering through the bank’s branches.

    Its Group Managing Director/Chief Executive Officer, Bisi Onasanya said the bank remains committed to delivering excellent customer experience to customers.

    He said the lender delivers excellent financial solutions and is proud to offer yet another excellent customer focused solution – the MoneyGram outbound service – to the Nigerian market.

    “As a brand, we remain committed to putting our customers first,” he said.

  • Bankers to examine FDI challenges

    Bankers to examine FDI challenges

    The Chartered Institute of Bankers of Nigeria (CIBN) has assembled top operators from the banking, financial services industry and academia to examine the challenges and prospects of attracting Foreign Direct Investment (FDI). This, it said, is aimed at proffering strategic solutions for the economy.

    The event, which holds on Saturday in Lagos, will avail the institute opportunity to confer Fellowship and Honorary Senior Membership awards on the Central Bank of Nigeria Governor, Godwin Emefiele;  Managing Director/Chief Executive, Union Bank of Nigeria Plc, Emeka Emuwa; Managing Director Fidelity Bank Plc, Mr. Nnamdi Okonkwo,  and Managing Director/CE, Heritage Bank Company Limited, Ifiesimma Sekibo.

    The theme of the event is: “Making Nigeria a major Destination for Foreign Direct Investment” and would be addressed by Dr. Dick Kramer, Chairman, African Capital Alliance and Prof. (Mrs.) Comfort Ekpo, Vice Chancellor, University of Uyo.

    Governor of Lagos State, Babatunde Fashola (SAN) will be thespecial guest of honour while  the President/Chairman of Council, the CIBN, Mrs. ’Debola Osibogun, will chair the occasion.

    Out of 200 top bankers to be invested at the event, two   would receive the Honorary Fellowship award, 98 Associates will be conferred with Fellowship (FCIB) while 100 would receive Honorary Senior Membership (HCIB) of the Institute.

     

  • Enterprise Bank’s acqusition: Heritage seeks CBN’s, SEC’s approval

    Enterprise Bank’s acqusition: Heritage seeks CBN’s, SEC’s approval

    Heritage Bank Limited yesterday in Lagos, said it made full payment for the acquisition of Enterprise Bank Limited two days ago.

    With this development, it is expected to pursue the agreed completion phase which includes seeking regulatory approvals from the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC’s) approvals.

    The Asset Management Corporation of Nigeria (AMCON) had  in a statement yesterday, confirmed that HBCL Investment Services Limited (HISL), acting on behalf of Heritage Bank Limited, has paid the required balance for the purchase of bridged lender.

    Heritage in a statement said Enterprise Bank’s acquisition is a clear signal that the lender is on its way to becoming a strong national bank.

    It entered the market over a year ago with a regional bank status following the acquisition of the banking licence and liabilities of the defunct Societe Generale Bank of Nigeria (SGBN).

    It said the acquisition of Enterprise Bank which currently boasts of 165 branches will increase its points of presence from 15 Experience Centers to nearly 200 branches spread all over the country.

    Heritage Bank CEO, Ifie Sekibo confirmed that the lender paid the 20 per cent or N11.2 billion of the N56 billion bid prices before the Share Purchase Agreement (SPA) was signed in Abuja last month.

    He said: “It was tough and challenging to face the institutions that competed. We consistently provided super information to AMCON and abided by the principles. HISL acted on our behalf. If HISL succeeds in having the combination, we will be disposed having a business combination and it will have Heritage brand.”

    The emergence of HISL and Fidelity Bank as preferred and reserve bidders respectively, he said, resulted from a rigorous and competitive bidding process, which was coordinated for AMCON by Citigroup Global Markets Limited, Vetiva Capital Management Limited (Financial Advisers) and G. Elias & Co. (Legal Advisers).

    The bid process started with interest shown by 24 parties cutting across local and international boundaries.

  • Citigroup to exit consumer banking in 11 markets

    Citigroup to exit consumer banking in 11 markets

    Citigroup Inc, the U.S. lender that derives most of its revenue from overseas markets, has announced plans to exit consumer banking in 11 markets as Chief Executive Officer Michael Corbat seeks to simplify the firm and boost returns.

    The sale of the businesses, a majority of which already are under way, are expected to be completed by the end of next year, the bank said yesterday in a statement. The units will be moved into the lender’s collection of unwanted assets for reporting purposes in the first quarter of next year.

    “I am committed to simplifying our company and allocating our finite resources to where we can generate the best returns for our shareholders. While we have made progress optimizing these 11 consumer markets, we believe our global consumer bank will achieve stronger performance by focusing on those countries where our scale and network provide a competitive advantage,” Corbat, 54, said in the statement.

    The actions come two years after Corbat was named CEO to replace Vikram Pandit, who made expanding into emerging markets one of his central strategies. Since taking over, Corbat has announced plans to fire 11,000 workers and pull back from consumer banking in markets with low returns including Spain, Greece and Turkey.

    With yesterday’s announcement, New York-based Citigroup will exit consumer banking in Costa Rica, El Salvador, Guatemala, Nicaragua, Panama, Peru, Japan, Guam, the Czech Republic, Egypt and Hungary, as well as the consumer-finance business in Korea, according to the statement. It will continue to work with institutional clients in those places.

  • Diaspora remittances hit $21b, says UBA chief

    Diaspora remittances hit $21b, says UBA chief

    The Group Managing Director/CEO, United Bank for Africa (UBA), Phillips Oduoza has said Diaspora remittances to Nigeria as at last year stood at $21billion.

    Speaking at the launch of the bank’s outbound money transfer services in collaboration with MoneyGram, he said the business of remittances is a critical part of the payment system.

    He said the partnership with the money transfer giant would allow Nigerians to send naira abroad. “Nigeria is a very important part of the money transfer business. The launch is an extension of a long standing relationship with MoneyGram,” he said.

    The new product, ‘Naija sends’, also gives immigrants or expatriates opportunity to wire the local currency abroad through any UBA branch anywhere in Africa while the funds are received in dollar or the currency of the receiving country.

    He said the product is an indication that the lender is customer-focused and committed to efficient payment system. “This service opens a new opportunity for Nigerians to easily trade with other Africans and also trade with other parts of the world. It also offers a great platform to send money to loved ones abroad,” he said.

    Regional Manager, Anglophone West Africa, MoneyGram, Kemi Okusanya, said the launch of  the product has further deepened the brand’s reach and service.

    She said in the last 20 years, MoneyGram has facilitated over 15 million transactions in the country, enabling safe, convenient and reliable transfer of funds from the Nigerians in Diaspora to their loved ones.

    She said with the service, money could now be sent to oversea countries with ease at  good rates for such services.

    She said the outbound money transfer service allows people to send money in naira to over 200 countries around the world by simply working into any UBA branch  in the country and in 18 other African countries where it has operations outside the country or through any other MoneyGram Agent Bank.

  • FCMB gives auto loans to customers

    FCMB gives auto loans to customers

    FIRST City Monument Bank (FCMB) Plc yesterday partnered with DANA Motors Limited to launch an auto loan alliance for the bank’s customers.

    Its Executive Director, Lagos West, Femi Bakare said the scheme was another way of identifying with customers’ aspirations and delivering on their brand promise.

    He said the alliance consolidates the lenders’ position as a leader in the consumer lending in the economy. According to him, the alliance remains a viable way of delivering exceptional customer experience to all stakeholders and enhances the lender’s output.

    He said the exercise gives the bank’s customers opportunity to own a brand new KIA for as low as N47,400 monthly repayment plan.

    ‘’With the FCMB Auto Alliance with Dana Motors, your annual insurance cost is built into your monthly repayment plan. As a result you need not worry about paying a huge sum annually for Insurance Premium. The insurance cover is based on your loan tenor. The scheme offers many more benefits,” he said.

    Aside its flexible repayment, the scheme offers many more benefits inclusive of insurance, free registration five-year warranty and many FCMB goody bags.  “Throughout the period of the offer, our customers who will sign on the scheme will not have to worry about releasing bulk cash to acquire a brand new vehicle, meaning that they will be able to meet other needs at the same time,” the lender said.

  • Winners emerge in Fidelity Bank’s scholarship promo

    Winners emerge in Fidelity Bank’s scholarship promo

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

    Speaking during a the second raffle draw for qualified customers in Lagos, its Executive Director, Lagos and Southwest, Ik Mbalu said a total of N80 million will be won by 200 customers within six months.

    He explained that 34 customers had won N16.7 million during the first draw, adding that more N49.6 million will still be won in subsequent draws.

    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.

    Other winners were Job Israel, Adewale Abiodun, Agom Chidi  among others who won N1 million each. Anieke Vincent, Hadiza Musa, Akobi Chikwudi, Okenyi Sunday among others won consolation prizes of generators and refrigerators.

    The bank’s Head of Retail Banking, Emeka Obiagwu said the draw was designed to encourage customers save more. He said the bank has not restricted the usage of the money won by customers, but such funds will ease the burden of school fees on the winners.

    He said the bank also wants members of the public to also know that it is supporting education adding that the country was divided into six zones to ensure that everyone is covered. The N2 million star prize is zoned to Abuja.

  • Symrise mulls 500,000 Euro investments

    Symrise, a German company, has launched a subsidiary in Lagos, with an initial investment estimated at 500,000 Euro.

    Its Chief Executive Officer, Dr. Heinz-Jürgen Bertram said the company which has been in operation in the country, but involved only on product distribution, said there is need to increase its presence in the country including long term plan of building a factory.

    He said the firm spends over 100 million Euro yearly on investment adding that the bulk for this year will go to emerging markets.

    He said: “Symrise can look back on a long history in the Nigerian market. Both segments, Scent & Care and Flavor & Nutrition, have been active throughout the whole country for nearly 30 years. During that time, we gathered a deep understanding of local markets by continuously sending fragrance and flavor experts to Nigeria. It has also built long-term relationships with customers. Establishing its own company in Nigeria is thus a logical step.

    “With about 175 million inhabitants, abundant mineral and national resources, Nigeria has the potential to become one of the top 10 economies in the world. Already today, the country is Africa’s largest economy and one of the fastest growing on the continent and seen as gateway to West Africa.”

    With its local infrastructure, Symrise will be able to offer customers closer support as well as faster, more direct dialogue to anticipate and satisfy their needs and market requirements. The company in Lagos will also enjoy support through frequent visits from experts and managers from the Europe, Africa, Middle East Region.

     

  • AMCON’s interventions grow banks’ profits to N529b

    The banking sector recovery has seen profitability back to above pre-crisis levels, with profit of all banks listed on the Nigeria Stock Exchange (NSE) achieving a combined profit before tax (PBT) of N529 billion last year, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane has said.

    A bank is quoted if its shares can be bought or sold on the NSE. FDC Economic report obtained by The Nation, showed the lenders’ PBT were at N550 billion in 2012.

    These feat, Rewane said, were possible because the Asset Management Corporation of Nigeria (AMCON) strengthened the financial sector, especially the lenders, preventing the collapse of the banks. He said the coming of AMCON has also addressed the potential bank runs and the negative implications this would have had on the depositors.

    Local banks now export services outside the country, remain market leaders in the African banking sector.

    AMCON had last month, announced its operating results, with a loss of N635.88 billion last year – more than the fiscal budgets of seven states in Nigeria.

    It also revealed that it has run up a cumulative negative net-worth of N3.46 trillion since inception in 2010, about 69.7 per cent of the national budget.

    These numbers, Rewane said, will make any rational investor or orthodox analyst stagger and describe it as an unprecedented financial calamity.

    However, Managing Director, Afrinvest West Africa Plc, Ike Chioke said a review of Central Bank of Nigeria (CBN’s) last year’s balance sheet showed that the regulator is bugged down by AMCON bonds, intervention funds and development finance loans.

    He said these ‘unmarketable asset portfolios’ constitute over 40 per cent of the CBN’s balance sheet. He spoke at the launch of the Nigeria Banking Sector Report.

    Chioke explained that the assets are long term investments without a discernible exit time frame other than the eventual performance of the loan portfolio.

    He said: “Our review of the CBN’s balance sheet as at November 2013 raises crucial questions that require urgent attention.

    “The CBN’s proactive response to the 2008/2009 banking crisis was arguably the right move although this has, in itself, magnified CBN’s level of indebtedness. Over 40 per cent of CBN’s asset portfolio is unmarketable, comprising principally of AMCON bonds, intervention funds and development finance loans.”

  • NERFUND’s interim managers lobby for tenure extension

    NERFUND’s interim managers lobby for tenure extension

    Interim Managers at theNational Economic Reconstruction Fund (NERFUND) are alleged to be lobbying the Federal Government to renew their one-year term which expired October 9, The Nation has learnt. They are asking for a fresh one year tenure.

    NERFUND, which is under the supervision of the Ministry of Finance (MoF), is managed by an interim management team drawn from the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC). The team was seconded October 9 last year to overhaul NERFUND following a N5.7 billion loss.

    The NERFUND team is headed by Muhammad Gidado Kollere of the NDIC as Managing Director/CEO; Ihua Elenwor of the CBN is the Executive Director, Operations.

    The managers are to recover outstanding loans and reconcile all accounts with correspondent banks. They are also expected to render quarterly reports to NERFUND’s board, headed by the Permanent Secretary, MoF.

    An insider at NERFUND said instead of the managers to be thinking of tenure elongation, they should rather be concerned with how the firm should be wound down, following ongoing moves by the National Assembly to repeal the law establishing it.

    They said the interim managers should also be concerned about the terminal benefits of the current staff.

    The source advised the MoF to pay more attention to what is happening in NERFUND to protect it from further losses.

    The source said the agency’s receivership is for one year, after which a substantive Managing Director would be appointed.

    The source said there is intense lobbying for the job. “You see, these managers from the CBN and NDIC may not want to quit as their tenure expires in October. They are more professional than the past managers of the Fund. They are also likely to seek extension of their tenure,” the source said.

    The source said the CBN/NDIC team has been able to restructure some of the ‘political loans’ that led the Fund into incurring losses. “Majority of the political loans that dented the balance sheet of the FUND has been restructured, and collateral secured,” the source said.

    The source also faulted the N5.7 billion loss claim by the government, saying the total amount NERFUND obtained from government since inception is not up to that amount. The Fund received N2.8 billion in 2010, and $141 million from the Africa Development Bank (AfDB) at an exchange rate of N9.9 to a dollar in 1991.

    NERFUND also got another N350 million loan from the Federal Government. The source said the cumulative funds, made available to NERFUND till date, are below N4 billion. The source said there are also plans to restructure the operations of the Fund.

    This may necessitate the merger of NERFUND with the Bank of Industry (BoI) to deepen credit access to small and medium enterprises (SMEs). NERFUND was established by Decree No. 2 of 1989 to provide medium to long-term loans to participating banks (PBs) for on-lending to SMEs for the promotion and acceleration of productive activities in such enterprises.

    The government took over the Fund following President Goodluck Jonathan’s approval of the recommendations of the CBN and NDIC Joint Special Examination report on its books. It claimed  the capital invested in the institution by the Ministry of Finance had been eroded with the gross losses.

    The Fund, it was learnt, has not been able to service loans taken for on-lending from the AfDB, the MoF and other sources. The source said the agency’s last governing board was dissolved in 1993, adding that it was being run by an Interim Management Committee headed by Permanent Secretary, MoF before the CBN/NDIC team came on board.

    The source said the firm has over time canvassed for reconstitution of its corporate governance board, recapitalisation and total restructuring. There were also previous plans to merge it with other Development Finance Institutions (DFIDs), which also failed.

    Conditions set for accessing NERFUND’s Micro Enterprises Credit Scheme entail that prospecting businesses must be engaged in manufacturing, mining, quarrying, agro-allied, industrial support services, equipment leasing and other ancillary services.

    Besides, the enterprise should be wholly Nigerian owned and must source its raw materials for the project locally but could source plant and machinery either locally or from abroad. The projects to be financed must be financially and economically viable, and should have positive impact especially in employment creation in the operating environment.

    According to NERFUND statutes, the expected project could be a start-up, expansion, rehabilitation or diversification of existing business while the beneficiaries are expected to own 10 per cent equity of the proposed business. The prospective beneficiary must have a limited liability company or registered enterprise and can only access between N100, 000 and N5 million.