The Nation Newspaper

Category: Money

  • Sterling Bank’s The Gunners promo makes its debut

    Sterling Bank’s The Gunners promo makes its debut

    Sterling Bank Plc yesterday unveiled The Gunners promo targeting Arsenal Football Club fans, and other football lovers.

    Speaking yesterday in Lagos, the bank’s Executive Director, Abubakar Suleiman, said the lender will sponsor 30 winners of the promo to watch Arsenal match live at the Emirates      Stadium.

    He explained that the raffle draw will be done every three months during which six lucky winners will be picked.

    Also speaking at the event, the bank’s Head of Retail Products, Gbenga Adegoke, said the bank had last season taken one Arsenal fan to watch Arsenal play at the Emirates Stadium, United Kingdom.

    “The promo is targeted not only to Arsenal fans, but at all football lovers. The idea is that we are taking 30 lucky fans to watch football match at the Emirates Stadium,” he said.

    Continuing, he said: “I know it is something that will be acceptable. Last season, we took one lucky fan to watch the match at Emirates Stadium, and his life has been transformed since then”.

    However, to be a beneficiary, the fan has to open an account with the bank. Some of the account include Arsenal Premium Account and Arsenal Platinum account. He said the bank also realized that for it to accommodate everybody, there is need to lower the account documentation process because some people do not have ID cards among others.

    We have therefore categorized the account to low documentation account. The savings account, premium and platinum account, which is the current account.  “What you need to do is open any of these accounts, and leave a minimum of N30,000 in the account for a period of three months to qualify for a draw.

    Adegoke said the Sterling is challenging other lenders to come on board, and go for other clubs adding that it would continue to make the team’s supporters in the country happy.

  • NSIA boss to speak at Banking Sector Report launch

    NSIA boss to speak at Banking Sector Report launch

    Managing Director and Chief Executive Officer of the Nigerian Sovereign Investment Authority (NSIA), Uche Orji, will deliver the keynote address at the launch of the Afrinvest 2014 Nigerian Banking Sector Report on September nineth.

    The event would hold at Oriental Hotel, Victoria Island, Lagos, and will be attended by key stakeholders in the nation’s financial services industry, from both the public and private sector.

    Godwin Emefiele, Governor of the Central Bank of Nigeria, is the Special Guest of Honour. Titled ‘Navigating Growth in a Challenging Environment,’ the 2014 Report, according to Ike Chioke, Managing Director of Afrinvest, “ will x-ray the current conditions of the Nigerian banking landscape within the context of the domestic and global economy.

    “We are excited that Uche Orji, MD/CEO of the NSIA, will be the keynote speaker at the launch; guests can have a better appreciation of the key sectors that the agency is focused on with respect to its remit to catalyse the transformation of the economy, and how the objectives of the NSIA interlink with those of the CBN and the banking industry”, Chioke said.

  • Union Bank backs capacity building for journalists

    Union Bank backs capacity building for journalists

    Union Bank of Nigeria Plc has in partnership with Businessday Training Division trained financials journalists on the road map to adopting the International Financial Reporting Standards (IFRS) by the government.

    Speaking at the opening session of the training, the bank’s Head of Corporate Affairs and Corporate Communication, Ogochukwu Ekezie-Ekaidem, said the lender is excited in co-sponsoring the workshop because it considers financial reporting as critical for stakeholders to understand so that they would be guided in taking informed decision.

    She said the lender will continue to support and promote excellence and professionalism in journalistic practice in the country.

    The one day training workshop which held in Lagos had selected financial journalists drawn from print and electronic media. It was meant to equip the participants with knowledge of the IFRS requirements, so they could report accurately details about companies‘ financials as stipulated by law.

    The participants were guided by professional accountants on the new standards and format of the IFRS, required to be adopted by all companies operating in Nigeria.

    These areas include property, plant and equipment, inventory, revenue, employee benefits, extractive industries, as wells as the tax implication of the IFRS conversion, among other issues.

  • Anti-skimming devices on ATMs: CBN monitors banks’ compliance

    The Central Bank of Nigeria (CBN) is monitoring the implementation of its direc-tive that banks install anti-skimming devices on their Automated Teller Machines (ATMs).

    Its Director, Banking & Payment System, Dipo Fatokun, said although the compliance level among banks is high, the long-term plan is to achieve total conformity among lenders.

    Fatoku, who spoke at CBN meeting in Lagos, said the few lenders that are yet to comply with the directive have sought more time which the CBN is considering because it involves technology upgrade.

    “The banks have also seen the need to comply. The few exceptions have told us when they will comply because it is a technology issue, which is beyond the scope of their operators. They are doing it in phases, and for those with large number of ATMs are doing it gradually. The confidence in the use of ATMs is very high at present,” he said.

    Fatokun said although the adoption of ATMs by Nigerians as one of the channels of e-payment is laudable, the transactions through the channels needed to be protected.

    He said all banks are to comply with the provisions of Section 3.2 ‘ATM Operations’ and 3.4 ‘ATM Security’ of the standards and guidelines of ATM Operations in Nigeria and also install risk mitigating devices on their ATM terminals on or before June 1, 2014.

    He said the CBN is committed to ensuring that the deployment and management of ATMs are in line with global best practices. “We have observed with dismay, an upward up-ward increase in ATMs-related fraud in the banking system. The development, he said, does not portend good for the industry and requires urgent steps to curb the abuse,” he said.

    The CBN had earlier set up a five-year Information Technology (IT) Standards for banks. The CBN said the exercises would help banks identify and adopt global IT Standards that address industry problems. It said banks are expected to implement the plan on continuous basis and in accordance with set timelines with compliance audits billed to begin at the end of first quarter.

    Fatokun said the introduction of chip and pin payment cards have led to drastic drop in ATM card fraud.  He said the Central Bank and other relevant institutions have been able to reduce card frauds considerably by instituting ATM Fraud Prevention Group and the Nigeria Electronic Fraud Forum (NeFF). The groups are to enable banks to collaboratively share data on fraud attempts and proactively tackle them to reduce losses.

    According to him, the CBN instructed banks to set and implement mandatory daily limits for ATM cash withdrawal, while other related transactions, including POS and Web purchases should be subjected to stringent limit as agreed and documented between the banks and customers. He said it is the responsibility of the banks to ensure that a trigger is automatically initiated when limits are exceeded.

    According to him, the use of second level authentication for internet transactions was compulsory for all payment cards, stressing that it was the responsibility of the issuer to ensure that transactions emanating from its web merchants are properly scrutinised and operations are permitted only after the second level verification.

  • Banks strategise ahead of N1tr AMCON bonds’ timeline

    Banks strategise ahead of N1tr AMCON bonds’ timeline

    Deposit Money Banks (DMBs) are strtegising to reduce the impact of the N1 trillion Asset Management Corporation of Nigeria (AMCON) bonds on their operations.

    The bonds, maturing next month, are expected to raise the liquidity level in the market and based on analysts’ assessment, it will impact on interbank rates.

    Already, increased government spending ahead of next year’s general elections is taking liquidity pressure on the economy to new heights.

    Head of Research, Standard Chartered Bank, Razia Khan, said the liquidity surge, which set in last month,  was foreseen by the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting, hence, the interest rate was left unchanged at 12 per cent.

    “The decision at the last MPC meeting was largely as expected –with all rates kept on hold.  While mention was made of the upward pressure on inflation, with the CBN stating that it would be monitoring liquidity levels, the committee nonetheless restated the Governor’s goal of lower interest rates in the long-term,” she said.

    She said the committee’s position raises key questions around how the CBN might react when liquidity pressures are even more pronounced than they are now.

    “An additional AMCON maturity of just less than N1 trillion is expected in October.  The political season and pre-election spending are likely to build-in intensity from September on,” she said, adding that for now, the foreign exchange rate is stable – reflecting continued inflows into Nigeria.

    Khan said the macro-prudential measures announced by the CBN, the increased capital requirement for Bureau De Change (BDCs) should help at the margin. But global factors will also be keys – with much pointing to a confluence of greater pressures in the fourth quarter of 2014.

    She said while the long-term goal may be lower rates to boost private sector credit, and achieve some level of policy accommodation in order to ‘support’ the real economy, the way in which the CBN chooses to navigate upcoming challenges will be carefully monitored.

    “Maintaining faith in the stability of the foreign exchange rate, even in the face of these challenges, in an environment of low Treasury Bills yields, will be key,” she said.

    The MPC met on July 21 and 22 against the backdrop of continuing quantitative tapering by the US Federal Reserve, which has resulted in the slowing of inflows to emerging markets and frontier economies.

    The committee noted that the rebound in global economic activity strengthened in the first half of 2014; although at levels lower than previously projected.

    The tapered growth arose mainly from the emerging and developing economies owing to the rising real interest rates and geo-political crisis.

    On the whole, the effects of the global financial crisis have continued to wane even as rising income inequality, unemployment and poverty appear to be gaining prominence; engaging the attention of the monetary authorities.

     

  • Nigeria, others need $300b for universal access to power

    President/CEO, African Finance Corporation (AFC),Andrew Alli, has said sub-Saharan Africa would need more than $300 billion in investment to achieve universal access to electricity by 2030.

    The governments of Nigeria, Ethiopia, Ghana, Kenya, Liberia and Tanzania are named the “Power Africa Countries” where the investments are expected.

    In a statement obtained from the lender’s website, the AFC chief said the bank will provide additional investments in energy projects annually, far in excess of its commitment to the Power Africa initiative.

    “AFC aims to provide Power Africa Countries not only access to financial, deal structuring and sector technical expertise, but also advisory services, project development capacity, funding to bridge the power infrastructure investment and access deficit, seen as a critical pillar for economic growth across Africa.”

    The AFC, recently participated in the US Presidential Power Africa Initiative meant to accelerate investment in Africa’s power sector over the next five years.

    The key goal of the Power Africa Initiative is to increase access to clean, geothermal, hydro, wind and solar energy. It will help African countries develop newly-discovered resources responsibly, build out power generation and transmission, and expand the reach of mini-grid and off-grid solutions, by providing the capacity and resources to generate an additional 10,000MW of power.

    The President Obama Power Africa Initiative, coordinated by USAID, is a multi-stakeholder partnership between the United States Government, the US Agency for International Development (USAID); Overseas Private Investment Corporation (OPIC); the US. Export-Import Bank (Ex-Im); The Millennium Challenge Corporation (MCC); US Trade and Development Agency (USTDA); US – Africa Clean Energy Finance Initiative (US-ACEF); The US African Development Foundation (USADF), and the Governments of Ethiopia, Ghana, Kenya, Liberia, Nigeria and Tanzania (“Power Africa Countries”) and the private sector.

    AFC, a multilateral finance institution, was established in 2007 with an initial capital base of $1.0 billion, to be a catalyst for private sector infrastructure investment across Africa. It was established to help fill a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs, and is increasingly being seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

    The lender said it would invest over $250 million in the power sectors of Ghana, Kenya and Nigeria, whilst catalysing a further $1 billion in additional investments in sub-Saharan Africa energy projects.

    The AFC USAID partnership under the Presidential Power Africa Initiative will mobilise the resources, tools and combined commitment of the US Government, the six partner governments, and the private sector in a coordinated regional effort to assist governments and investors by accelerating the financial close of power transactions, stimulate new investment, and help build the regulatory, economic and policy foundation to meet Africa’s increasing demand for electricity.

     

  • How reporting standards can enhance banks’ profitability

    How reporting standards can enhance banks’ profitability

    Banks which adhere to transparent and efficient reporting standards and improve risk management structure, will be rewarded with higher returns on investment. COLLINS NWEZE writes on steps taken by banks to achieve enhanced and sustainable reporting standards amid declining earnings.

    In recent times, banks’ profits have come under intense pressure due, mainly, to tight regulatory policies. But there is reprieve around the corner. The solution, many analysts said, lies in their ability to adopt improved reporting standards.

    The practice, the proponents said, remains a condition for them to achieve higher profitability, and ensure responsible as well as sustainable business practices.

    Such acts are expected to enhance banks’ overall risk management, reduce cost of operations, create more avenues for fresh capital inflows and ability to attract and retain talents.

    Although the lenders are facing tougher regulatory environment based on the Central Bank of Nigeria (CBN) commitment to corporate governance and accountability, the easiest way to meet regulatory expectations remains, largely, adopting and implementing sound reporting standards. Some of the lenders’ second quarter results showed that the regulatory headwind is impacting negatively on their profitability.

    For instance, the half-year ended June 30 result of Skye Bank indicated that its Profit Before Tax (PBT) dropped to N7.266 billion as against N10.545 billion during the corresponding period in 2013.

    Profit After Tax (PAT) also decreased to N5.786 billion as against N8.428 billion the previous year.

    For Fidelity Bank Plc, the PBT dropped by 16 per cent from N11.2 billion to N9.43 billion. Total customer deposits also declined by five per cent to N766 billion.

    GTBank recorded a 6.92 per cent drop in PBT to N53.40 billion, compared with N57.36 billion last year June, while PAT stood at N44.01 billion, lower than N49.01 billion in June 2013.

    Although UBA Plc got 8.7 per cent increase in gross earnings from N127.25 billion in 2013 to N138.32 billion this year, its profit before tax dropped by 13.1 per cent to N28.89 billion, compared with N33.25 billion in 2013.

    FirstBank of Nigeria’s result showed that PBT dropped by 12 per cent to N48.25 billion against N54.81 billion recorded in same period of last year. Likewise, PAT declined by 19.4 per cent to N37.18 billion from N46.1 billion in 2013.

    Speaking at the G4 Sustainability Reporting Guideline Training Workshop recently held in Lagos, Access Bank Group Managing Director, Herbert Wigwe said for a business to be truly sustainable, it must maintain not only the necessary environmental resources, but also its social resources, including employees, customers (the community), sound reporting standards and its reputation.

    He said Access Bank has been collaborating with the Global Reporting Initiative (GRI) Focal Point South Africa, Swedish International Development Cooperation Agency, (SIDA) and Thistle Praxis on sustainability capacity building workshop in the country.

    He said the workshop was designed to provide participants with requisite knowledge of sustainability reporting, help them manage the reporting process and benefit from the transparency of adopting such standards.

    “Additionally, the programme provides a strategic opportunity for advancing the shared mission of mainstreaming sustainability reporting into business practices Nigeria and Africa as well as enhancing the presence of the Global Reporting Initiative in Nigeria at the national and regional levels,” he said.

    Wigwe who was represented by the bank’s Chief Risk Officer, Gregory Jobome, said sustainability and responsible business practices are important to the bank and consistent with its vision, in championing and supporting such initiatives across Africa.

    Access Bank had in the past, organised several workshops and conferences, notable amongst which are the Nigerian Sustainability Banking Principles (NSBP) Steering Committee Meeting in partnership with IFC and Access Conference 2013 where global leaders deliberated on the theme “Embracing Sustainable Leadership.

    “These corporate actions are a testimony to the bank’s sustained efforts at nation building and support for the Nigerian financial services sector in achieving a seamless integration of sustainable business practices into the core of its business operations,” Wigwe said.

    Head, GRI Focal Point South Africa, Douglas Kativu, encouraged Nigeria banks and government agencies to improve on the standard, in the practice of sustainability reporting, given the size and relevance of the country to global economy.

    These have prompted campaigns that the global community should consistently review business decisions and their environmental impact to make the earth truly sustainable in the long term.

    Chief Executive Officer, Thistle Praxis Consulting, Ms. Ini Onuk, said the workshop was able to improve participants’ capacity to present sustainability reports in a manner that demonstrates linkages between strategies and commitment to sustainable global economy.

    This, she said, would help organisations measure, understand and communicate their economic, environmental, social and governance performance accurately, the world will become more accountable.

     

    Stakeholders’ roles

    The GRI Focal Point South Africa, works to promote the importance of transparency for markets and better knowledge of sustainability reporting (SR) in key target markets on the African continent, as well as in the SADC region.

    It is also committed to building and strengthening sustainability performance and reporting capacity as well as shaping the reporting environment by influencing public policy and market initiatives.

    Also, the SIDA is a government organisation under the Swedish Foreign Ministry that administers almost half of Sweden’s budget for development aid while the ThistlePraxis Consulting is a Strategy and Assessment Management Consulting firm that assists organisations of all sizes and in all sectors through the delivery of innovative solutions from effective strategies.

     

    IFC partnership

    Access Bank Plc, International Finance Corporation (IFC) and other signatories of the NSBP last year advocated a holistic implementation of the policy in order to contribute to the development of the economy.

    The stakeholders noted the need to encourage knowledge and experience sharing among industry players and other international organisations if the objective of the NSBP would be achieved.

    According to the Chairman of the committee, Jobome “the conference was convened to foster a holistic implementation of the NSBP by encouraging knowledge and experience sharing amongst industry players and other international organisations like the IFC and Sustainable Finance Limited.”

    He explained that the bank’s objective as the Chair of the NSBP Steering Committee, and Co-host of the event was to encourage practices that would aid the actualisation of the objective of the committee in ensuring the successful implementation of the Nigeria Sustainable Banking Principles across Nigeria’s financial institutions.

    Jobome added that the NSBP was developed by and for the banking sector in Nigeria to signal the industry’s commitment to economic growth that is environmentally responsible and socially relevant, noting that the bank has successfully embedded sustainability into the core of its operations by initiating capacity development of its employees. This, he said would ensure that all staff understand what sustainability means.

     

    Regulatory backing

    The CBN and Nigeria Deposit Insurance Corporation (NDIC) have provided regulatory support and framework for the sustainable banking practice in the country.

    The CBN and NDIC want banks to shift focus from profitability alone and consider also other issues around sustainability, before lending.

    The United Nations Environment Programme (UNEP), through its UNEP Financial Initiative on the Environment and Sustainable Development at the Earth Summit in 1992, placed it as pertinent concern for financial systems across the world.

    It said sustainable banking in Nigeria, therefore, is focused on energising the influence of the banking sector (being financier of economic and social activities) towards transforming the longer term interest of environmental preservation and societal balancing into key parameters for allocation of capital.

     

    Oil sector funding

    The CBN said if the oil companies that degrade the environment and their cohorts in other sectors are starved of funds from both local and international banks, they will have no choice than to comply.

    It called for an urgent need for a policy ensuring that people who do not carry on their businesses in environmentally unfriendly manner and get away with it. It  said the agenda would be presented to the Bankers’ Committee to agree on the way it can be realised. The reason is that as an industry, banks cannot continue to take savings and deposits from Nigerians and then, lend to companies that are destroying the environment.

    “Why must Nigeria bring multinational oil companies to destroy our environment? How do we feel about it? They can get the funds and still use it in a responsible manner. I want to see more banks coming to identify with issues of sustainability and protection of the environment,” it said.

    It said banks should not just look at profitability of lending decisions, but should also consider contributions of the borrower to the environment.

    The apex bank however, admitted that such might be an uphill task in a highly competitive banking sector ‘where dog eats dog’. “How can banks do that when they are competing for accounts? Banks should stop looking at size of balance sheet but on how to build sustainable finance,” it said.

    For the regulator, competition in the sector has drastically risen, compared with what was obtainable in the 80s. It therefore admitted that the policy may be stalled by banks not wanting to lose businesses to competitors that care less about the environment, where a borrower has not adhered to set standards.

    Besides, the global environmental impact of businesses, which are largely financed by the banking industry, suggests that the sector has not given adequate attention to environmental impact of their funding activities. It said the tendency to view banking as an environment friendly business is commonplace as it seemed, on the surface, not to be harming the environment and society directly.

  • Bank customers urge regulators on financial literacy

    The Bank Customers Association of Nigeria (BCAN) has urged the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to facilitate the realisation of CBN’s financial literacy/inclusion objective, as well as inculcating appropriate banking habits and culture among the populace.

    A statement from the group stressed its commitment to rallying customers and consumers for the promotion and protection of their interest in the face of daunting challenges against them.

    The body said banking should be conducted based on acceptable values and best practices, adding that it would intensify efforts at fostering mutual understanding, trust and confidence between banks and their customers through education, so as to strengthen and ensure the realisation of CBN’s financial literacy/inclusion and other programmes.

    “The BCAN should also organise awareness programmes in the areas of Guide to Bank Charges, Financial Literacy and Inclusion as well as Banking Policies, Regulations, Products/Services for the benefit of consumers in particular and stakeholders in general. The group should also collaborate and partner with organisations and individuals who share its vision and objectives in order to be able to extend its services to the nooks and crannies of Nigeria, for positive multiplier effect,” it said.

    Continuing, the group said that henceforth, it would create sustainable platform for the provision of advisory and counseling services in banking and finance to its members and the interested public in order to deepen their knowledge and ability to make the right financial decisions and choices.

    The group would also work closely with the regulatory and supervisory authorities to ensure that banks are held accountable for any unethical, unprofessional and risky products, services and practices they introduce into the financial system and to customers/consumers.

  • Ecobank unveils Giant Prize Give Away promo

    Ecobank Nigeria has allotted cash prizes worth over N10 million to winners that would emerge in its new deposit promo titled “Giant Prize Give Away” Promotion for current and savings accounts holders.

    The promotion, which commences next month and runs till February 2015, gives participating customers the opportunity to win cash prizes and other rewards at both bi-monthly regional draws and grand draws.

    Announcing the promotion in Lagos, Deputy Managing Director, Ecobank Nigeria, Tony Okpanachi, said the lender decided to run this second edition of the promo following the success and testimonials recorded in the previous edition.

    He noted that feedback from customers was positive and impressive, adding that, the promo is also the bank’s contribution towards the financial inclusion strategy of the Central Bank of Nigeria (CBN).

    Okpanachi explained that to ensure many customers benefit from the various prizes, the promo has been segmented into two categories. Under category one, new and existing customers need to make fresh deposits of N10, 000 into their currents or savings accounts and leave it for 60 days to qualify for the bi-monthly regional draw in Lagos, Port Harcourt and Abuja.

    Depositing multiples of N10, 000 gives the customer more chances of winning.  Maintaining a minimum of N10, 000 for 180 days qualifies the customer for the grand draw in February, 2015.

    For the category two, new and existing customers should make fresh deposits of N50, 000 into their current or savings accounts and leave it for at least 60 days to qualify for the bi-monthly regional draw in Lagos Port Harcourt and Abuja.

  • ANAN chief urges accountants on integrity

    The President, Association of National Accountants of Nigeria (ANAN), Sakirudeen Labode has challenged accountants  on the need to exhibit integrity and professionalism in the discharge of their duties.

    Speaking in Lagos at the Presidential Dinner organised in his honour by the South West Zone of ANAN, he said such virtues will boost perception of accountants locally and internationally.

    He said the economy will also benefit from the role of accountants, when their jobs are done professionally.

    Labode said ANAN is giving priority to technical capacity building of its members to boost transparency and accountability in the economy. He said accountants need better knowledge and technical capacity to do deliver quality and professional services on the job.

    The ANAN chief noted that the association had fulfilled its national and international obligations, particularly in International Federation of Accountants (IFAC), Financial Reporting Council (FRC) among others.

    The group also embarked on a rigorous campaign against corruption and championed the whistle-blowing campaign.

    He appealed to members of the association to be upright and show reciprocal gratitude to their employers. “The nation has supported ANAN and we must show gratitude for that support. The government and the citizens of Nigeria stood by us,’’ he said.

    The ANAN Chief said the body is currently exporting accounting knowledge to key African countries. “We went global and there is a prize to pay for it. ANAN’s position in the global arena is being redefined,’’ he said.

    The ANAN president explained that at the end of the year, the association would become a full member of the IFAC. He said Chinese and other languages would soon be added to the syllabus of the Nigerian College of Accountancy (NCA), Jos, the training arm of the association, apart from French presently being thought in the college.

    Also speaking at the event, Governor Abiola Ajimobi of Oyo State urged accountants to be acquainted with International Public Sector Accounting Standards (IPSAS), adding that accountants are expected to be good record keepers of internally generated revenue.

    Ajimobi ,who was represented by the state Director of Finance and Accounts, Olaojo Adeniyi, said the dinner held in honour of an Labode  was well deserved because of his immense contributions to the accounting profession.

    Also, the Coordinating Chairman of the South West Zone of ANAN, Mrs Elemanya Ebilah said, Labode is creditably discharging his responsibilities to the association and the country.

    She said the Southwest zone of ANAN comprises of Ikeja, Lagos Mainland, Shomolu, Ogun, Oyo, Osun, Ekiti and Ondo branches in six states.