The Nation Newspaper

Category: Money

  • CBN, banks to offset N25b PHCN legacy debt

    CBN, banks to offset N25b PHCN legacy debt

    The Central Bank of Nigeria (CBN)  is collaborating with Money Deposit Banks to underwrite the N25 billion legacy debt of the Power Holding Company of Nigeria (PHCN).

    The measure is designed to enhance gas availability and improve power supply.

    The Managing Director, Ecobank Nigeria, Jibril Aku, who made this known yesterday at The Bankers’ Committee meeting held in Lagos. said the Committee resolved to  service the debt, adding that doing so would enhance gas supply and boost power supply in the country.

    Aku said the banks will recover the fund from the Multi-Year Tariff Order (MYTO) deductions,

    He said the Bankers’ Committee is willing to support an initiative with government, where a Special Purpose Vehicle (SPV) will be set up to provide loans to clear that debt and overtime, the loan will be recovered through MYTO tariff deduction, stressing that the CBN will play a key role in assisting the banks to do that.

    The Ecobank chief said the whole essence of the power transformation is to achieve efficiency and ability to improve power supply, which have been hindered by gas shortage.

    “Obviously, gas coming into the power stations would affect the revenue. Many of the operators have not raised their production capacity because of shortage of gas. One of the solution, is gas pricing. There is an incentive now for the gas companies to produce gas. For the owners of the generating plants, there is also an incentive for them to improve generation,” he said.

    He said the gas companies have always be agitating that this debt be paid, otherwise, they will not produce and will begin to accumulate new debts.

    Aku explained that the minister of Petroleum, and the CBN Governor met and announced the increase in the price of gas because they want gas to be commercially available to enable the gas company to produce more.

    “The price of gas was moved from $1.50 to $2.50 plus a transportation of $0.8. Today, at a price of $3.3, there are enough incentives for gas companies to produce gas. And that is important, because if you look at the 26 generating stations that we have, 23 are gas-dependent. And it is important for gas to go into them for them to increase their production, that is an incentive,” he said.

    He said the committee believes that most of the problems of gas-to- power would be resolved and Nigeria will begin to see a generating company that is inspired to increase the power generation.

    Also, Managing Director, Access Bank Plc, Herbert Wigwe said the Committee also agreed to contribute N15 billion to the Victim Support Fund, to cater for vulnerable groups within the society.  He said the funds will be contributed by the banks, CBN and Nigeria Deposit Insurance Corporation (NDIC).

    “The committee also spoke about the Victim Support Fund where as a group we will key in to the desire to contribute to the Victim Support Fund, N15 billion, which is extremely critical for the system. It is not as if the fund was created to fight Boko Haram. No.  It is for vulnerable groups within the system. The Bankers’ Committee has a way of sharing the money between different banks depending on size and profitability,” he said.

  • Methodist Church to establish MfB

    Methodist Church to establish MfB

    The Methodist Church of Nigeria said it would establish Wesley a micro-finance bank. It said the bank will create jobs and lend money to the teeming youths in Nigeria.

    The leaders of the church also called on other churches in Nigeria to invest in agriculture by encouraging its members to go into full time agriculture to boost food production.

    This was contained in a  communiqué issued in Port Harcourt, the Rivers State capital, at the end the 9th Biennial Conference of Methodist Church of Nigeria held at  Wesley Methodist Church with the theme, ‘Let My People Move Forward.’

    Speaking at the press conference organized by Wesley Methodist Church Rivers State, His Eminence, Dr. Samuel Emeka Kalu Uche, said the church has made every plan to establish a microfinance bank that will lend money to young entrepreneurs.

    He said the strength of the church lies in its ability to help in the development of the society adding that, it is one of the functions of the church. He added that the interest of churches to go into agriculture is to create job opportunity to the teeming youth.

    Dr. Samuel also reveals that one of the ways in which the church can save the society is by creating business and farms that will help provide for the society.

    “The establishment of Microfinance Bank, Wesley Microfinance Bank Limited is geared towards the empowerment of youths and the poor, both within and outside the church. This is in a bid to support the efforts of the three tiers of government in provision of food security and to create job.

    “Most of our youths don’t have job and we know that an idle mind is a prepared tools for  Satan So, we want to help in creating jobs and that is the aim of the church, empowering our people not only Methodists but non-Methodists.”

  • CBN reintroduces ATM fee

    CBN reintroduces ATM fee

    The Central Bank Nigeria (CBN) has reintroduced Automated Teller Machine (ATM) fee it scrapped in December, 2013. The apex bank said from September 1, customers will commence payment of N65 as against  the N100 fee charged previously.

    CBN Director, Banking & Payments System Department, ‘Dipo Fatokun, who made this known in a circular, the  re-introduction of Remote-on-us ATM cash withdrawal  fee of N65per transaction, is to cover the remuneration of the switches, ATM monitors and fit-notes processing by acquiring banks.

    He explained that the new charge shall apply as from the fourth transaction in another bank’s ATM.

    “The fee shall apply in ‘’Remote-on-us’’ withdrawal (in a month) by a card holder, thereby making the first three (3) ‘remote-on-us transactions free for the card holder, but to be paid for by the issuing bank. September 1, 2014 shall be the effective date for the implementation of the new fee,” he said.

    However, all ATM cash withdrawals on the machine of issuing banks shall be at no cost to the card holder.

    He advised banks to conduct adequate sensitisation to their customers, on the introduction of the new fee.

    The CBN in collaboration with the Bankers Committee had in December, 2012, transferred the payment of N100 fee on ‘’Remote-on-us’’ ATM Cash withdrawal transactions to issuing banks.

    This fee is shared between the acquirers, issuers, and switches. On the commencement of the arrangement in December 2012, banks (issuers) decided to waive the issuer fee (N35), which should have ordinarily been an income to them. Consequently, banks only bore the cost of (N65) each time their customers use another banks’ ATM.

    The CBN and the Bankers Committee on Tuesday November 13, unanimously agreed to scrap all charges associated with the use of ATM.

    This agreement was the outcome of a meeting between the Bankers’ committee made up of Chief Executive Officers of Deposit Money Banks, and directors and top officials of the CBN.

  • FRC to monitor accounting standards in public sector

    FRC to monitor accounting standards in public sector

    The Financial Reporting Council (FRC) has said that it will by 2015, monitor  compliance by public sector entities and  State Owned Entities with the provisions of International Public Sector Accounting Standards (IPSAS).

    FRC Executive Secretary/ CEO, Jim Obazee disclosed this yesterday while receiving the leadership of Institute Chartered Accountants of Nigeria (ICAN) to the council.

    He said there is the urgent need to study the future structure of higher education in financial reporting and develop recommendations for educational pathways. He advised the institute on the need to deal with value addition. “It is not enough to have assisted the Association of National Accountants of Nigeria (ANAN) to gain membership of the International Federation of Accountants (IFAC), you need to genuinely meet with their leadership and also ensure that they are strong in their field of play; which is largely the public sector,” he said.

    He said ICAN needs to take leadership role in the Nigerian Accounting Association (NAA). “Your Institute needs to open an “emergency ward” for your members in practice. The provision for annual inspection of professional accountants, in the FRC Act, 2011, is the federal government’s way of saying that professional accounting bodies should defend professional ethics and values and that audit failure and fraudulent financial reporting will no longer be acceptable,” he said.

    He said the institute should enhance the inflow of foreign direct investment to the country adding that the council will be requiring “Not for Profit” entities to comply with International Financial Reporting Standards (IFRS) in 2015.

  • NDIC boss bags award

    NDIC boss bags award

    A Coalition of Civil Society Organisations of Nigeria (CCSON) has conferred its 2014 Certificate of Commendation Award on the Managing Director/CEO of the Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim.

    At the award conferment ceremony in Abuja, the President of the association, Comrade Bassey Williams Etuk said the organisation’s prestigious award was conferred on the NDIC Boss in recognition of the enviableand purposeful leadership which he had brought to bear in the management of the Corporation.

    “Part of our observations which informed this award were transparency, professionalism, proactive decisions, teamwork and above all, the effective delivery of the NDIC mandates which our organisation had noticed. This seems to be uncommon in our nation today, and as such, we have chosen to celebrate it to serve as a model to others, realising that Nigeria is blessed with virtually everything but leadership,” he said.

    Comrade Etuk said the national award was instituted two years ago by the national body of over 290 civil society organisations (CSOs) as a platform to work with public institutions towards enhancing good governance and promoting efficient service delivery to the citizenry.

    He pointed that the institution of the award marked a departure from the past when it seemed that CSOs saw nothing good in government and its agencies to an era of identifying and recognising public officers and institutions discovered to have an edge in service delivery.

  • UBA chief urges banks on capacity

    UBA chief urges banks on capacity

    The Group Managing Director/CEO, UBA Plc  Mr. Phillips Oduoza has called on financial institutions in Africa to seize the opportunity provided by the President Obama led US-Africa Business Leaders Summit and the enthusiasm about Africa, to boost capacity.

    According to him, much of the challenges of financing growth and development on the continent lie in the hands of financial institutions, working in collaboration with international development finance institutions, investors, and private equity firms particularly from the US .

    Speaking in Washington DC , the UBA boss said the three-day summit will impact positively on helping to change the information asymmetries about Africa in the US and the rest of the world. Beyond the negative press about the continent in the western media, he said there are a lot of positive developments in Africa , with stable democracies in most countries, improved business climates and abundant investment opportunities in agriculture, power, transportation, telecommunications, energy and other sectors.

    “As one of the largest banks on the continent, with operations in 19 African countries,  we have made huge investments in these countries and have continued to grow our business as well as contributing to the finance and developmental needs of these countries” he stated.

    Describing the summit as the largest gathering of investors, financiers, businessmen and political leaders from Africa and the US.

  • Sterling Bank to unveil product at fair

    Sterling Bank to unveil product at fair

    Sterling Bank will take its increasingly dominant role in the development of the education sector in Nigeria a step further this week as the bank takes its unique education product offerings  to the Yaba College of Technologyl (YABATECH), Lagos, venue of the  six-day Student Fair tagged, ‘’BonMarcheFairstival”  under its “One Education” initiative.

    Over 80,000 students and 25 educational institutions are expected at the Forum where they will be having first-hand information on how the Bank could be of support to their various educational needs.

    The Trade Fair (BonMarcheFairstival) is regarded as the biggest and most vibrant student shopping experience in Nigeria, attracting exhibitors and visitors from across the country and organized across different regions in Nigeria with an estimated of over 3,000 visitors daily.

    The bank in a statement issued by its Head of Communications, Mr. Ayo Ashaolu said that the Fair will provide the right platform for the Bank to directly engage students considered as valuable and influential market segment of the market.

    He explained further: “BonMarche Fairstival is an event that is targeted at the vibrant youth market.

  • Access Bank pushes for women empowerment

    Access Bank pushes for women empowerment

    The Group Managing Director, Access Bank Plc, Herbert Wigwe,  has urged African leaders to commit themselves to empoering.

    Wigwe, who is the champion of the W-Initiative – a programme designed for women banking, spoke  during the  inaugural US-African Leaders International Summit hosted by President, Barack Obama in Washington DC.

    The summit ended with leaders from 50 African states in attendance, discussing the trade and investment opportunities with the US, as well as collaboration on security of the continent.

    Wigwe, who was a special guest at the brunch, noted that, “too often, the role of women in the continent is grossly under represented. We must embrace the fact that once the woman is educated, the whole family is educated; and what’s true for the family is true for the community and the whole country.”

    Wigwe said the ‘W’ Initiative,  offers privileges for women and their families to a variety of products, including access to a comprehensive range of loan products and credit facilities; access to the ‘W’ community with helpful advice on family and financial matters; home and family articles and details of special offers; and access to a wide range of discounts, special offers and freebies on health, beauty and fitness.

    He spoke about the Maternal Health Support Scheme (MHSS) which offers financial assistance for women who face difficulty with completing their family.

    He said Access Bank is committed to women empowerment and is uniquely positioning as the bank of choice for women, offering innovative women-focused products and services.

  • Foreign reserves to hit $41b by month-end

    Foreign reserves to hit $41b by month-end

    Foreign exchange reserve which stood at $39.4 billion in August 7 is expected to hit $41 billion by the end of this month, Managing Director, Financial Derivatives Company (FDC) Limited, Bismarck Rewane has said.

    In the FDC Breakfast Meeting at the Lagos Business School, he said the slow replenishment of the reserves will continue until they reach $41 billion by month-end. Analyses of the reserves based on data from the Central Bank of Nigeria showed that the reserves have risen by over $2.2 billion in the last six weeks. The reserves which were at $37.2 billion on June 24 rose to $3.84 billion on July 17.

    Rewane said average oil prices of Nigerian crude remained above $104 per barrel while the positive impact on oil revenue will be felt in October. US import of Nigerian crude is down to less than two per cent, of total Nigerian exports, compared to seven per cent in 2011. Dwindling Nigerian shipments to the U.S. imply that disruptions to Nigeria’s oil supplies are unlikely to trigger oil price rallies. Nigeria imports about 50 per cent of its refined products from the US.

    He said oil revenues forecast in second quarter is $12 billion as against first quarter revenue of approximately $11 billion adding that accruals from oil form major part of the reserves. The reserves will cover 8.2 months of import cover

    Analyzing financial sector credit, he said the average opening credit position of the banking system was N358.75 billion in July, about 0.66 per cent lower than June figure. Inflation crept up by 0.2 per cent to 8.2 per cent, the fourth consecutive monthly increase.

    He said the Monetary Policy Committee (MPC) left the monetary policy instruments and stance unchanged in July even as the naira appreciated at the interbank market to N161.85/ dollar but depreciated at the parallel market to N168/ dollar.

    Also, banking earnings were flat and lower than first quarter because of the cumulative impact of the Cash Reserve Ratio (CRR) hike. Also, average corporate earnings for lenders declined by 1.53 per cent in second quarter and stock prices decreased by 3.16 per cent year-to-date.

  • UN asks firms to tackle corruption

    UN asks firms to tackle corruption

    The United Nation Global Compact (UNGC) has advised business operators to shun bribery and corruption in the course of their operation, its Head, Transparency & Anti-corruption, Mrs Olajobi Makinwa, has said.

    Mrs. Makinwa, who spoke in Lagos, called for entrenchment of anti-corruption initiatives in all organisations, adding that governments at all levels are also expected to make commitment that would enhance transparency, sustainability in  business practices.

    She said the fight against corruption is a collective one between government and private sector operators. The UN executive said over 10,000 companies have signed up with the UN’s anti-corruption policy created by the Global Compact and Global Compact Nigeria to fight corruption.

    She said local and global business operators have also shown commitment to fight against corruption by signing the call to Action: Anti-corruption and the Global Development Agenda. The Call to Action, she explained, is an appeal from the private sector to governments aimed at promoting anti-corruption measures and implementing policies that enhance good governance.

    She said the project has garnered more than 100 global business signatories to date, including Oando Plc.

    Mrs. Makinwa said the UNGC has also been at the forefront of advancing the 10th principle against corruption, which asks businesses to work and fight against corruption in all forms, including extortion and bribery.

    “The initiative funded by Siemens, has sought to create a platform for dialogue, collaboration and capacity building by building alliances of like-minded business and public officials,” she said.

    Makinwa said the project has succeeded in increasing dialogue between the oil and gas industry in Nigeria on issues of fraud and corruption as well as raising awareness of corruption issues, especially in the procurement process.

    The project, she added, has helped in engaging a large number of small and medium sized enterprises (SME) in multi stakeholder dialogues against corruption.

    Also, MTN’s Company Secretary, Mrs Uto Ukpanah, said the firm has been supporting the UNGC in its fight against corruption, adding that top management of MTN is in support of the body’s operations.