The Nation Newspaper

Category: Money

  • ABCON: Cash deposit charges stoppage good for economy

    ABCON: Cash deposit charges stoppage good for economy

    The Association of Bureaux De Change Operators of Nigeria (ABCON), has said the removal of three percent charge  on cash deposits above N500, 000 for individuals and  N3 million for corporate customers will boost depositors’ confidence in the banking sector.

    ABCON President, Aminu Gwadabe said the CBN governor, Godwin Emefiele did the right thing by abolishing the charges during the unveiling of his agenda at the world press conference held last week.

    “The cancelation of the charges is good for the economy, will boost customers’ confidence and also enhance the achievement of the objectives of the cashless policy,” Gwadabe said.

    Under the cashless policy, the CBN imposed three percent charge  on cash deposits above N500, 000 for individuals and  cash deposit above N3 million for corporate customers. However, Governor Emefiele on Thursday ordered the stoppage of the charges.

    “We have become aware of complaints by customers particularly regarding the charges being imposed for cash deposits. This has resulted in customers devising various means to avoid the charges through opening of multiplicity of accounts and other disingenuous behaviour, all aimed at undermining the objective of this policy. Given these outcomes and to better reflect our goal of having more cash under our control, all charges on deposits are hereby stopped with immediate effect”, Emefiele said.

    The ABCON President said that the cancellation of the charges would also reduce the amount of bank charges paid by BDCs and thus reduce their operating expenses. This, he said, will in turn increase profitability and taxes paid to the government. Gwadabe said the reduced operating expenses, would encourage BDCs to offer attractive exchange rates to their customers.

    The group also praised Emefiele’s decision to sustain stability of the exchange rate by defending the naira. This according to Gwadabe, would engender increased confidence in the country especially foreign investors, and lead to increased inflow of foreign exchange supply into the country and boost external reserves.

    He said: “ABCON is committed to exchange rate stability and have always supported CBN’s policy in this regard. This is reflected in the Association’s zero tolerance on non-compliance with regulatory requirement. We would continue to support the apex bank under Governor Emefiele towards achievement of the goal of exchange rate stability in the economy,” he said.

  • FCMB shareholders approve N5.94b dividend

    FCMB shareholders approve N5.94b dividend

    Shareholders of First City Monument Bank (FCMB) Group Plc unanimously approved the payment of a cash dividend of 30 kobo per ordinary share, for the year ended December 31, 2013.

    This translates to a total amount of N5.94 billion. The approval came at the first Annual General Meeting (AGM) of FCMB Group Plc held in Lagos on Friday.

    Group Coordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended the board and management of FCMB Group Plc for improving its profitability over 2012, despite the particularly challenging operating environment for banks in 2013.

    He added that ‘’the resumption of good dividend payment is proof that FCMB’s management team is successfully executing its strategy and leveraging the recent transformation into a financial holding entity, to drive significant value creation for shareholders’’.

    Also,  National Chairman of Shareholders’ Trustees Association of Nigeria, Alhaji Mukhtar Mukhtar, expressed delight on the payment of dividend. He urged the management and board to continue to improve customer experience at every customer interface and invest in key sectors of the economy, as these will improve profitability and ability to pay even more dividends next year.

    The Chairman of FCMB Group, Dr. Jonathan Long, stated that the Group, which comprises First City Monument Bank Limited, FCMB Capital Markets Limited and CSL Stockbrokers Limited, ‘’has recovered strongly over the past two years and in 2013 made sufficiently strong progress’’. He attributed this to the implementation of initiatives that have improved efficiency and the successful integration of FinBank, which has boosted FCMB in retail banking. Long added that, ‘’the intention to pay dividend signifies the desire of the board to reward its shareholders for their continued commitment and support.

    The Managing Director of FCMB Group Plc, Mr. Peter Obaseki, noted that “the Group is on track to deliver on its promise to its various shareholders’’. He continued by explaining that the Financial Holding Company structure, ‘’enables us deliver more consistently and sustainably.”

  • Skye Bank partners Lagos councils on levy collection

    Skye Bank partners Lagos councils on levy collection

    Skye Bank Plc has launched a new solution to help local councils in the country improve their internally generated revenue. The solution was unveiled at the weekend at the Ojokoro Local Council Development Area of Lagos State, where the product has already been adopted for revenue collection.

    The bank’s Group Head, Revenue Collection and Franchise, Mrs. Bola Allison, said the product will check leakages and corruption in the collection process. She said the product known as Point of Payment (PoP) solution, ensures that the citizens pay their taxes, levies and other statutory payments through customized point of sales terminals which are administered by the council staff.

    Allison said the solution would make payment convenient as eligible tax and levy payers would not have to leave their shops or go to the banks to effect payment. She said tax payer would be protected as the PoP system generates receipts as evidence of payment.

    The Executive Chairman of Ojokoro Local Council Area, Mr. Benjamin Olabinjo, urged the people to embrace the product given the immense benefits to the development of the economy.

  • NDIC pays N588.6m to depositors of shut MfBs

    NDIC pays N588.6m to depositors of shut MfBs

    The Nigeria Deposit Insurance Corporation (NDIC) has started the payment of of N588.6 million to 33 out of the 83 operators of closed microfinance banks (MfBs).

    A statement endorsed by  its Head, Corporate Communication, H. S. Birch said the deposit pay-out will ensure that each depositor receives a maximum of N200, 000.

    He said the verification and payment of insured deposits of 33 MFBs whose licences were recently revoked by the Central Bank of Nigeria (CBN) has commenced.

    He said as part of the verification and payment exercise, affected depositors are to report to the last known addresses of their MfBs with evidence of account ownership including pass books, cheque books and personal identification documents such as national identity cards, drivers licences and voters cards.

    Depositors without valid identification documents are to obtain introduction letters with their photographs; the letters must be duly signed by traditional rulers of their localities or local government chairmen.

    He said the depositors are also requested to take along details of alternative bank accounts operated in any of the existing banks into which their insured claims could be paid while those without bank accounts have been asked to provide details of accounts of close relatives to which their payment could be made.

    NDIC said it has commenced verification and payment of N125 million as first liquidation dividend of 50 kobo each to shareholders of the defunct Rims Merchant Bank at its Abuja and Lagos Offices and eight zonal offices nationwide.

  • NSIA, GuarantCo partner to bridge infrastructure gap

    NSIA, GuarantCo partner to bridge infrastructure gap

    The Nigeria Sovereign Investment Authority (NSIA) and GuarantCo, a development finance fund are partnering to explore the potential creation of a Nigerian Credit Enhancement Facility (NCEF).

    The project is expected to attract a pool of capital for which safety is paramount such as pension funds, insurance firms and Sovereign Wealth Funds (SWF).

    It said a key barrier preventing these forms of capital from investing in infrastructure projects is the absence of an appropriate credit enhancement mechanism that helps bring infrastructure projects up to a credit quality that represents appropriate investments for their stakeholders.

    “To address this gap, GuarantCo is partnering with the NSIA to explore the potential for establishing a Nigerian Credit Enhancement Facility that would provide credit enhancement for critical infrastructure projects by improving their credit ratings to investment grade. Such a vehicle could also potentially attract international capital.

    NSIA and GuarantCo see this partnership as a potential catalyst for unlocking long-term patient capital, typically required by infrastructure projects to be commercially successful. It is expected to have positive effects on the Nigerian economy given the strong correlation between critical infrastructure and accelerated economic growth,” NSIA statement read in part.

    NSIAManaging Director and CEO, Mr. Uche Orji, said enhaning the infrastructure of the country is one of its statutory duties. He said: “One of the statutory mandates of the NSIA is the enhancement of Nigeria’s infrastructure and in fulfilling this mandate we are desirous of establishing the necessary institutional frameworks and sustainable enablers that will attract long term capital necessary for this purpose. We are excited about the potential role this partnership can play in revolutionising the extant model of infrastructure development in Nigeria; now and into the future.”

    Head, GuarantCo at FMFM (Frontier Markets Fund Managers) Mr. Chris Vermont, said his firm shares the vsion of NSIA.  “GuarantCo shares NSIA’s vision for mobilising new sources of finance for infrastructure through creating a Nigerian Credit Enhancement Facility. “We are proud to be partnering NSIA as they map out a prudent but ambitious pathway for Nigeria. We hope our experience of best practice across many markets can be combined with NSIA’s local expertise in the service of the country,” he said.

  • Euro rebounds as ECB launches inflation fight

    Euro rebounds as ECB launches inflation fight

    The euro rebounded from four-month lows yesterday, brushing aside the European Central Bank’s decision to cut interest rates and announce an array of measures to loosen monetary policy in order to halt a disinflation trend.

    The ECB cut all its main rates to record lows in a drive to fight off the risk of a Japan-like deflation and bring down the euro’s exchange rate. For the first time, it will charge banks 0.10 per cent for parking funds at the central bank overnight.

    The euro had been trading in a tight range heading into the decision, coming one day before the U.S. jobs report that is expected to show slowing employment growth but unlikely to affect a change in loose U.S. monetary policy.

    President Mario Draghi stopped short of large-scale asset purchases known as quantitative easing, which is meant to keep interest rates low and spur borrowing. Draghi said more action would come if necessary.

  • FCMB urges youth to embrace financial literacy

    FCMB urges youth to embrace financial literacy

    First City Monument Bank (FCMB) Limited has donated 30 new computer systems to Community Secondary School (CSS), Aka-Offot in Uyo, Akwa Ibom State to promote financial literacy.

    The donation was done to fulfil the pledge the bank made during the financial literacy lecture series organised in three months ago, in commemoration of the 2014 Global Money Week and Financial Literacy Day, and also as part of activities celebrating Children’s Day held on May 27.

    The school was adopted by FCMB for a full year as part of the financial literacy programme and initiative. The programme, an initiative of the Bankers’ Committee in collaboration with the Central Bank of Nigeria (CBN), is focused on educating  youth about their economic environment, impressing upon them the importance of saving, entrepreneurship and wealth creation. During the year, FCMB will mentor the students, teach them about the banking, finances and how they can save and grow their money.

    Speaking during the presentation of the computers, the Group Managing Director/Chief Executive of FCMB, Mr. Ladi Balogun, said the gesture is aimed at building the capacity of the students to facilitate knowledge and skill, particularly on the use of information technology devices.

    This, he said “can effectively motivate them to understand and key into the financial literacy and inclusion agenda’’ of the apex bank.

  • IBM chief urges banks on efficient software

    IBM chief urges banks on efficient software

    The Vice President IBM Tivoli Storage Software Development, Software Group, Steve  Wojtoweecz has advised banks to adopt efficient and quality banking software despite high cost of acquisition.

    Wojtowwecz, who spoke on the benefits of the Edge 2014 conference held in Las Vegas, said the event was meant to show the clients and associates, IBM’s technological inputs in today’s world. He said banks should ensure that people responsible for data applications are highly efficient to achieve maximum protection.

    He said the cost for acquiring software will be upset in a matter of months from efficiency adding that securing efficient and seamless software remains the best option for banks, telecommunication firms and other operators remains the best way to maximise output.

    “Efficient banking software is costly but data storage is also very important. Buying software is relatively inexpensive compared to the benefit one gets,” he said.

    He said banks should have several layers of security and authentication so that should one layer fail, the other can continue.

    Wojtowwecz said fraud prevention and detection can be for different reasons. “There are many mechanisms a bank can implement to limit fraud, because preventing it is very difficult. Limiting fraud is the best case option at the moment. What they are trying to do is that there is authentication, taking the multifunctional applications to where you can. Anything from fingerprints, to extremely strong password  are very important,” he said.

    He said: “I think banks change their applications because as the business changes, the software has to change to support the users. So, it might be because of the person working in the bank, or the person who is putting his money inside the bank.”

    He explained that a change of application can also be to support a bank employee, the consumer of the commercial bank, or maybe financial institutions for real estate, or stock exchange. “So, when companies change their applications, they do so for the user to meet a particular need. Despite the reason for such action, I know it is very hard to throw away an application,” he said.

    Ingul said when developing banking software, it is important to think of certain things.

    He said companies can sometimes create a level of software, with many smaller software, depending on the level of virtualisation needed.

  • Jonathan, Emefiele meet

    Jonathan, Emefiele meet

    President Goodluck Jonathan yesterday met behind closed doors with the new Governor of the Central Bank of Nigeria (CBN), Godwin Emifele at the Presidential Villa.

    Emifele’s visit yesterday was the first since he resumed duty as the chief executive of the country’s apex bank.

    He however declined to speak with State House correspondents at the end of the meeting that lasted for about one hour.

    It was gathered that his visit was to discuss with the President his new agenda for the economy and the banking sector, which he plans to unveil today.

  • Mobile money firm unveils service

    Mobile money firm unveils service

    Teasy International Company Limited, a Mobile Money Operator licensed by the Central Bank of Nigeria (CBN) has launched a contactless payment service named “Tap n Pay”. The product was officially unveiled in Sokoto State.

    Its Managing Director, Musa Ali Baba who spoke on the service in Abuja, said with the positive response to “Tap n Pay”, more outlets in the state will be rolled out.

    Its chief commercial officer, Mr. Agbolade Odunyemi said the service is consistent with the firm’s desire to facilitate not just financial inclusion in the state but also leverage on the huge mobile phone penetration to drive cashless commerce in the country.

    He said the country will benefit from ensuring that the cashless policy of the apex bank succeeds. “As the huge cost associated with the printing and moving of cash can be reduced significantly leveraging on the adoption of Teasy Mobile Money services; the government and CBN can also invest the savings into alternative economic projects that will impact the average Nigerian,” he said

    The Tap n Pay service allows fast payments from mobile wallets at Point of Sale (POS) when an near field communication (NFC) compatible mobile device is brought within a few centimetres of another NFC POS enabled device.