The Nation Newspaper

Category: Money

  • Nigeria’s economic potential massive, says Stanbic CEO

  • FMDQ, Bloomberg launch trading platform for bonds

    Bloomberg and FMDQ OTC Plc have announced the launch of the Bloomberg E-Bond trading and market surveillance system, a new electronic trading system for Nigerian government bonds. It has commenced operation under FMDQ’s over-the-counter (OTC) market securities exchange.

    Jointly developed by Bloomberg, FMDQ and the local market-maker community, the product provides electronic trading and market surveillance tools for participants in Nigeria’s N12 trillion fixed income market.

    “As a newly established OTC market securities exchange, our goal is to empower the Nigerian OTC financial markets to be efficient, credible and globally competitive. With its potential to drive transparency and liquidity, we believe the introduction of the Bloomberg E-Bond system will help us to achieve those aims and we are pleased to work with Bloomberg to bring it to the Nigerian fixed income market,” says Dipo Odeyemi, Divisional Head, Operations and Technology, FMDQ OTC.

    The Bloomberg E-Bond system provides a complete, consolidated marketplace for Nigerian government bonds, offering market participants a robust and flexible set of tools supporting the full trade workflow. This includes pre-trade price discovery and analytical tools, the ability to handle both multi-dealer request-for-quote (RFQ) and order trading, straight-through processing (STP) functionality and integrated trade capture and reporting tools.

  • Western Union, Paga to launch new mobile money

    Western Union, Paga to launch new mobile money

    The Western Union Company, a leader in global payment services, on Monday announced the launch of a new mobile money transfer (MMT) service to Nigeria, which increases the reach of Western Union payout options in the country.

    In a statement, it said the new service to Nigeria integrates directly with Paga, a mobile payment platform with more than 1.2 million users.

    Paga users have the option of receiving a Western Union Money Transfer transaction directly into their Paga account.

    “Using Paga’s multi-channel platform, customers can withdraw the money by sending it to a bank account, withdrawing from an Automated Teller Machine or through Paga’s network of over 4,000 agents in Nigeria. Consumers can also choose to pick-up their funds at participating Western Union® Agent locations across the country,” it said.

    It said international money transfers for mobile pick-up via Paga can be initiated at westernunion.com in more than 20 countries, or participating Western Union Agent locations worldwide. According to the statement, the new offering complements Western Union services offered through its retail Agent network of more than 500,000 locations around the world, which includes 4,900 locations in Nigeria.

    “Western Union continues to introduce new service offerings to expand its mobile footprint as part of our omni-channel strategy, which facilitates financial inclusion for consumers who may not have access to traditional banking products,” said Aida Diarra, the Regional Vice President, Africa, Western Union.

    Founder and Chief Executive Officer of Paga, added, Tayo Oviosu: “Paga continues to execute on its strategy of simplifying payments for all Nigerians – whether you are a business or an individual. This relationship extends our services to the world – now anyone across the globe who needs to send money to Nigeria can ‘Just Paga it’ through Western Union. Paga is proud to work with Western Union and we look forward to continuing to deliver innovative money transfer services to Nigerians around the world.”

     

  • Private sector’s credit rises to N16.5tr

    Private sector’s credit rises to N16.5tr

    Banks’ credit to the private sector rose by 1.4 per cent to N16.5 trillion at the end of the fourth quarter of last year, the Central Bank of Nigeria (CBN) has said.

    According to the CBN Economic report for the quarter released at the weekend, the figure represents an improvement compared with the 3.7 and 2.7 per cent increase in the preceding quarter and the corresponding period of 2012.

    It said the development, relative to the preceding quarter, reflected the 0.9 per cent increase in claims on the core private sector. Also, at N8.5 trillion, banks’ foreign assets (net) of the banking system fell by 4.6 per cent, compared with the decline of 2.6 per cent at the end of the preceding quarter.

    The CBN said banks’ credit to the domestic economy rose by 8.6 per cent to N12.2 trillion, when compared with date from the preceding quarter. The development, it said, was attributed largely to the 346.9 per cent increase in claims on the Federal Government.

    However, CBN’s credit to the banks fell by 1.6 per cent to N229.8 billion, reflecting the decline in overdrafts to banks, while total specified liquid assets of the deposit money banks (DMBs) stood at N6.6 trillion, representing 39.5 per cent of their total current liabilities.

    Also, the liquidity ratio rose by 1.8 percentage points above the level in the preceding quarter, and was 9.5 percentage points above the stipulated minimum ratio of 30 per cent. The loans-to-deposit ratio stood at 36.3 per cent, and was 2.9 percentage points above the level at the end of the preceding quarter, but was 43.7 percentage points below the prescribed maximum ratio of 80 per cent.

    The quarterly report also said Gross Domestic Product (GDP) was estimated to have grown by 7.7 per cent, compared with 6.8 per cent in the preceding quarter. The development, it said, was driven largely by the growth in the non-oil sector.

    Broad money supply (M2) grew by 9.1 per cent, in contrast to the 7.9 per cent decline recorded at the end of the preceding quarter.

    The CBN said the development reflected largely, the 14.9 per cent increase in domestic credit (net) of banking. Similarly, narrow money supply (M1) rose by 11.4 per cent, in contrast to the 9.3 per cent decline at the end of the preceding quarter.

    At the end of December 2012, broad money supply (M2) grew by 1.2 per cent, owing largely to the 18.5 per cent increase in net domestic credit, which more than offset the 26.0 and 5.9 per cent decline in other assets (net) and foreign assets (net) of the banking system. Reserve money (RM) rose at the end of the fourth quarter of last year.

    Broad money supply, (M2), grew by 9.1 per cent, in contrast to the 7.9 per cent decline recorded at the end of the preceding quarter.

    The CBN said the development reflected, largely, the 14.9 per cent increase in domestic credit (net) of the banking system. Similarly, narrow money supply, (M1), rose by 11.4 per cent, in contrast to the 9.3 per cent decline at the end of the preceding quarter.

    Over the level at end-December 2012, broad money supply (M2) grew by 1.2 per cent, owing largely to the 18.5 per cent increase in net domestic credit, which more than offset the 26.0 and 5.9 per cent decline in other assets (net) and foreign assets (net) of the banking system, respectively. Reserve money (RM) rose at the end of the fourth quarter of 2013.

    Available data indicated that banks’ deposit and lending rates generally trended upward, while the weighted average inter-bank call rate fell by 3.23 percentage points to 11.02 per cent, reflecting the liquidity condition in the inter-bank funds market.

    Provisional data indicated that the value of money market assets outstanding increased by 4.1 per cent to N6.8 trillion, compared with the increase of 5.7 per cent at the end of the preceding quarter.

     

  • February inflation may ease to 7.95%

    The inflation figure for last month would decline marginally to 7.95 per cent from eight per cent in January when the National Bureau of Statistics (NBS) releases the inflation data for last month this week, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane has said.

    He said the expected figure remains a moderation in the headline inflation rate after remaining flat in December and January.

    “The reduction in price level is partly due to the post-festivities drop in purchasing power of consumers. It is surprising that even after the redemption of the Asset Management Corporation of Nigeria (AMCON) bonds of N1trillion in December, the transmission effect on prices is relatively mute. Both the food and non-food basket prices are expected to slide,” he said in an emailed report.

    Also, FDC’s urban inflation survey in February showed that urban inflation moderated by 0.94 per cent to 8.63 per cent. Both baskets of the food and non-food items moved in the same direction with the food basket declining by 0.87 per cent to 8.12 per cent and the non-food basket by 0.97 per cent to 8.89 per cent.

    Rewane said the movement in inflation was influenced mainly by seasonality, rather than cost-push or demand-pull effects, adding that the threat to price stability is still potent, especially in view of the potential for exchange rate transmission on imported finished goods.

    Other risks from the 50 per cent hike in gas prices for power generation and the implementation of the new automotive policy remain.

    He added that market response to the inflation announcement is likely to be in two phases.

    He said: “The initial impact will be neutral and nerve-soothing. He added: “This is because of the belief that the Monetary Policy Committee (MPC) is unlikely to take draconian moves in a declining inflation environment.

    “The MPC will be more anticipatory and strategic in its deliberations under a care-taker leadership. We expect the MPC to be very aggressive in its mopping up and push the Cash Reserve Ratio (CRR) to the maximum level. This will be complemented by tweaking the private sector CRR from 12 to 15 per cent.”

    Rewane explained that all other markets will react in line with their interest rate sensitivity or convexity, adding that most bond traders and other fixed income securities holders have already priced in an interest rate increase into their sentiments and portfolios.

     

  • CBN’s policy spurs SMEs’ funding

    CBN’s policy spurs SMEs’ funding

    The Central Bank of Nigeria (CBN) has taken measures that will encourage banks to lend and support Small and Medium Scale Enterprises (SMEs). Many banks have keyed into the policy, instituting internal measures and creatively finding ways to woo the SMEs. COLLINS NWEZE reports.

    Banks product development

    and risk management units

    are becoming more creative on how they can fund Small and Medium Scale Enterprises (SMEs). The banks, which have the backing of the Central Bank of Nigeria (CBN) are thinking outside the box on their approaches to SMEs’ financing.

     

    CBN policy on SMEs

    The CBN has set up guidelines for the management of the N220 billion Micro, Small and Medium Scale Enterprises Development (MSME) fund it launched last year to support SMEs’ financing. The CBN said the fund will be managed by a Special Purpose Vehicle (SPV) while it will manage the fund, pending the establishment/appointment of the SPV or Managing Agent (MA).

    It said many unserved and under-served clients exist in the MSMEs’ sub-sector, stressing that to address the funding requirements of this critical segment of the economy, 80:20 ratio for on-lending to micro enterprises and SMEs has been designed.

    The CBN said women’s access to financial services should increase by 15 per cent yearly to eliminate gender disparity. It also said to achieve this, 60 per cent or N132 billion of the fund, has been earmarked for providing financial services to women.

    The regulator said in operating the fund, special consideration will be given to institutions that will provide financial services to graduates of the Central Bank of Nigeria’s Entrepreneurship Development Centres (EDCs).

    Also, 10 per cent of the fund will be earmarked for social and development objectives as grants, N11 billion; Interest Drawback Programme, N6.60 billion; MA’s Operational Expenses N4.4 billion. However, MA is expected to generate income from its operational activities to fund its future expenses on a sustainable basis.

    It explained that N6.6 billion earmarked for Interest Drawback will be used to settle the rebates to financial institution’s customers under the fund who repay their loans as and when due while the N11.0 billion for grants will fund programmes that are aimed at developing the MSME sub-sector.

    However, 90 per cent of the fund, amounting to N198 billion, will be utilised for the provision of direct on-lending facilities to participating financial institutions.

    It said participating financial institutions can only finance agricultural value chain activities, trade and general commerce, cottage Industries, artisans, among others.

    The banking watchdog said to ensure that productive sectors of the economy continue to attract more financing necessary for employment creation and diversification of the country’s economic base, a maximum of 10 per cent of the commercial component of the fund will be channelled to trading and commerce.

     

    Lenders’ responses

    Managing Director, Sterling Bank Plc, Yemi Adeola said the bank is introducing in an innovative competitions, ideas that will make it possible for young entrepreneurs to think beyond the negative society ills and build strong businesses.

    The bank, he said, instituted the “Meet the Executive’ programme meant to select three young Nigerian entrepreneurs that will not only get project-based grants, but would be introduced to local and international investors.

    Speaking during a meeting with participants in the programme, he described entrepreneurs as the backbone of the economy, adding that the programme is driven by the lender’s passion for helping budding entrepreneurs to attain great heights.

    “We plan to choose three out of the whole people, and work out the modalities or logistics of the fund with them, but it is easy money. The fund will be project-based,” he said.

    Adeola said over 700 entries were received from entrepreneurs who also submitted proposals to the bank. “We then pruned the number down. We are about selecting the final list, and by the end of the day, whatever project they are putting on the table, we are going to partner with them, and give them grants in the first instance, to assist them,” he said.

    Before that, the lender organised a fashion competition for undergraduates of tertiary institutions in Lagos State. It said the exercise was meant to discover and celebrate the creativity of the youth.

    The competition, which is part of the bank’s corporate social responsibility (CSR) efforts in the education sector, seeks to transform the perception of artistically inclined undergraduates in relation to corporate organisations, their acceptability and the difference they can make given the opportunity and a suitable platform.

    According to the bank’s Group Head of Strategy and Communications, Shina Atilola, participants are to upload their sketched designs on the bank’s Facebook page. The creators of the top 10 designs will be given some cash to produce their designs. He assured that the lender would continue to empower entrepreneurs to achieve their desired goals.

    “It is the bank’s desire to see every Nigerian youth gainfully employed and being able to make a living without looking for jobs but starting their own businesses.

    He said the bank’s partnership with Fate Foundation on lecture series is to ensure that future entrepreneurs are well empowered and positioned to attract the right credit,” he said.

    Atilola said the partnership would promote entrepreneurship and increase the level of SMEs awareness and participation across board. “It reiterates the bank’s commitment to continuous Corporate Social Responsibility Initiative to further promote education in the Country,” he added.

    Also, the bank said it is poised to become a systemically important commercial bank that impacts on all sectors of business participation in the economy going by feelers from those close enough to the bank’s business strategy.

    A statement from the bank said the bank desires to be a competitive financial services franchise; fully scaled business model with institutionalised processes.

    “With business focus being the mid-tier corporate, institutional banking, small and medium scale enterprises (SMEs), the government and consumer banking; the bank’s vision is to be the financial institution of choice while its mission is to deliver solutions that enhance stakeholders’ value,” it said.

    In the same direction, FirstBank of Nigeria Limited has reiterated its commitment to providing cheap and long-term funding for the subsector. Its Executive Director, Retail Banking South, Mr. Gbenga Shobo said SMEs remain the engine of growth for the economy creating millions of jobs for the population. He, however, reiterated the need to create successful SMEs that would help the economy achieve its full potentials.

    He said: “Definitely, there is a lot of large buzzword right now as a lot of banks are saying they want to do SMEs finance. But we have been relatively successful in financing SMEs. A recent survey showed that FirstBank, more than double than any other bank, had given SMEs finance in the last three years. So, it won’t resolve everything now, but definitely it would go a long way in reducing it.”

    He said about 50 per cent of the funds of the lender come from retail banking. “Those funds are from our SMEs, our affluent and our mass market. Retail banking is split into those segments. The CRR itself doesn’t affect retail banking directly because it was meant for public sector funds. But it shows how more important to the banks the funds from retail banking would be because no CRR affects it. So, obviously there is more focus on retail banking funds. So, that is why we are doing more to get more SMEs,” he said.

    Shobo said SMEs have to grow because that is the only way the economy can grow because the subsector is the key driver of any economy. “So, it must grow and that is why we are doing the national conference and after that, we are going to have regional conferences. After that, we are going to have industry specific conferences to make sure that we take the SMEs to another level,” he said.

    He continued: “We understand SMEs’needs better than anybody else and clearly that informed the way we approach them. Most other banks don’t even focus on them. We have relationship managers focused on them.We have products that support SME operators that do not have collateral, which a lot of other banks don’t have. I think what we haven’t done well in the past is the capacity building and that is where we want to focus on now. As I said earlier, we have beaten other banks in terms of support to SMEs.”

    Skye Bank is also not relenting in improving the fortunes of SMEs in the country. Its General Manager, Retail Banking, Mrs. Arinola Kola-Daisi said reforms in the sector has put higher risk management plans in place to ensure that SMEs get loans and repay them promptly.

    She said the banking sector is well regulated now than before, making loan approval process stricter as banks no longer experiment with depositors’ funds. She said banks consider more how to improve their customer services and help emerging businesses to grow.

    She said the economies of the Asian Tigers or Asian Dragons of the highly free and developed Hong Kong, Singapore, South Korea, and Taiwan owe their rise to economic pre-eminence to an extent, to the existence of well-organised and efficiently run SMEs.

    She noted that the Tiger Club Economies of Indonesia, Malaysia, the Philippines, and Thailand, follow the same export-driven model of economic development pursued by the four dominant Asian Tigers where SMEs constitute a sizeable vehicle of bringing about development and have remained so till this day.

    According to her, SMEs remain a tool for employment generation and provide opportunities for entrepreneurial sourcing, training, development and empowerment. Developing nations, such as Nigeria, characterised by low income earners place value on SMEs for various reasons.

    SMEs have achieved decent levels of productivity, especially of capital and factors taken together while also generating relatively large amount of socio-economic development.

    The SMEs sector is viewed as being populated by firms most of which have growth potential.

     

  • Fish farmers, insurer in row over cover

    Fish farmers, insurer in row over cover

    The Nigerian Agricultural Insurance Corporation (NAIC), a wholly-owned Federal Government insurance company, was set up to provide agricultural risks’ insurance cover to farmers. But fish farmers are complaining that the corporation has refused to insure their fingerlings and juvenile production, which are considered ’too hazardous. The farmers are wondering where to turn, reports Omobola Tolu-kusimo.

     Fish farmers have criticised the Nigerian Agricultural Insurance Corporation (NAIC) for its inability to provide insurance cover for their fingerlings and juvenile production.

    Fingerlings and juvenile in fish farming are eggs of catfish hatched after about eight days of incubation and reared in the hatchery for an additional four to 10 days. Thereafter, they are transferred to a nursery pond, raised for three months, and harvested.

    Fingerlings are then stocked into fish growout ponds, fed daily, and harvested when they reach one to two broodstocks, which in fourth to six months produces a food-sized channel catfish.

    Prior to the establishment of NAIC, farmers suffered various losses on their investment and had no means of going back to production. The frustration made them to move into cities in droves in search of other means of livelihood. This situation led to the depletion of farm populace, which became a serious threat to food security.

    Disturbed by the trend, the Federal Government established NAIC to address the problems of farmers. This led to the establishment of the Nigerian Agricultural Insurance Scheme in 1987, and a corporation in 1993 by the enabling Act 37, of 1993.

    NAIC offers insurance cover on subsidised crops, livestock, fire/special peril insurance, all risk insurance, burglary, motor insurance, money insurance, professional indemnity, machinery breakdown, among others.

    Risks in agricultural undertakings are more widely spread and far-reaching than in most other enterprises. This is because they go beyond all the well-known and researched entrepreneurial hazards and uncertainties of the modern business world.

    Such hazards include natural vagaries, inclement weather conditions, pests and diseases, along with flood and fire outbreaks. All of these impact very seriously on the success or failure of any agricultural enterprise. Any nation with a clear vision for boosting its agricultural production so as to meet the food needs of its populace and industries,s must of necessity put in place mechanisms that would reduce these risks and uncertainties to a bearable minimum.

    The need, therefore, for a mechanism that functions specially to keep the farmers in business cannot be over-emphasised.

    But fish farmers have cried out, saying NAIC has refused to provide cover for the risk capable of jeopadising their fingerlings and juvenile production.

    The embattled farmers said they do not know how to protect their investment since NAIC has refused to protect the risks associated with fingerlings and juvenile as this is the most harzardous part of their business.

    According to them, the corporation only provides cover for what they describe as the juicy and lesser risk in the fish farming business, such as the broodstocks, management of fingerlings and pilferage.

    Chairman, Shudel Farms, Ikorodu, Lagos, Mr. Lanre Alao, who said he is on the list of West African Agricultural Productivity Programme, (WAAPP), a World Bank finance project under the Federal Government for which he is to produce 300 fingerlings every six weeks and 1,8000 broodstocks.

    Speaking with The Nation at a WAAPP forum for fish farmers in Lagos, Alao said he approached NAIC to protect his farm but was shocked when they told him there are categories of risks they can take.

    Alao explained that the risk in fingerlings and juvenile can be harzardous when it occurs because it cannot be controlled.

    He said: “I was shocked by NAIC revelation that they cannot provide cover for the risk because they are the only specialised insurance company that is expected to create a platform for every risk for farmers in the country and this has been disastrous for us as fish farmers because the private insurers do not have the capacity to do so.

    “NAIC told me they are trying to move away from risks they believe are not specific, but that they are willing to accept other type of risks which has to do with broodstock. What is the essence of NAIC when they cannot take all of my risks but the easy part? The one that is more risky, to me, is fingerlings and juvenile production and they refused to grant me cover.

    “Juvenile is the baby of the fish and for continuity sake, they have to provide cover for it. They want to provide cover for managerial part of the business and theft which is not feasible because farmers can fix the managerial problem on time and control theft to an extent. It has to be composite instead of taking the juicy-side and leaving the other one that is a problem to the farmer.

    “I believe NAIC is not helping agriculture and the nation and I think it has to sit down and look at a way to evolve a policy that will accommodate the fingerlings and the juvenile production.”

    Alao urged NAIC to be alive to its responsibility by creating an insurance cover for the risk, noting that if they are able to underwrite broodstock, they should be able to underwrite juvenile and fingerlings production.

    Executive Director, Fishshoal Nigeria and the Divisional Coordinator, WAAP Innovative Platform in the Southwest, Steve Okelaji also said there is no proper insurance for farmers in the country.

    Recounting his experience, he said: “I am a victim of NAIC. I invited them over to my fish farm three years ago to provide insurance cover. They accessed it and I paid the premium. I later had crisis on the farm and lost about 300,000 fingerlings. I invited them in March 2010 and they told me they will get back to me.

    “They came back eight months after with a letter informing me that they do not cover fingerlings and juvenile production, and I was given N234,300 as compensation out of a total claim of about N6million. They said they gave me the money because of the relationship between us. Meanwhile, it was not stated in the policy that they do not cover fingerlings and juvenile,” he said.

    He noted that this was contrary to the Federal Government’s programme which is intended to ban fish import so that they can farm it in Nigeria.

    How do you protect the business when local production is not secured? he queried.

    He said: “The programme is not sustainable without government’s protection. Most of us are exposed to lots of risks. The government is supposed to be our last resort because the other private companies do not have capacity and cannot protect us.

    “At present, we are working on the WAAP platform to push and talk to some principals in the government to find a solution to this problem. NAIC needs to go back to their drawing board and see how they can interact with farmers so that we can find models in which they can adopt to insure the fingerlings and juvenile production,” he added.

    Mrs Prisca Aseyemo from Rivers State, who engages in smoking fish and seafish, said she does not have insurance neither is she aware of any representative of NAIC in her state.

    She said: “I know there is NAIC, but the report I get from my colleagues is not pleasant. Two of them who made claims were not treated fairly and that has made me not to believe in them,” she said.

    A Professor of Fishes and Agriculture at the Federal University of Technology Akure, Oyedapo Fagbenro, said many farmers do not have adequate insurance required to sustain their business.

    He said the insurance industry has grown and it was time for the companies to begin to think of how they could provide agricultural insurance, especially for fish farming.

    He said: “Since my days as a Masters student in the 80’s, I always felt that it was one opportunity that we had missed. We insure cars, life, but when we have an investment that includes life of other organisms, we don’t.

    “I know that NAIC insures fishing bowls and fishing utensils, but farms should be included in their policies. Over 90 per cent of farmers do not insure and they need to insure based on environmental factors. Different things can happen to their fishes.”

    Fagbenro said NAIC should enlighten farmers at the grassroots, noting this can be propagated through the Fisheries Society of Nigeria (FISON), and other organisations, adding: “NAIC also needs to be more accessible to all farmers. It is based in Abuja and Lagos, but is not represented in my state and some other states. They need to inform the people on why they should insure risks against their farm.”

    But the Deputy National President of All Farmers Association of Nigeria (AFAN), Prince Ike Ubaka has a different view. He said they used to have problems with NAIC, but there is a lot of improvement.

    “NIAC has expanded and improved their services. They now provide life insurance for farmers. They also provide fire and burglary and third party insurance, including vehicles such as tractors they use in the farms.

    “At present, about two-thirds of the farmers who are seriously into commercial ventures are insured. Before now, we, as farmers, take things such as flood, fire and theft as an act of God, but when the obvious dawned on us and we realised what we lost, we began taking insurance as a serious element in our business. That is why we stepped up our advocacy and prevailed on NAIC to improve their services,” he said.

    Meanwhile, efforts to get the corporation’s reaction proved abortive as the immediate past Managing Director, Dr. Tijani Garba failed to respond to questions sent to him before his exit.

    Earlier, Garba reassured NAIC customers of continued and improved service delivery.

    He stressed that the government established NAIC to provide succour and extension services to farmers who insured with the corporation to be paid adequate compensation to restore unfortunate farmers to their positions before the various insured events and as such guarantee food security in the country.

    A new Managing Director, Bode Opadokun has been appointed for NAIC

    He promised to give staff training a high premium, saying a well-equipped personnel is key to efficiency and optimal service delivery.

    He assured that with his private sector pedigree, he would bring to bear the spirit of robust competition by making NAIC a key and frontline player in the insurance industry.

    He noted that NAIC has a competitive advantage of being the only agricultural insurance firm in the country that has the potential to achieve a global benchmark set by countries, such as China, India and America in agricultural risk management and service delivery.

  • CBN: Why coins circulation is low

    The Central Bank of Nigeria (CBN) says low purchasing power of the coin in comparison to other currency denominations is responsible for its limited circulation.

    The Acting Governor of the CBN Dr Sarah Alade stated this yesterday in Abuja at the on-going school mentoring programme on financial literacy for Nigeria as part of celebration marking the Global Money Week.

    Alade, who was responding to a question asked by one of the students on why there is scarcity of coins in Nigeria, said despite its limited circulation, the apex bank still regards it as a legal tender in the country.

    The Acting CBN Governor, said the bank is working on some initiatives that would encourage the use of coins by Nigerians. One of such initiative, she said, is the planned introduction of a vending machine that would make the coin its major source of transaction.

    She said, ”Sometimes 50 kobo can’t buy much and that is why we are hoping that very soon, we will be able to have a vending machine so that we can have coins that people can use to buy things. When we do the new currency which we want to do, we will be able to integrate coins for other uses. So coins are still legal tender in the country.”

    At another school, students were advised to cultivate the idea of patronizing banks to enable them know more about its benefits as well as methods to be taken if they face any difficulties with their financial transactions.

    In a presentation to the Financial Literacy School 101 Outreach  programme at the Government Science Technical College, Area 3 Garki, Abuja, the Central Bank Deputy-Governor, Corporate Services, Alhaji Suleiman Barau told the students that with 70 percent Nigerians being illiterates,the youths have no option, but to embrace financial literacy.

    According Barau, ‘’there is no going back for you my children but for you to learn and imbibe financial literacy, for you to know how you get and spend your money, but most frankly, you need to know how to work for your society too’’.

  • FCMB rewards customers with cars, cash

    Three lucky customers of First City Monument Bank (FCMB) Limited have each been rewarded with a Sports Utility Vehicle (SUV) for emerging as the star prize winners at the bank’s 30th anniversary promo.

    In a statement, the bank said the winners emerged at the electronic draw conducted at its three regions and 26 zones nationwide.

    In addition to the car gifts given away, another set of three customers went home with N1million each, while 130 others won LCD Televisions, Fridges, Generators and DVD players.

    At the Lagos/South-West Regional draw held at Idimu in Lagos state, Mrs Saidat Mojirike Ajitena won the star prize of an SUV on offer, while Mr.AdamuDangoro also emerged a winner of another SUV at the North Regional draw held in Abuja. The third vehicle went to Mr. Gabriel AsaUdoh-Affah at the South-East/South-South Regional draw which took place in Port Harcourt, Rivers state.

    The reward of N1million cash each went to Mr. Samuel IfeanyiEzeudu (Lagos/South-west); Mr.AbdullahiAminuHamcheta (North) and Mr. William OnyemechiOnwu (South-East/South-South).

    Speaking at the event in Lagos, FCMB’s Senior Vice President/Divisional Head, Retail Banking, Mr.OluAkanmu, stated that with the grand finale of the draws held nationwide, the Bank has fulfilled the promise it made to customers to reward those who participated and qualified in the anniversary promo.

  • Banking security tops agenda at Securex confab

    Banking security, biometric solution and enhancing consumer trust in mobile banking services will be among issues to be discussed by stakeholders during this year’s Securex West Africa trade show holding next week in Lagos.

    Speaking ahead of the event scheduled for March 18 to 19 at Eko Hotel, Lagos, Managing Director, Montgomery West Africa, Tori Abiola said the organisers will bring together, all the major manufacturers and service providers in commercial, homeland and cyber security, fire protection and safety suppliers. She said the show is organised by Montgomery West Africa and sponsored by HIK Vision, Halogen Security, Kontz Engineering and Rapid Vigil.

    Abiola said the participants will be discussing latest security initiatives, trends, challenges and emerging technologies during the show. She explained that evaluating existing counter terrorism policies, understanding new domain threats posed by regionally active militant organisations, cyber security, training security forces, strategic approaches to emerging threats and accessing gaps in existing commercial and homeland security infrastructure among others will equally be covered.

    Representative of Halogen Securities Limited, Raphael Ojo-Kadiri said there is need to reduce the level of people’s exposure to risk through education. He called on stakeholders to develop counter-measure that would enhance security.