The Nation Newspaper

Category: Money

  • FirstBank, FBN Life unveil First Family Shield

    FBN Life Assurance Limited in partnership with First Bank of Nigeria Limited has introduced ‘The First Family Shield’ cover. The product, a statement from both firms said, was developed to give families flexible plans to cushion the effects of life’s uncertainties.

    The cover is an offshoot of the firm’s Bancassurance products initiative designed to cater for a wider segment of the society.

    FBN Life’s Managing Director/Chief Executive Officer, Mr. Val Ojumah said the product comes in multiple variants designed to provide protection to families in need. This policy and its variants have been structured to provide succour for majority of Nigerians who are exposed daily to the uncertainties of life.

    They come in Classic, Premium, Silver and Gold Variants. According to Ojumah, the product is in consonance with the underwriting firm’s commitment to deepening market penetration by providing low cost insurance products through multiple distribution channels that would benefit the mass market in Nigeria.

    He explained that the product which takes care of the negative effects of premature death through illness and accidents also pays certain benefits for permanent disability. The policy is convenient, accessible and available in all the branches of First Bank Nationwide.

    “The First Family Shield has been designed to offer that financial security that would give the insured peace of mind to go about his daily activities without fear, and at the same time enable his family continue their life should the unexpected happen,” he said.

    Premium on the policy is N2,000.00, N4,500.00, N7,000.00 and N9,500.00 annually for Classic, Premium, Silver, and Gold variants respectively, while benefits cover amounts to N250,000.00, N500,000.00, N750,000.00 N1,000,000.00 respectively.

  • FITC, IoD hold governance workshop

    The Financial Institution Training Centre (FITC) and Institute of Directors (IoD) will be organizing a one-day governance workshop in Lagos.

    The workshop’s theme is “Effective Governance: Taking the Public Service to the Next Level.”

    In a statement, FITC said participants expected at the workshop include Permanent secretaries, directors-general, directors and other senior officials of the public service in Nigeria. It holds November 14

    It said there have been dearth of governance trainings for the public sector organisations, institutions, and parastatals adding that the programme would enable public sector participants examine governance arrangements, and likely outcomes that effective governance practices could have on the potential quality of public service delivery in Nigeria.

    “At the end of the programme, participants are expected to have an enhanced understanding of governance principles in public service, an appreciation of the characteristics of good governance and applicable leadership principles. They are also to experience enhanced insights into the concept of ‘Public Trust’ and ‘Public Value’, as well as their application within a governance framework,” the statement said.

  • CBN pegs dollar exchange to pilgrims at N146

    Christian pilgrims to Israel, Rome or Greece will get foreign exchange (forex) from the banks at N146 to a dollar, a Central Bank of Nigeria (CBN) circular issued yesterday to all authorised dealers said.

    Eleven banks were enlisted by the CBN to sell forex to the pilgrims. The banks include Union Bank, Zenith Bank, United Bank for Africa, Fidelity Bank and First City Monument Bank.

    Others are Unity Bank, FirstBank, Ecobank, Sterling Bank, Skye Bank and Keystone Bank.

    CBN Director, Trade and Exchange, Musa Batari, who endorsed the circular, advised the banks to always comply with the sales conditions to avoid sanctions.

    The regulator had in a previous circular of October 14, pegged maximum Personal Travelling Allowance (PTA) sale to intending pilgrims at $1,000 at a concessionary rate of N146 to a dollar.

    “The Federal Government has approved the purchase of a maximum of $1,000 at a concessionary rate of N146 to a dollar by each intending pilgrim as Personal Traveling Allowance (PTA). Consequently, each pilgrim travelling to Israel is entitled to maximum of $750 while those going to Israel/Rome or Greece are entitled to a maximum $1,000,” the CBN said.

    The apex bank also said no commission shall be charged by banks for the sale of the PTA between the approved $750 to $1,000.

    According to the CBN, the funds of the respective banks shall be debited as soon as the funds are disbursed. Each of the designated banks is required to sell to the CBN, the unutilsed PTA.

    Also, the CBN said no pilgrim should be denied the travel allowance for not having tax clearance certificate. The circular also stated that the Chairman or Secretary of each of the participating state Pilgrims’ Board, after due identification, may be allowed to sign for and collect on behalf of the intending pilgrim in his/her state.

    States participating in this year’s pilgrimage are Akwa Ibom, Federal Capital Territory (FCT), Gombe, Kwara, Niger, Ondo, Osun, Taraba, Niger, Edo, Ebonyi, Lagos among others.

  • MDAs to use e-channels in salaries, pensions’ remittances

    MDAs to use e-channels in salaries, pensions’ remittances

    To address revenue leakages in the government and private sectors of the economy, the Central Bank of Nigeria (CBN) is encouraging ministries, departments and agencies (MDAs) to ensure salaries, pensions, suppliers and taxes payment are done with e-payment channels. The policy, however, applies to organisations with more than 50 employees.

    The CBN in a circular said the process will reduce time and costs of transactions, minimise leakages in government revenue receipts and provide reliable audit trails, thereby making the payments system comply with global standards.

    The is to save cost, promote transparency and accountability in governance and increase internally generated revenue (IGR). The e-payment policy is also expected to ensure confidentiality of information of e-payment of taxes, salary, pension and suppliers.

    It said, henceforth, payment instructions and associated schedules are no longer to be transmitted to banks by public and private sector organisations through unsecured channels such as paper-based mandates, flash drives, compact discs and email attachments, among others.

    The transactions must be routed through bank approved electronic platform which transmits the instruction to debit a payer’s account and credit a beneficiary’s bank account, mobile account, electronic wallet or any other electronic channels.

    It shall include the ability of a payer to independently monitor and obtain electronic feedback on the status of any payment, at any time without depending on any third party, manual or semi-manual means.

    Draft guidelines that will ratify the policy have been sent to commercial banks and payment service providers. The exercise is in line with its powers as provided in the CBN Act, 2007, Section 47, Sub-section 2(2d).

    It said the policy fully aligns with the core objectives of the National Payment Systems Vision 2020 (NPSV) which is to ensure the availability of safe and effective mechanisms for conveniently making and receiving all types of payments from any location and at any time through multiple channels.

    The CBN said all public and private sector organisations who maintain relationship with employees, pensioners, suppliers and taxpayers and other entities are considered as relevant stakeholders required to work together for the success of the policy.

  • CBN’s N2.46tr for banks, discount houses to shore up liquidity

    CBN’s N2.46tr for banks, discount houses to shore up liquidity

    About N2.46 trillion has been advanced to commercial and merchant banks including discount houses by Central Bank of Nigeria (CBN) to boost liquidity in the financial system, The Nation has learnt.

    The fund, which came as Standing Lending Facility (SLF) in August, was given at 14 per cent. The SLF is an overnight credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value.

    The daily lending average was N123.29 billion for the 20 working days in the review month, compared with N793.08 billion with a daily average of N34.48 billion recorded in the preceding month.

    According to the CBN Economic Report for August, the increase is dueto reduction in liquidity following the debit of N896.43 billion Cash Reserve Ratio (CRR) in August. Interest received on SLF stood at N1.59 billion, compared with N0.36 billion in the preceding month.

    Also, the report said the aggregate Standing Deposit Facility (SDF) stood at N5.2 trillion. This represented a daily average of N264.16 billion for the 20 working days in the month, reflecting a decline of 166.83 per cent from the level in the preceding month. Interest paid on SDF stood at N2.11 billion against N2.33 billion in the preceding month.

    The CBN said the slight reduction, despite the liquidity squeeze in the review period, was attributable to its non-intervention at the Open Market Operation segment, except for the last day of the month, and the late disbursement of July fiscal allocation.

    The CBN had at the August Monetary Policy Committee (MPC) meeting maintained the monetary policy rate (MPR) at 12 per cent, and kept the symmetric corridor of plus two per cent around the MPR for SLF. However, the SLFs are available only to banks and discount houses that have executed the Nigerian Master Repurchase Agreement (NMRA) with the regulator. The NMRA covers the operations of the SLF and addresses issues relating to pricing, duration, custodian as well as default resolution in lending.

    Accowrding to the report, the aggregate banking system credit (net) to the domestic economy decreased by 4.6 per cent to N13.1 trillion, on month-on-month basis, in contrast to the growth of four per cent at the end of the preceding month.

    The development reflected, largely, the decrease of 47.4 per cent in claims on the Federal Government (net) attributed to the 14.2 per cent and 0.8 per cent decline in banking system’s holding of treasury bills and Federal Government bonds.

    Over the level at end-December 2012, aggregate banking system credit (net) to the domestic economy rose by 3.9 per cent, due largely to the increase of 6.3 per cent in claims on private sector.

    Banking system’s credit (net) to the FederalGovernment, on month-on-month basis, contracted by 47.4 per cent to negative N2.9 trillion, in contrast to the growth of 17.6 per cent and 2.4 per cent at the end of the preceding month.

    Banking system’s credit to the private sector, on month on-month basis, in August, grew by 1.9 per cent to N16.1 trillion, compared with the increase of 0.7 per cent at the end of July.

    Also, banks’ foreign assets stood at N8.9 trillion, which constituted a 0.9 per cent increase, on month-on-month basis, in contrast to a decline of 1.2 per cent at the end of the preceding month. The development was attributed largely, to the 3.5 per cent increase in banks holdings of foreign assets.

    Other assets (net) of the banking system, on a month-on-month basis, rose by 4.5 per cent to negative N7.5 trillion at the end of the review period, in contrast to the decline of 17.83 per cent at the end of the preceding month, reflecting the increase in other assets of the CBN.

  • ABCON seeks compliance with money laundering law

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has said bureau de change (BDC) operators should comply with the anti-money laundering policy being implemented by the Central Bank of Nigeria (CBN).

    Recently, the CBN announced some measures to check money laundering tendencies observed in the foreign exchange market. These include the ban on importation of foreign currencies, and suspension of 20 BDCs for not rendering returns and non-compliance with anti-money laundering regulations.

    ABCON Acting President, Aminu Gwadabe, said the measures of the CBN were in line with the group’s position on compliance with regulatory requirements.

    “When it comes to the issue of non-compliance with regulatory requirements, especially rendering returns as well as compliance with approved limits for foreign exchange transactions, the association has a zero-tolerance position.

    “We have made it known to our members that we would not hesitate to impose sanctions or report to the CBN, any member found guilty of not complying with these requirements. So we are fully in support of the actions of the CBN,” he said.

    He said such action is necessary to ensure sanity in the foreign exchange market, and most importantly the stability of the naira, which is critical to our economy.

  • Wema Bank to deploy N40b capital in loan expansion

    Wema Bank to deploy N40b capital in loan expansion

    Wema Bank Plc has said the N40 billion capital raised from shareholders will be channelled into growing its loan volume by over 60 per cent in the next few years.

    Its Chief Financial Officer (CFO), Tunde Mabawonku, said in an interview at the weekend that the lender is committed to growing its loan volume from N89 billion to between N150 billion and N160 billion over the next few years.

    He said managemnt is aware that the expectations of shareholders are extremely high, adding that management is committed to ensuring that such expectations are met. He disclosed that over 90 per cent of the new fund will be used as working capital.

    “We are not spending any money in terms of infrastructure or strengthening of Information Technology (IT) base because they are already in place. As we have got this money now, it will be strictly used for business. And in terms of business plan, our primary market simply remains the Southwest, South-south and the Federal Capital Teritory,” he said.

    He said last year was a challenging one for the lender as it was hampered by lack of capital and adverse effects of loan provisioning. “Those two factors affected our operations in 2012, we had very low capital and were unable to do as much business as we had wanted to,” he said.

    He explained that while that lasted, lending was slowed, but deposit mobilisation continued, adding that with the restrictions lifted, the lender is now on a path of growth.

    Mabawonku said while waiting for the new capital, the bank continued its aggressive deposit drive especially at the retail segment of the market. “Our idea is to go out and open as many accounts as possible and increase our deposit base,” he said.

    According to him, the bank has been able to clean up its loan book with its non-performing loans (NPLs) currently standing at three per cent from NPLs as high as 89 per cent three years ago. “We started pushing the NPLs down gradually, most importantly by putting in place proper structures of risk management. We are also interested in recoveries, but more so in good corporate governance. So, in 2010, we moved from 89 per cent to 56 per cent, to 18 per cent, 14 per cent and three per cent. And we believe we will not go above the three per cent mark in the nearest future,” he assured.

    He said the bank has strengthened its retail structure and workforce within the segment, adding that a customer could now walk into any branch of the bank and get loan approval within 24 hours.

    However, within such period, all the necessary credit checks on the account including the customer’s past loan history and credit rating will be analysed.

    The bank’s cost of funds, Mabawonku said is also impressive. “Our cost of funds in 2012 was 5.6 per cent and at the third quarter, it was 5.8 per cent. We believe that one of the ways to make profit is to reduce the cost of funds. We did not go into taking expensive funds, what we are doing is step by step retail growth,” he said.

    He reiterated the bank’s commitment to ensuring that its public sector deposit does not exceed 10 per cent of its deposit liability. “After the Central Bank of Nigeria (CBN) policy on public sector funds became effective, we began re-pricing our public sector funds. It hurts us that we lost some funds, but it is better to remain profitable than to be big and unprofitable. We intend to keep our public sector deposits below 10 per cent of our total liability,” he said.

    The CFO said the bank’s first priority remains providing superior returns to its shareholders, adding that in the last few years, the bank has been quiet, carrying out some internal restructuring on its processes, people and technology.

    He said the bank is not applying for national banking licence to operate in all parts of the country but in strategic areas, such as Kano, Kogi, Aba, Port Harcourt where its high-volume customers operate.

  • N1.19tr FAAC inflows trigger fall in inter-bank rates

    Rates across all tenors fell last week over N1.19 trillion Federation Account Allocation Committee (FAAC’s) fund for August and September released during the week. The rates averaged 10.9 per cent lower than 12.9 per cent average rates recorded the previous week.

    Data from the Financial Market Dealers Association of Nigeria showed that at Friday, call rate stood at 10.50 per cent, seven-day 10.75 per cent while 90-day funds was traded at 11.54 per cent.

    The inter-bank rate fell by 21 basis points to 10.5 per cent on 17 October, reflecting improved market liquidity from monthly statutory fiscal FAAC inflows, treasury bills and Open Market Operation (OMO) bills repayment.

    The call/overnight and seven-day money market rates were at 10.5 per cent and 10.8 per cent respectively. The three month Nigeria Interbank Offered Rate (NIBOR) was 11.8 per cent, though fewer activities were done on the tenor. The inter-bank secured lending (Open Buy Back) fell to 10.25 per cent for commercial banks and 10.33 per cent for discount houses.

    Analysts said the FAAC funds eased the tight liquidity condition that has characterised the system for the past one month.

    A currencies analyst at Ecobank Nigeria, Olakunle Ezun, said although the market liquidity is above N400 billion, the funding requirement for Retail Dutch Auction System /Open Market Operation bills, might push inter-bank rate up by 150 basis points this week.

    Meanwhile, the CBN liquidity management remained active, supported by recent change to Cash Reserve Requirement (CRR), according to a circular issued on 1 August reviewing its guidelines for how banks access its Standing Lending Facility (SLF) window.

     

    Power funding

     

    The World Bank Group is to provide $1.4 billion to Nigeria in support of efforts aimed at improving power infrastructure, the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, said.

    Mrs. Okonjo-Iweala, who stated this in Washington DC, in her closing remarks at the just concluded International Monetary Fund/World Bank bi-annual meetings, said the World Bank is planning to set up a global infrastructure facility and that Nigeria would be among the first set of countries to benefit from it, given the nation’s large size and the scope of its infrastructure deficit.

    “They want to concentrate on power, and are already actively working with several private sector companies that want to invest in Nigeria. They are promising to give Nigeria about $700million under the International Bank for Reconstruction and Development (BRD) guarantees for the power sector, as well as a willingness to invest another $700million to support transmission,” she said.

    She explained that the power infrastructure support finance derived from the initiative of the World Bank Group and its affiliate, the International Finance Corporation (IFC), through its President, Dr. Jim Yong Kim, to list Nigeria to be one of the focused countries in sub-Saharan Africa for their efforts, “particularly in power, which means that they are willing to work with Nigeria to invest in power through the private sector by pulling resources from the US using the offices of the IFC through the Power Africa Initiative to help us address the power infrastructure problems.”

     

    Forex

     

    Eleven banks were selected by the Central Bank of Nigeria (CBN) to handle foreign exchange (forex) sales to pilgrims travelling for this year’s Hajj. The banks are Union Bank, Zenith Bank, United Bank for Africa, Fidelity Bank and First City Monument Bank. Others are Unity Bank, FirstBank, Ecobank, Sterling Bank, Skye Bank and Keystone Bank.

    A circular to all authorised dealers signed by Director, Trade and Exchange Department, CBN, WD Gotring, pegged maximum Personal Travelling Allowance (PTA) sale to intending pilgrims at $1,000 at a flat rate of N146 to a dollar.

    The apex bank also said no commission shall be charged by banks for the sale of the PTA between the approved $750 to $1,000. The issuance of the PTA was done in Lagos and Abuja.

    According to the CBN, the funds of the respective banks shall be debited as soon as the funds are disbursed.

     

    Syndicated loan

     

    Total Exploration & Production Nigeria Limited and Total Upstream Nigeria Limited agreed to borrow $7.5 billion from eight Nigerian banks, Bloomberg reported during the week.

    Total’s spokesman in Nigeria, Charles Ebereonwu, said: “It’s meant to finance local contractors and suppliers. It’s in line with Total’s development program for local contractors.” He spoke on phone from Abuja.

    Banks have increased lending to finance oil, power and infrastructure projects after returning to profit from near-collapse in 2008 and 2009. Lending to the oil industry increased as smaller producers expand drilling.

    Companies such as London-based Heritage Oil Plc and Lagos-based Neconde Energy Limited bought stakes in fields owned by Royal Dutch Shell (RDSA) Plc, Eni (ENI) SpA and Total, Nigeria’s fourth-largest oil and gas producer.

    The eight lenders providing the $7.5 billion facility for Total’s contractors are Guaranty Trust Bank Plc, Ecobank Nigeria, Zenith Bank, Diamond Bank, United Bank for Africa, Standard Chartered Bank, Access Bank and Fidelity Bank, Ebereonwu was quoted as saying.

    Royal Dutch Shell, Chevron, Exxon Mobil Corp., Total and Eni pump about 90 per cent of Nigeria’s oil through ventures with state-owned Nigerian National Petroleum Corporation..

    Biometric database

    Biometric database for all bank customers will be ready by March 2014, The Nation has learnt. The project, which is brainchild of the Central Bank of Nigeria and the Bankers’ Committee, is meant to have a central database where all bank customers’ information will be collected and stored. Since biometric identifiers are unique to individuals, they remain reliable in verifying identity of each bank customer from bank to bank.

    According to the CBN, the platform, when completed, would help operators and regulators of the financial system address issues of Know Your Customer (KYC), anti-money laundering (AML), and access to credit. This will help fast-track use of channels, such as biometric Automated Teller Machines (ATMs) and Point of Sale (PoS) terminals, among others.

     

    NDIC

     

    The Nigeria Deposit Insurance Corporation (NDIC) has stressed its total support for the establishment of a world class Microfinance Training Institute in the country to enhance continuous capacity building in the banking subsector.

    The Managing Director / Chief Executive of NDIC Alhaji Umaru Ibrahim who made the clarion call also advocated for the incorporation of All Women Microfinance Bank (MFB) wholly owned by Women NGOs in the country, to protect the interest of small depositors and boost public confidence in the microfinance banking sub sector.

    Ibrahim, who made the call when he played host to the Executive Members of National Association of Microfinance Banks (NAMB) who paid him a courtesy visit in his office, said that the NAMB request for Unit MFBs to have multiple branches and operate cash centres in local government areas of their operations was before a joint Committee which must be critically analysed and judged based on its merit. He, therefore, advised the Association to await the recommendations of the Committee on the matter.

    The NDIC boss reminded the association of the fundamental role of MFBs as grassroots business units toward enhancing financial literacy and consumer protection in promoting financial inclusion.

    He emphasized that only happy and satisfied depositors could guarantee the much needed public confidence in the banking system, saying that the NDIC had put in place 24 hour toll free Help Desk to respond to all enquiries from depositors across the country.

     

    e-clearing

     

    Electronic clearing (e-clearing), which is currently implemented only at banks’ headquarters, will be extended to all banks’ branches across the country in fourth quarter of this year. However, this is subject to Central Bank of Nigeria (CBN) approval, The Nation has leant.

    The policy, which became effective last August, could not be fully decentralised to all the banks’ networks because of poor technical know-how and infrastructure needed for seamless takeoff in those units.

    e-clearing involves stopping the physical movement of the cheque and replacing the physical instrument with the image of the instrument and the corresponding data contained in Magnetic Character Ink Character Reader (MICR) line.

    The cheque details are captured, typically by the bank presenting the cheque or its clearing agent and electronically presented in an agreed format to the clearing house for onward delivery to the paying bank for payment. Unlike the more common form of presentment where a cheque is physically presented to the paying bank, a truncated cheque is typically stored by the presenting bank electronically.

    Clearing period under the new rule would allow cheques clear on a T+1 basis such that customers receive value in the morning of T+2 even as the clearing house is also expected to operate three sessions.

     

    Bank report

     

    Ecobank has restated its commitment to providing massive funding for local contractors operating in the nation’s oil and gas sector. The bank’s managing director, Mr. Jibril Aku, made this pledge, during the signing of Memorandum of Understanding (MoU) between Total E&P Nigeria Limited, Total Upstream Nigeria Limited and eight leading banks in the country, on a $7.5 billion Nigerian Contractors’ Initiative, in Port Harcourt, Rivers State at the weekend.

    In a statement, the bank described the project as laudable, noting that, Ecobank is determined to be a major player in the initiative. Mr. Aku explained that the banking finance programme is being put together by Total to effectively manage its value chain, including suppliers and distributors. He said the whole essence is to empower local contractors to play more active role in the oil sector through sustainable funding.

     

  • Why Diamond Bank lent N75b to MSMEs, by Otti

    Why Diamond Bank lent N75b to MSMEs, by Otti

    Diamond bank has lent over N75 billion to the Micro and Medium Scale Enterprises (MSMEs), the Managing Director of Diamond Bank Plc, Dr. Alex Otti has said, explaining that the bank has continuously focused on small businesses in its portfolio lending because those businesses help to create jobs in the economy.

    Otti, who spoke during the just concluded International Monetary Fund/World Bank conference in Washington DC, on the topic, ‘Beyond 2015: Pathways to Addressing Africa’s Unemployment Challenge,’ said MSMEs, are better placed to create and provide jobs and boost the Gross Domestic Product (GDP) than the multinationals in our midst.

    “That is what we have started doing in Diamond Bank, having a change in mindset. Basically if we look at your business, your cash flow and everything and we think the business can pay itself, we lend the money,” he said, adding, “we have found out we are not losing money by doing that, instead we are creating jobs and opportunity for people, and by doing that, we have over N75billion in the hands of MSMEs.”

    He said if you look at it critically, about 99.7 per cent of every business will qualify as MSMEs, meaning that is about 99 per cent of the Gross Domestic Product (GDP). He said In India, 90 per cent of the GDP is accounted for by the MSMEs, “ but you find out that the big businesses that we are talking about, like MTN, Chevron, Shell, they may be big in their numbers, but may not generate the kind of employment that will take our people out of the streets, stating that apart from Uganda, every other African country is under the scourge of unemployment.

    He warned that if nothing was done, the development could result in dire consequences for the Continent. “People easily become tools in the hands of people who use them because they are unemployed, and that is why you see a young person tie a bomb around his waist and blow himself up, because he looks at himself and doesn’t see a future. We have a collective responsibility to support every initiative that will create jobs and employment for people.”

    Otti who made his presentation alongside former U.S Ambassador to Nigeria, Dr. Robin Renee Sanders, among others, said virtually all the countries in Africa have high unemployment rate. “Nigeria has over 24 per cent unemployment rate, South Africa has over 26 per cent, while Congo has over 50.6 per cent, wih the exception of Uganda which has four per cent. When compared with other countries, India has 3.5 per cent with a population of over 1.3billion people, and China has four per cent, with a population of over two billion people. So its incredible that those people we are comparing ourselves with have four per cent and we have over 24 per cent, and you see America and the UK talking of unemployment rate of over seven per cent, so it is a disaster that is waiting to happen., and the earlier we addressed it the better,” he added.

    He said despite the challenges associated with financing small businesses, the risks are minimal, urging that financial institutions should have a paradigm shift away from insisting on provision of collaterals to engaging the MSMEs to develop their businesses and generate bankable products. To achieve this, he said Diamond Bank has lined up a series of engagements, involving experts and the World Bank Group to raise and nurture MSMEs.

  • Fitch rating excites Presidency

    Fitch rating excites Presidency

    The latest Fitch’s rating of the economy has continued to excite the Presidency, as Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe yesterday went celebrating.

    The latest Fitch report had rated the Nigerian economy in the ‘BB’ category. Okupe, in a statement, enthused that the rating was an acknowledgement of President Jonathan Goodluck’s “robust” fiscal policies and “landmark” reform agenda.

    He said: “It is indeed gratifying that the respected rating agency acknowledged the robustness of Federal Government’s fiscal policies which has among others, ensured that inflation rate declines to eight per cent (the lowest in five years) as well as ensured that Nigeria successfully avoids exogenous shocks, which could have occurred as a result of severe flood in 2012 and various security challenges occasioned by insurgent activities in some parts on the north”

    According to him, the report is consistent with the verdict of other global rating agencies on the Nigeria economy, adding that the non-oil sector is recording appreciable growth in line with the policy framework of the administration’s transformation agenda.

    “Nigeria’s sovereign and overall external balance sheets, current account surplus, debt service ratio and external liquidity are all stronger than BB category medians,” he added.

    Okupe said the confidence expressed in the economy is also attested to by the volume of investments coming into the country in the last two years, especially in critical sectors.

    Okupe said: “Nigerians will particularly note that the painstaking and transparent execution of critical components of the power sector road map launched by President Goodluck Jonathan shortly on assumption of office, has been commended by economic experts and analysts who described it as one of the largest singular privatisation exercise in the world.