The Nation Newspaper

Category: Money

  • FRC advises banks on infrastructure

    The Chief Executive Officer, Financial Reporting Council (FRC), Mr Jim Obazee, has advised banks to provide enough infrastructure for growth.

    He said problems, such as poor accounting ideas and planning would reduce, when banks put in place necessary infrastructure.

    Speaking during a stakeholders forum in Lagos, Obazee said technology is vital to the operations of financial institutions globally, adding that it has helped in minimising accounting errors.

    He said poor infrastructure was one of the problems that caused crisis in the industry in 2009, adding that many banks gave out loans to their directors without putting in place measures to ascertain their credit history.

    He said: “We do not collect adequate information on burrowers. That is why banks have problems when customers defaulted. Once there is good infrastructure, banks would be able to monitor their burrowers, know their companies, their capacity to pay back among other information. Based on these, banks would be able to know the credit rating of their customers. The moment they know that the credit rating of some companies is poor, they would not give loans to such companies.”

    The banks would provide faultless accounting policies, when they have the necessary facilities in place.

    Obazee said fighting inflation should not be the job of the Central Bank of Nigeria (CBN) alone, advising stakeholders to make data in their sectors available as at when due.

     

  • FATF: Ikeazor seeks support for Nigeria’s de-listing

    Banks’ Chief Executive Officers (CEOs) have critical roles to play in the task of getting the Financial Action Task Force (FATF) to delist Nigeria from its list on non-co-operative countries (NCCTs), Managing Director/CEO, Keystone Bank, Philip Ikeazor, has said.

    Speaking during the Committee of Chief Compliance Officers in Nigeria (CCCOBIN) monthly meeting in Lagos, he advised his counterparts in other banks to provide adequate resources and empowerment for their Chief Compliance Officers (CCOs) and other relevant officers to ensure that Nigeria’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) risks are well-managed.

    Ikeazor, who was represented by Keystone Bank’s Executive Director, Operations and Technology, Ademola Adewale, called for banks’ management backing for the implementation of AML/CFT measures, especially deficiencies identified by FATF.

    The FATF had listed non-implementation of procedures to identify and freeze terrorist assets and failure to ensure that customer due diligence requirements apply to all financial transactions as areas Nigeria needs to address in order to ensure her removal from the high-risk and non-cooperative jurisdictions list.

    He also said there is need to protect bank officers involved in driving the implementation of the money laundering laws and regulations as well as institution of penalties against non-compliant staff.

    Besides, Ikeazor said the Central Bank of Nigeria (CBN), Nigeria Financial Intelligence Unit (NFIU) and the judiciary have to work together to ensure implementation of proactive measures required to address deficiencies highlighted by FATF on Nigeria.

    The bank’s helmsman also said delivering of timely and fair judgments on money laundering and terrorism financing cases, creation of specialised courts and increased capacity building for judges will also help in building confidence in the system.

    While quoting the recent FATF assessment of the country, he said that Nigeria has largely addressed its action plan by enacting legislation to adequately criminalise money laundering and terrorist financing, implementing procedures to identify and freeze terrorist assets, ensuring that  customer due diligence requirements apply to all financial instructions and improving the overall supervisory framework for AML/CFT.

     

     

     

     

  • Investors gain N2.45tr, 28.8% in first half

    THE stock market recorded a six-month average return of about 28.8 per cent in the first half of this year, leaving investors with N2.45 trillion in capital gains during the period.

    Notwithstanding the downtrend that characterised June, significant successive bullish rallies in previous months still left equities as one of the best-performing market during the period.

    In value terms, the increase of N2.45 trillion in the first half has already surpassed total gains of N2.44 trillion recorded for the entire 2012. However, the real benchmark return of 28.80 per cent is some 6.65 percentage points below the average full-year return of 35.45 per cent recorded in 2012.

    Aggregate market value of all equities on the Nigerian Stock Exchange (NSE) closed the first half at N11.426 trillion as against its value-on-board of N8.974 trillion that started the year, representing an increase of 27.3 per cent. The All Share Index (ASI), which doubles as benchmark index for all equities on the NSE and country index for Nigeria, rose from 2013’s opening index of 28,078.81 points to close the first half at 36,164.31 points.

    The first-half performance was moderated by the downtrend in the latter half of June, which saw the month closing as the most bearish month with a loss of N649 billion. Equities had shown brighter performance in the first five months with a whooping capital gains of N3.10 trillion. Aggregate market capitalisation of all equities had closed May at N12.075 trillion, while the ASI had indicated a five-month average return of 34.6 per cent.

    NSE’s data showed that the industrial goods stocks remained the best-performing subgroup during the first half. NSE Industrial Goods Index showed a six-month average return of 49.12 per cent. Ethical investors fared better as NSE-Lotus Islamic Index indicated a return of 42.31 per cent. NSE 30 Index, which tracks 30 most capitalised stocks, posted a first half return of 27.38 per cent. NSE Consumer Goods Index showed a return of 21.40 per cent. NSE Banking Index showed average return of 18.46 per cent while NSE Insurance Index indicated a return of 16.90 per cent. The NSE Oil and Gas Index showed that downstream investors recorded modest return of 12.18 per cent.

    Meanwhile, total turnover last week stood at 2.46 billion shares worth N24.23 billion in 33,402 deals. The financial services sector topped the activity chart with a turnover of 1.43 billion shares valued at N14.74 billion in 19,063 deals.

    The trio of Transnational Corporation of Nigeria Plc, United Bank for Africa (UBA) Plc and Portland Paints & Products Nigeria Plc were the most active stocks, accounting for a total of 940.73 million shares worth N3.85 billion in 2,668 deals, 38.3 per cent of total turnover for the week.

    Week-on-week, the ASI declined by 0.82 per cent last week while aggregate market value of equities dropped by 2.46. There were 47 decliners during the week as against 35 advancers. The NSE also concluded the first half review of its indices, replacing less vibrant stocks with emerging dominant stocks. In the banking subgroup, Sterling Bank displaced FCMB Group to become one of the selected stocks for the banking index.

     

  • Shareholders back Sterling Bank’s N12.5b rights issue

    The ongoing right issue of Sterling Bank Plc has kicked off to a resounding success as individual retail shareholders and shareholders’ groups have indicated interests in picking up their rights and mobilising other shareholders to support the recapitalisation programme of the bank.

    A broad section of shareholders’ groups, representations and individuals interviewed in relation to the rights issue said they would pick up their rights and mobilie others to take advantage of what they described as “a window of opportunity”. Several shareholders indicated they would demand for additional shares, raising prospects of oversubscription.

    The support from non-core shareholders strengthen the prospects for the rights issue, which had earlier received firm commitments from major Nigerian and foreign shareholders including the State Bank of India, Dr. Mike Adenuga, Alhaji Suleiman Adegunwa’s Ess-ay Investments Limited and other directors.

    Sterling Bank is raising N12.5 billion through a rights issue of about 5.889 billion ordinary shares of 50 kobo each at N2.12 per share. The lender had traded at a high of N3.05 at the stock market. The shares have been pre-allotted on the basis of three new ordinary shares of 50 kobo each for every eight ordinary shares of 50 kobo each held as at May 20, 2013. The application list, which opened on June 24, 2013, will run until July 31, 2013

    According to the President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, the rights issue came at the right time and at the right price. He also noted that the historic performance of the bank, as exemplified by the impressive results and dividends for the 2012 business year, has made it a toast of investors.

    “We are going to invest in the bank; the rights’ price is a bonus to shareholders because even at the market price, the bank is grossly undervalued. There is a strong possibility of a double in the price in the next two years,” Umar said.

    Leading shareholders rights’ activist, Nonah Awoh, said the board should make arrangements for oversubscription given the mood of the investors and general perception of the bank at the stock market.

    He said the profit and return forecasts of the bank, though conservative, imply a huge inflow of over 50 per cent return from dividend payments alone in five years, noting the positive relation between such huge payouts and capital gains at the stock market.

    President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said the rights issue would lay another strong foundation for future growth, noting that additional funds would allow the bank to increase lending to the real sector and further contribute to national economic growth.

    According to him, increased lending and expansion would lead to increased returns to shareholders.

    Noting the dividend track records of the bank, Okezie said shareholders are excited over the additional shares. He however advised against absorption of oversubscription, pointing out that excess monies should be returned.

    “I will pick my rights; it’s good for the bank and the shareholders. Additional capital would put the bank in better position to expand its operations and increase lending to the real sector. This is good for all stakeholders,” Okezie said.

    Chairman, Shareholders United Front (SUF), Mr Gbenga Idowu, said the fundamentals of the bank were attractive and there is no reason to doubt the continued growth of the bank.

    “We will support the management and the board by not only picking our rights but we will demand for extra shares,” Idowu said.

    Another shareholders’ leader, Godwin Anonoh, said his personal experience as a customer and shareholder of the bank gives him confidence to always support the bank.

    He said Sterling Bank’s track records of high dividends and the potential for capital appreciation assure investors of double returns over the years, pointing out that there is possibility the share price would more than double in a short while.

    National Coordinator, Pragmatic Shareholders Association, Mrs Bisi Bakare, said Sterling Bank ranked as one of the best stocks in terms of returns on investment, assuring that she would mobilise supports for the bank.

    “The time is right and the price is right, shareholders are getting dividends from their investments now, so we have money to invest. We will put this money in Sterling Bank,” Bakare said.

    Speaking on the prospects of the bank, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, commended what he described as impressive performance of the bank overtime.

  • Lottery commission okays banks’ promos

    The National Lottery Regulatory Commission (NLRC) has cleared the promotional campaigns of banks . The banks, it said, complied with the guidelines for the exercise.

    The banks are Sterling Bank Plc, Keystone Bank Plc, First Bank of Nigeria Plc, United Bank for Africa Plc, Union Bank of Nigeria Plc, Mainstreet Bank Limited, and Access Bank Plc, First City Monument Bank Plc, Unity Bank Plc, Fidelity Bank Plc Guaranty Trust Bank Plc, Wema Bank Plc, Zenith Bank Plc, Unity Bank Plc, Skye Bank Plc and Ecobank Nigeria Plc.

    Speaking to The Nation, NLRC’s Assistant Director, Enforcement and Compliance, Mr Henry Uwadiae, said the commission took time to evaluate the promotional campaigns and found that they were not fake.

    He said the scrutiny followed allegations that banks are hiding under the cover of promos to deceive customers into opening accounts with them. He said investigations had shown that banks are complying with all-known regulatory requirements guiding promos.

    He said: “So far, no bank has flouted the rules of organisng lottery. We have not found any of the bank wanting. Therefore, the issue of placing embargo on the promotional campaigns of banks does not arise. The banks cannot be sanctioned because they have not committed any offence.  Punishments can only be applied when an operator is deemed to have committed offence relating to the launching of a promo.”

    He said the commission and the Consumer Protection Council are working together to ascertain the authenticity of the promos organised in various sectors of the economy. He said the commission liaises with the CPC to protect the interests of people, adding that the bodies are always at the venue of the promos to verify some facts.

    “At the venue of the promos organised by banks or any other operators in the economy, we ensure that our staff and those of consumer protection council know the true winners. Also, we make sure that the gifts are not fake. Besides, we get in touch with the winners to know whether they received their gifts or they are lost in transit.

    “Though no bank has been indicted for not complying with promotional rules, that does not mean banks cannot made mistake.  If we found out that a bank contravenes the rules, we would first disclaim the bank. This implies that we cannot guarantee the sincerity of the promos that was organised.  In serious cases, we seal off the premises of the bank. Based on this, the bank would not be allowed to open to customers. The aim is to instill discipline, and make offenders know that fake promos are criminal offence,” he said.

    He said promos among telecom operators have been a major source of concern to the commission, adding that banks have shown that they are reliable, committed and transparent in such areas.  He appealed to companies to follow due process when they are coming out with a promo, adding that that is the only way they can win the confidence of consumers.

  • ‘Banks to spend $84m on new computer platform movement

    Deposit Money Banks(DMBs) will spend an estimated  $84 million to migrate  to Finacle 10 platform, to enable them to enjoy seamless integration of their services and products, experts have said.

    Finacle 10 is an upgraded version of Finacle five and seven, which banks acquired after the 2005 consolidation in order to provide a faultless, well-coordinated, and incorporated services to their customers.

    Developed by Infosys Technology, Finacle 10, is a software package used in generating data across various spectrums of operations such as internet banking and telephone banking, among other electronic payment services. First Bank of Nigeria Plc, Wema Bank Plc, Mainstreet Bank Limited, among others, migrated to Finacle 10 platform because of its sophistication, reliability, and ability to help provide innovative products.

    The Chief Executive officer, Precise Solution Limited, Mr Yele Okeremi, said each bank would spend $4 million to migrate to the Finacle 10 platform.

    Explaining why IT platform is expensive, Okeremi said banks would spend money in bringing the software package; install them and training people to use it. He said the 20 banks in the country are expected to spend between $84 million or $85 million to provide the technology and further improve their services.

    The need, he said, became necessary to make the lenders perform optimally, and remain competitive. He said the phase of banking, which is spurred by technology is changing globally as evident in the introduction of latest technology, noted that Nigerian banks are not ready to be left behind.

    He said: “Conservatively, a bank would spend close to $4million to migrate to Finacle 10 platform. I can tell you that many of the banks are not acquiring the platform. Rather, they are migrating from the old Finacle to the new ones, the cost of which cannot be less than $4 million. When you factor in the cost of bringing expatriates to Nigeria to fix the technology, feeding, accommodating them, training bank’s workers to use the technology, among others, you will discover that banks are spending millions of dollars to provide the platform.”

    Also, an official of Computer Warehouse Group, Mr James Agada, said a lot of money is required to upgrade to Finacle 10 platform.

    He said: “It is a lot of money. I’m only a vendor and cannot say exactly the amount of money required to get the platform. Only the banks can provide the figures because they are strongly involved in the issue. They need to change their processes, hire consultants and train people who understand the platform well before they can migrate to it. This made the platform more expensive.”

  • Nigeria owes World Bank, AfDB, others $5.336b

    Nigeria owes World Bank, AfDB, others $5.336b

    EIGHTY per cent of Nigeria’s $6.67 billion external debt owed to multilateral institutions, The Nation has learnt.

    These global organisations are the World Bank Group, International Fund for Agricultural Development (IFAD), African Development Bank Group (AfDB), Arab Bank for Economic Development in Africa (ABEDA), International Development Bank (IDB) and Economic Development Fund (EDF).

    Report from FSDH Securities Limited indicated that the Exim Bank of China, which constitutes 11.3 per cent of the debt stock, was the next biggest creditor to the country; 8.51 per cent of the debt is owed to other unnamed creditors.

    The debt statistics, which is for the first quarter of this year, represents an increase of 2.20 per cent from $6.54 billion in December 31, 2012, but constitutes about 2.49 per cent of the nation’s Gross Domestic Product (GDP).

    Data from the Debt Management Office (DMO) shows that Nigeria’s total debt stock (addition of external and domestic debts) as at March 31, 2013 stood at N7.53 trillion, representing a decrease of 0.29 per cent from the December 31, 2012 figure of N7.55 trillion.

    A breakdown of the debt stock shows that external debt accounted for 13.79 per cent of the total debt stock at N1.03 trillion while domestic debt stock accounted for 86.21 per cent of the total debt stock at N6.49 trillion. The total public debt stock in the country is estimated at about 18.04 per cent of the GDP.

    FSDH Securities Limited’s forecast GDP and debt stock for Nigeria in the next three years shows that the debt position is sustainable. “Our revised debt-to-GDP forecast for 2013 is 18.79 per cent. The country’s economic managers need to ensure that all debts contracted are used for productive projects to improve the welfare of the citizenry,” it said.

    DMO puts the country’s domestic debt stock to GDP is estimated at 15.55 per cent. The breakdown of the total domestic debt stock by instrument type  shows that the Federal Government of Nigeria Bonds accounted for N3.82 trillion, representing 58.84 per cent; Nigerian Treasury Bills (NTBs) accounted for N2.34 trillion, representing 36.01 per cent and Treasury Bonds (TBs) accounted for N334.56 billion, representing 5.15 per cent.

    FSDH also expects the Nigerian bond market to deepen further through fresh corporate and municipal issues and FGN bonds reopening. Consequently, it said there is a need to balance maturity, liquidity and market depth in order to maintain a robust bond market.

    The firm noted that the debt to GDP ratio is acceptable as it is below the applicable critical limit of 40 per cent for countries in Nigeria’s economic peer group. “This means that Nigeria’s debt portfolio has wide fiscal sustainability space. There is a commitment by the Federal Government to ensure that the total debt stock does not exceed 25 per cent of GDP,” it said.

    It however, said that the total debt analysed excludes the debt that arose from the Asset Management Corporation of Nigeria (AMCON) bond issues, which banks are supposed to contribute 0.5 per cent of their total assets for 10 years to redeem.

  • CBN to launch microfinance fund in August

    The Central Bank of Nigeria (CBN) is considering launching a Microfinance Development Fund (MDF) in August, to enhance credit flow into key sectors of the economy.

    Speaking at a workshop organised for Microfinance Banks (MfBs) in Lagos, CBN Director, Other Financial Institutions Supervision Department (OFISD), Olufemi Fabamwo, said the MDF is a pool of funds created for MfBs to enhance on-lending to their customers.

    He said the fund is not for every MfB, but for those that have met the guideline, which entails having a track-record of good performance that shows that they have low loan default. This, he said, will show that beneficiaries have the capability to lend within the concept and principles of MfB.

    He said the CBN will provide guideline on how the fund will be accessed by beneficiaries, adding that delay in not releasing the fund was to ensure that appropriate frameworks are in place.

    The CBN has reiterated its commitment to deepening the Nigerian financial system by providing loans, introduction of new products and appropriate control structures.

    The MDF, when established, would assist in addressing teething challenge of underfunding for microfinance institutions in the country. It will further complement past and current efforts aimed at strengthening the microfinance sub-sector of the financial system, improve financial inclusion and by implication improve the nation’s Gross Domestic Product (GDP) rate significantly.

    The CBN also disclosed that efforts were also being made by the to consolidate on the achievements recorded so far by the country in the development of micro finance banks by strengthening the regulatory frameworks and other guidelines. This also includes formation of National Microfinance development Strategy with the United Nations Development Programme (UNDP) and the recent signing of a major agreement with the Alliance for a Green Revolution in Africa (AGRA).

    To strengthen the microfinance subs-sector, the CBN has also instituted new guidelines for their operations. Under the new rule, microfinance banks would operate under three categories, which include Unit, State and National Microfinance banks.

    A unit of the bank is authorised to operate in one location without branches/cash centres and is required to have a minimum paid up capital of N20 million. The state microfinance bank requires a minimum paid up capital of N100 million. It is allowed to open branches within the same state or the Federal Capital Territory (FCT).

    But the national microfinance bank is authorised to operate in more than one state, including the FCT. It is requires a minimum paid up capital of N2 billion and is allowed to open branches in all states and the FCT, although subject to prior written approval by the CBN.

  • Sterling Bank’s N12.5b rights issue opens today

    Application list for the N12.5 billion rights issue of Sterling Bank Plc opens today, paving the way for shareholders to increase their shares in the high-return bank.

    The opening of application list followed the completion of all pre-offer processes including final completion board meeting by the board of Sterling Bank and other professional parties as well as approvals by the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE) and the shareholders of the bank.

    Sterling Bank is raising N12.5 billion through a rights issue of about 5.889 billion ordinary shares of 50 kobo each at N2.12 per share. The lender had traded at a high of N3.05 at the stock market. The shares have been pre-allotted on the basis of three new ordinary shares of 50 kobo each for every eight ordinary shares of 50 kobo each held as at May 20, 2013. Application list will run till July 31, 2014.

    The net proceeds of the rights issue, estimated at N12.13 billion, would be used to finance branch expansion, infrastructure upgrade in support of automated and cashless payment, enhance information technology and additional working capital.

    About 35 per cent of the net proceeds, estimated at N4.24 billion, would be used for branch expansion; 15 per cent of the funds estimated at N1.82 billion would be used for infrastructure upgrade, 10 per cent of the funds equivalent to N1.21 billion would be used for information technology while 40 per cent, estimated at N4.85 billion, would be added to the working capital.

    Managing Director, Sterling Bank, Mr Yemi Adeola, said the rights issue would enhance the capital base of the bank and enable it to create additional values for shareholders.

    Given the fact that Sterling Bank is one of the few financial institutions that have not raised new equity funds in the past seven years, the top flight banker said the current fund raising would enhance the performance of the company and returns to shareholders.

    “If with the modest capital that we have, we were able to stabilise the bank, deliver consistently better returns to shareholders and build up to become the a top tier bank, imagine what we would do with more capital. Our shareholders have no reason whatsoever not to be excited in participating in the rights issue. You can’t regret it,” Adeola assured.

    He noted that the rights issue marked the beginning of the bank’s capital raising plan, which is meant to put the bank on stronger footing and further position it to compete effectively.

    He said the bank plans to raise $80 million through the rights issue and $120 million through private placement to shore up the lender’s tier one capital.

    Mr Adeola pointed out that the bank is embarking on additional capitalisation because size has become very key and relevant in the banking industry and the bank needs to open more branches and put in place enabling infrastructure for its unique retail banking franchise.

    He added that additional working capital would enable the bank to expand the scope of its corporate banking business, noting that the lender is currently limited by the single obligor limit, which is a function of available.

  • CBN’s intervention strengthens Naira

    The Central Bank of Nigeria (CBN’s) market intervention and dollar inflows from the twice-weekly Wholesale Dutch Auction System (WDAS) helped the naira to regain its positive outlook last week. Consequently, last Friday the Naira gained 0.9 per cent to N159.65 per dollar, putting last week’s gains at 1.9 per cent.

    The banking watchdog sells dollars at auctions on Mondays and Wednesdays to boost the Naira and had last week alone, offered and sold $600 million at auctions. It has offered and sold the same volume over the last three auctions to support the naira.

    Although the naira breached CBN’s three per cent above N155 to a dollar target a fortnight ago, analysts insist the CBN is positioned to stabilise the currency within the three per cent band either side of N155 to a dollar in the short term.

    The Debt Management Office (DMO) raised N20.8 billion this month through three offerings, which were re-openings: four per cent Federal Government of Nigeria April 2015 bond, 15.1 per cent April 2017 bond and 10 per cent July 2030 bond.

    Currency Analyst at Ecobank Nigeria, Olakunle Ezun said although the market demand matched the supply, the pricing reflected investor’s “wait and see attitude” on the naira short term outlook. The stop rates were 12.25 per cent, 13 per cent and 13.5 per cent respectively.

     

    KYC deadline

     

    The CBN extended Know Your Customer (KYC) deadline for Designated Non-Financial Businesses and Professions (DNFBPs) from April 30 2013 to December 31, 2013.

    Its Acting Director, Financial Policy and Regulation, A.O Ikem advised DNFBPs that have not registered with Special Control Unit against Money Laundering (SCUML) to do so before the deadline ends, failing which they would not be allowed to operate such accounts. The CBN said the extension is meant to address some of the challenges encountered by SCUML as a result of the number of persons seeking to enjoy late compliance.

    The CBN had earlier issued a circular, mandating DNFBPs on the need to provide additional KYC requirements to their banks and Other Financial Institutions (OFIs). It said compliance is in line with international best practice against adverse developments resulting from money laundering and financing of terrorism globally.

     

    NDIC

     

    The Nigeria Deposit Insurance Corporation (NDIC) also signed a memorandum of understanding (MoU) with Bank Guarantee Fund of Poland in a move seen as helping both bodies share ideas on regulation.

    NDIC said the move is in line with the mission of the International Association of Deposit Insurers (IADI) to share knowledge and experience in deposit insurance and areas of compliance with core principles of effective deposit insurance practice among its affiliates globally.

    The MoU was signed at the end of the NDIC’s working visit to the Bank of Guarantee Fund of Poland on capacity building, information and experience sharing in key operational areas.

    The statement named such areas to include early warning system, failure resolution, establishment of target fund ratio and implementation of a single customer view system.

    The NDIC delegates comprised the Managing Director and Chief Executive Officer, Umaru Ibrahim and the Executive Director of Operations, Prince Aghatise Erediauwa.

    It said both bodies are members of International Association of Deposit Insurers (IADI) and the President of the Management Board of BGF, Poland, Jerzy Pruski is the current Chair of the Executive Council and President of IADI.

     

    NIBSS

     

    The vision of Nigeria being among the top 20 economies in the world providing efficient e-payment services by the year 2020 will be achieved, the Nigeria Inter-Bank Settlement System (NIBSS) has said.

    NIBSS Executive Director, Business Development, Chritabel Onyejekwe disclosed this at the 13th Card , ATM & Mobile Expo held in Lagos. She said the cash-less banking initiative has recorded huge success and has been able to drastically reduce banks’ operational costs significantly.

    She said NIBSS in collaboration with the CBN, banks and other international partners are committed to the journey of transformation for the e-payment industry via cash-less economy. He said all the parties agree that a lot of work needs to be done at the grassroots.

    She said, SIBS International, a Portuguese firm has been supporting NIBSS in achieving the cash-less objective.

     

    CITN

     

    The Chartered Institute of Taxation of Nigeria (CITN) has elected Mark Anthony Chidolue Dike as its new President. He replaces Asiwaju John Femi Sunday Jegede, his predecessor. Dike was elected at the 21st Annual General Meeting of the Institute.

    A statement signed by CITN Head, Corporate Services, Gbolahan Bilewu, said other elected officers of Council included Teju Somorin as Vice President; C. I. Ede, Deputy Vice President and Adesina Adedayo who returned unopposed as the Treasurer.

    Dike, the Director of Tax Policy in the Federal Inland Revenue Service, is a seasoned tax administrator and chartered accountant. He obtained a Bachelor of Science (B.Sc.) degree in Economics from the University of Ife, (now Obafemi Awolowo University) Ile-Ife, Oyo State.

     

    IFC

     

    The International Finance Corporation (IFC) has estimated that the bankable need for private health institutions within the country is currently worth $3 billion. The global lender also said in a statement that with an available leveraged funding potential of about $1 billion that could be tapped for investment into health.

    This is according to a new Study by the IFC, the private sector arm of the World Bank Group, which is partnering with the Federal Ministry of Health and James Daniel Consulting to organize the Nigerian Healthcare Infrastructure Investment Summit holding this month in the country.

    “This summit targets the private sector in healthcare and aims to showcase the best practices of what works within the private health sector in Nigeria and other countries. The IFC will also be launching her maiden edition of the study, Nigeria Health Market Studies, which details investment opportunities within the Nigerian health sector and how to create value for Nigerian patients through private sector investment.

     

    CIBN/FITC

     

    The Chartered institute of Bankers of Nigeria (CIBN) will be partnering with Financial Institutions Training Centre (FITC) to improve the competency level among bank’s staff.

    In a statement, CIBN said such move would help in bridging skills gaps in the banking and finance industry. The exercise is coming after stakeholders’ engagement with the FITC led by CIBN’ President/Chairman of Council, Segun Aina.

    He noted that the engagement was part of familiarisation and bridge-building efforts to dialogue with major stakeholders in the sector. He observed that the industry was so large and replete with many value adding opportunities such that there was room for the each of the two organiSations to make its own impact without any hindrance. He called for collaboration and cooperation between the CIBN and FITC in areas of common goals and interest.

     

    Investment

     

    Actis, a private-equity company, will lead investment of as much as $1.5 billion in African commercial property to meet rising demand from international companies targeting a growing middle class, Bloomberg report had said.

    “We are seeing a shift in interest from South African brands to European retailers” seeking opportunities in fast-growing economies such as Nigeria, Ghana and Kenya, Kevin Teeroovengadum, director of Actis’ sub-Saharan Africa real estate unit, said.

    Actis, which is based in London, plans to invest in projects including shopping centers, office towers and industrial parks that will come to fruition over the next five years, Teeroovengadum said. The company will use the proceeds of its second African real estate fund that raised $280 million in October, while the rest of the investment will come from commercial partners and loans.

    Africa’s economy, excluding Libya and Somalia, is forecast to expand 4.5 per cent in 2013 and 5.2 per cent next year amid a rise in oil and mining projects and direct investment from foreign companies, according to the Tunis-based African Development Bank’s annual outlook. Nigeria, the continent’s most populous country, grew 6.6 percent in the first quarter while South Africa, the continent’s biggest economy, expanded by an annualized 0.9 percent.

    Actis has raised about $1.4 billion across seven Africa funds since 2003, according to data compiled by Bloomberg. The company is also pursuing deals in South America and Southeast Asia in sectors including energy and technology.

    Bank to bank report

     

    Mainstreet Bank Limited released its group financial result for the year ended 31 December 2012, which saw the bank’s profit before tax (PAT) hitting N24.1 billion during the period.

    The lender is one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Afribank Plc and its subsequent recapitalisation and ownership by the Asset Management Corporation of Nigeria (AMCON).

    A statement issued by the bank said the result rekindled hope across the industry especially amongst customers, financial analysts and investors who had expressed mixed feelings on the ability of AMCON to stabilise the nation’s financial system after taking over some banks under the bridge model.

    “The declared result, showed a marked improvement in all key financial indices especially given the bank’s loss position of N4.4 billion within the five-month period it operated as at December 2011. The figures from the result also show that the bank grew its gross earnings to N47.9 billion within the period under review,” it said.

    United Bank for Africa (UBA) Plc has been named the best bank in support of agriculture in the country. In a statement, the bank said it got the recognition following its contribution to the growth of the agricultural sector and value addition to the economy.

    UBA clinched the award at the maiden edition of BusinessDay Annual Banking Awards, which held recently in Lagos.

    According to statistics, UBA tops the Central Bank of Nigeria’s (CBN’s) list of lenders to the agricultural sector. By 2012 financial year end, the lender had channeled seven per cent of its N687 billion loan book to agriculture. This is the highest exposure of any bank in Nigeria and invariably places the bank as one of the strongest supporters of agriculture in Nigeria.

    Divisional Head, Consumer Banking, UBA Plc, Mr. Ilesanmi Owoeye, received the award on behalf of the bank.

    Diamond Bank said it had broken a new campaign to claim its position as one of the leading financial institutions in Nigeria. In a statement, the bank said the launch follows a successful brand refresh in November 2012 where the brand saw changes in its colours moving away from the monosyllabic greys and dark tones to more vibrant colours. It said the motive was to make the brand more approachable in line with its positioning as one of the leading retail bank in Nigeria.

    Diamond Bank’s new media campaign “you need a new bank,” reminds customers of the power of choice especially when it comes to choosing a bank. As customers are becoming more discerning of banking products and services, the bank is putting a stake in the ground- armed with a portfolio of products and technology to produce faster and more efficient services, the question becomes ”why do you stay with a bank that does not meet your needs?” said Ayona Trimnell, the bank’s Head Corporate Communications.