The Nation Newspaper

Category: Money

  • Research key to e-payment development, says expert

    The rapid growth of electronic payment across the continent is driven by innovative products occasioned by huge investments in research and development, Managing Consultant Intermac Consulting, Mr Adeyinka Adeyemi, has said.

    Speaking at the maiden edition of the Card and e-Payment Africa Awards (CePAA) in Johannesburg, South Africa, the Intermac boss said: “There is just nobody noticing the huge investments going into research and development to bring about new technologies and new solutions. Sometimes these solutions succeed, sometimes they fail and when they fail what most stakeholders tend to do is go back to the drawing board, spending double and sometimes triple until they get to the market.

    “Now once they get to the market with a fantastic product like Mpesa for instance, nobody recognises that effort, even though they are making money, they are selling services and we believe that we must come to terms with the fact that there are people that are doing a lot of work to get the products to the shelves, to get technologies that will work to the table and to the shelves. And that is why we came up with the concept of Cards and E-payment Africa Awards (CePAA).”

    Corroborating Adeyemi, Charlton Goredema, the Vice President and Area Business Head for Southern Africa and Indian Ocean Islands of Mastercard Worldwide, while receiving the award for Best Security and Authentication Programme, said card use and acceptance in Africa has become phenomenal, especially given the volume and value of transactions recorded daily for ecommerce.

    He said the financial institutions and payment system providers who are making this convenience and security happen should be recognised for their efforts and investment in innovative products and services.

    The event featured 12 categories of awards with Diamond Bank, and the Congo subsidiary of Access Bank, emerging among the winners. Diamond Bank won the Best Credit Card Product of the Year and the Best Co-branded Card Programme while Access Bank Congo won the Best Debit Card Product of the Year award.

    The Best Mobile Payment Product award was won by Fundamo (PTY) South Africa, while DrawCard, South Africa won the Best Alternative Payments Programme award. Master Card emerged as the winner of the Best Security and Authentication Programme, while the Best Card Benefits Programme of the Year award went to Absa Bank of South Africa. Other awards were:  Best Card Processor of the Year won by HPS Worldwide, Morocco; Best POS Integrator of the Year won by Transaction Payment System (TPS) Zimbabwe; and Industry Personality of the Year won by Mr. Jose G. Matos, Chief Executive Officer, Emis Angola.

    Speaking while receiving the Personality of the Year award,   Jose de Matos, Managing Director of Empresa Interbancaria de Servicos (EMIS), commended Intermarc Consulting for its leadership, passion and commitment in organising the award.

    Receiving the Best Card Benefit Programme of the Year award on behalf of Absa Bank South Africa, Juanita Matelakengisa, the Chief of Staff – Card and Consumer Finance, noted that since  similar awards are being held in Europe, Asia and America for those continents,  developments in the card space across Africa need to be recognised and success stories celebrated.

    On his part, Lincoln Boweni, a Director with eTranzact Global South Africa (Pty) Limited, who received the Best Mobile Payment Initiative of the Year for his company, praised the organisers for a successful event and encouraged key stakeholders in the epayment industry across Africa to  celebrate success stories as the African electronic transaction industry has come of age.

    The Executive Director, Diamond Bank Nigeria Plc, Uzoma Dozie, while receiving the Best Credit Card Product of the Year and Best Co-Branded Card Product of the Year, said Diamond Bank was happy to receive the awards, which will further encourage the bank to focus on providing excellent customer experience across electronic channels.

    The 12 award winners emerged through an online voting system on the Card and ePayment Africa Awards website. The voting was supervised by a panel of Judges comprising   six industry experts from the card and epayment sector across Africa with experience within the industry brought together for the selection of winners.

    Adeyemi explained, “The aim of the Award is to recognise and reward excellence and cutting –edge innovation in the card and electronic payment market in Africa.  This is the trend in Europe where Cards Awards (Europe) is hosted annually in London and in Asia, where Card Awards Asia is hosted annually.

    “Unlike other parts of the world where such companies are recognized for their R and D roles, and turning out new innovations; in Africa we don’t do that. So we said to ourselves, we can change all of that in Africa and do even better what the stakeholders are doing in Europe, the US and Asia.

    “The first one was held at the prestigious Michelangelo hotel in Johannesburg on the thirteenth of March and it was a huge success. Because we had people from Ghana, from South Africa, from Congo, from Zimbabwe, all over Africa, attending that event and everybody had the same thing to say with the need to support this initiative because we need to recognize achievements, and that essentially is the vision of INTERMAC consulting by putting this award together.”

     

  • Banks seek acquirer licences for e-payment

    Banks seek acquirer licences for e-payment

    TO participate in the e-pay-ment market, banks have initiated moves to get acquirer licences. They are to get the licences from card association like Mastercard, Visa and others.

    An acquiring bank (or acquirer) processes credit and or debit card payments for products or services for a merchant.

    The licence enables the lender to accept or acquire credit card payment from card associations such as Visa, MasterCard, American Express, Diners Club, Japan Credit Bureau, Attijariwafa Bank, and China UnionPay, among others.

    Speaking at the BT Africa conference in Lagos, Head Electronic and Personal Banking Sales, United Bank for Africa, Henry Obike, said Merchant Service Charge (MSC) must to be reduced from six per cent per transaction charged by some card associations to encourage a wider use of cards by bank customers and travellers.

    He said: “The charges are really an issue that needs to be addressed. But as a bank, we always ensure that we create value and that is why I am confident that before June, this year, we would secure an acquirer licence. This will boost competition and drop charges.”

    Visa Country Manager, West Africa, Ade Ashaye, said banks should let customers know what value they are getting by using their cards instead of cash. He said there should be a cost for cash and an incentive for using e-payment tools.

    He said Visa, a global electronic payments company, has reiterated its commitment to unlocking business potential within the Sub-Saharan Africa. “Visa plays an active role in travel and tourism and its research in the tourism industry provides key insights into the trends. We believe that continued engagement in the industry is important,” he said.

    Ashaye said Visa is committed to consolidating its position in the travel industry throughout Sub-Saharan Africa. He said the company has been instrumental in reshaping the payment landscape in West Africa with the introduction of several products, including the Visa Corporate card, for enabling secure and convenient cashless transactions within the region.

    “As Nigeria moves towards a cashless economy, we are looking to share the benefits of electronic payments with the travel industry. There were a number of interesting and lively panel discussions during the conference that affect the industry,” said Ashaye.

    He said Visa is committed to consolidating its position in the businesses arena throughout Sub-Saharan Africa. He said the company has been instrumental in reshaping the payment landscape in West Africa with the introduction of several products, including the Visa Corporate card, for enabling secure and convenient cashless transactions within the region.

    He said Visa’s approach is to minimise fraud in the payment system by building policies, tools and technologies that will help prevent fraud before it happens. Such technology he added, also protects vulnerable card data wherever it is stored, processed or transmitted throughout the payment system. It also monitors and manages fraud to ensure prompt response to issues. It also minimises impact to stakeholders, which include, cardholders.

    “This conference serves as a great opportunity for all those with a vested interest in West African business travel to come together under one roof,” said Dylan Rogers, of BT Africa.

     

  • BoA, Sokoto partner on agric funding

    The Bank of Agriculture (BoA) and the Sokoto State government have signed a memorandum of understanding (MOU) that will see the bank disbursing N1 billion loans to farmers in the state.

    Under the collaboration, BoA will provide N250,000 to each individual across the 23 local governments of the state.

    The bank, in a statement, said 5000 farmers were expected to benefit from the initiative.

    BoA Managing Director Dr. Mohammed K. Santuraki, praised the state government for the transformation in the state, especially in infrastructural development. Santuraki said Sokoto was blessed with immense water resources and dams which could be harnessed for the good of the masses.

    He thanked the government for giving agriculture the highest priority, adding that both parties would benefit from the collaboration. He said the loan would be repaid within two years,

    Also, the Governor, Alhaji Aliyu Wamakko, said the collaboration marked his administration’s first direct relationship with the bank. He was represented at the signing of the agreement by the Commissioner for Agriculture, Alhaji Arzika Tureta. Wamako promised to work with the bank to provide more money for farmers. He said the government would leverage the bank’s growth to improve the lot of farmers.

    He reiterated the commitment of the government to reducing poverty and unemployment rates.

    “Food security is paramount and we are determined to take all the necessary measures for the people in the state to have food on their tables,” he said.

     

  • ‘Bankers need BASEL 111’

    The immediate past Chairman, Chartered Institute of Bankers of Nigeria (CIBN), Lagos Chapter, Mr Bayo Olugbemi, has said banks need to become BASEL 11 and 111 compliant to foster growth.

    Speaking in a recent stakeholders’meeting in Lagos on the backdrop of the Central Bank of Nigeria (CBN)‘s decision to make banks BASEL 11 and 111 compliant next year, Olugbemi said development would engender confidence in the industry.

    He said the state chapter had last February, organised a conference in United Arab Emirates to improve the skills of bankers in risk management. He said risk management is crucial to the growth of the industry, adding that efforts must not be spared in making bankers get the required knowledge on the issue.

    He advised bankers to make knowledge acquisition their priority, adding that they do not need to be complacent in issues relating to banking practice. He said courses are organised locally and abroad on banking and allied matters, advising bankers to make use of those opportunities.

    Olugbemi said past and successive leadership of the chapter has not relented in promoting professional practice. This, he said, is evident in the various programmes lined up to train bankers in the country.

     

  • CBN to release microfinance development strategy in Q2

    CBN to release microfinance development strategy in Q2

    The Central Bank of Nigeria (CBN) will release the NationalMicrofinance Development Strategy in the second quarter of the year.

    The document is expected to outline modalities for devel-oping the subsector and rules for operators to improve their performances.

    The CBN is also consolidating its achievements in the development of microfinance banks (MfBs). It has strengthened the regulatory framework and other guidelines. These include the formation of the National Microfinance Development Strategy with the United Nations Development Programme (UNDP) and the recent signing of a major agreement with the Alliance for Green Revolution in Africa (AGRA).

    Besides, the CBN is considering the establishment of a Microfinance Development Fund (MDF) to deepen the financial market. The MDF would assist in addressing the challenges of underfunding for microfinance institutions.

    It will also complement past and current efforts aimed at strengthening the sub-sector, improve financial inclusion and improve the Gross Domestic Product (GDP) rate significantly, the statement indicated.

    Many of the MfBs liquidated by the Nigeria Deposit Insurance Corporation (NDIC) ran into trouble when their debtors refused to pay back their loans, over 80 per cent of which were unsecured. Besides, some of them took excessive risks, branching out too quickly swithout considering resources at their disposal and whether utilised funds were short or long term obligations.

    A unit of MfB is authorised to operate in one location without branches/cash centres and is required to have a minimum paid up capital of N20 million; and state, of N100 million.

    It is equally allowed to open branches within the same state or the Federal Capital Territory (FCT). But the national MfB is authorised to operate in more than one state, including the FCT. It is required to have 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.

     

  • ‘Africa’s stock markets should unite to attract investors’

    Africa’s 24 stock markets should work together if they are to attract high investors’ interest, Nicky Newton-King, Chief Executive Officer, Johannesburg Stock Exchange (JSE), has said.

    The leader of Africa’s biggest securities exchange told AFP that global investors have eye in Africa and the continent’s stock market leaders should seize the opportunity.

    “The appetite for Africa is very, very high. I think everybody is trying to find their way, to participate meaningfully in that. All of us who are privileged enough to run exchanges, need to figure out that these waves of investor appetite aren’t yours by right. Once they come, you have to be able to ride them properly. We should not be taking this as business as usual, this is a business opportunity,” she said.

    Newton-King said allowing South Africans to more easily place orders into Nigerian stock markets, or by allowing Kenyans to invest in joint-listed South African stock in KES shillings, would attract more foreign investors.

    She added that there are benefits from cross-listing, as the JSE learned when its leading shares moved to London. “When Anglo-American cross-listed in London, the amount of trades in Anglo-American increased. South Africa’s percentage of trade in Anglo-American decreased, but the decreased percentage was worth more. In those cases you have to think quite bravely,” she said.

    The International Monetary Fund (IMF) forecasts the aggregate economy of sub-Saharan Africa will grow at 5.7 per cent this year, also presents a giant opportunity for the continent.

    Newton-King said one way to channel the investor interest through African markets would be to make it easier to invest across borders and to improve liquidity in small markets so that assets can be bought and sold quickly.

     

  • CBN extends recapitalisation deadline for MfBs till Dec 31

    CBN extends recapitalisation deadline for MfBs till Dec 31

    The Central Bank of Nigeria (CBN) has extended the recapitalisation deadline for microfinance banks (MfBs) to December 31, 2013. The deadline expired in December, last year.

    Director, Corporate Communication, CBN, Mr Ugochukwu Okoroafor, told The Nation that the deadline was extended following the MfBs’ plea.

    Under the proposed recapitalisation, MfBs are required to have N20 million for a unit license, N100 million, state license, and N200 million, national license.

    Following the deadline’s expiration last year, the banks asked for more time to shop for funds to recapitalise.

    Okoroafor said: “We have agreed to shift the deadline given to the banks to raise their capital. I do not want to give a date that is not correct. I need to check the new date from the office next week. But the new date is this year.”

    The National Association of Microfinance Banks (NAMBs) has said it is awaiting CBN’s formal announcement of the extension. The association’s Chairman, Southwest Region, Mr Olufemi Babajide, said MfBs had received feelers that the deadline has been extended till December 31, 2013.

    He said: “Though the apex bank has not issued a circular to that effect, there is hope that the banks would get another date to recapitalise their businesses. Having realised that the banks have failed to meet the 2012 deadline, we made some recommendations to CBN.

    “Top on the list is the issue of extension of the capital base deadline. Other issues are funding of the bad debts of the banks, extension of branches, and how to ensure smooth running of the banks. We have presented our positions, they promised to review them and get back to us.”

    The formal announcement of the extension, he said, was not something the CBN could do hastily, stressing that the regulator believe in due process. He said: “We strongly believe that the shift in recapitalisation deadline would be formalised soon. He added that discussions are on-going on the release of the N220 billion Microfinance Development Fund and the N75 billion approved for the take-off of the National Incentive-Based Risk Sharing in Agricultural Lending (NIRSAL).

    Babajide said the government was interested in developing the agricultural sector, stressing that the fund would be given to the banks for distribution to farmers in the 36 states, including the Federal Capital Territory (FCT).

    He said CBN has not told the banks when the funds would be released to the beneficiaries, but MfBs are trying to make the funds available to the operators as soon as the cash is available.

    The Managing Director, LAPO Microfinance Bank Limited, Mr Godwin Ehigiamusoe, said though many banks have the capacity to raise the requisite capital, there is the need to extend the deadline in the interest of the sub-sector.

    Ehigiamouse said operators were optimistic that the deadline would be extended, advising banks to try and make funds available to the operators to enable them to develop the economy.

    He said the CBN’s reforms have engendered growth in the industry, arguing that banks are now better placed to conduct transactions hitherto beyond their reach.

    He urged operators to work harder by trying to meet standards stipulated by the CBN.

     

  • ‘$48b national debt’ll transform economy’

    ‘$48b national debt’ll transform economy’

    Effective management of domestic and external debts will assist the country to achieve its economic transformation agenda, Director, Nigeria Development Finance Forum (NDFF) Jide Akintunde has said. The external debt is $6.5 billion and domestic, N6.5 trillion.

    Speaking ahead of NDFF conference holding in Washington DC in June, he said though there were issues of poor economic management, effective and timely management of the overall debts would ensure long-standing fiscal mismanagement as witnessed in 1999.

    He said efforts to address the situation led to the debt exit deal Nigeria executed with the Paris Club in 2005, whereby, the country was nearly free of foreign debt by the end of 2006.

    “The solution itself has seen the establishment and strengthening of the institutional frameworks for sound management of public debt in Nigeria, including the establishment of the Debt Management Office (DMO). Indeed, the debt management solution has established for Nigeria a very vibrant bond market, which had been moribund before 2003,” he said.

    Before DMO was established, its functions were diffused in numerous agencies and units of government. Some units were in the Ministry of Finance, some in Central Bank of Nigeria and some in the Accountant-General’s Office. No single agency had that mandate to manage the country’s public debt.

    Expectedly, during that era, there were poor coordination and inefficiencies which culminated in the poor management of the public debt.

    Akintunde said Nigeria’s economic competitiveness would be driven by functional access to technology, and the ability to see opportunities and convert them to sustainable businesses.

    He said the Nigerian leadership and the people need to start to think big in the context of the impact the country needs to make on its people and on Africa.

    “It is our penchant for thinking small that people in public offices think they have to illegally appropriate public funds for personal aggrandisement, or not work to earn their pay. Some of the larger-than-life bank CEOs of pre- June 2009 era, who promoted their greed at the expense of the safety of shareholders’ fund and, in some cases, depositors’ fund, would have realised that it is in the preservation of the institutional interest that the interests of the individuals connected are protected,” he said.

    He said the NDFF is not about problem identification but one of the conference series that essentially provides one of the needed platforms to have a rounded discussion of governance and market policies in Nigeria, and how they are shaping opportunities for investment in the country.

    “Of course, we also strongly target the international policy and finance communities. Participants need to know the true state of the affairs of the Nigerian people and market. Usually, in the absence of formal and balanced briefings on Nigeria, we can have either of the extremes of outlandish expectation of making quick money in Nigeria which can lead to utter disappointment or the underwhelming negative stories that basically scare prospective investors from the country,” he said.

     

    These two audience categories present important networking opportunities for Nigeria-based professionals; those in the policy, business and social sectors. The dimensions of impact of the networking range from learning best practices, business initiation and forging partnerships, direct link with policy-makers, and in many respects sales.

    Therefore, we have always had significant number of Nigerian professionals travel to attend the NDFF conferences. We look set to even have a bigger conference this year, and it will be first time we are hosting the conference in North America. The previous three editions had held in London.

  • KYC will help to tackle money laundering, says agency

    The ‘Know Your Customer’ (KYC) requirements for Designated Non-Financial Businesses and Professions (DNFBPs) will help in tackling money laundering, the Inter-Governmental Agency Against Money Laundering and Terrorism Financing (GIABA) has said.

    KYC in banking parlance refers to customers’ due diligence that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing business with them. It is aimed at correcting the anomalies in financial transactions.

    In a circular last month, the Central Bank of Nigeria (CBN) extended the deadline for the exercise to April 30, following representations made by stakeholders.

    GIABA Director-General Dr Abdullahi Shehu said the KYC initiative is key to the reduction of fraudulent practices in the industry.

    He said the idea would help financial institutions and DNFBPs to check money laundering.

    He said banks and designated non-financial institutions have taken preventive measures to tackle money laundering, adding that they would do more in view of KYC initiatives introduced by the banking regulators.

    The financial intelligence unit in Nigeria, among other countries in West Africa, he said had been operating sub-optimally, stressing that the development has affected the capacity of the country to tackle money laundering and its associated offences.

    Shehu said Nigeria and other member-states must demonstrate strong political will before they can effectively implement laws on anti-money laundering terrorist financing. He said the measures would deepen regional integration in line with the Economic Community of West African States’ (ECOWAS) Vision 2020 agenda to have crime-free society.

    He said Nigeria, among other countries, are still struggling with the implementation of the Financial Action Task Force (FATF) standards, adding that poor compliance is a pointer to the level of vulnerability of the financial systems to money laundering and other related crimes.

    GIABA, he said, has been providing technical assistance to member states and civil organisations to fight the crimes, stressing that the regional body has delivered on its mandates to curb money laundering activities.

    He said the body included tax crimes as a new predicate offence, adding that the revised Standards places emphasis on continuous monitoring; identifying risks, developing policies and ensuring domestic coordination of money laundering programmes.

     

  • ACCA to help students with jobs

    ACCA to help students with jobs

    The Association of Certified Chartered Accountants (ACCA) will not relent in its efforts to connect undergraduates to employment opportunities, an official has said.

    Its Head in Nigeria, Mrs. Oluwatoyin Ademola, said this became necessary to prevent present and prospective graduates from being jobless years after they might have left school.

    In a statement, Mrs Ademola said the country is battling with huge unemployment which must be tackled by putting in place proactive measures. She said the body will do everything humanly possible to sensitive students on how they can create employment opportunities for growth.

    She said job fairs, among other initiatives would help students to know where and how to tap into employment opportunities around them. She said through the fairs, students are able to view access and explore avenues to create jobs for themselves.

    According to her, the issue of solving unemployment problems should not be left in the hands of government alone if meaningful progress is going to be achieving in this direction. She said individuals, corporate bodies, states and federal government need to show serious concerns to jobs creation, adding that the development was responsible for ACCA involvement in jobs’ sensitisation.