The Nation Newspaper

Category: Money

  • Customers hail bank

    Customers hail bank

    Customers of Diamond Bank Plc have lauded the bank for assisting businesses.

    At a Customers Forum for the Western Zone and Kwara State in Ibadan, they said the bank has supported their businesses and offered the necessary life-line needed by their. The customers, who are largely managing directors and chief executive officers also lauded the bank’s staff for courtesy and efficiency.

    The Regional Director (West), Mr Olusola Ajayi, explained that the forum was one of the bank’s ways of appreciating its customers as well as open up channels of feedback. “One purpose of this forum is to let customers know that our services are unmatched and to listen to you so we can know where and how to improve,” he said.

    He urged them to feel free to express their opinions and concerns on the services being rendered by the bank.

    Presentations on some of the bank’s products were made by some managers after which customers made their responses.The Head, Customer Experience, Mrs Shirley Uyakonwu and the Head, Propositions and Liabilities, Mr Olumide Akindele, were among those who made presentations.

  • WAUTI advocates tax practice harmonisation

    The West African Union of Tax Institutes (WAUTI) is working on harmonising tax practice in West Africa, its Chairman, Publicity & Publications, Chukwuemeka Eze, has said.

    In a statement announcing this year’s edition of the yearly international tax conference with the theme: “Role of taxation in good governance and will feature presentations from speakers within and outside the West Africa sub-region,” he reiterated the role of taxation in the economic transformation and growth of the West African sub-region.

    This year’s conference will hold at the Sheraton Hotel Lagos from March 27 to 28, 2013.

    Eze said the conference became exigent following the success of the Union’s maiden international tax conference held from February 28 to 29, 2012 in Lagos. He said deliberations at the conference assisted stakeholders and tax practioners in formulating policies and creating more awareness on tax issues within the sub-region.

    The lead paper of the conference will be delivered by Mr Jiri Nekovar, President of the Confederation Fiscale Europeenne (CFE), a body of tax advisers in Europe.

    Other speakers at the conference will include the Acting Director of Customs of the Economic Community of West African States (ECOWAS), Mr Salifou Tiemtore, and a foremost tax practitioner in Dakar, Senegal, Mr Aziz Dieye of Cabinet Aziz Diey.

    The contents of the papers are such that practitioners, academicians, administrators and researchers will find it immensely useful.

    “WAUTI, which has as its vision the harmonisation of taxation practice in West Africa, considers the conference an avenue to bring together tax professionals from many West African countries including Nigeria,” he said. He added that confirmation has been received from delegates from Ghana, Liberia, Cote d’lvoire, Senegal, Burkina Faso, Mali, Niger, Togo, and Benin.

    He said that participation at the conference is open to tax professionals, accountants, policy makers, academicians, government officials, and members of the public. A course fee of N45,000 ($300) is payable per participant as conference fees. Participants will be entitled to conference materials, tea break and lunch in the course of the conference.

    He said the conference will be declared open by Desire Ouedraogo, President of the ECOWAS, who will also chair the first paper presentation session. Goodwill addresses will also be delivered by important stakeholders who share in our vision of a region where taxes feature prominently in economic policies and contribute substantially in entrenching good governance. He said this year’s conference will provide a platform for professionals across West Africa to network and share ideas on ways towards improving the tax systems across the jurisdictions for the benefit of all.

  • Wema deploys MoneyGram payment platform

    Wema deploys MoneyGram payment platform

    Wema Bank has demonstrated its commitment to providing faster, efficient, innovative services to clients with its recent implementation of MoneyGram’s latest platform, AgentWorks.

    The bank made this known in a statement, asserting that with this outing, the leader becomes the first organisation in the country and the second in West Africa to fully implement MoneyGram’s latest solution across all its service locations.

    AgentWorks is the latest upgrade to the MoneyGram money transfer platform that provides security of funds and transactions, quicker authentication and a more efficient service delivery on the MoneyGram network.

    Speaking on this partnership during the meeting with MoneyGram representatives, Akinlolu Ayileka, Divisional Head, Retail Banking at Wema Bank reiterated the bank’s commitment to providing the best-in-class retail banking experience for its numerous clients.

    He also stated that it was the bank’s desire to be at the fore-front of the innovative use of technology to deliver exceptional banking services as was also recently demonstrated in being the first sub-Saharan Bank to deploy Finacle 10.2 Core-Banking Application which has also aided the integration of other value-adding services.

    MoneyGram Regional Director for Africa, Francois Peyret, said the partnership is a step in the right direction, adding that the lender has ability to deploy the solution properly and provide top-notch service to MoneyGram recipients in the country.

     

  • How to facilitate passage of FSS 2020 bills, by CBN

    How to facilitate passage of FSS 2020 bills, by CBN

    The Central Bank of Nigeria (CBN) and a Senior Advocate of Nigeria (SAN) have given the National Assembly tips on how to facilitate the passage of the Financial Services Strategy (FSS) 2020 bills.

    These Bills include the Nigerian Financial Sector Bill; Nigerian Financial Ombudsman Bill; Alternative Dispute Resolution Bill, among others.

    FSS, an initiative of the Financial Regulatory Service Committee Commission (FRSCC), was introduced in 2004 to launch Nigeria into the world’s financial services hub.

    CBN in conjunction with the National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC), among other regulatory bodies, presented bills to the National Assembly to actualise the dreams of Vision 2020.

    Speaking during a national television programme entitled: Legal implications of FSS 2020 Initiative: Legal and regulatory issues, Director of Legal Services, CBN, Mr Simon Onekutu, said the apex bank would take with engage relevant committees in the National Assembly to quicken the bills passage and further achieve the objectives of FSS 2020.

    He said: “In the past, we have made efforts to engage the National Assembly in relation to the passage of Bills on FSS 2020. This is the legislative assembly that has the bills, and we have to make them realise the importance of passing the bills. Retreats have been organised on the issue. We would consolidate on that to ensure that the bills are passed soon,”

    Onekutu said Executive Bills are not driven by the National Assembly as some people are made to believe, adding that such bills can only be driven by their presenters (owners).

    “What is of interest to us is to make the National Assembly appreciates what these bills are to us. That is the strategy, we believe it is going to work. We are working through the relevant committees on FSS 2020, and we would intensify efforts on that. We cannot go to the Senate President and say that we want the bills to be passed like that,” he added.

    Onekutu said the bills are short, simple and straight forward, adding that the expectation is that the National Assembly would speedily pass the bills.

    Mr Abiodun Owonikoko (SAN) said the CBN must get the National Assembly to fast-track the process of passing bills and help in actualising the goals of Vision 2020.

    Owonikoko said the bills must go through certain processes in the two houses before they can be passed. He advised the CBN to help in this direction.

    “The first phase of the bills was terminated in 2012 and nothing concrete has been done. The second phase has just started, yet nothing has been done. If there are proper engagements with the National Assembly, these bills would not have been at this level now,” he added.

    Owonikoko argues that strong commitment on the part of the banking regulatory body and the National Assembly is required for the bills to be passed, stressing that FSS objectives are far from being realised.

     

  • Eke retires as ED in Diamond Bank

    Eke retires as ED in Diamond Bank

    The Board of Diamond Bank Plc, one of the leading banks in Nigeria, has announced the retirement of Mr. U. K. Eke effective April 30, 2011 after 19 years of dedicated service to the bank and marking the end of his second term in office as Executive Director.

    According to a statement by the Group Managing Director/Chief Executive Officer, Dr. Alex Otti, the Board is very proud of the achievements of Eke and the significant contributions he made towards strengthening and sustaining Diamond Bank’s core values. He further expressed the Board and Management’s gratitude to Eke for his invaluable contributions to the growth and development of the bank. He wished him success in his future endeavours.

    Eke started his career with Deloitte Haskins & Sells International (now Deloitte & Touche)-Chartered Accountants, in 1985 and specialised in audit, taxation and consulting.

    He joined Diamond Bank in 1992. Prior to his appointment as Executive Director (ED) in 2005, he had served in various capacities. Eke was involved in the bank’s capital raising campaigns and road shows locally and internationally. He thus possesses cross-functional competencies and a vast knowledge of markets.

    He is a graduate of Political Science and International Relations, University of Lagos and also holds an MBA (Project Management Technology) from the Federal University of Technology, Owerri.

     

  • MfBs’ licence validation begins

    MfBs’ licence validation begins

    The Central Bank of Nigeria (CBN) has begun its routine licence validation and capital verification for the year in microfinance banks (MfBs), The Nation has learnt.

    This is part of the processes to be completed before the release of the National Microfinance Development Strategy before the end of June. The document is expected to outline modalities for developing the subsector and rules that operators will follow to achieve improved performance and ensure the sector’s stability.

    The exercise is in line with the need for more disclosures, transparency and improved corporate governance expected from operators in the subsector.

    CBN’s yearly report for 2011 indicated that 800 MfBs were examined during the year. An analysis of the examination showed that 774 MfBs met the prescribed capital adequacy ratio of 10 per cent, with 52 per cent having capital funds in excess of the minimum regulatory capital.

    Also, 84 per cent of the institutions met the prescribed minimum liquidity ratio of 20 per cent, translating to an average liquidity ratio of 88 per cent for the sub-sector. This reflected the pervasive under-trading and placement of funds with DMBs.

    The average portfolio-at-risk (PAR) or non-performing loan-to -total, on the other hand, was 46.0 per cent, reflecting a high level of non-performing loans. A total of 29 MFBs, however, had PAR ratios below the prudential maximum of 2.5 per cent. Each MFB with a regulatory/ supervisory issue of concern was served an appropriate supervisory letter with prescribed timelines for compliance. Holding actions were imposed in 54 cases entailing the cessation of the grant of fresh loans and further acquisition of fixed assets.

    Besides, the CBN is considering the establishment of a Microfinance Development Fund (MDF) as a further step to deepen the financial market. The MDF when established would assist in addressing teething challenges of underfunding for the financial sub-sector.

     

  • RenCap predicts 35% RoI for equities

    Capital market investors may get 35 per cent Return on Investment (RoI) within the year, an investment and research firm, Renaissance Capital (RenCap) has said.

    In an emailed report obtained by The Nation, the firm said Nigerian banks have cheaper valuations than most lenders in sub-Saharan Africa (SSA) which face more net interest margin (NIM) pressure from falling rates.

    It explained that the 35 per cent base-case total return expectation for the Nigerian equity market over the next years, is the culmination of a seven per cent forward price earnings (PE) re-rating, an eight per cent forward dividend yield (DY) and 20 per cent expected earnings growth.

    It said the Nigerian equity market looks superior to other markets in the sub-Sahara Africa on valuation, profitability and earnings metrics. “Although the Nigerian earnings yield gap (EYG) is still favouring debt over equities at the moment, the recent sharp decline in Nigerian bond yields is becoming increasingly positive for equities. Local support for the Nigerian equity market should also be forthcoming in 2013 from the elimination of Value Added Tax and stamp duties and from Nigeria’s sovereign wealth fund (SWF),” it said.

    The research firm said there are both pull and push factors for global capital that make investment in Africa’s financial markets attractive from a risk-reward perspective. It listed the fundamental reasons for investing in Africa’s equity and debt markets as the continent’s positive structural demographic dividend; rapid urbanisation; improving political stability; commodity wealth; the broadening of its economies beyond commodities; improving regional integration; positive macroeconomic settings and the deepening of its financial markets.

    The diversification benefits of Africa’s relatively low (and often negative) correlation with developed and emerging markets (EM), the attractive relative valuations of African equities and debt, and the relatively poor implied risk-return opportunities in developed markets (DM) are also additional rationals for investing in Africa’s financial markets.

    However, it said the lack of liquidity on SSA stock exchanges is a major challenge for investors. In order to overcome the illiquidity issue of investing in Africa directly, many investors look to use South African (SA) or global multi-national companies that have exposure to African economies as investment conduits to gain exposure.

    But RenCap said this strategy has some drawbacks, arguing that direct Africa equity investment is the superior approach. “The combination of a limited investment pool and rapidly increasing global fund flows into African equity funds provides a strong positive underpin for share-price performance in Africa’s equity markets, in our view.

    “Furthermore, African policy-makers are determined to drastically improve the tradability of their equity markets. Direct SSA equity exposure also benefits from the domestic support provided by large pension funds in Nigeria and Kenya,” it said.

  • Sterling Bank gives SUV to star prize winner

    Sterling Bank gives SUV to star prize winner

    •Opens model branch

    Sterling Bank Plc has rewarded one of its loyal customers with a brand new Sport Utility Vehicle (SUV) for being a devoted customer.

    Miss Homa Amadi-Nna (Trans-Amadi Branch), Port Harcourt, the star winner in the Sterling Bank’s just concluded Savers’ Promo, drove home last Friday a brand new SUV.

    Speaking after taking possession of the car, she said the bank has “by this gesture, delivered on its promises to its customers.”

    Winning the car, according to Miss Amadi–Nna, came to her as a surprise. She advised customers of the bank and prospective ones to continue to bank with the lender “because there is reward for such loyalty.”

    She said: “I am happy and overjoyed by this gesture. The bank has kept its promises. I will market the bank to my friends, co-workers and family members. I will tell them that if they are loyal, they will receive good rewards from Sterling Bank.”

    Sterling Bank’s Group Head, Retail Products,Gbenga Adegoke, said Amadi–Nna was one of the nine outstanding winners who won special prizes. Four customers won N500, 000 each while four other won N1 million. Also, 84 others customers won home theatres and refrigerators as consolation prizes in the promo that started in May last year.

    Chief Finance Officer of the bank, Abubakar Suleiman, said Sterling Bank is taking a long-term view of its customers, to ensure that they get the best out of every single transaction. He said the bank will continue to take steps that guarantee its service to its customers.

    Suleiman said that the promo presents an opportunity for prospective customers to come and subscribe to the bank’s services by opening new accounts. He said that those customers that have been with the lender will always be remembered through quality services and tangible benefits such as the cash and gifts.

    Group Head, Bancassurance, John Akingbade, said the promo has enhanced Sterling Bank’s balance sheet and substantially raised awareness on the need to bring the unbanked into the financial system.

    He said some of the winners that won cash were able to use the funds to boost their financial flow, while others used the money to start new businesses.

    Representative of Consumer Protection Council,Mrs Ngozika Obidike, expressed delight over the conduct of the promo. She said the council had been following the promo from the registration point to the last draw to ensure that the highest standard is maintained. She applauded the bank for ensuring that the legality, conduct of the promo and its objective were adhered to.

    Head, Regulation and Monitoring, National Lottery Regulatory Commission, Jude Ogaga, said the body wants banks’ customers to have faith in savings promo. He said the promo was well regulated and transparent.

    Meanwhile, the lender has opened a branch at its Adeola Odeku, Victoria Island Lagos. The bank’s Regional Channel Co-ordinator, Mena Sidahome, said the lender would build 40 of similar branches in line with its improved service quality and commitment to surpassing customers’ expectations.

     

     

     

  • Enterprise Bank rolls out prepaid MasterCard

    Enterprise Bank rolls out prepaid MasterCard

    Enterprise Bank customers will, henceforth, enjoy additional convenience with the introduction of the lender’s dual purpose prepaid MasterCard used locally and internationally.

    In a statement, the bank said the new addition is a multi-purpose chip and pin debit card that can be pre-funded with cash. The card can then be used to effect cashless payments (like a bank debit card) on the internet, Point of Sale (POS) terminals and cash from Automated Teller Machines (ATMs).

    It said that the unique benefits of the card, which is open to both customers and non-customers of the bank alike is that the individual would have no need to open or have a bank account in order to have the prepaid card. The card, which can be pre-funded in naira or dollar denominations, is ideal for students, corporate accounts expense cards, estacode, and corporate travel and travel cards among others.

    The card, the bank added, also eliminates the burden of carrying cash around just as it allows its holders to spend more than their approved daily spend limits since both the Personal Travel Allowance (PTA) and Basic Travel Allowance (BTA) are loadable on it.

    “With the product, holders of the Mastercard prepaid do not need to carry huge amounts in foreign currencies for foreign trips because money loaded in the card is already available, secure, safe and can be used anywhere in the world,” it said.