The Nation Newspaper

Category: Money

  • Fidelity Bank rewards customers

    Fidelity Bank Plc has given out five Hyundai Accent cars to five winners in its ongoing Cars and Cash Savings Splash held in Lagos.

    Twenty-one other winners also went home with cash prizes ranging from N100, 000 to N500, 000.

    Some of the customers that won cars are Okororie Daniel Ifediora from the South South region; Godson Chima Eqwuonwu, South East; Mshelia Esther Pinbar, Abuja and North Central;and Ekenechukwu Eze Nnalua, Lagos and South West among other.

    For the cash prizes, Ibrahim Obi Iro won N1 million; Tabitha Allu Anvah, Peters Adaora Jessic and Euse Chidi ,among others won N250,000 each while Abdul Bello, among others won N100,000.

    Speaking during the promo draws, the bank’s Chief Executive Officer, Reginald Ihejiahi said the draw was the second in a series to mark the 25th anniversary of the bank. He said the bank took the decision in order to reward its customers who have been supporting it since it commenced business 25 years ago.

    According to him, the exercise was also meant to deepen the financial inclusion plan of the Central Bank of Nigeria (CBN). “We started to say thank you to our customers since last year and the savings promo is one way of doing that.

    Customers of the bank should cultivate a savings culture to enable them start a business and solve other financial problems on a rainy day,” he said.

     

     

     

     

  • ICAN holds Ikeja district meeting

    ICAN holds Ikeja district meeting

    The Institute of Chartered Accountants of Nigeria (ICAN) will hold a mostly members meeting of Ikeja District Society on Saturday, January 19.

    The meeting will take place at the training hall of Nigeria Civil Aviation Authority office Annex, domestic wing of Murtala Muhammad International Airport, Ikeja, Lagos.

    One of the facilitators is the Director of Banking & Payment System with the Central Bank of Nigeria, Mr. Dipo Fatokun,

    He will deliver a paper titled: “Mobile Money in Nigeria, Prospects, Opportunities and Challenges.”

     

  • Analyst seeks improved risk-based supervision

    Regulators of the financial market need to improve on their oversight functions, especially in carrying out risk-based supervision in financial services operations, the Head of Markets, Sterling Capital, Sewa Wusu, has said.

    Speaking at a forum in Lagos, he said the challenges facing the insurance sector of the economy were because operators used mostly margin loans to invest in the capital market, adding that some of such funds have been lost.

    He said improved regulatory supervision would have averted the challenges and prevented the implications of such actions on investors.

    The expert said the banking sub-sector is recovering fast, with attractive valuations, adding that the recent regulatory intervention and reforms has led to increased stability and attractive growth prospects going forward.

    The building material subsector has also been tipped to benefit from increased infrastructure spending.

    He, however, stressed the need for the completion of on-going projects by the government and other key industries in 2013. This, he said, is expected to continue to raise demand and support strong growth in the sector.

    For the breweries sub-sector, Wusu said the threat of increased competition has spurred major companies (NB & Guinness) to make defensive acquisitions of smaller regional breweries coupled with aggressive expansion drive to sustain market share.

    ”The demand for beer is expected to continue to grow in line with increased economic activities, expanding population, improvement in product quality, and improving distribution network systems. Key success factors for the industry include; strong brand identity, extensive distribution network and strong advertising campaign,” he said.

     

  • ‘Protect customers’

    The Central Bank of Nigeria (CBN) has been advised to provide a comprehensive consumer protection mechanisms for the industry.

    A Finance/Management Consultant with Kenobolyen Nigeria Limited, Mr Kenneth Nwachinete, said this became imperative to prevent customers from being maltreated.

    Nwachinete said there is the need to establish a forum that would fight for the interest of the aggrieved customers. He said private organisations must rise to the challenges of fighting for the interests of customers that are unfairly treated by banks.

    He said: “Often times, errors do occur in the process of conducting transactions. Because many customers are technically deficient and lack knowledge of banking transactions, they were cheated by banks. The development culminated in the establishment of a finance management consultancy firm that would help the aggrieved customers in the industry.”

    He said banks’software is sometimes faulty, adding that the development would snowball into substantive calamities for the customers and the banks if the trend continues.

     

  • CBN backs BoA’s agenda

    The Central Bank of Nigeria (CBN) will continue to support the efforts of the Bank of Agriculture (BoA) to reposition for better performance.

    CBN Deputy Governor, Financial Services Surveillance Dr Kingsley Moghalu said this while receiving a delegation from the Rabobank of Netherlands in Abuja.

    according to a statement, the delegation came at the instance of BoA which has just entered a partnership with the Rabobank of Netherlands.

    He said the CBN is in support of the restructuring of the bank, adding that it is a step in the right direction.

    Moghalu said CBN has a ‘strong role’ for the transformed BOA and commended the management for trying to transform the institution.

    He said the apex bank has been making spirited efforts to promote agriculture, adding that BoA has played an important role in this regard.

    The Managing Director, BoA, Dr Mohammed Santuraki, said the partnership between the two banks would produce the desired results. He said Rabobank has a similar history with the BoA, and that both institutions are poised for growth.

    He said the management of the bank has initiated efforts to create a viable sustainable institution that would not rely on its stakeholders for recapitalisation. He said BoA needs to become a broad-based rural bank with a licence to work both sides of its balance sheet.

    In a related development, a team of two senior executives of Rabobank, who visited the BoA head office in Kaduna, expressed satisfaction with the arrangement. The officials namely, Messrs Gerard Van Empel, Director/Founder Rabo Development and Frank Nagel, Head, Banking Advisory had interactions with the BoA Management.

    Also, the team interacted with some BoA field operation staff and clients to have a feel of the activities of the bank.

     

  • ‘Leasing key to SMEs’ funding’

    Leasing assets are key in supporting Small and Medium Scale Enterprises (SMEs), the Chairman of Equipment Leasing Association of Nigeria (ELAN), Mr Kehinde Lawanson, has said.

    He spoke at a business forum on the “implications of tax regime on equipment leasing business in Nigeria”, according to a statement.

    He said the subsector has continued to grow despite difficulties being faced by operators in acquisition of productive assets.

    Lawanson said the leasing industry was engaged in providing access to finance to the SMEs, increasing domestic capital base, financial product innovation and development of secondary market.

    He, however, noted that the continuous growth and development of the industry depends on strong infrastructure including conducive tax and legal frameworks, which are part of the major pillars that drive the industry.

    He said the association had over the years focused on ensuring favourable tax regime and appropriate leasing laws for the leasing industry.

    He lamented that the regulatory environment is not supportive enough to drive and sustain development in the leasing industry.

     

  • Minister makes case for agric financing

    Public equity funds need to support funding of the agric sector, the Minister of Agriculture and Rural Development, Adesina Akinwunmi has said.

    Speaking at a workshop on Financing Nigeria’s Agricultural Revolution organised in Lagos, he said that such funding is critical in achieving government’s agenda for the sector.

    He said the World Bank has invested $500 million; African Development Bank – $250 million while Bill Gates Foundation is working with the Federal Government on advisory role to strengthen agricultural financing in the country.

    The Minister said that agricultural lending is promising and has moved from one per cent to over three per cent in the last one year, adding that there are increasing demand and opportunities for agriculture funding for banks.

    He said there is need to unlock the potential in the agricultural sector, adding that banks should see agricultural financing as a serious business that can impact positively on their balance sheets.

    He said public equity funds also need to increase their stakes in agricultural financing.

     

  • Dollar accounts for 83% of Nigeria’s foreign reserves

    Dollar holdings constitute 83.2 per cent of the country’s foreign reserves, figures obtained from the Central Bank of Nigeria (CBN) website has revealed.

    Other currencies in the basket are Euro 6.2 per cent; Pounds two per cent; Yuan 2.06 per cent and Riyal units worth $2.58 billion, representing 6.4 per cent.

    Further analysis revealed that the Reserve Portfolio was dominated by fixed deposits, which accounted for 47.3 per cent; funds under Asset Management 20.9 per cent; Joint Venture Company (JVC) cash call, 5.6 per cent and current account, 5.5 per cent as well as Sovereign Wealth Fund, 2.5 per cent.

    The reserves as at end of September 2012 stood at $40.64 billion as against $35.41 billion and $31.74 billion in second quarter, and third quarter, 2011. The share of the CBN holdings stood at 68.9 per cent while the share of the federation comprising the three tiers of government and Federal Government stood at 22.8 and 8.3 per cent.

    According to the report, the reserves could finance 17.8 months of foreign exchange disbursements and 11.44 months of imports in third quarter, 2012 compared with 11.4 months of foreign exchange disbursements and 7.33 months of import in second quarter, 2012. The reserves recorded an accretion of $5.23 billion in the third quarter over its level in the second quarter 2012 largely due to positive terms of trade shock.

    Total external reserves was $40.64 billion as at September ending 2012, which represented increases of 14.8 and 28.0 per cent when compared with the levels recorded in the preceding quarter and the corresponding quarter of 2011.

    The reserve was $44.6 billion as at January 10, 2013. Also, the aggregate demand for foreign exchange by the authorised dealers consisting of Wholesale Dutch Auction System (WDAS) and Bureau De Change (BDC) operators during the third quarter of last year stood at $6.51 billion, indicating a decline of 9.34 per cent and 51.92 per cent when compared with the levels recorded in the preceding quarter and corresponding quarter of 2011.

    A total amount of $6.49 billion was supplied in the review period consisting of $5.34 billion and $1.15 billion to the Wholesale Dutch Auction System (WDAS) and BDC operators. This indicated a decline of 7.86 and 42.47 per cent when compared with the second quarter of last year and third quarter, 2011.

    Also, a total of $9.69 billion was utilised during the review period consisting of $6.47 billion and $3.23 billion for visible and invisible trade.

    This represented 66.72 and 33.28 per cent. Further analysis showed that foreign exchange utilised for visible transactions has remained dominant over the last three quarters of last year.

    An analysis of foreign exchange utilisation by sectors revealed that $6.47 billion or 66.72 per cent was spent on the importation in the third quarter of last year. The importation of oil, industrial, food and manufactured products accounted for 29, 27, 19 and 16 per cent of the total amount utilised for visible imports.

    Also, $3.23 billion was expended on services, which comprised financial S$2.14 billion; business $0.27 billion; transportation – $0.44 billion while “others” accounted for the balance.

     

  • Expert advocates diversification of economy

    Nigeria needs to diversify its economy to enable it

    to develop enough buffers that would protect it against global financial crises, the Director-General, West African Financial and Economic Management (WAFEM), Prof. Akpan Ekpo, has said.

    Speaking at the Finance Correspondents Association of Nigeria (FICAN) Roundtable on Economy held in Lagos, he explained that there are indications that the world economies are still encountering challenges and Nigeria has to prepare against implications of those occurrences in the economy via diversification.

    According to him, many developed countries have cut aid to developing countries and this is a pointer that economies of those countries are facing some problems.

    He said oil and gas revenues cannot be sustained for too long because they will dry up in the future.

    He said developed economies, such as United States of America, United Kingdom, did not perform well in 2012 as a result of economic challenges. However, some African and Asian economies experienced relative growth.

    He said Nigeria remains an import dependent economy and needs to change from this economic direction if it wants to develop.

    He said the time was ripe for Nigeria to pursue the diversification of the economy to make the country less vulnerable to movements in oil prices.

    The European Central Bank last year slashed its Eurozone growth forecasts and warned that recession will drag on into the middle of this year, sending the euro plunging below 1.30 euro to the dollar.

    Greek lawmakers have also passed a tax bill seeking to raise state revenue by 2.3 billion euro, part of commitments demanded by international creditors to continue to receive further bailout funds. Euro-area finance ministers approved 49.1 billion euro of rescue payments to Greece in December 13 to keep the recession – wracked country solvent, with 34.3 billion Euros paid immediately.

     

  • CBN defers rollout of cash-less banking nationwide

    CBN defers rollout of cash-less banking nationwide

    • Lagos scheme under review

    The Central Bank of Nigeria(CBN) has explained why cash-less banking did not take-off in other parts of the country on January 1 as proposed.

    It said the change in plan is to provide opportunity for assessment of the Lagos scheme by stakeholders.

    CBN Spokesman Ugochukwu Okoroafor told The Nation that though there is substantial progress in promoting e-payment initiatives in the country, there is no system that does not have its challenges.

    “Some of those challenges experienced in promoting the initiative in Lagos have to be discussed and addressed before the nationwide rollout,” he said.

    Chairman, House of Representatives’ Committee on Banking and Currency Mr Jones Onyereri, said the rollout should start after 80 per cent success rate is achieved in Lagos.

    Speaking at the African Chartered Institute of Bankers (ACIB) induction in Lagos, he said the cash-less policy would lead to a reduction in bank charges to accelerate financial inclusion.

    Last year, 90 per cent of banking transactions conducted in Lagos State were still cash-based, according to data obtained from the Financial Derivatives Company Limited. For instance, despite the high penetration of mobile phones in the country, the use of mobile banking is yet to gain momentum.

    According to Okoroafor, structures are in place to address complaints that may arise from the use of Automated Teller Machines (ATMs), Point of Sale (PoS) terminals and online transfers.

    These structures, made it possible for them to correct any anomaly, during transactions. He promised that where such hitches become rampant, the CBN would intervene.

    “The CBN is studying feedback on Lagos Pilot before nationwide rollout of cashless banking policy to accommodate stakeholders’ observations. We will go ahead with nationwide rollout after studying their feedbacks. There have been lessons learnt,” he said.

    Analysts insist that the CBN has to address issues relating to e-payment fraud, power failure during the use of ATMs and PoS, delayed credit to PoS merchants accounts and debiting of customers’ accounts without payment.

    On fraud, the CBN in collaboration with Nigeria Electronic Fraud Forum (NeFF) and Nigeria Interbank Settlement System (NIBSS) have set up fraud detection portal to enable banks to share fraud data information. The CBN has also mandated banks to resolve ATM-related complaints within 72 hours or be sanctioned among other initiatives.

    The apex bank said it is on top of the situation of combating electronic fraud.

    CBN Deputy Governor, Operations, Tunde Lemo, explained during an e-payment forum in Lagos, that the CBN “has set up an industry-wide Nigeria e-Fraud Forum, which will serve as an official body to represent the industry on fraud-related issues, while enabling a forum for payment of stakeholders to share data on fraud attempts and tackle these issues, to minimise fraud attempts and limiting losses”.

    Despite challenges facing the initiative, CBN said there has been an increase in the payment channels to meet the targeted growth for the industry.

    It said PoS channels have been increasing in tandem with the aspirations of the financial regulator to promote the cashless banking initiatives.

    The apex bank said the number of ATMs has increased in the industry compared with what it was a few years ago. It said the emphasis is on the payment platforms to foster the growth of cashless banking and further made more people have access banking services.