The Nation Newspaper

Tag: bank

  • Body rates microfinance bank best in Africa

    A microfinance bank-Grooming Centre, has been adjudged the best committed outfit to clients’ protection in Africa. The recognition came from the Smart Campaign, a global initiative that incorporates strong client-protection practices into the microfinance industry.

    Grooming Centre, with headquarters in Lagos, was rated the first in Nigeria and sub-Saharan Africa, and the 45th in Africa, Latin America, Eastern Europe and South Asia to have been certified since the rating programme began three years ago.

    “We extend our heartfelt congratulations to Grooming Centre,” said Isabelle Barrès, Director of the Smart Campaign.

    “Their willingness to do the work it takes to prepare for and undergo the intensive process of evaluation is indicative of their deep commitment to their clients. They have shown that this bar is achievable in the area of client protection. Their example will catalyse a movement towards certification within the broader industry.”

    In a statement, the Smart Campaign’s Client Protection Certification programme publicly recognises those institutions providing financial services to low-income households whose standards of care follow set principles.

    “We have always held a strong commitment to protecting our clients, but this independent validation lends credibility and demonstrates to our community and our industry that we continue to work every day to improve our service and our commitment to best practices in microfinance,” said  Godwin Nwabunka, CEO Grooming Centre.

    The Smart Campaign aims to improve client protection in microfinance through better understanding and use of client protection principles by microfinance institutions (MFIs). Certification of MFIs is one of the primary activities of the Campaign.

    The certification programme contains a rigorous set of standards for evaluating institutions by independent, third-party raters licensed by the Smart Campaign. The raters – Planet Rating, M-CRIL, MicroFinanza Rating and MicroRate – are established and specialised microfinance rating agencies with extensive experience, having analysed hundreds of institutions to date.

    “Microfinance emerged in the wake of inability of the formal sector banks to be client-centric and reach the excluded sections of the society. As such, it is important that the focus of micro finance remains on clients. Initiatives like Client Protection Certification ensure that this focus is not diluted,” said Dr. Alok Misra, CEO of M-CRIL, one of the licensed rating agencies.

    Grooming Centre has long demonstrated a commitment to client protection. Prior to undergoing certification, the institution was evaluated by the Smart Campaign on their practices, and contributed to the development of Campaign tools to help advance the sector.

  • Expert seeks bank for power sector

    The Group Managing Director of CFL Group of Companies, Mr. Lai Omotola, has canvassed the establishment of a finance development bank for the power sector to address the frequent changes in electricity tariff.

    He said the recently approved 45 percent increase in tariff by the Federal Government was not the answer to the crisis in the power sector.

    Omotola attributed the increase to the failure of indigenous companies that bought the nation’s power assets to source for the technical partners that could bring in some equities.

    During an interaction with reporters in Lagos, he said Nigerian banks provided over 80 per cent of the $2.6 billion that was used to purchase the power assets in 2013 on short tenor loans.

    He said: “It would have been the other way round and the sector would have been virile, had the investors been mandated to bring in foreign investors who would bring in their equities in terms of the capital mix, about 60 percent equity.”

    He explained that most of the funds were sourced from the banks. It is debt, which is now creating a little bit of pressure on our financial system.We find a situation whereby the Nigerian banks are the major, if not the sole financiers of the acquisition of the power assets.

    “There are two factors with the Nigerian banks. One is high interest rate. Two is the tenure of their funds. These factors mean that commercial banks by their very nature cannot finance the electricity industry. They can only serve to raise working capital incentive. What we find is that the Nigerian banks are financed in dollar-dominated terms.

    “Already, the interest rate has gone on the high side. Even, the value of dollar to naira had doubled over the space of two years. The resultant effect is that the accounts of our indigenous companies are not doing well with our banks.

    “If their accounts are not doing well with the banks, the ability of the companies will be stalled. Also, the ability of the indigenous companies to pay loans will be stalled. Finally, the ability of the indigenous companies to generate additional funding will be stalled,” Omotola said.

    He said the Nigerian banks could only finance projects for about two or three years after which the banks would want to see their funds coming back, so our banks are not suited to fund the power sector. He faulted a statement credited to the Minister of Power, Works and Housing, Mr. Babatunde Fashola that no bank would want to fund the power industry because of the low tariff, which makes it not bankable before the current controversial increase.

    Omotola challenged Fashola to name the bank he was referring to, noting that if Fashola was referring “to Nigerian banks, the business model of the indigenous companies will not work. The interest rate and fund tenure will not make it work.”

    He urged the Federal Government to set up a finance development bank that is strictly meant for development projects such as power projects. If our indigenous banks will play any role, it will be in the area of providing working capital. For these indigenous companies in power sector to survive, they need very low interest rate with very long-term loan, he said.

  • 13 remanded for Lagos, Ogun bank robberies

    13 remanded for Lagos, Ogun bank robberies

    Chief Magistrate O. I. Adelaja (Mrs.) of an Ebute-Metta Chief Magistrates’ Court Monday remanded 13 armed robbery suspects, who were accused of being behind several bank robberies that rocked Lagos and Ogun States since March last year.

    The men include: Clement Abanara, 42; Dennis Njoku, 30; Ebi Blessing, 28; Sunday Olotu, 33; John Sabajoh, 35; Idowu Sobijoh, 32; Ainriyemipate Joseph Wisdom, 27.

    Others are: Opeyemi Balogun, 32; Olamilekan Morounkeji, 32; Ayodeji Fanimeye, 40; Mike Adebayo, 57; Monsuru Ahmed Adisa, 46; and Daniel Ukaeju, 50.

    The prosecutors, Lagos State Police Command Officer-in-Charge of Legal Department, Chief Superintendent of Police (CSP) A. Eno-Edobor and Barrister Goddey Osuyi, informed the court that all 13 men took part in bank robberies that happened in Lagos and Ogun State from March 2015 till date.

    In asking for a remand of the suspects, they informed the court that the application was pursuant to section 264(1) and (2) of the Administration of Criminal Justice Law of Lagos State, 2011.

    The application was supported with a nine-paragraph affidavit deposed to by one Dele Ojo Odunnayo, of the Special Anti-Robbery Squad, (SARS) of the Command.

    The sought for a remand order of 30 days to enable the Directorate of Public Prosecution, (DPP,) issue an advice on the matter.

    Attempt by the defendants’ counsels, Jasper Omomheni, for first, second and fifth defendants; Sporgeon Ataene, for third, sixth and seventh defendants; Imelda Adebambo, for twelfth and thirteenth defendants; Abikoye O. I. for ninth, tenth and eleventh defendants; and O. O. Quadri for eighth defendant, to argue for their bail was opposed by the prosecutors, who informed the court that what was before it was a remand application not a charge.

    Consequently, Mrs. Adeleja, remanded all 13 men in prison custody till May 11.

    She also ordered the police to duplicate the suspects’ case files and forward it to the DPP’s office for advice.

    In the nine-count charge attached to the remand application, the police alleged that all the 13 suspects took part in the bank robberies that occurred in FESTAC, Ikorodu and Lekki areas of Lagos State, and Agbara in Ogun State.

    It was also alleged that all the suspects on October 13, 2015, while armed with AK47s, Diamantes and other offensive weapons, robbed the 4th Avenue FESTAC branches of Diamond Bank and Access Bank of N27 million and N29 million respectively.

    They were also alleged to have on June 18, 2015, while armed with same dangerous weapons robbed First Bank Plc of the sum N19 million, $3,470, and 40 Euros. And on March 12, 2015, robbed the Lekki branch of FCMB of the sum of N26, 005,664.00.

    The suspects were also alleged to have on June 24, 2015 attacked and robbed the Ipakodo branch of First Bank Plc of the sum of N19 million, $2,759, and £120 Pound Sterling, and a branch of Zenith Bank Plc of the sum of N80,524,102.00.

    The police further claimed that on November 19, 2015 at about 9.30am the suspects attacked the Agbara branch of Zenith bank Plc. and dispossessed it of N110 million.

    They were also accused of killing three police officers who were on official duty at the Lekki branch of FCMB on March 12, 2015.

    The deceased are: Inspector Bethel Agbodu; Sergeant Odehohwo and Corporal Imoisu Ikechukwu.

    They were also alleged to have killed on Jane Ebere Ndirika, aged 39, and her daughter Mmesomia aged a year and two months, at the 4th Avenue FESTAC on October 1, 2015.

    The offences, according to the prosecution, are contrary to and punishable under Sections 295(2) and 231: 295(2): and 221 of the Criminal Laws of Lagos State of Nigeria, 2011.

     

  • Consumer Day: Bank charges too many

    Consumer Day: Bank charges too many

    Though the theme of this year’s World Consumer Rights Day (WCRD) was Antibiotic Resistance with hashtag #AntibioticsOfftheMenu, in Nigeria it was about how to protect bank customers against spurious charges, ADEDEJI ADEMIGBUJI reports.

    After the March 1 #NoBankingDay protest, the consumer movement community has again urged banks to reverse excessive and multiple charges on customers’ account.

    Stakeholders, who spoke at a Consumer Day Symposium three days ago, organised by Brand Journalists Association of Nigeria (BJAN) to mark the World Consumer Rights Day, took a detour from the World Consumer Rights Day (WCRD) theme: Antibiotic Resistance with hashtag #AntibioticsOfftheMenu, to address one of the worst bank customers’ experiences.

    The forum raised concerns over cost automated teller machine (ATM) withdrawals, debit card issuance and renewals fee of N1000, ATM management charges of N100 yearly, new Stamp Duty charge of N50 on every credit of over N1000, online transfer charges, reintroduction of cost of transaction (CoT) under a new guise of Monthly Account Maintenance Charge of N1/mille.

    They also frowned at other levies by default the yoke of which were considered too heavy  on the frail necks of the customers without the chance to negotiate. Stakeholders are of the opinion that if these trend continues, it will erode the gains recorded by previous banking reforms,  discourage the informal sector from keeping their money with banks and weaken the banking sector on the long-run.

    The Chairman of TPT, a public relations agency, Mr. Tokunbo Modupe, who was the key speaker at the symposium said both corporate and individual banking customers are worried by the current trends of multiple and excessive charges.

    He said while last year alone, CBN investigated over 6,000 complaints from banks’ customers and compelled the banks ‘to refund over N6.2 billion to affected customers’, adding that the apex bank however failed to state the total cash claimed by customers, whether or not the affected customers were satisfied or not with the cash refunded and whether the culprit banks were sanctioned.

    He said such information would have assisted in appreciating the convergence or divergence of what was claimed and what was refunded, the feelings of the claimant customers about the final outcome of their complaints, and CBN’s ‘resolve’ to continuously enforce the provisions of the Revised Guide to Bank Charges.

    “Of course, there have been many complaints by customers of banks about unauthorised and illegal charges. Fleecing of customers has become the rule rather than the exception. The excesses come under different descriptions such as management fees, processing fees, interest charges, CoT, card maintenance fees, account maintenance fees, deposit, withdrawal and transfer, SMS alert fees, and ATM fees.

    Even the newly introduced stamp duty charge has become another coduit through which they fleece customers through overcharging. In one transaction, some banks send more than two SMS alerts and charge for each.

    The banks, for reasons such as greed, moral and professional bankruptcy, have often chosen to be the proverbial dogs eating the meat kept in their care. This has of necessity built distrust in the banks or the banking industry. This has adverse implications for CBN’s programme of financial inclusion as well as the volume of money outside the banking system and effectiveness of monetary policy, he said.

    Also, the President of CAFON, Mrs. Sola Salako, who rallied consumer advocacy groups penultimate week for a NoBankingDay protest, said banking customers should expect more shocks as CBN is a about to release banking charges for the next three years.

    She said from the draft copy published on CBN website, the annual card maintenance fee has now been reintroduced as monthly fee.

    “I plead to Nigerians to take time out to study the draft and starta conversation about it. This is the time for all of us to stand up against these,” she said.

    However, the President, Bank Customers Association of Nigeria, Dr. Uju Ogubunka, said banks should not be blamed for excessive and multiple charges. While saying he is opposed to spurious, he said customers should be blamed because they don’t take their time to read the guides to banking. “The problem is with customers. Most people don’t know there is a guide to bank charges but they all know when they are overcharged. Most customers don’t know their brand manager,” he said.

    Modupe said both the CBN and the Consumer Protection Council (CPC) have failed to protect the banking public. “The government agency set up for the protection of consumers seems not to be interested in the plight of the bank customers. Should we then call on the EFCC (Economic and Financial Crimes Commission)to spare us some time from chasing politicians and help investigate and prosecute officials of banks on this obvious financial infraction? Or should we go to church like we usually do, to pray to God to save us from the evils of Nigerian banks?”

  • Expert seeks bank for power sector

    Expert seeks bank for power sector

    The Group Managing Director of CFL Group of Companies, Mr. Lai Omotola, has canvassed the establishment of a finance development bank for the power sector to address the frequent changes in electricity tariff.

    He said the recently approved 45 percent increase in electricity tariff by the Federal Government not  not the answer to the crisis in the power sector.

    Omotola attributed the increase to the failure of indigenous companies that bought the nation’s power assets to source for the technical partners that could bring in some equities.

    In an interaction with reporters in Lagos, he said Nigerian banks provided over 80 per cent of the $2.6 billion that was used to purchase the power assets in 2013 on short tenor loans.

    He said: “It would have been the other way round and the sector would have been virile, had the investors been mandated to bring in foreign investors who would bring in their equities in terms of the capital mix, about 60 percent equity.”

    He explained that most of the funds were sourced from the banks. It is debt, which is now creating a little bit of pressure on our financial system.We find a situation whereby the Nigerian banks are the major, if not the sole financiers of the acquisition of the power assets.

    “There are two factors with the Nigerian banks. One is high interest rate. Two is the tenure of their funds. These factors mean that commercial banks by their very nature cannot finance the electricity industry. They can only serve to raise working capital incentive. What we find today is that the Nigerian banks are financed in dollar-dominated terms.

    “Already, the interest rate has gone on the high side. Even, the value of dollar to naira had doubled over the space of two years. The resultant effect is that the accounts of our indigenous companies are not doing well with our banks.

    “If their accounts are not doing well with the banks, the ability of the companies will be stalled. Also, the ability of the indigenous companies to pay loans will be stalled. Finally, the ability of the indigenous companies to generate additional funding will be stalled,” Omotola said.

    He said the Nigerian banks could only finance projects for about two or three years after which the banks would want to see their funds coming back, so our banks are not suited to fund the power sector. He faulted a statement credited to the Minister of Power, Works and Housing, Mr. Babatunde Fashola that no bank would want to fund the power industry because of the low tariff, which makes it not bankable before the current controversial increase.

    Omotola challenged Fashola to name the bank he was referring to, noting that if Fashola was referring “to Nigerian banks, the business model of the indigenous companies will not work. The interest rate and fund tenure will not make it work.”

    He urged the Federal Government to set up a finance development bank that is strictly meant for development projects such as power projects. If our indigenous banks will play any role, it will be in the area of providing working capital. For these indigenous companies in power sector to survive, they need very low interest rate with very long-term loan, he said.

  • Expert seeks finance devt bank for power sector

    The Group Managing Director of CFL Group of Companies, Mr. Lai Omotola, has canvassed the establishment of a finance development bank for the power sector to address the frequent changes in electricity tariffs.

    He said the recently approved 45 percent increase in electricity tariff by the Federal Government not  not the  answer to the crisis in the power sector. Omotola attributed the increase to the failure of indigenous companies that bought the nation’s power assets to source for the technical partners that could bring in some equities.

    Omotola in an interaction with reporters in Lagos, stated that Nigerian banks provided more than 80 per cent of $2.6 billion that was used to purchase the power assets in 2013 on short tenor loans.

    He said: “It would have been the other way round and the sector would have been virile, had the investors been mandated to bring in foreign investors who would bring in their equities in terms of the capital mix, about 60 percent equity.”

    He explained that most of the funds were sourced from the banks. It is debt, which is now creating a little bit of pressure on our financial system. We find a situation whereby the Nigerian banks are the major, if not the sole financiers of the acquisition of the power assets.

    “There are two factors with the Nigerian banks. One is high interest rate. Two is the tenure of their funds. These factors mean that commercial banks by their very nature cannot finance the electricity industry. They can only serve to raise working capital incentive. What we find today is that the Nigerian banks are financed in dollar-dominated terms.

    “Already, the interest rate has gone on the high side. Even, the value of dollar to naira had doubled over the space of two years. The resultant effect is that the accounts of our indigenous companies are not doing well with our banks.

    “If their accounts are not doing well with the banks, the ability of the companies will be stalled. Also, the ability of the indigenous companies to pay loans will be stalled. Finally, the ability of the indigenous companies to generate additional funding will be stalled,” Omotola said.

    He said the Nigerian banks could only finance projects for about two or three years after which the banks would want to see their funds coming back, so our banks are not suited to fund the power sector. He faulted a statement credited to the Minister of Power, Works and Housing, Mr. Babatunde Fashola that no bank would want to fund the power industry because of the low tariff, which makes it not bankable before the current controversial increase.

    Omotola challenged Fashola to name the bank he was referring to, noting that if Fashola was referring “to Nigerian banks, the business model of the indigenous companies will not work. The interest rate and fund tenure will not make it work.”

    He urged the Federal Government to set up a finance development bank that is strictly meant for development projects such as power projects. If our indigenous banks will play any role, it will be in the area of providing working capital. For these indigenous companies in power sector to survive, they need very low interest rate with very long-term loan, he said.

  • Atan overdue for a bank

    SIR: Atan Ota is a frontline town in Ado Odo-Ota Local Government in Ogun State brimming with some 300,000 inhabitants. It lies right on the international route linking Nigeria with the Republic of Benin. A hub of business activities, Atan, for short, is swarming with workers even in the heart of Lagos State, artisans, petty traders, small and medium scale industrialists and others who are into various business concerns. The population of the settlement keeps increasing as more and more people move in from Lagos to build residential blocks.

    A significantly peaceful community, Atan is surrounded by communities of farmers of various specialization and sizes. There are those into poultry, fishery, piggery and crop farming, all on a commercial scale. Of significance also, is the long abandoned Lagos – Sokoto highway designed to link the south-western Nigeria with its counterpart in the far north-west. The project connects Atan from Agbara en route to Sokoto.

    For any banking transaction, an Atan resident would have to travel some seven kilometres westward to Owode where there are two frontline commercial banks’ branches lying beside each other. The option is to move some 20 kilometres or so eastward towards Sango, stopping at Cannan-land. Yet, this much more smaller community hosts, at least, a branch of three commercial banks and a flourishing micro-finance bank.

    It is, of course, understood that the establishment of a bank is guided by certain factors. Cardinal among these is the prospects for profit, premised on the population and volume of commercial activities as well as security. In the area of security, Atan is as safe as any average Nigerian community. As regards potentials for profit, there is no doubt that any organisation worth   being called a bank should have no problem opening a branch in Atan in view of the volume of daily business transactions and the regular influx of people into the sprawling settlement.

    What is more, a banking facility in Atan Ota would serve other fast growing settlements like Iju, Onibuku, Idedo and Obere on the east flank; Ajilete to the west and Ajegunle, Olorunleke and Alapoti to its southwest.

    Funnso Ogunlade

    akinmuyiwa@yahoo.com

  • Bank chief buried

    The remains of a Nigerian banker, Daniel Orogun, who died in Liberia on Januray 24, was on Friday interred at the Ikoyi Vaults in Lagos.

    Orogun, who was Managing Director (MD) of Guarantee Trust Bank (GTB) in Liberia, was said to have drowned in a Liberia river during a boat cruise with his widow, three children and a customer, George Kailondo who invited them and three others to dinner.

    But Orogun’s family is claiming that he was murdered.

    It has called on the Federal Government to intervene in the matter and ensure that justice is done.

    Its spokesperson, Pastor Felix Orogun, described as untrue, reports that the deceased was celebrating his wedding anniversary when he fell into the river and drowned.

    The family, he said, took time to investigate the death of his younger brother, adding that it was a clear case of murder.

    “It is not true that my brother was celebrating his wedding anniversary when he drowned in the water. Besides, my brother was a very good swimmer and there was no way he would have drowned in that water which is calmer than the Lagos lagoon,” he said.

  • Bank to forfeit N150m as Russians jump bail

    The Federal High Court in Lagos yesterday ordered a top bank to forfeit N150 million to the Federal Government after three Russians, who it provided a guarantee for, jumped bail.

    The three are among 14 foreigners accused of dealing in crude oil without licence.

    Justice Ibrahim Buba issued a bench warrant for their arrest and revoked the bail granted the other accused persons.

    Yesterday, the court heard that the Russians could not be found and the bank could not account for their whereabouts.

    Consequently, the judge ordered that the bail guarantee be forfeited.

    Among the accused are Russians, Ukrainians, Japanese and English, namely Artur Pakhladzhian, Sergo Abbgarian, Vasily Shkundich, vitaliy Bilours, Hlarion Regipor, Laguta Oleksiy, Cadavis Gerarado, Kretov Andry, Badurian Benjamin, Chepikov Olksan, Naranjo Antero, Patro Christian, Alcayde Joel and Caratiquit Beyan.

    They were charged by the Economic and Financial Crimes Commission (EFCC) after they were arrested  March 27 last year and their vessel, MT Anukpet Emerald, laden with crude oil estimated at 1,738.087 metric tons, was intercepted by the Navy.

    Defence counsel Babajide Koku (SAN) said the fourth, sixth and 11th defendants could not be found as they escaped from their hotel.

    He said he contacted the Russian Embassy, but was told it did not know their whereabouts.

    “As we speak, I do not know the whereabouts of the three. And it’s highly embarrassing to say this, my Lord,” Koku said.

    The EFCC’s prosecutor, Rotimi Oyedepo, prayed the court to order their arrest and to revoke the bail granted the others.

    Koku said: “The application for their arrest is definitely meritorious to secure their attendance.”

    Ruling, Justice Buba held that since the three who jumped bail were the leaders of the crew, not revoking the others’ bail would be risky.

    EFCC said the offence also contravenes Section 19(6) of the Miscellaneous Offence Act of 2004 and punishable under section 1(17) of the same Act.

    The defendants had pleaded not guilty to the four counts when they were arraigned and were granted N50 million bail each.

    The foreigners were also charged with dealing in 1,500 metric tons of Automated Gas Oil as well as 3,035 metric tons of Low Pour Fuel Oil without lawful authority.

    Justice Buba adjourned till March 15 for judgment.

  • Bank presents highway kits to Ikpeazu

    Sterling Bank Plc at the weekend presented reflective kits for street sweepers and highway managers to Abia State Governor Okezie Ikpeazu.

    The bank, through its “Sterling Environmental Makeover” (#STEM) series, cleaned major markets, highways, streets and motor parks in different states.

    A statement said the effort focuses on environmental sustainability and aims to promote clean environment and good health among Nigerians. Waste management authorities of the states were partnered for the exercise.

    The cleaning held simultaneously in Lagos, Aba, Abuja, Ibadan, Kano, Kaduna, Owerri, Osogbo, Port Harcourt and Uyo.

    The statement said the exercise, which was initiated in 2013 in furtherance of its core purpose of enriching lives, adding that the bank will continually engage in initiatives that promote a healthy environment, especially those that align with the Sustainable Development Goals (SDGs).