The Nation Newspaper

Tag: bank

  • Infrastructure Bank, FEMADEC partner on 500 CNG buses

    Infrastructure Bank, FEMADEC partner on 500 CNG buses

    The Infrastructure Bank (TIB) and FEMADEC Group have partnered to promote the use of Compressed Natural Gas (CNG) buses across Nigeria.

    The partnership aims to produce around 500 CNG buses to support the government’s commitment to cleaner energy.

    President Bola Tinubu recently announced a government investment of N100 billion to acquire 3,000 units of 20-seater CNG-fuelled buses to be rolled out across all states and local governments.

    FEMADEC Group already operates CNG buses and plans to introduce an additional 500 within the next five years, starting with 50 in the coming year.

    Read Also: NGX Group optimistic govt reforms will boost corporate performance

    The aim is to provide sustainable, affordable, and environmentally-friendly public transportation alternatives while supporting national sustainability goals.

    A statement from The Infrastructure Bank (TIB) issued in Abuja yesterday said “this partnership seamlessly aligns with TIB’s sustainability objectives, echoing their resolute endorsement of the government’s net-zero and climate change agenda”.

    TIB said the collaboration was necessary because of FEMADEC Group’s “leadership position within the CNG value chain”.

    According to The Infrastructure Bank, “the preliminary offer extended by TIB lays a solid foundation for the expansion of FEMADEC Group’s CNG bus fleet.

    “With plans to introduce 500 CNG buses within the next five years, commencing with an initial batch of 50 buses in the forthcoming year, this proposal stands poised to instigate significant change”.

    The introduction of CNG bus fleets the statement added will “redefine Nigeria’s public transportation landscape, offering dependable, cost-effective, and ecologically conscious travel alternatives for citizens, all while harmonizing with the nation’s broader sustainability ambitions.

  • Bank, Magodo residents promote cultural diversity

    Heritage Bank PLC has joined Magodo Residents Association (MRA) to promote cultural diversity and ensure the success of the maiden edition of Magodo Cultural Day 2019.

    The two-day event was held on Friday and Saturday, with a business dinner at Radisson Blu Hotel, Ikeja, Lagos.

    Addressing the organisers at the dinner, the Regional Head, Lagos Island, Heritage Bank PLC, Abiodun Agbaje, said the management was impressed with the response and participation of the residents and others in the cultural exhibition and celebration.

    He said at inception, the management opted to focus at those areas that other banks had neglected with a view to making a difference and impacting on the financial needs of its prospective customers and the society. Agbaje said: “Things difficult for bigger banks, Heritage Bank has done it successfully. We are open to assisting any investor that shares vision and mission with us.”

    He said in line with its mission to create, preserve and transfer wealth across generations, the bank decided to support this year’s Magodo Cultural Day with the belief that diverse community promotes creativity networking and success.

    Agbaje assured the audience that as long as the MRA members were ready to patronise the bank, management would be glad to support the cause again next year and beyond.

    Impressed by the success of the outing, Jade Niboro, chairman, MRA, noted that for the first time, residents came together, connecting.

    He said the cultural exposition created an avenue for families living on the estate to interface with diverse cultures.

    Niboro said: “Our culture outlines our identity and influences our behaviour. Celebrating our cultural diversity will better make us acknowledge, incorporate and relate with others on the estate. We used the recently concluded Cultural Day to embrace our diversity. With this celebration, our interaction level will increase, there will be more exchange of ideas, beliefs and cultural traits. We are extending an open arm to other culture and encouraging a healthy exchange of culture. We are learning to understand our beliefs and values better.”

  • Bank holds advisory seminar for SMEs

    Union Bank has held a series of business seminars for Small and Medium scale Enterprises (SMEs) as part of its support for businesses. The seminars held in seven locations across the country including Aba, Lagos, Anambra, Kano, Kaduna, Abuja and Oyo.

    The sessions, themed: ‘Managing a successful small Business’, were designed to provide practical information and guidance on how to address typical challenges small businesses face in Nigeria.

    The workshops included modules on sales and marketing, governance, succession planning and capacity building. Attendees were also equipped with relevant digital marketing and accounting skills to enable them compete favourably in the marketplace.

    The Head of Retail Segments, Paul Aseme, highlighted the role of SMEs in boosting a nation’s economy. “Union Bank has been known for its contribution to the growth of Nigerian businesses. Recognising the role of SMEs in driving Nigeria’s economic growth, these seminars were organised to equip business owners with the knowledge and skills they require to establish a strong foundation for their business, widen their exposure and expand their business connections,” he said.

    Participants thanked the Bank for the training, saying it would boost their businesses and the SME sector as a whole.

    Union Bank’s SME support scheme also includes the provision of access to market, a conducive banking climate for investment and, easy access to finance for working capital through loan products that include non-collateral loans. The bank’s commitment to SMEs earned it the ‘Best Bank to Support Nigeria’s Small and Medium Scale Enterprises’ award at the 2016 BusinessDay Annual Banking Awards.

  • Bank hosts breast cancer survivors, pledges more support

    Polaris Bank on Tuesday in Lagos hosted 50 breast cancer survivors to an end-of-year get together, with a pledge to help reduce the scourge of the disease in Nigeria.

    Its Group Managing Director/CEO, Tokunbo Abiru, said the love and care demonstrated to breast cancer patients and survivors have enormous positive influence on their physical and mental wellbeing.

    Abiru, who was represented by the bank’s Directorate Head, Lagos Business, Segun Opeke, affirmed that in partnership with its Corporate Social Responsibilty (CSR) partner, Care Organisation Public Enlightenment (C.O.P. E), the bank would continue to ensure breast cancer scourge reduction through increased awareness, advocacy and support for both patients and survivors.

    “For us at Polaris Bank, our commitment to the fight against breast cancer is unwavering. We have consistently demonstrated this by drawing public awareness to the menace in addition to sponsoring free screening for women in conjunction with C.O.PE Foundation”, he said.

    Abiru revealed that over the last 10 years, the bank in partnership with C.O.PE has covered four key milestones namely prevention, detection, treatment and advocacy.

    “These include provision of free screening opportunities for over 15,000 women including female staff members of the bank, and the donation of two ultra-modern breast cancer screening machines (LogiQ C2 and Mind Ray Ultra-Sound System) to enhance quality diagnosis and clinical practices.”

    President/CEO of C.O.PE, Ebunola Anozie, said: “I appreciate our sponsors, Polaris Bank; they have been with us for nearly 20 years now. For some time, we had difficulty getting the required support for the women; some of our women used handkerchiefs, some used tissues to fill up their bras. But we thank God for the support of Polaris Bank. They were able to donate prosthesis that ensured they lived better lives”, she said.

     

     

  • Businessman, bank disagree over ‘lost’ N177.5m

    A businessman, Mr. Elochukwu Emmanuel, has asked a Lagos High Court in Igbosere to compel Zenith Bank Nigeria Plc to pay him N177,500,000, which he lost through the bank’s alleged negligence.

    But Zenith Bank asked the court to dismiss the suit on the grounds that the defendant’s loss was caused by his negligence and failure to seek financial advice, among others.

    The claimant filed the suit marked LD/ADR/1632/2018 through his counsel, Festus Keyamo SAN, via a February 23 statement of claim.

    He averred that he entered an agreement with one Ms. Muna, a Chinese with Nigerian business interests to purchase goods from China.

    Owing to his longstanding banking relationship with the defendant, he rejected other banks’ accounts provided by Ms. Muna for payment and insisted that she must present a Zenith Bank account.

    Muna complied and presented account No: 1005689704 with account name, Xian Fang Li.

    The claimant maintained that he confirmed that the account existed before transferring N177,500,000 into it. Shortly afterwards, Muna failed to deliver the goods and subsequently stopped picking his calls and blocked all his access to her contact.

    He visited China twice in search of Muna and even reported the matter to the Chinese Police and Chinese Embassy, but failed to locate her.

    According to him, Police investigation in Nigeria published in their report on the matter showed that the Xiang Fang Li  account was opened by the bank without regard to the Know Your Customer (KYC) procedure for account opening.

    The claimant alleged that police investigation reveals that “the utility bills presented in opening the Xiang Fang Li account were fictitious; and the signature of one of the purported referees to the Xiang Fang Li  account, Mr. Kazeem Lawal, was conclusively found to be forged by the account officer, Mr. Muyiwa Onigbelusi. who opened the Xiang Fang Li account.”

    He asked the court to grant him the following reliefs among others:

    “A declaration that the defendant is negligent and reckless in her duties to the claimant and the public in general.

    “An order mandating the defendant to refund the sum of N177,000,090 to the claimant being the sum lost by the claimant due to the negligence of the defendant.

    “An order for the payment of the sum of N10,000,000 as general damages against the defendant for breach of contract.

    “An order of interest at the rate of 15 per cent before judgment and 21 percent post-judgment.”

    But in its statement of defence, Zenith Bank absolved itself of blame.

    It averred that the claimant failed to contact the bank for possible advice on the alleged business transaction he had with Ms. Muna before paying N177,500,000 into the said account.

    The bank stated: “The claimant failed to request a bank guarantee of the alleged sum from or requested that the defendant issued a confirmation or a letter of comfort before dealing with both Ms Muna and Xian Fang Li.”

    It said it verified the identity of the account holder and the customer supplied his International Passport and other sundry documents before the account was opened.

    “The defendant cross-checked, verified and established the identity of the referees supplied by the customer during the account opening.

    “The defendant stated that the referees exist and one of the referees by name Mr. Kazeem Lawal was arrested by the police.

    All the account opening documents filled and supplied by the customer were verified and cross-checked to be true.”

    No date has been fixed for hearing.

     

  • Why bank lending rates are high, by Wigwe

    • High interest rate worsens NPLs

    Over 40 per cent of banks’ operating cost comes from expenditure on generating their own electricity to power thousands of their branches, Group Managing Director/CEO Access Bank Plc, Herbert Wigwe has said.

    Speaking at the 2018 Nigeria-German Business Forum in Lagos, the bank chief said the high cost of banking operations are responsible for the high cost of lending to customers.

    He said interest rates are determined by inflation rate, available capital and other factors, adding that it is not in the interest of banks to lend at high interest rates because that raises the chances of the loans going bad.

    “Companies that generate foreign exchange and do export tend to get cheaper loan rates. Besides, resolving the power sector problems alone can bring down banks’ cost of operation by 40 per cent. Besides, high lending rates also lead to increased non-performing loans (NPLs) as it increases the chances of the loans going bad,” he said.

    Wigwe said government is making efforts to see that interest on loans reduce, but added that such efforts will take time to bring positive results. The partnership, he added, will enable Access Bank provide tailor-made financial solutions for German exporters and Nigerian importers. The lender is expected to translate and balance commercial and financial supply and demand. It will also provide specialized financial packages to facilitate trade.

    He said Access Bank Plc established the German Business Desk Nigeria to put Nigerian businessmen in touch with their German counterparts as well as facilitate access to finance for businesses.

    He said the bank collaborated with DEG – Deutsche Investitions – und Entwicklungsgesellschaft and the Delegation of German Industry and Commerce in Nigeria (AHK Nigeria) to deepen trade relations between Nigeria and Germany.

    He said the partnership was also meant to support Small and Medium Enterprises (SMEs) and provide finance at affordable rate for them to carry out their businesses.

    The desk was created to facilitate financial advisory and support services and make $2 billion correspondent trade line support available to German and Nigeria Small and Medium Enterprises (SMEs).

    Wigwe said Access Bank has through hard-work, intelligent business decisions and sound corporate governance become one of the top lenders in the country. “It is all about the right people, creating the right environment and putting the customers in the right place,” he said.

    He said that trade financing is just one part of the project, adding that the bank will in partnership with the stakeholders support Nigerian businesses. “The relationship between countries starts with relationship between individuals. It will translate to greater relationship between Nigeria and Germany. Nigeria will benefit especially since we are just coming out of recession. Growth and economic opportunities do not happen by chance, but by strategic partnership,” he said. He said the partnership will help support German firms that want to do business in Nigeria.

    Wigwe added, “At Access Bank, we are constantly searching for innovative ways to provide solutions to meet our customers’ needs. This collaboration with a first rate partner like DEG – Deutsche Investitions – und Entwicklungsgesellschaft leveraging on their global investment footprint and our local industry expertise in setting up a German Desk is the first of such initiatives in the country.”

     

  • Two killed as robbers attack bank in Ekiti

    •Monarch: it was a war-like situation

    Suspected robbers  yesterday attacked an old generation bank in Ilawe-Ekiti, headquarters of Ekiti Southwest Local Government of Ekiti State.

    In the operation, which lasted over one hour, the gunmen killed a policeman, Bayo, and a bank worker, whose name could not be ascertained last night.

    Another bank worker was reportedly shot in the arm.

    The robbery occurred barely a month after another old generation bank was attacked in Ifaki-Ekiti, where a police inspector was killed.

    An eyewitness told The Nation that the hoodlums stormed the bank located close to the Alawe’s palace, about 2:45 pm, and operated for over an hour.

    They reportedly blasted the bank’s security door with dynamite.

    The eyewitness said the dynamite blew up a blue Toyota Camry car.

    The robbers reportedly stole an unspecified amount of money.

    The source said: “They just came suddenly and started shooting. Shop owners scampered for safety, because the shooting was deafening.

    “After blasting the security door, they went into the banking hall and seized workers and customers. They stole an undisclosed amount of money.

    “They escaped via Ilawe-Igbara Odo-Ogotun Road.”

    Confirming the incident in a phone chat with The Nation, the Alawe of Ilawe-Ekiti, Oba Adebanji Alabi, expressed shock at the incident.

    He said the robbers turned his domain to a warfront by firing dynamite and grenade, which caused panic and paralysed activities.

    Oba Alabi said: “It was a terrible experience; my palace is very close to the bank. It was terrifying, it was like a warfront. They detonated grenades during the attack.

    “I was in the palace during the robbery; the attack happened less than an hour after a bullion van brought cash to the bank.

    “We have been in touch with the governor and the police command.”

    Effort to get the police reaction was not successful last night.

  • Why some Nigerians prefer to keep money at home instead of banks

     

    Some Nigerians, especially those of the older generation still prefer keeping money at home rather than taking it to the bank.

    This archaic behavior sometimes is as a result of lack of confidence in the banking sector, lack of financial education, illiteracy etc.

    Findings reveals that 41.6 per cent of Nigerian adults keep their money at home.

    According to Mrs Saidat, a trader in Lagos, “I love keeping my money with me rather than keeping it in any unreliable bank”.

    She further explained that the reason she prefers keeping her money at home is because of the ease of accessibility of her funds whenever she needs them.

    “Also bank charges are one of the problems which make Nigerians keep their money at home,” she added.

    While interviewing a few Nigerian adults, we gather that bank charges seems to be a major scare in their decisions not to save their hard-earned funds in the bank.

    Also, corruption is one of the factors why some affluent Nigerians who have obtained their monies through corrupts means vehemently downplay the importance of taking and saving their “mazuma” in the bank.

    According to Dr Michael Oke, a senior lecturer in the Banking and Finance Department, Ekiti State University, Ado Ekiti, “those keeping money at home are mostly politicians hiding embezzled funds.”

    He further explained that many public officers, who had stolen public funds, need a safe haven for their loot which the conventional banks could not offer.

    Sad stories about monies kept in homes being burnt or flooded away across the many tabloids in the country. Victim of such circumstances find themselves become either destitutes or suicidal.

    Therefore, the anachronistic idea of keeping money in the house should be totally discouraged as it adds no economic value to the owner.

    In addition, the essence of keeping money in banks is good because saving is a factor for investment and those in need of money in banks could access it through loan for investment.

    It is clear that monies need to be kept in banks, however, before we begin to lambast our people for choosing the “self-care service”, the write thinks it is high time our financial institutions (banks) swallowed the bitter pill of truth.

    Some banks are simply lazy and opportunistic. They only feed fat and big on depositors’ monies instead of practicing true and universal systems of banking and finance.

    On a final note, banks are advised to increase interest rates on savings and reduce charges for services such as ATMs, Transfers etc.

    Also, improvement in the use and deployment of technologies should be adopted by banks. Issues like long queues in and outside the banking milieu should become a thing of the past. Also, frequent network issues that frustrate financial transactions should be improved upon.

  • Bank reports judge to NJC, EFCC over ‘questionable’ judgment

    •Deputy Chief Registrar: ‘I’m yet to receive petition’

    Union Bank of Nigeria Plc has accused Justice Ibrahim Buba of the Federal High Court of perverting the cause of justice in a suit filed against it by an alleged debtor.

    It petitioned the National Judicial Council (NJC), the Economic and Financial Crimes Commission (EFCC), and the Department of State Security (DSS), alleging professional misconduct.

    But the court’s Deputy Chief Registrar Mr Bello Okandeji, told The Nation that was yet to get a copy of the petition to be able to react. He promised to “find out”.

    The bank said the judge “turned the law upside down” in a judgment in the debtor’s favour.

    Union Bank said the judgment “appears most unreasonable and difficult to understand, thereby conferring benefit to the unrighteous at the expense of the righteous…”

    The petitioner claimed that the judge by the judgment, exposed it to a great risk, as the loan facilities extended to the company was part of its depositors’ and shareholders’ funds.

    It urged the NJC and anti-graft agency to intervene, saying it cannot afford to lose such huge amount of money.

    The bank said it granted a loan facility amounting to the sum of $68millionto to a property company, whose alter ego is an Indian national, for the building of a commercial property in Abuja, which is said to have been completed.

    “The loan remains unserviced with an outstanding balance currently standing at the sum of $81,941,230.84 as at February 7, 2018,” the bank said in a statement.

    Union Bank said the debtor had at the time of obtaining the loan provided two legal mortgages as collateral. The facility, according to the bank, had a four-year tenor and was meant to expire on April 30, 2015.

    According to the petitioner, the loan was disbursed in dollars and the interest was initially fixed at 15 per cent per annum, with payment to be done through proceeds from the Abuja property, from the rental proceeds of properties in Lagos and Abuja, and from the company’s other businesses.

    The bank said the loan was restructured, but the company allegedly persisted in its default to repay the loan.

    “At one instance, in a letter dated June 28, 2016 the defaulting company acknowledged its indebtedness to the bank by admitting owing $61.089million and was proposing repayment pattern of N250 million and N388,890 million in five installments. But the loan increased to $81.941,230.80 due to lack of servicing,” the bank said.

    Union Bank said the debtor filed a suit against it at the Federal High Court in Lagos, seeking 12 reliefs, including “a total reversal of the obligation of the defaulting customer”.

    The bank accused Justice Buba of making “contrasting findings by declaring the loan facility illegal, voiding the legal instrument/agreement of the loan and granting an order of perpetual injunction to restrain the bank from exercising its right to appoint a receiver even when the court also held that the amount owed to the bank must be paid…”

    “By so doing, Honourable Justice Buba somersaulted severally in the judgment,” the bank said.

    According to the bank, the judge also made “an order of perpetual injunction restraining the defendant (Union Bank) or its agents from enforcing the loan agreement executed by the plaintiff,” among others.

    The petitioner claimed that the judge was unable to balance the interest of both parties because the risk assets that would have been used to recover the loan was “fully destroyed” by the judgment.

    The bank also accused the judge of failing to release the judgment until March 22 this year, 22 days from the date he delivered the judgment, which Union Bank said was in violation of Section 294(1) of the 1999 Constitution.

    This, the bank said, affected the perfection of its appeal at the Court of Appeal.

    The petitioner said the judge made another order that parties should maintain status quo “without giving the defendant enough opportunity to even appear in court or be represented by counsel”.

    The bank faulted the judge in holding that the contract of credit facilities in foreign denominated currency between the bank and the company was illegal.

    It said the judge “somersaulted in law when he held that the outstanding indebtedness of the company be converted to naira at the prevailing exchange rate of N158 to a dollar being the prevailing rate at the time the credit facility was availed to the company in March, 2011.”

    The bank added that the judge allegedly misinterpreted the law by holding that the bank’s granting of credit facilities in US Dollars and demanding it is prohibited under the Central Bank of Nigeria (CBN) Act.

    The judge was also accused of holding that an upward review of interest rate did not form part of the agreement between the parties to the loan.

    The bank said it referred to the agreement via a letter dated June 28, 2016 where the company admitted that payment should be in dollars, and despite not being controverted, the judge allegedly did not take it to account.

    The Deputy Chief Registrar, when asked if the court would react to the petition, said: “With respect to the said petition, I am yet to get a copy. I will find out tomorrow (today) please. You may also wish to see me in the office tomorrow.”

  • Development Bank, NIRSAL sign MoU on agricultural financing

    The Development Bank of Nigeria (DBN) Plc and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc have signed a memorandum of understanding aimed at enhancing the flow of funding to the agricultural sector of the economy and its value chain.

    At the signing ceremony yesterday at the NIRSAL Headquarters in Abuja, DBN and NIRSAL committed to a strategic collaboration that will impact positively on agriculture and all the value chain players and thus help to address the concerns of financial institutions on the high risk of lending to the sector.

    Under the partnership, NIRSAL is expected to provide risk mitigating credit guarantees while DBN is expected to provide the funds for on lending to Micro Small and Medium Enterprises (MSMEs) in the agricultural sub-sector and its value chain.

    Managing Director, Development Bank of Nigeria (DBN) Plc, Mr. Tony Okpanachi said the partnership with NIRSAL was in line with the mandate of the bank to alleviate financial constraints faced by MSMEs by providing financing and partial credit guarantees to eligible financial intermediaries on a market -conforming and on a sustainable basis.

    According to him, MSMEs have the potential to achieve key macro-economic objectives of the Federal Government which include job creation, poverty alleviation, financial inclusion and development of technology among others.

    In his remarks, Managing Director, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Plc Mr. Aliyu Abdulhameed said the partnership would help NIRSAL to achieve its primary mandate of facilitating the flow of credit, finance and investments into agriculture and agribusiness.

    ‘’NIRSAL believes strategic collaborations with major stakeholders in the industry is pivotal to achieving defined and well-tailored objectives and results. It is in line with this view, that the partnership with Development Bank of Nigeria (DBN) is structured. As development finance institutions, NIRSAL and DBN share a common goal of supporting investments that will catalyse sustainable economic growth, create more jobs and equip farmers with the capital needed to thrive in the agricultural sector,’’ Abdulhameed said.

    While DBN was established by the Federal Government of Nigeria in collaboration with World Bank, African Development Bank and other renowned International Development Finance Institutions to address the major financial constraints faced by MSMEs in Nigeria, NIRSAL was set up by the Central Bank of Nigeria (CBN) to provide the much needed risk management tool to enhance the flow of finance and investment in the agricultural value chain.