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Tag: banking

  • Banking: A moment of decision

    Banking: A moment of decision

    Year 2026 promises to be one of the most remarkable years in a decade. It will see the emergence of stronger banks, higher foreign reserves projected at $51 billion and perhaps, a single digit inflation. It is part of the long-term benefits of the critical economic reforms embarked by the fiscal and monetary authorities to strengthen the financial system and economy, reports Assistant Editor, COLLINS NWEZE

    With expected N4.14 trillion new capital being raised in the ongoing bank recapitalisation programme, and over 21 banks already met the minimum capital requirement, this year will turn out a significant milestone in the economy.

    Aside recapitalisation, inflation numbers are expected to sustain decline while foreign reserves accretion will be sustained.

    The CBN had, on March 28, 2024 announced a two-year bank recapitalisation exercise which commenced on April 1, 2024. The recapitalisation plan requires minimum capital of N500 billion, N200 billion and N50 billion for commercial banks with international, national and regional licences respectively. The 24-month timeline for compliance ends on March 31, 2026.

    CBN Governor, Olayemi Cardoso, said the apex bank will be enforcing stronger governance, greater transparency, and firmer accountability to protect raised funds.

    He disclosed that several banks have already met the new capital thresholds, while others are advancing steadily and are well positioned to comfortably meet the March 31, 2026 deadline.

    Banks meeting or exceeded the new requirements is a clear testament to the depth, resilience, and capacity of Nigeria’s banking sector,” Cardoso stated.

    The CBN has equally established a dedicated Compliance Department, now fully operational, with mandates covering financial crime supervision, market conduct, enterprise security, corporate governance, and Environmental, social, and governance (ESG).

    According to the CBN boss, the process enforcing stronger controls on raised funds is ongoing with the redesigning of the credit risk framework expected to ensure that raised funds are well managed by financial institutions.

    Previously, banks were awash with post recapitalisation funds, with analysts predicting that without proper risk management policies and regulatory controls, chances of misapplying such raised funds through risky loans remain high.

    Read Also: 5.36m electricity customers remain without meters– NERC

    President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said:  “As recapitalisation progresses, we are redesigning the credit risk framework to enforce stronger governance, greater transparency, and firmer accountability across the sector. We are determined to break the boom and bust cycle that has accompanied past recapitalisation efforts”.

    He explained that already, the CBN Credit Risk Management System (CRMS) is web-enabled, allowing banks and other stakeholders to dial directly into the CRMS database to render statutory returns or conduct status enquiry on borrowers. Also, the CBN is in the process of integrating the CRMS with other systems operating in the banks to make it more efficient.

    He also said that stability of the exchange rate will be sustained as more foreign reserves accretion, and foreign capital inflows find their way into the domestic economy.

    In a report titled: “Nigeria’s macro headwinds trigger bank recapitalisation” Deloitte, a global accounting and audit firm, put the total funds to be raised in the recapitalisation exercise which ends on March 31, 2026 at N4.14 trillion.

    It said the upward review of banks’ capital base from N50 billion to N500 billion depending on the type of licence held by the bank, remains an essential action required to boost capital adequacy needs of the Nigerian financial industry.

    Nigeria banks’ capital adequacy, the report says, has been significantly impacted by macroeconomic challenges such as high inflation and interest rates, currency volatility and forex illiquidity.

     “The upward revision will ensure that Nigerian banks have the capacity to take on bigger risks and stay afloat amid both domestic and external shocks. It also means increased liquidity position of banks, which will help broaden their loss-bearing capabilities,” the report said.

    Continuing, Cardoso said Nigeria’s banking system remains fundamentally sound and resilient, a cornerstone of our financial stability.

     “At the same time, we remain vigilant to emerging risks, including cyber threats, credit-concentration pressures, and operational vulnerabilities. These are being addressed through strengthened risk-based supervision and our ongoing transition to Basel III, which will further bolster resilience, improve capital quality, and strengthen liquidity monitoring,” he said.

    The CBN boss disclosed that with just four months to the conclusion of the recapitalisation exercise, the recapitalisation process remains firmly on track.

     “As we strengthen the capacity of our banks, stress-testing this year confirms that Nigeria’s banking sector remains fundamentally robust. Key financial soundness indicators overwhelmingly satisfied prudential benchmarks during the year,” Cardoso added.

    He said the apex bank is reinforcing operational discipline to ensure the financial system serves all Nigerians reliably.

     “Our starting point was a comprehensive, end to end review of the entire cash lifecycle: from production, to transportation, to distribution, and eventual access by consumers. This holistic assessment enabled us to address root causes rather than symptoms”.

    “As a result, we recalibrated our cash printing models, issued guidelines on the optimal ATM to card ratio, strengthened requirements for CBN approval before ATM or branch closures, enforced sanctions on banks whose ATMs fail to dispense cash, and intensified supervision of payment agents and POS operators nationwide,” he said.

    Inflation Rate decline

    High inflation which stuck in double digits for most of the last 35 years and risen to 34.6 per cent as of November 2024 has dropped to 14.45 per cent in November 2025.

    At $46 billion, foreign reserves can cover over 10-months imports, while the naira has remained stable across markets. FX inflows reached $20.98 billion in the first 10 months of 2025, a 70 per cent increase over total inflows for 2024.

    However, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said headline inflation is projected to rise temporarily to 30.5 per cent in December, driven by base-year effects and the adoption of a new methodology. However, inflation is expected to moderate back to the teens by February.

    Finding showed that over the past 12 months, Nigeria’s economy has transitioned from crisis management to laying the groundwork for a sustainable recovery. After nearly a decade in which real GDP growth averaged about two per cent, reforms have restored momentum and confidence in our broad macroeconomic environment.

    “Our economy grew by 4.23 per cent in the second quarter of 2025, the strongest pace in four years, driven by improvements in telecommunications, financial services, and oil production.

    “More importantly in terms of long-term stability, inflation, while still high, has moderated consistently. From a peak of 34.6 per cent in November 2024, it has more than halved to 16.05 per cent in October 2025. This marks seven consecutive months of disinflation. Food inflation, the largest single component of the basket, fell to 13.12 per cent in October, down from 16.87 per cent in September and 21.87 per cent in August,” Cardoso said.

    He said that the significant, steady decline in inflation is restoring real purchasing power for households and businesses. It also demonstrates disciplined execution and Nigeria’s return to orthodox monetary policy.

     “We continue with determination to bring inflation down further. The current double-digit rate cannot be acceptable. Price stability is the foundation of sustainable growth. Our transition to an inflation targeting framework is gaining traction. We have improved data analytics, strengthened communication, and ended monetary financing of fiscal deficits. These actions have strengthened monetary policy transmission and anchored expectations,” he said.

     “Our models project continued disinflation in 2026, helped by stronger domestic production, improved FX liquidity, and more disciplined liquidity management. As inflation moderates and becomes firmly anchored, we will calibrate the policy rate in line with evolving data”.

     “Domestic and international observers alike have noted Nigeria’s “huge turnaround” in macroeconomic management. Our commitment remains clear: monetary policy will stay evidence-based, data-driven, and unwavering in its pursuit of price stability.”

    Balance of payment to sustain rally

    The ongoing reforms in the financial sector have contributed to the growth of the Balance of Payments (BOP) surplus and ongoing surge in diaspora remittances and inflows into external reserves.

    The $4.60 billion BOP surplus in the third quarter of 2025, marks a turnaround from the deficit position in the preceding quarter.

    The performance underscores strengthening external sector fundamentals, firmer investor confidence, and the continued impact of reforms in the foreign exchange market, monetary policy implementation, and the domestic energy sector.

    Already, Nigeria recorded an overall Balance of Payments (BOP) surplus of $4.60 billion in the third quarter of 2025, marking a turnaround from the deficit position in the preceding quarter, according to data released by apex bank.

    The improvement was supported by a sustained current account surplus of $3.42 billion, supported by stronger trade performance, resilient remittance inflows, increased financial flows, and continued accretion to external reserves. The CBN reported that the goods account remained in surplus at $4.94 billion, reflecting higher export earnings during the period.

    “Exports increased to US$15.24 billion in Q3 2025, from US$14.90 billion in Q2 2025, on account of increases in crude oil and a refined petroleum products exports. The country is gradually switching from a net importer of refined petroleum products to a net exporter.  Import of petroleum products decreased by 12.7 per cent to US$1.65 billion,” the CBN said.

    Also, net out payments in the services account increased to US$4.07 billion in Q3 2025, from US$3.74 billion in Q2 2025.

    “The increase in net out- payments for services was due to increases in net import of transport, travel, insurance, computer & information, other business, and Government services not included elsewhere. The debit balance in the primary income account increased significantly to US$2.95 billion in Q3 2025, from US$1.25 billion in Q2 2025.” The report said.

    “This was largely attributable to repatriation of reinvested earnings by domestic banks on their foreign investments abroad especially on direct investments. The secondary income account balance decreased slightly to US$5.50 billion in Q3 2025, from US$5.51 billion in the preceding quarter. Personal transfers (workers’ remittance) from Nigerians in diaspora slightly decreased in Q3 2025 to US$5.24 billion, from US$5.30 billion in Q2 2025,” it added.

    How the economic reforms started

    The CBN had embarked on a series of bold reforms to attract more foreign capital to the economy, achieve price and exchange rate stability.

    In 2023, the new administration and the CBN-led by its Governor, Olayemi Cardoso liberalised the foreign exchange market, stopped central bank financing of the fiscal deficit, and reformed fuel subsidies. The government also strengthened revenue collection and took strategic steps to reduce surging inflation rate.

    Since these reforms were implemented, international reserves have increased, and people can now access foreign exchange in the official market.

    Besides, Nigeria successfully returned to international capital markets last December and was recently upgraded by rating agencies. A new domestic, private refinery is positioning Nigeria up the value chain in a fully deregulated market.

    CBN’s policies, including the currency reforms, led to investment inflows from abroad, and reduced interventions in the domestic forex market.

    The unification of exchange rates and the clearing of over $7 billion FX backlog raised the country’s investment outlook, with multilateral organizations, like the World Bank describing it as bold intervention to improve the economy’s sustainability in the long run.

  • Empire Trust MFB expands agency banking

    Empire Trust MFB expands agency banking

    Empire Trust Micro Finance Bank (ETMFB) is taking significant steps to expand its agency banking network nationwide, aiming to promote financial inclusion.

    This move comes as ETMFB, a key player in Nigeria’s microfinance sector, focuses on developing an extended agency banking network exclusively dedicated to its groundbreaking agent banking solution, Empire-pay.

    In collaboration with Empire-pay, the bank is actively partnering with major agents across Nigeria to extend its agency banking network.

    Mr. Ayobami Alabi, Managing Director, Empire Trust MFB, highlighted the strategic importance of this expanded network in achieving Empire-pay’s objectives.

    He emphasised the bank’s commitment to democratising access to financial services through Empire-pay by establishing a robust network of agents, facilitating seamless transactions, and empowering communities nationwide.

    Echoing this sentiment, Mr. Adeniyi Suaib, the Bank’s Head of Technology, stressed Empire-pay’s pivotal role in reshaping digital banking accessibility.

    He emphasised the bank’s dedication to overcoming geographical barriers and enhancing financial empowerment by making Empire-pay’s innovative features accessible to individuals and businesses.

    Read Also: SEC initiates banking system Recapitalization fundraising

    Recent luncheons hosted by Empire Trust Micro Finance Bank in Ibadan for the Southwest region and in Enugu State for the Southeast marked significant moments for the bank and its strategic partners.

    At the Enugu event, Mr. Clifford Nnamani, a prominent Banking Agent Representative, reaffirmed his commitment to driving the integration and commercial success of Empire-pay across Eastern Nigeria.

    This pledge demonstrates a collective determination to leverage Empire-pay’s capabilities for advancing financial access and inclusion.

    This expansion reflects ETMFB’s forward-thinking approach to addressing evolving customer needs and promoting financial inclusion on a broader scale.

    The bank’s commitment to accommodating more individuals, merchants, and agents underscores its dedication to building a more inclusive and accessible financial ecosystem.

    Together, ETMFB and its partners are poised to create a brighter future where everyone has the opportunity to thrive and prosper.

  • ‘Land banking offers good return’

    ‘Land banking offers good return’

    Land banking is an emergent strategy in the real estate sector as players try to match technology with real estate. It has been said the Return on Investment (Rol) on land banking is far higher than treasury bills or any financial instrument.

    In an interview with the Managing Director, Richland Property & Homes Limited, Dr Ifeanyi Nwachukwu, he stated that prospective investors could invest in this package in any of their estates in Ibeju-Lekki, Lagos and get great returns on their investment from 20 per cent in 12 months to 65 per cent for 24 months.

    He explained that when a prospective client invests in a certain square meter of land in any of their estates and holds it for a certain period, for instance for between one and twwo years, his firm re-buys it from them and pays for the capital and interest.

    On opportunities in real estate, he stressed that a lot of Nigerians were not aware of them. According to him, he has opened a lot of windows to create wealth by empowering individuals, especially young people that have been empowered, to earn passive income.

    He said it would not only put money in their pockets but also keep them away from crime.

    He said: “The property we sold for N1.8million less than two years ago is now over N6 million. I am not aware of any other legal business you will undertake in Nigeria in such a short time and make such profit. It’s possible to make over 65 per cent in two years. 

    “Incidentally, we have several estates in Ibeju-Lekki, the fastest real estate boom zone in Africa. I must advise  that not all real estate investment will bring in that much because location is key and for now any potential investor should look towards the Ibeju-Lekki area.” 

    This is so because the area known as the new Lagos has huge infrastructure such as the Lekki Free Trade Zone, Lekki Deep Sea Port, proposed airport, Dangote Refinery etc”.

    Speaking on fraud in the sector, he lamented that most advertised estates by some Operators do not exist but that it behooves on the buyer to do due diligence and stay on the part of caution before parting with their monies.  

    Read Also: New mobile banking app enriches customers’ experience

    For instance as a real estate operator and developer we are certified by both the Lagos State Government and the Economic and Financial Crimes Commission, (EFCC), to operate. When you have such documentation and certification you cannot but do the right thing. As a company we are proud of what we have achieved so far because we are convinced of the need to play by the rules.

       It’s common knowledge that there are wolves in our midst, before parting with your money or trusting your future to a Developer ensure he has all it takes.

       Some advertise properties they do not have. My advice to the public is that before you path with your hand earned money do a thorough check. All our properties come with Registered Survey, Governors Consent and CofO, people who buy into our business can never go wrong because we know the terrain.

    On the incessant Omonile issue that property investors are faced with he said his organization is not encumbered by that because they understand their language. According to him no Omonile will sell land to you and will fail to come back sometime in the future for more money no matter how much you paid.

    For us they are integrated into our business. We take their problems from our clients because we know their leaders and we involve them in different stages of construction as building materials suppliers, Bricklayers and in the construction proper. Because we engage them continuously they feel like part of the business and they will never come back to disturb us so our clients are protected from their problem.

    On inflation, Nwachukwu sympathised with his colleagues that have faced some challenges with their customers because of the high cost of materials and their inability to meet set targets. He called on the government to intervene in order to keep the businesses afloat because according to him the sector is a large employer of labour.

  • Banking and national economic recovery process

    Banking and national economic recovery process

    • By Godswill Iyoha Iyoke

    You shall know the Truth and the truth shall make you free”. In the subject context, only the Truth about our economic predicament and the route to get out of it can set us free from the affliction of national reproaches engendered by our economic situation.  

    Recovery is a return to normal state of health, prosperity, mind or strength. While there is no fixed or universal standard for measuring or determining normalcy, abnormality is discernible. This is particularly so, where existing situation or circumstances deviate from the norm. The norm can be socially or constitutionally deducible. The Nigerian Constitution in section 14(1) provides that the Nigerian state shall be based on “the principles of democracy and social justice”; while stipulating in section 14(2)(b) that; “the security and welfare of the people shall be the primary purpose of government”.

    From the foregoing, the principles of democracy and social justice constitute the basis of the Nigerian state. Regrettably, the ignorance or misconception of the dynamics of these concepts is culpable for the lapses in legislative acts, executive policies and judicial processes and the socio-economic condition of the nation. While both concepts are mutually dependent, it is the actual practice of democracy that ensures social justice. Unfortunately, democracy is pervasively, misconstrued and limited to the exercise of electoral franchise. Contrary, to this notion, political activism or constitutional civilian governance is not what defines democracy’

    Democracy, which is participatory governance, presupposes that everyone is a participant in the government or the governance processes. The only process that can guarantee the participation of everyone is through the socio-economic development systems. This is constituted by the socio-economic developmental processes of innovation and ideas; production or value-addition; logistics/distribution; and consumption. Everyone is a consumer and therefore interested in development or production processes of what is consumed. Functional banking systems is the lubricant that ensures the sustenance of these processes and participation in them. It is by participation or assurance of access to these processes that social justice is achieved. Social justice is the concept that everyone deserves equal economic, political, and social rights and opportunities. In the absence of social justice is disorder, as there is temptation to commit breaches in despair. Social participation through economic opportunities is what guarantees social justice, which is what a functional banking system guarantees.

    Economic recovery presupposes being in an undesirable state or condition and imperative of getting out of same. The reality of the Nigerian state is that she is in a state of social disorder. There is pervasive dissatisfaction.  While no wage earner in the public service earn enough to meet basic needs of food and shelter, the majority creative and innovative entrepreneurs have no access to financial capital to turn their ideas into consumable products. Meanwhile, even where there are products, access to the market is hindered by poor logistics facilities, which development are hampered by lack of financial capital. Even where the products are available, majority do not have sufficient financial resources to procure them. Thus, is the vicious circle of poverty and discontentment, which breed social disorder with all sorts of vices.

    Times were, when the average wage earner earned sufficient wages to meet basic needs. While unemployment was never at zero percent, most workers were in gainful employment. Just as the value of the local currency, our sense of nationalism as well as national global image was impressively high. This was a time when N600 could fetch $1000. The civil service was strong and functional. In those times, Nigeria was a donor-country and choice destination for quality tertiary education. While like in other climes, violent crimes and other acts of criminality have always been there, such acts were not as brazen and vicious as they have become. Never was Nigeria’s territorial integrity so violated, as it has been the trend in recent times. Not even immediately after the end of the Nigerian civil war, all through the General Yakubu Gowon’s era ending in 1975. There were many positives about Nigeria during the leadership of the General under whose leadership the civil war was prosecuted. There were no reprisals after the war. Despite being in arms against the rest of other Nigerian people, those from the erstwhile rebel enclave were fully reintegrated into the Nigerian society within a very short period. It was, really, inconceivable that the nation could easily recover from the many bruises of the war. In the north where many non-indigenes had lost their lives, those who had properties recovered them immediately after the war. There has been a reversal and degeneration of this situation in recent times. Nigeria is currently facing social, economic, political reproaches, both locally and globally. 

    National economic recovery implies the imperative of getting back to normalcy. A testament to this imperative is the “Economic Recovery and Growth Plan (ERGP)”, which is the major economic initiative of the Buhari-led government. The ERGP was a medium-term all-round development initiative that aims to restore economic growth, invest in Nigerians and build a globally competitive economy. Besides the semantics or nomenclature, the ERGP is the economic paths that both developed and developing economies take. Prior to the ERGP were the National Industrial Revolution Plan (NIRP); Agriculture Development Plan as well as the National Economic Empowerment & Development Strategy (NEEDS)/State Economic Empowerment & Development Strategy (SEEDS). Despite their diverse nomenclatures, the various economic development initiatives had similar or same objectives. As good and laudable as these policy initiatives are, the implementation strategies have been faulty. Each of them is restrained or limited by the following factors.

    1. The centrist orientation of the Federal Government inspired the creation of the Millennium Development Goals (MDGs) office in the presidency, which centralized and controlled the implementation of the NEEDS/SEEDS policy. Regrettably, the implementation was by intervention projects across the country. It became a mere contract-awarding bureaucracy in the presidency.

    2. Perhaps due to its low or limited impact of the NEEDS/SEEDS policy, the President Jonathan’s initiated the National Industrial Revolution Plan (NIRP); Agriculture Revolution Program (ARP), which were very comprehensive and conceived as Public Private Partnership (PPP) arrangements. 

    3. However, the APC- government of Muhammadu Buhari, from 2019 initiated the Economic Recovery and Growth Plan (ERGP), which in all material particulars was similar to Jonathan’s National Industrial Revolution Plan (NIRP) and the Agriculture Revolution Program (ARP). Except Jonathan’s NIRP/ARP, Obasanjo/Yar’adua’s NEEDS/SEEDS and Buhari’s ERGP were implemented by intervention projects through various agencies and institutions of the federal government.

    The ERGP, which like the NIRP/ARP of Jonathan’s, is an “all-round developmental initiative” and presupposes an ‘all-inclusive’ development program, is short in some very critical respects. The policy formulators failed to take cognizance of the absence of commercial banking in the system, which is the only avenue for the private sector to access the requisite finance to engage in the economic process. Just like Jonathan’s, President Tinubu’s emergent Economic Advisory Committee, with ‘Bankers’ have failed to reckon with the absence of functional banking system.

    Read Also: Emefiele moves out of CBN Gov’s quarters in Lagos

    Banking is a part of social science and aspect of finance that ensures the mobilization and protection of financial capital and the provision, management, or circulation of the same for purposes of wealth creation and well-being of individuals and society. Banking, an invention of society, which facilitates the realization of social justice, is a financial system by which money owners lend involuntarily to the society at large. It is a social evolution and testament to human sophistication. Existence of a functional banking system is evidence of good governance and functional politics, whose absence is testament to a dysfunctional socio-economic order, which breeds insecurity and poverty. To avoid this situation, the framers of the Nigerian Constitution made it mandatory that; “the security and welfare of the people shall be the primary purpose of government”. These objectives constitute the articles of faith in developed or developing countries. Banking and financial services are institutionalized for these purposes. The essence of Central Bank as regulatory agency of the state is essentially to ensure the preservation of the banking systems, by ensuring the trust of the money-owners (Depositors) and discipline on the part of money-holders (Bankers). This is why the Central Bank provides mandatory prudential guidelines for banks.

    Commercial Banking is eloquent testament to the extent of mutual-human dependency, which is the key to security of state and welfare of the people. Functional financial services system is what guarantees development or productive engagement of the citizenry. Development or productivity is a function of the ability of the people to engage in any one or more of the processes or levels of development or economic activities. These are the processes of ideas, creativity or innovation; production or value-addition; logistics or distribution and consumption. The extent to which these processes go on simultaneously and the people’s engagement in them is what defines or determines economic prosperity. The whole purpose of governance or public administration is to ensure that the people are engaged or capable of engaging in either or several of the said processes and have the capacity to enjoy the benefits therefrom. This is what functional banking systems ensures. It is, indeed, the true and indispensable path to productivity, development, economic recovery and national restoration.

  • ‘Currency reforms present vistas for investment banking’

    ‘Currency reforms present vistas for investment banking’

    The ongoing currency reforms instituted by the Central Bank of Nigeria (CBN) have presented challenges and opportunities for investment banking industry, immediate past President, Association of Issuing Houses of Nigeria (AIHN), Ike Chioke, has said.

     Speaking during the Investment Banking Awards Night held in Lagos, he said the free floating of the naira and removal of fuel subsidy have impacted on key sectors of the economy.

    He said: “Nigeria is obviously bracing up to the impact of the new government and they are already making changes to what I will call non unorthodox policies. These policies had also introduced pain and hardship with the free floating of the naira and removal of fuel subsidy forcing their weaknesses on various sectors of the economy”.

        Chioke said despite the hiccups to their implementation, they have thrown up major opportunities for investment banking, urging members to apply their best skills and expertise to make the best of the opportunities.

        “As you know, investment banking industry is a critical one for the Nigerian economy and we represent the best brains and the best expertise in that space,” he said.

        The Awards night held at the Civic Centre, Lagos, and attended by both the top executives and middle level staff within  the  financial markets industry, presented opportunities for many players in the industry to receive awards, in recognition of their excellent performance in the  the year 2022.

        In the Debt Capital Market Category, Chapel Hill Denham Advisory Limited,  won the Private Company Bond House 2022 Award; Best Commercial Paper House 2022 Award and Best Bond House 2022 Award while the Best Commercial Paper House 2022 Award went to Stanbic IBTC Capital Limited.

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        Also, in the Equity Capital Markets Category, the Equity Deal of 2022 Award was won by three companies- namely Stanbic IBTC Capital Limited, UCML Capital and Rand Merchant Bank.

        Additionally, Stanbic IBTC Capital Limited won the Best Equity House 2022 Award within the category.

        In the Financial Advisory Category, Stanbic IBTC Capital Limited won the M&A Deal of 2022 Award while Chapel Hill Denham Advisory Limited won the Best Financial Advisory House 2022 Award.

        The Investment Banking category saw Stanbic IBTC Capital Limited take the prize as the winner, Best Investment Bank 2022 Award.

        The Lagos State Government was awarded the Capital Markets Titan Award, within the Capital Markets Titan category.

        On her part, the newly elected President, AIHN, Kemi Awodein, said the recognition to the winners was a way of acknowledging the excellent work they are doing in their different areas of specialisation and motivation to do even more.

        She promised to continue and improve on the culture of excellence and development of the financial markets to the benefit of customers, investors and the economy.

  • New round of banking sector recapitalisation coming, says Cardoso

    New round of banking sector recapitalisation coming, says Cardoso

    • Banks not equipped to serve $1tr GDP target •Plans new FX regulation guidelines
    • Economic challenges daunting, but surmountable
    • CBN interventions gulped N10tr
    • Declares war against inflation
    • Edun: Economic reforms will be sustained

    Banks should brace up for a new round of banking sector recapitalization to secure enough capital to serve $1 trillion Gross Domestic Product (GDP) target, Central Bank of Nigeria (CBN) Governor, Dr. Olayemi Michael Cardoso, announced yesterday.

    Speaking at the 58th Annual Bankers Dinner by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, he said President Bola Ahmed Tinubu’s economic plan, is to achieve $1 trillion GDP size in seven years, adding that the current capitalisation of banks cannot handle such economic size.

    He said the apex bank is thinking ahead, and will be asking the banks to raise new capital to meet up with the target GDP size.

    Cardoso asked: “Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital”.

    Continuing, he said: “The administration, as outlined in the widely circulated Policy Advisory Council report on the national economy earlier this year, has set an ambitious goal of achieving a Gross Domestic Product (GDP) of $1.0 trillion over the next seven years, with clearly defined priority areas and strategies.”

    According to him, attaining this substantial target necessitates sustainable and inclusive economic growth at a significantly higher pace than current levels.

    “The administration has already commenced this journey through fiscal reforms, including the removal of petrol subsidy and the unification of the foreign exchange market rate,” he said.

    “The CBN will be directing banks to increase their capital base,” he added.

    Reaffirming the stability of the banking sector, the CBN Governor said:

    “Indeed, despite the challenging global and domestic macroeconomic environment, Nigeria’s financial sector has demonstrated resilience in 2023, with key indicators of financial soundness largely meeting regulatory benchmarks.”

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    “Stress tests conducted on the banking industry also indicate its strength under mild-to-moderate scenarios of sustained economic and financial stress, although there is room for further strengthening and enhancing resilience to shocks. Therefore, there is still much work to be done in fortifying the industry for future challenges, a topic that I will delve into later in my address,” he stated.

    Cardoso said that over N10 trillion CBN interventions in the real sector affected the banks in achieving their goals, and took the lenders to areas where they had limited expertise.

    “Under my leadership, the CBN will address these issues. We will tackle institutional deficiencies, and implement prudent policies. Our economy will experience significant improvement as we implement these far reaching measures. The primary mandate of the CBN is to ensure price and exchange rate stability,”he said.

    He said the sustained high crude oil prices, exceeding $80 per barrel, have posed challenges for import- dependent countries like Nigeria in managing prices.

    However, the widespread tightening of monetary policy, aimed at curbing inflation, has restrained economic activity and suppressed growth.

    Cardoso admitted that with recent developments within the domestic economy, it is evident that we are facing significant macroeconomic and social challenges.

    These challenges stem from a variety of factors, including adverse global shocks, unfavorable domestic imbalances, structural rigidities, and the unintended consequences of certain corrective policy measures implemented to restore and realign our macroeconomic landscape.

    He listed high level of insecurity which has resulted in decreased national output and productivity, infrastructure constraints, business bottlenecks and a culture of poor service delivery, particularly within the public sector, as some of the challenges that further hinder the fortunes of the economy.

    He admitted that a thorough assessment of the economy reveals significant challenges, including high and rising inflation, inadequate foreign exchange supply, depreciation of the exchange rate, limited external reserves, weakened output, and high unemployment.

    “These challenges have led to increased interest rates, discouraging investments in productive activities. Within the banking system, high inflation has affected asset quality and solvency ratios. Additionally, the persistent depreciation of the naira poses a significant risk for domestic banks with foreign exchange exposures,” he said.

    Continuing, he said: “I want to assure you that while it is indeed a formidable challenge, it is not insurmountable. With the right policy measures, we can overcome these obstacles and pave the way for progress and prosperity”.

    Cardoso said   the removal of petrol subsidy and the adoption of a floating exchange rate, among other government policies, are anticipated to have positive effects on the economy in the medium-term.

    “These measures are expected to enhance investor confidence, attract capital inflows, stimulate domestic investment, and ultimately improve the level of external reserves. Additionally, they are expected to contribute to the stabilization of the domestic currency,” he said.

    He expressed CBN’s commitment  to achieving monetary and price stability.

    “This is not just a technical objective, but it has real-life implications for the well- being of our citizens. Through targeted policies, transparent market operations, and coordination between monetary and fiscal authorities, we can ensure a more stable exchange rate, control inflation, and create an enabling environment for businesses and individuals to thrive,” he said.

    In his remarks,  Minister of Finance and Co-Ordinating Minister of the Economy, Wale Edun, said that President Bola Ahmed Tinubu, has embarked on courageous reforms, recognized worldwide.

    He said the President is determined to ensure that the reforms will go on to allow private investment to thrive.

    He called for resilience in the face of challenges, adding that the banking industry is healthy and thriving. “Taking the Nigerian banks to Europe and America is a sign to what Nigeria can deliver to the world. The economic reforms are difficult but we need to stay the course and the results are beginning to show,” Edun said.

    Also speaking, Group Managing Director/CEO Zenith Bank Plc, and the Chairman of the Body of Banks’ Chief Executive Officers,Dr. Ebenezer Onyeagwu, said the Nigerian banking industry is growing, resilient and spreading fast across Africa, and globally.

    He said the banks, in collaboration with the CBN, are working hard to ensure that all issues around FX Forwards are resolved.

    He said: “FX Forwards has been caged, directed and the banking sector  is moving. We are moving on to ensure that FX Forwards is resolved. By next two weeks, FX Forwards will end. The banking sector supports the activities of the CBN. The banking industry is ready to support the CBN to achieve its goals”.

  • ‘All should enjoy banking services’

    ‘All should enjoy banking services’

    The Managing Director of The Alternative Bank, Hassan Yusuf, has said banking should be of benefit to every one.

     He spoke during the launch of the bank in Abuja.

      He said: “We believe that banking should be a platform for shared prosperity, where everyone benefits. 

    “And this explains why we refer to our customers as partners, because we believe we are on a journey of wealth creation where profits are shared, and customers are provided with funds without incurring interest charges.”

    Also, the Executive Director  of the bank, Garba Mohammed, said: “The Alternative Bank is here to create wealth-for-all in a sustainable way, by doing things differently and taking a different model to partnering its customers.”

    The launch of the bank, which is  the non-interest banking subsidiary of the Steling Bank Group, featured the presentation of digital products to attendees, designed to bring more people into the formal financial sector with an albeit unconventional approach to e-commerce, investments, assets financing, and renewable energy with solutions such as AltMall for e-commerce, AltInvest for ethical retail investments, AltPower for affordable renewable energy solutions, AltDrive for new and pre-owned vehicle financing, and WasteBanc for the monetisation recyclable waste. 

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    The Alternative Bank offers  financial consultations, tailored solutions, and guidance towards ensuring that customers achieve their financial goals. 

    The zero-interest banking principle is dedicated to fostering sustainable practices, responsible investments and financial decisions that contribute to positive social and environmental impacts.

    The Alternative Bank also recently launched an innovation in retail investments with the first AltCoin which affords investors the opportunity to preserve and grow their wealth by investing in gold.

    The Alternative Bank started in 2014 as Sterling Alternative Finance, after the Central Bank of Nigeria licensed then Sterling Bank Plc to operate a non-interest banking business and has since grown to become one of the largest ethical banks in Nigeria’s non-interest banking sector. 

    With the recent completion of Sterling’s transition to a full-fledged financial holdings company, The Alternative Bank will operate as the non-interest banking subsidiary of the Group, while Sterling Bank Limited will continue to provide conventional banking services. 

  • Making banking easy for young Africans: The story of Edoka Idoko

    Making banking easy for young Africans: The story of Edoka Idoko

    OjirehPrime, a mobile-only banking platform, is making waves in the African financial sector with its commitment to delivering seamless, cost-effective, and customer-focused financial products tailored to the needs of young Africans. Founded in 2016 as an e-commerce business, the company transitioned into the fintech industry in 2018 with the launch of its prepaid card. In 2022, OjirehPrime made a significant leap into consumer banking by investing in Solid Allianze Microfinance Bank and launching its mobile app, attracting over a million downloads across Google, Apple, and Palm Stores.

    OjirehPrime’s CEO, Edoka Idoko, is the driving force behind the company’s vision to become Africa’s global bank for the Gen Z demographic. He shared his perspective on the journey, saying, “We aim to empower young Africans by providing them with innovative banking solutions that cater to their everyday needs. Our mission is to become the preferred financial service provider for every young African globally.”

    OjirehPrime stands out as a mobile banking platform with physical offices and an online presence. Clients can easily access its products and services by downloading the OjirehPrime mobile app from Google, Apple, or Palm Stores. The company offers free and fast bank transfers, innovative savings with competitive interest rates, and convenient bill payment options.

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    What sets OjirehP​rime apart from its competitors is its commitment to providing a seamless banking experience, best-in-class customer service, and completely free banking services. The company leverages social platforms for effective marketing and targets a youthful audience, including millennials and Gen Z.

    Last year, OjirehPrime raised $1,240,000, with former Interswitch board chairman Mr. Adedotun Sulaiman leading the investment round. The company boasts a 70-person team working across various models, from full-time to hybrid and remote.

    When asked about the key driving force behind becoming an entrepreneur, Edoka Idoko emphasized his vision for Africa, saying, “Our goal is to build the Africa we can be proud of.”

    OjirehPrime has also received strategic support from the UK government and is headquartered in the UK. The company’s founder, Edoka Idoko, has an inspiring story of bootstrapping from humble beginnings, detailed in an article by Business Day.

    Looking to the future, OjirehPrime aspires to become a true global bank for young Africans. Edoka Idoko shared his visio​n, saying, “Our inspiration and creative process revolve around becoming Africa’s global bank for the Gen Z demographic.”

    As OjirehPrime continues to disrupt the African banking landscape with its innovative solutions and unwavering commitment to customer satisfaction, it is poised to redefine the banking experience for the younger generation across the continent.

  • Access/Diamond deal: Gains for customers, banking

    Mergers and acquisitions come with various consequences for banking. Access Bank’s vision to be Nigeria’s number one lender appears bright, with Diamond Bank’s acquisition, which is awaiting the regulator’s nod. The seamless acquisition, including security of depositors’ funds and shareholders’ investment, is a pointer to exciting days ahead for Access Bank. The acquisition also presents a better state of the industry to foreign investors and saves the economy the grave consequences of liquidation, writes COLLINS NWEZE.

    The acquisition of Diamond Bank by Access Bank has continued to generate varied reactions from stakeholders, who view it as the right step to save the troubled lender. They believe that the gain of saving depositors’ funds and ensuring that shareholders do not lose out in the new arrangement are not compromised.

    For Access Bank Plc, the takeover of Diamond Bank is expected to fast-track its movement to occupy the number one position in Nigeria’s banking industry.

    Announcing Access Bank as the preferred bidder, Diamond Bank’s Chief Executive Officer, Uzoma Dozie, said the potential merger of the two banks would create Nigeria and Africa’s largest retail bank. He added that the transaction, to be completed in the first half of the year, is in the best interest of all stakeholders.

    Dozie also stated that the completion of the merger is subject to certain shareholder and regulatory approvals, adding that the proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger. Based on the agreement reached by the boards of the two lenders, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash.

    Dozie said the transaction would include the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date. He said the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law.

    “The current listing of Diamond Bank’s shares on the Nigeria Stock Exchange (NSE) and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective. The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses,” he said.

     

    Access Bank CEO speaks

    Access Bank Plc Group MD/CEO Herbert Wigwe said the bank has a strong acquisition and integration track record.

    Speaking to the conclusive acquisition of Diamond Bank, Wigwe said the banks involved have complementary operations that will ensure benefits for customers of Access Bank and Diamond Bank. “Access Bank has a strong track record of acquisition and integration and has a clear growth strategy,” Wigwe said via a joint statement with Diamond Bank.

    “Access Bank and Diamond Bank have complementary operations and similar values, and a merger with Diamond Bank, with its leadership in digital and mobile-led retail banking, could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion. Access Bank has a strong financial profile with attractive returns and a robust capital position with 20.1 per cent Capital Adequacy Ratio as at 30 September, 2018. We believe that this platform, together with the two banks’ shared focus on innovation, financial inclusion, and sustainability, can bring benefits to Access Bank and Diamond Bank customers, staff and shareholders.”

    Access Bank took over Intercontinental Bank in 2011/2012 to become one of the biggest banks in Nigeria. Besides, Access Bank Plc has N480 billion shareholders’ fund and is the third largest bank in Nigeria. The bank currently has eight million customers and 385 branches, which has remained a critical milestone in getting the lender great rating by Fitch Ratings, Moody’s Investors, S&P and Agusto & Co. Access Bank of Nigeria is determined to be number one bank in Nigeria in no time.

     

    Stakeholders speak on the acquisition 

    Lagos Chamber of Commerce and Industry (LCCI) Director-General, Muda Yusuf, said the first gain of the takeover is that Diamond Bank has been saved from going under and the economy protected from the consequences of such occurrence.

    “Today, the good thing is that depositors fund is safe. Some of the employees are not likely to lose their jobs since it is acquisition, and that is good for the economy. If Diamond Bank had failed completely, there would be systemic effect. In terms of foreign perception, acquisition or merger is better than bank failure,” he said.

    Yusuf, however, advised shareholders to be more active in knowing how their banks are run. “Shareholders should provide effective oversight to ensure that their investments are protected,” he said.

    But, former Diamond Bank’s General Manager,  Richard Obire said: “You cannot have two managing directors of a bank, domestic and foreign operations and even chief financial officers in one bank. One has to give way and the Diamond Bank staff will be the casualties. The Diamond Bank management team should know that their jobs are gone.”

    According to him, Access Bank is a very ambitious lender and that is one of the characteristics of its management team.

    Obire added: “They want to be big, and perhaps, the biggest bank in Nigeria and that was presented to them on a platter of gold by the Diamond Bank opportunity. Diamond Bank is now a small bank compared to its peers. It is now a Tier-3 bank. I do not know the terms of the transaction, but they will lose their brand name.

    “It is the reality of business. Diamond Bank has such a brilliant brand name and customer base and these are what Access Bank will inherit. The name Diamond Bank is gone forever and the next will be integration, which will lead to exit of the bank’s management team.”

    Also former President/Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN), Okechukwu Unegbu said the process of takeover of Diamond Bank was an improvement from what happened at defunct Skye Bank.

    According to him, the decision is a proactive step when compared to that of Skye Bank because Diamond Bank investors will even gain in the new arrangement.

    “I think that shareholders of Diamond Bank did not lose much. Whether it is merger or acquisition between the two banks, the fact is one big bank is better than two weak banks.

    “With this development, one expects a strong, virile and capable institution in the future that will equally protect the interest of the investors,” he said.

    He, however, said the CBN should institute new measures that ensure that people that violate banking rules are punished.  “The CBN is the regulator and is expected to monitor and punish some of the recklessness of some of the banks and their managing directors. Banks’ boards should be held accountable. Again, there should be extra-ordinary shareholders’ meeting to approve the acquisition and possibly plan for a seamless integration process,” he said.

    Michael Azu, a Lagos-based financial analyst, said the acquisition would boost stability and investors’ confidence in the banking system adding that it was a welcome development instead of allowing Diamond Bank to face regulatory sanctions and possibly liquidation for its poor liquidity positions.

    “The merger has helped to protect investors’ and depositors’ confidence. It has ensured that depositors’ funds are protected from undue risk, and also removes the issue of systemic failure in the financial system,” he said.

    He explained that some of the challenges facing the financial system are due  to weak corporate governance structures and insider abuses. He, therefore, advised stakeholders to raise their oversight roles to ensure effective banking operations.

     

    Diamond Bank’s position

    Diamond Bank had earlier announced its decision to drop its international operating licence to focus on national operations following capitalisation issues.

    Dozie said: “The re-licensing as a national bank supports Diamond Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy as a whole,” he said in a statement.

    “The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stages.

     

    Diamond Bank’s

    performance 

    Diamond Bank recorded its worst month on record with share plunging to 0.61k per unit on November 30, 2018.

    Diamond Bank’s third quarter of 2018 report showed that it was under some financial stress with profit after tax falling from N3.9 billion in 2017 to N1.6 billion. This impacted the bank’s earnings per share, which also dropped sharply from N17 in 2017 to N7 in 2018.

    Apart from dealing with non-performing loans, the bank also had to contend with a fine from the Central Bank of Nigeria in August for allegedly aiding MTN Nigeria to illegally repatriate $8.1 billion.

    “Your bank issued three CCIs in favour of Dantata Investment for  $5million without converting the foreign exchange received into Naira as required by our regulations. On the basis of these illegally issued CCIs, your bank repatriated  $102,545,336.77 for these CCIs,” CBN’s letter read.

    In October, Oluwaseyi Bickerseth, the bank’s chairman, who was appointed last July, and three non-executive directors resigned.

    In November, S&P Global Ratings downgraded the bank’s rating to CCC+/C from ‘B-/B’ and its Nigeria national scale ratings to ‘ngBB-/ngB’ from ‘ngBBB-/ngA-3.

    Giving its reason, the agency said the bank is “dependent on favourable business, financial, and economic conditions to meet its financial obligations”.

    “We believe that Diamond Bank will have to set aside higher provisions than we initially expected, following the adoption of International Financial Reporting Standard No. 9 (IFRS 9), which implies weaker asset quality than we expected and exerts significant pressure on the bank’s capitalisation,” it said.

     

     

  • Touching lives with sustainable banking

    World Bank data indicates that global poverty rate is declining. But in sub-Saharan Africa, the number of those living in extreme poverty keeps rising. The Nigerian Sustainability Business Principles (NSBP), which was established to reverse the trend and bring better life to Africans, has brought stakeholders in the financial sector together to enhance economic growth and promote common good through sustainable banking practices, writes COLLINS NWEZE.

    The World Bank poverty index is not looking good for sub-Saharan Africa. While the global rate of poverty is declining, its rate in sub-Saharan Africa is rising.

    But to reduce poverty rate in the region requires collective action from financial institutions and implementation of sustainable banking principles that promote financial inclusion and  Corporate Social Responsibility (CSR).

    For instance, two years ago, about 28 per cent of the African population was found to be severely food insecured, rising about three per cent from 2014.

    The continent is also found to have the highest prevalence of undernourishment, which is about 20 per cent. Aside poverty as a primary factor, others such as conflict, lack of investment in agriculture and environmental challenges, have been said to be responsible for this. Those living in poverty cannot often afford food of sufficient quality or quantity to live a healthy life.

    In 2018, the World Bank reported that extreme poverty has rapidly declined globally, with estimates showing that the number of extremely poor people- those who live on $1.90 a day or less—has fallen from 1.9 billion in 1990 to about 736 million in 2015. However, the number of people living in extreme poverty keeps increasing in the sub-Saharan Africa, actually peaking in 2018 with 437 million people, and then slowly will decline again to reach 416 million in 2030.

    This year, most Nigerians were disturbed by the World Bank data referring to the most populous black country on the planet as the ‘poverty capital of the world’, with 86.9 million Nigerians still living in extreme poverty.

    The country is faced with numerous challenges, most of which are captured in the Sustainable Development Goals (SDGs) –  poverty eradication, hunger and food security, adequate provision of good health, education, advancing gender equality and women empowerment, developing infrastructure, provision of water and sanitation, provision of clean and affordable energy and taking effective action on climate change.

    In order to address these, a leading financial institution, Access Bank, facilitated the birth of the Nigerian Sustainability Business Principles (NSBP), by bringing together stakeholders in the financial sector with the aim of securing buy-in for the development of the nine principles. They include environment and social risk management, environment and social footprints, human rights, women’s economic empowerment and  financial inclusion.

    They also include environment and social governance, capacity building, collaborative partnerships and reporting. These principles are today being adopted by all banks in Nigeria, including the Central Bank of Nigeria (CBN). This year (2018), marks the fifth anniversary of the implementation of the NSBP in the Nigerian financial sector.

    Since 2008, the bank has successfully built a sustainability strategy driven by sustainable financial services – developing innovative services that enhance the lives of customers and enables them reduce environmental and social impacts, building sustainable economies – facilitating and financing sustainable economic growth through financial inclusion and education, sustainable societies – supporting vibrant and successful communities in every market, environmental responsibility – having a competitively low environmental impact for a bank in its markets, and best in class operations – providing best in class expertise, tools and capabilities to helping drive down costs and increase value.

    Specifically, Access Bank recognises the importance of climate action, supporting people, businesses and communities in building sustainable enterprises, all of which led to several awards both locally and internationally. Recently, it also received top honours at the 2018 Karlsruhe Sustainable Finance Awards in Germany, emerging as the winner in two categories and the Euromoney Awards for Excellence as ‘Africa’s Best Bank for Corporate Social Responsibility’ in London in July.

    During the bank’s Sustainability Awareness Week, a week-long activity to celebrate its remarkable achievements since 2008, Access Bank Group Managing Director/Chief Executive Officer, Herbert Wigwe, expressed the bank’s determination to create meaningful impact around the world and its subsidiaries by increasing awareness of best sustainable practices that can be implemented within its operational areas.

    He also listed profit, planet, and people as the pillars on which corporate sustainability are entrenched, stating that “this comes with a vision to be the most sustainable and respected bank in Africa, financing and facilitating brighter futures for all of our stakeholders through innovative services and best in class operations”.

    Banking thrives in an environment where lenders promote activities that make life better for the people. Indeed, banking should strive to meet the triple bottom line: People, Planet, and Profit. Beyond the profit motive, banks should ensure that the people and the environment where the business is done have something to cheer.

    Banking is not all about profitability. It should be done with human face and recognition that the communities where the business is conducted should benefit from the profit that comes from it. The CBN, the Nigeria Deposit Insurance Corporation and Deposit Money Banks (DMBs) agreed that banking can only thrive in an environment where CSR and commitment to the communities where the business is done, are given a priority. The CBN has, therefore, encouraged the adoption of sustainable banking practice by banks, given that environmental and social responsibility support business success and long-term growth.

     

    SERAs validates Access Bank’s efforts

    Sustainability, Enterprise and Responsibility Awards, also known as SERAs CSR, has helped to highlight various factors for improvement and national development, especially in working with different organisations to eradicate poverty and engender transformative change, which guarantees a safe, equitable and sustainable world for both the current and future generations.

    The SERAs award is an annual project, which aims to promote as well as raise awareness about the roles organisations play with an emphasis on their responsibility towards stakeholders and the social development of Africa. The SERAs, aims to substantiate the case that corporations who are socially responsible stand to gain huge benefits in regards to the triple bottom line – economic, social and environmental capital.

    The 12th edition of the award was held on Saturday, December 1, 2018 in Lagos. The event attracted several dignitaries and executives from diverse sectors. There were 22 categories open for contention, four of them were won by Access Bank, including the Best Company in Partnership for Development, Best Corporate Communication Team, Sustainability Practitioner of the Year – received by Omobolanle Victor-Laniyan, Group Head of Sustainability Access Bank and the Most Responsible Business in Africa, both of which were the biggest awards of the night and for Access Bank, a back-to-back success.

    For Access Bank Plc, banking also includes empowering the people and giving their lives a positive meaning. That explains why it has continued to take steps that promote the common good. For instance, the Operations Unit of Access Bank Plc. recently handed over two blocks of classrooms it renovated to the Keke Nursery and Primary School, Agege, Lagos. The Bank did not only strengthen the dilapidated buildings and fortified them with iron formations, it also changed the roofs, windows and painted the classrooms to give them new looks.

    Speaking on the gesture, the Access Bank’s Head of Sustainability, Victor-Laniyan, said: “The fact is that in every environment we operate, we must make the people better, the environment better while trying to drive profit. So, we are not just focused on making money – it is just one aspect of the things we are keen on. So, if you listen to Access Bank, some of the things we talk about is based on how we have brought sustainability and governance into how business is done within the financial market.”

    According to the CBN and NDIC, sustainability reporting allows organisations measure, understand and communicate their environmental, social and governance performances.

    Although the reporting system has gained currency and acceptance globally, only a few local banks and organisations encourage sustainability practices in their reports.

    To further involve corporate organisations, the CBN Governor, Godwin Emefiele and the NDIC Managing Director, Umaru Ibrahim said the regulators will continue to renew its commitment towards the implementation of the NSBP, the achievements of the United Nation’s Sustainable Development Goals (SDGs) and the Paris Climate Change Agreement.