The Nation Newspaper

Tag: cash

  • Speaker donates lifejacket, cash to community

    Lagos State House of Assembly Speaker Mudashiru Obasa has assured residents of riverine communities of the protection of their lives and properties.

    Obasa made the pledge during a condolence visit to the Osolu of Irewe, Oba Abideen Durosimi, traditional ruler of a riverine community in  Ojo Local Government Area where six school children drowned when a boat capsized on July 2nd.

    The Speaker, represented by the Deputy Chief Whip Omotayo Oduntan said the government would not relent in providing basic amenities for the citizenry.

    Oduntan said: “We members of Lagos State House of Assembly are here to console with you and the entire residents over the tragedy that happened where six school children drowned in a boat accident.

    “On behalf of the Speaker of Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, and members as well as the staff of the Assembly, we sympathize with you and pray God almighty would give the families of the deceased children fortitude to bear the lost.

    “We are also here to present to you, 60 life jackets for the use of residents of the community as well as cash to the families of the deceased on behalf of the Speaker and we hope this gesture would go a long way to ameliorate the negative impact of the incident on the people of this community particularly families of the deceased children”, she said.

    The Speaker appealed to the traditional ruler to ensure that boat operators used life jackets, promising that the Waterways Management Authority would ensure safety at the jetties.

    Oba Durosimi appealed to the government to build boarding schools in the community to reduce the risk of children going to school daily on the waterways.

    He also enjoined the government to upgrade the community’s health centre.

    The monarch said. “There are 36 villages adjoining this community and there is need to improve basic infrastructure here to cater for the people of this community and the adjoining villages”.

    Oba Durosimi hailed the Speaker and members of the House for their gesture.

    State Waterways Authority (LASWA) Managing Director Mr. Yinka Marinho said boat operators caught without life jacket would be prosecuted. The agency, he said, had provided life jackets for the use of children and adults on their trips.

    Other members of the entourage are Lanre Ogunyemi, representing Ojo constituency 2; Mosunmola Sangodara, Minority Whip, Surulere constituency 2; and Hakeem Bello, Minority Leader, Amuwo Odofin constituency.

  • Interbank rate doubles as CBN mops up cash

    Interbank rate doubles as CBN mops up cash

    •Naira trades at N240 to dollar

    The interbank lending rate doubled to 10 per cent at the weekend, as the Central Bank of Nigeria (CBN) mopped up cash to curb speculation in the naira, traders said.

    Government  had last week injected N163 billion into the banking system to help cash-strapped states offset a funding crisis. The injection drove interbank rates as low as five per cent on last Thursday, before the apex bank moved in.

    The naira hit fresh lows of N240 against the dollar on the parallel market on Friday, as individuals converted local currency on the black market to dollars, fearing further naira weakness.

    Traders said the CBN sold N179 billion in open market operation (OMO) bills on Thursday to drain liquidity while state-owned oil firm Nigeria National Petroleum Corporation (NNPC) recalled some of its deposit with commercial lenders on Friday.

    Lenders’ balance with the central bank reduced to N201 billion in credit as against a credit balance of N390 billion a week ago, traders said.

    “The system was initially liquid with rates down to four per cent in the week,” one trader told Reuters. The secured open buy back (OBB) rate rose to 10 per cent from four per cent last week, three percentage points lower than the central bank’s lending rate of 13 per cent.

    Overnight placement rose to 10.5 per cent from five per cent last week. Traders said rates could go up next week as liquidity thins out before Wednesday’s bond auction.

  • Too much cash our biggest headache, says Visa chief

    Too much cash our biggest headache, says Visa chief

    Despite calls by stakeholders for consumers to embrace electronic payment under the cash-less banking regime, use of huge cash has continued unabated, Visa Country Manager, Sub-Saharan Africa, Ade Ashaye, has said.

    “There is a lot of cash in Nigeria. I think it’s not just Visa that faces that challenge, it is the entire industry. Everybody is hoping it improves,” he said, adding that the challenge is how to take cash out of the environment and make people embrace electronic payment.

    He said the Point of Sale (PoS) infrastructure in Nigeria marches any other in Africa, and that fundamentally, a large part of it has to do with the cash-less policy. “Under a continuous education, whether it is on how you can utilise your cash, or make budget, requires constant and continuous use of education. Putting infrastructure in place and ensuring that the infrastructure is there for you to use, is also a serious matter,” he stated.

    He urged banks to create products and services that really meet the need of consumers. “When they are able to do that, you will see plenty benefits,” he added.

    Ashaye told The Nation that Visa will continue to support banks in driving financial inclusion, saying “we have to look at how financial institutions are able to utilise all the things that Visa has provided to serve their customers.”

    Ashaye likened it to a phone inventor. “When you build something, the first time you learn something. The second time you build it will be better than the first. That is the same with mobile money. What Visa has leant will enable it know what to do that would add more value and encourage more consumers to use it,” he added.

    The Visa boss said the Central Bank of Nigeria (CBN) has recognised that mobile money needs some adjustments and is working on achieving such demands. “The problem is, if you recognise that it is not working for you, and you don’t make a change. I don’t see that in Nigeria. What I see is a situation where the regulators are working on inter-operability, and where something does not work, they very quickly come back and see how to make changes,” he said.

    He said Visa was the first brand to come with Europay, MasterCard, and Visa (EMV).

    “Security for us has been paramount. The whole industry is moving to interoperable plan. It is the trust in Visa that is also important. Visa was recently announced as the fifth biggest global brand. Visa is recognized in terms trust and reliability,” he said.

    Ashaye said there are global standards in Visa which applies anywhere in the world. “Wherever you are in the world, those standards will be met. Many issuers are getting into what we have done in Nigeria, that is chip and pin. In the United Kingdom, we have people issuing contactless cards which can work without actually being physically dipped into the terminal,” he said.

    He said when a chip and pin card is issued, it will meet the chip and pin card global standard. Also, contactless cards are issued to meet Visa’s contactless card standard because depending on what one chooses to do, the standards are there. “For anybody who meets those standards in Nigeria, it will be the same for anybody that meets those standards in the rest of the world,” he added.

    Ashaye explained that card security depends on what one wants to do. “Where Nigeria leads is that all Nigerian cards are EMV compliant. Security is everybody’s concern. If you are cardholder, and you share your Personal Identification Number, even if your card is EMV compliant, somebody else can take your card and use it if they have your Personal Identification Number (PIN),” he said.

    He said that whereas the issuers, Visa and acquirers can take responsibility to ensure that transactions are secured, cardholders should also ensure they keep your cards and PIN safe.

    On Visa’s partnership with Airtel, he said the aim is to drive financial inclusion and access to finance via debit cards. “If paying with your mobile phone is normal, and your mobile phone is connected to your Visa account, and you have access and capability to do all the things that Visa allows you to do, you should be able to push and bring more people into the formal economic environment,” he said.

    On cybercrime, he said that Nigerian banks are coming in with the best technology but added that technology alone does not prevent crime. “You have to ensure that your consumers understand what they should, or should not do. Fabulous technology that banks are implementing needs to be backed up with basic education,” he said.

  • Korede Bello rewards fans with CASH

    Korede Bello rewards fans with CASH

    MONDAY night was full of excitement as Korede Bello who recently changed his name to the smashing street anthem Godwin, took to twitter to reward fans.

    His fans fondly called #Bellovers were massively engaged on the social platform as the give-away was centered on quiz about his trending music video, Godwin.

    Tagged #GodwinAlerts, the singer asked random questions about his Godwin video and rewarded winners with cash.

    Addressing the success of the quiz via his twitter handle, he said: “This is just my own little way of appreciating you guys and return for the love and support you keep showing me #Bellovers.”

    He has also announced that he would do something similar on Facebook and Instagram.

  • Govt gets wake-up call on N11.6b LNG cash

    The Civil Society Legislative Advocacy Centre (CISLAC) has urged the Federal Government to recover all revenues due to  Nigeria and expedite action on the implementation of recommendations made by the independent Auditors in the Annual Reports of the Nigeria Extractive Industry Transparency Initiative (NEITI) in the past 10 years.

    In a letter signed by the non-governmental organisation’s (NGO’s) Executive Director,  Auwal Ibrahim Musa, the centre noted the reminder credited to the NEITI Secretariat which alleged that about $11.6 billion (N2.32 trillion), outstanding total dividends arising from loans and interest repayments from Federal Government’s investment in Liquefied Natural Gas (LNG), among others, is yet to be remitted into the nation’s coffers. It said the revenue is, therefore, unavailable to finance development.

    Musa said: “CISLAC observes that this figure, if verified, is more than 50 per cent of the total expenditure in the 2015 annual budget. It will also be about 10 per cent more than the allocation for recurrent expenditure, 75 per cent of the provision for capital allocation and about 65 per cent of the fiscal deficit in the annual national budget for the 2015 fiscal year.

    “We reiterate that this state of affairs has resulted because of lack of political will by previous administrations to implement remedial action emanating from recommendations from previous NEITI audit reports, which had been reinforced by the reports of several probe panels and committees.

    We recall that one of the President’s promises during the campaigns was to implement the recommendations from the NEITI reports and believe that the time to start is now. We are aware that lack of political will is what has long hindered the ability of the Inter-ministerial Task Team (IMTT) and the Board of the NEITI to implement these recommendations, block leakages and recover unremitted funds,” he said.

    Musa called on the Federal Government to empower and strengthen the IMTT to effectively carry out its mandate. He added that it might also be necessary to review the NETI Act 2007 to strengthen sanction mechanisms, which are presently weak and probably empower the NEITI Board or some other independent body to enforce more stringent sanctions on erring stakeholders outside of the usually politicized and sluggish Office of the Attorney-General of the Federation.

    “CISLAC is aware of the ability and willingness of the NEITI to provide necessary information to assist the Federal Government in recovering these funds and therefore, there will be no need to invest precious time and resources in setting up of any more superfluous Panels to conduct any fresh probes and investigations, he said.

    He urged the government to expedite action on the recovery of all the monies due to the coffers of the Nigerian people and channel them into people oriented development as a way of ushering in the change that citizens voted for and in fulfilment of campaign promises to the teeming population of highly expectant Nigerians.

    He also urged government to demonstrate the commitment to address the cancer of corruption that has undermined Nigerians’ collective desire for development and good life.

  • Cash shortage stalls Lagos, Port Harcourt airports’ renovation

    •Contractors insist on payment before returning to sites

    lack of fund has stalled the completion of airport renovation projects at the international wings of the Murtala Muhammed Airport, Lagos and the Port Harcourt International Airport , Omagwa,  Rivers State.

    The Permanent Secretary, Ministry of Aviation, Mrs. Binta Bello, said this at the weekend  during  an inspection tour of ongoing projects at the two airports.

    The projects include the Lagos Airport Power Contract, Protocol Lounge and Landscaping as well as Construction of Departure and Arrival Halls at Port Harcourt Airport and others.

    The projects are parts of the remodeling contracts awarded by the President Goodluck Jonathan administration worth several billions of Naira.

    The contractor handling the Lagos Airport Power Project , Messrs Mantrac Nigeria Limited, has vowed not to return to site until the government reimburses the money it so far committed into the contract .

    The firm did not reveal the amount the company is owed and the entire cost of the contract. An official of the company said due to  lack of funds , some generating plants were not operating at the Lagos Airport .

    The firm insisted that until the fund it put into the contract was reimbursed, it would not return to site.

    At the new Protocol Lounge at the Lagos Airport,  where about 80 per cent of work had been completed, the permanent secretary was told that the contractor was also being owed, a situation which led to suspension of work .

    The officials of the contracting firm did not disclose the cost of the contract and how much the firm is owed.

    Besides, the permanent secretary was  informed that the contractor had suspended work until further payment is made.

    At  Port Harcourt International Airport , the contractor handling the construction of the departure and arrival halls, Messrs Inter Bau Construction Ltd, said work on phase 1 (departure) was between 80-90 per cent completion while work on phase 2 (arrival) “is almost nil.”

    The company’s chairman, Sir Nath Okechukwu, said in an interview that the second phase of the project was awarded at the cost of N1.7 billion, adding that the last time he received payment for the work was in 2013.

    “In phase 1, we have done about 80-90 per cent and phase 2 is almost nil. In phase 1, our money got exhausted. We don’t have money and we have to suspend work.

    “In phase 2, the total sum then was N1.7 billion. But it has gone up, though we don’t know how much we are coming up with.

    “We hope very soon they will make some payments so that we may go back to work. The owner of the project has just finished inspection. When she gets back to Abuja, then we will know what she is coming up with,” he said.

    He assured that “if money is made available, we will deliver the project(s) before the current administration marks its first 100 days in office.”

    But the permanent secretary said her mission was to see the projects to know the stages of completion in relation to money spent on them so far.

    On funding for the projects inspected, Mrs. Bello assured: “We will look at it and as soon as money is available, the contractors will be mobilised to site.”

    On the new terminals at the airports and the level of completion, Bello said: “Work is progressing very well. I am actually happy with what I have seen. I have seen the determination to improve infrastructure at the airports and we are taking what we have seen back to Abuja. I’ve been told they had some challenges during the take-off of the projects.

    “They have overcome most of them and they are working very hard to close the gaps created by man-hours lost. I am satisfied with the work done so far. If they didn’t have initial challenges, they would have gone further than where they are,” she said.

     

  • Agric Bank rolls out Green Cash Card

    Agric Bank rolls out Green Cash Card

    To make life more meaningful, enable access to its facilities by clients and rural farmers, the Bank of Agriculture(BOA) has introduced a Green Cash Card that will give farmers wherever they are access to its facilities.

    Disclosing this to The Nation in an exclusive chat at the bank’s corporate headquarters in Kaduna, the Executive Director, Wholesale Finance, Alhaji Ahmadu Haruna Waziri, said the Green Cash will  key into the cashless policy whereby any of the bank’s clients can transact businesses with minimal cash flow.

    According to him, it is e-banking system whereby all the clients can do their business with the bank in a fast and secured way within a twinkle of an eye “You can use your mobile phone to transact all your businesses. You can also use internet transaction in addition to other e-banking businesses. It is a platform for us to provide our client a viable service at the remotest village you can get mobile telephone. People who are dealing in little flow of cash can easily be reached.”

    Waziri pointed out that “This Green Cash will allow them to access their fund in any part of the country even at the remotest village. We have sent marketers to the field to sensitise the people on the need to key into this concept. Now, we are at the process of recruiting agents that will serve as intermediary between the bank and the farmers. The agents will act as outlet to the services of the bank.”

    He explained that each agent will act like a branch and any customer can visit the agent either to deposit cash or withdraw cash without going to the banking hall. “We have different level of agents and the amount they can deal with. Each branch of the bank will coordinate all the activities of the agents”

    The renowned agribusiness expert said  the first recruitment of the agents will be between one and two per each of the 774 local governments and will be saddled with the responsibility of transacting business with the bank clients without going to ATM stands.

    “The idea is that cash can be transfered to our customers through their phone number. The handling of the physical cash will be minimal. Outside the eco system, all other transactions can be done on the phone. The agent will be categorized into silver, bronze and gold the amount they are handling will determine their category.

    Waziri also stated that the bank is embarking on enlightenment campaign at the grassroots to sensitise  the people on the advantage of the Green e-wallet, adding that when the system is fully operational, it will ease the tension of carrying cash all about for businesses.

    “We are backing it with the type of technology they already know like POS, ATM system etc. You can approach the agent and demand for your balance free of charge as long as you are in the Green Card system, he will oblige. It will also provide other services like buying of air time, utility bills etc”

  • Local debt yield up on new cash reserves rule

    Local debt yield up on new cash reserves rule

    Nigeria’s bonds yields rose slightly yesterday after Central Bank of Nigeria (CBN’s) harmonisation of the Cash Reserves Requirement (CRR) on public and private sector deposits triggered a sell-off by some investors.

    At it’s rate-setting meeting on Tuesday, the (CRR), the amount the CBN requires banks to set aside, was revised to 31 per cent for both public and private sector deposits. Previously the CRR on private sector deposits was 20 per cent and 75 per cent for public sector deposits.

    Some banks that held more of the private sector deposits in CRR would be required to make an additional provision of 11 per cent due by today, triggering the selling down of their investment in bonds to raise additional money.

    “Some banks that have their deposits skewed to private sector are selling down their bond holdings in order to make provision for the increase in the CRR on the deposit, driving up yields at the market,” one dealer said.

    The yield on the benchmark bond maturing in 2024 inched up to 13.63 per cent from 13.60 per cent the previous day, while that on the 2022 paper rose to 13.59 per cent from 13.51 per cent. Interest rates on short borrowing among banks eased, following the injection of portion of the budgetary allocations to states and local government in the banking system.

    “Market liquidity increased to around N235 billion ($1 billion) on from deficit level the previous day,” a currency dealer said.

    Secured Open Buy Back (OBB) eased to seven per cent, while overnight placement fell to 8 percent from 15 per cent the previous day, traders said.

  • Pension cash changes come into force

    The shake-up is one of the coalition government’s biggest reforms, allowing people who have saved for a pension to do what they want with their money.

    It means people who are retiring no longer have to buy an annuity to provide a fixed, regular income.

    The changes were announced by Chancellor George Osborne in his March 2014 Budget.

    Until now those who were retiring could cash in up to 25 per cent of their pension pot as a tax-free lump sum.

    They then had two options: reinvest their pension pot – or keep their current investments – and take an income from their funds as they needed. The second option open to them was to take out an annuity, which provided a fixed, regular income in their retirement.

    The changes that have now come into force mean those due to retire now can do whatever they like with 100% of their pension pot, for example invest in property, although crucially they will still only receive the first 25% tax free.

    The reforms have been welcomed in principle, but pensions experts have raised concerns about how they will operate in practice.

    Many pension companies have said they are not yet ready to allow people to cash in their pensions because it brings extra costs to schemes as well as risk.

    More than half of workplace pension schemes are still undecided about whether to offer access to the new freedoms, and 15% say they definitely will not, according to pension consultants Xafinity.