The Chartered Institute of Bankers of Nigeria, will assemble top bankers and other selected stakeholders to articulate effective strategies to ensuring the entrenchment of global best practices in the industry.The gathering, which is the Presidential Address of the Institute with the theme: “Banking & Bankers: Looking Back, Looking Ahead” is scheduled to hold on Friday in Lagos and will be addressed by President/Chairman of Council, Segun Aina.The objective of the event, a statement from the bank said, is to reduce incidents of fraud, forgeries, management error and unprofessional practices while enhancing competency among practitioners in the industry. Dr. Aina will use the platform of the epoch event to present to the banking community, an ocasional paper titled: “The Economy of Financial Inclusion in Nigeria: Theory, Practice and Policy”, which he co-authored with Dr. Onafowokan, Oluyombo, Department of Financial Studies, Redeemer’s University.
Tag: CIBN
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CIBN seeks inclusion of entrepreneurship study in tertiary institutions
The Chartered Institute of Bankers of Nigeria (CIBN), over the weekend said that entrepreneurship study in tertiary institutions would leverage the nation’s employment profile.
CIBN Executive Secretary, Dr Uju Ogubunka, told the News Agency of Nigeria (NAN) in Lagos that the economic challenges made it imperative for universities to make entrepreneurship study compulsory for all final year students.
NAN recalls that the Coordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iwala, said recently that about 1.8 million graduates get into the labour market yearly.
According to Ogbunka, conscious effort on the part government to challenge graduates on the available business potential remains a potent vehicle in managing national unemployment rate.
He also suggested an overhaul of the prevailing fiscal policy toward the provision of tax holidays for entrepreneurs.
“Five years tax holidays should be provided as incentives for them.
“The tax holidays will reduce some of the challenges that they have to contend with,” he said.
The other suggestions include waivers for entrepreneurs in the manufacturing sector and the provision of subsidised agricultural and research inputs.
“Young people should take the opportunity of the modern research development made by research institutions, especially in agriculture,” he said.
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CIBN seeks inclusion of entrepreneurship study in tertiary institutions
The Chartered Institute of Bankers of Nigeria (CIBN), on Friday said that entrepreneurship study in tertiary institutions would leverage the nation’s employment profile.
CIBN Executive Secretary, Dr Uju Ogubunka, told the News Agency of Nigeria (NANA) in Lagos that the economic challenges made it imperative for universities to make entrepreneurship study compulsory for all final year students.
NAN recalls that the Coordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iwala, said recently that about 1.8 million graduates get into the labour market yearly.
According to Ogbunka, conscious effort on the part government to challenge graduates on the available business potential remains a potent vehicle in managing national unemployment rate.
He also suggested an overhaul of the prevailing fiscal policy toward the provision of tax holidays for entrepreneurs.
“Five years tax holidays should be provided as incentives for them.
“The tax holidays will reduce some of the challenges that they have to contend with,” he said.
The other suggestions include waivers for entrepreneurs in the manufacturing sector and the provision of subsidised agricultural and research inputs.
“Young people should take the opportunity of the modern research development made by research institutions, especially in agriculture,” he said
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Divergent views trail Nigeria’s increased GDP profile
With the rebasing Nigeria’s Gross Domestic Product (GDP) by the Federal Government, Nigeria is now said to be the biggest economy in Africa and 26th in the world. But experts hold varied views on the implications of a recalculated GDP for the economy and the welfare of the citizenry, reports the News Agency of Nigeria (NAN).
Some financial and maritime stakeholders on Monday expressed divergent views on the 510-billion-dollar (N80.3 trillion) worth of the nation’s Gross Domestic Product (GDP), announced on April 6 by the National Bureau of Statistics (NBS).
The experts in interviews with the News Agency of Nigeria (NAN) in Lagos commended the Federal Government for rebasing the GDP, in line with the nation’s economic growth and its potential. NAN reports that the Federal Ministry of Finance had on April 6 declared Nigeria as the largest economy in Africa, with the new re-based GDP of 510 billion dollars. Dr Uju Ugubunka, Executive Secretary, Chartered Institute of Bankers of Nigeria (CIBN), said the rebasing would enable the government to redesign the nation’s economic policies.
He said that in spite of the infrastructural challenges confronting the country, the current GDP has indicated that “the nation is one of the best investment designations in this part of the world.” Alhaji Rasheed Yussuf, Managing Director, Trust Yield Securities Ltd, Lagos, said that the rebasing would attract more foreign investments to the country. He said that the development would also increase the nation’s window for foreign borrowing. According to him, foreign lenders will be more willing to lend to the country for infrastructural development.
Malam Garba Kurfi, Managing Director, APT Securities and Funds Ltd, Lagos, said that the rebasing would increase the nation’s ranking in the international market. He urged the Federal Government to develop other sectors of the economy, especially agriculture, to boost the economy, adding that there is the need for capital market regulators to intensify strategies aimed at bringing in more companies into the market. Kurfi also noted that the capital market’s contribution of 26 per cent to the GDP was not good enough.
An economist, Mr Victor Ogiemwonyi, Managing Director, Partnership Investment Ltd, Lagos, said that the new GDP data would reflect the actual position of the country’s economy. He lauded the NBS for capturing the informal sector in the new index. NAN reports that GDP rebasing is a normal statistical procedure to ensure that national statistics present the most accurate reflection of an economy. He added that the development would boost the Nigerian financial market because foreign investors would be interested in the nation’s economy. Ogiewonyi said that the new GDP would also make portfolio investors see Nigeria as an investment destination.
The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, said that the development revealed the new structure of the Nigerian economy. He, however, urged Nigerians to be cautious while celebrating because of the weak revenue base of the government. The LCCI boss said that the lower ratio should not be allowed to encourage increased deficit spending or increased borrowing. “The LCCI is in agreement with the Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala’s position that the lower ratio should not be seen as reason to increase borrowing. It is also significant that the rebased GDP has thrown up the very important issue of growing inequality in the Nigerian economy. This underlines the need for urgent steps to reduce poverty and inequality. Due to the new GDP data, it is clear that the economy has the capacity to make this happen,” he added
NAN reports that players in the maritime sector reacted differently to the rebasing of the nation’s GDP. The Rector, Certified Institute of Shipping, Dr Alex Okwashi, urged government to properly analyse the various sectors’ contribution to GDP. He said that while the GDP rebasing was encouraging, the poor capturing of the maritime sector was disheartening. Okwashi said that if the balance of trade was well analysed, it would have been obvious that the contribution of the maritime sector would have been higher. “You must understand that the maritime sector is the highest foreign exchange earner and should be so rated. You cannot convert any resource of any country if you don’t trade with it. If petroleum is seen as huge earner, it is only so because it must be transported to the international market where it will be paid for,” he said.
The Chairman of the Port Consultative Council, Chief Kunle Folarin, also urged government to elaborate more on the benefits of GDP rebasing to the economy and the Nigerian citizenry. He said that the rebasing showed that the nation’s economy was now more diversified. Mr Pius Ujubuonu, Chairman, Shipping Companies and Terminal Operation Committee of Customs Agents, urged government to ensure that the rebasing impact on the lives of Nigerians. Another maritime stakeholder, Mr Fidelis Elijah, Chief Executive Officer, Siaemf International Ltd, Lagos, said that the new GDP should reflect on the health, infrastructure, education and maritime sectors.
Chief Lawrence Uba, member, Igbo Maritime Forum, also called on the government to ensure that the benefits of the new GDP were used to turn around the fortunes of the ports. He said that there had been marginal development at the ports since its concession in 2006. Uba said that measures should be put in place to ensure that the maritime sector contributed maximally to the GDP. Mr Uchu Block, Secretary-General, National Council of Managing Directors of Licensed Customs Agents, urged the government to revive the nation’s unfriendly business environment. He said that the challenging business environment, high inflation rate and port congestion, among others, contradicted the description of the Nigerian economy as the largest in Africa. “They (government) should look at port congestion, which is looming and the high cost of doing business in Nigeria. They should know that investments cannot be encouraged under this kind of conditions,” he said.
Similarly, Nnaemeka Obiareari, Managing Director, Tarux Capital and Advisory Services, Lagos, said the increase had not positively affected the lives of the citizenry. According to him, the average Nigerian still lives below the poverty line. “Majority of our people are still not living a good life and so people are bound to wonder what is in it for the masses. We are tired of government giving us improved economic indicators, without it positively affecting our standards of living,” he added.
A small business owner, Mr Bode Adewale, said that in spite of the figures, entrepreneurs in the country were not making profit. He added that the operational cost of energy had impacted negatively on small scale businesses in the country. “The price of petrol is becoming unbearable, and many entrepreneurs are finding it difficult to contend with it,” he added.
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‘It is a matter of figures’
Chartered Institute of Bankers of Nigeria (CIBN) former President Okechkwu Unegbu said the rebasing should ordinarily make Nigerians proud, but the nature of the economy and standard of living for the common man have made it only a matter of figures.
He said comparing Nigeria with South Africa is not feasible, adding that the later surpasses Nigeria in all ramifications. He said the standard of living in South Africa is higher than in Nigeria, while there is also a higher level of corruption in Nigeria than in South Africa.
The former CIBN boss said Nigeria is ranked 139th out of 176 countries in Transparency International’s 2012 Corruption Perceptions Index, and tied with Azerbaijan, Kenya, Nepal, and Pakistan. This, he added, should give government serious concern rather than rebasing. “Honestly, we should be proud but it’s a matter of figures. There is higher standard of living in South Africa than in Nigeria. I don’t see how the newly rebased GDP can impact on the common man,” Unegbu said.
He said that the other 25 countries before Nigeria have good economy with productive private sector, emphasizing that the quality of service in the telecom sector is still poor, while consumers cannot access credit for household goods, and mortgage financing is almost unavailable in Nigeria. He said government should address social and economic imbalance in the country, adding that the figures are just political gimmicks. This perhaps prompted him to ask: “What are we big figures for? It does not translate to quality of life.”
An economist, Henry Boyo, said although the GDP is bigger, it is unlikely to bring any benefit to the common man. He said: “I am struggling to find the benefits of this government’s action on the common man. It can only help foreign investors to have a better view of the Nigerian economy.” He said the rebasing will attract Foreign Direct Investment (FDI), but government should also ensure that other disincentives to FDI like multiple taxation is corrected. “Investment in Nigerian bonds and treasury bills will rise. Foreign investors will see these instruments as more secured,” he said. While nominal GDP, which has its uses, is the sum value of all produced goods and services at current prices, real GDP is more widely used and is slightly different as it’s the sum value of all produced goods and services at constant prices and is useful for showing how the economy changes in size and – with some further manipulation – how average living standards change over time.
Bismark Rewane, an economist and boss of Financial derivatives Company (FDC), explained that GDP is the market value of all final goods and services produced within a country, calculated using product, income and expenditure approaches. The FDC boss said real GDP is one that is adjusted for inflation while nominal GDP is the value of goods and services based on current market prices. He further explained that Gross National Product (GNP) measures the value of goods and services produced by a country’s citizens regardless of their location while Gross National Income (GNI) is GDP plus income receipts minus income payments from the rest of the world.
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‘Why I’m focused on children’
Abiola Akinyeye is a graduate of Mathematics and Statistics, a student member of the Chattered Institute of Bankers (CIBN), a holder of MBA in International Business Management and a banker by profession. Her passion for the piano as a young girl saw her becoming a pianist and an impresario. Akinyeye who is also the brain behind ‘Divine Octaves’ (a soul-inspiring entertainment outfit), spoke with Yetunde Oladeinde about her achievements, challenges as well as her pet projects: merger of Talents and kids got Talent.
WHY and how did you go into projecting talents in children? The journey into projecting talents in children began as a result of my appreciation for the genuine creativity exhibited by kids. It is worth mentioning that most of the talents in children are latent, therefore there is need to help them showcase the hidden talent in them to the world. Children exhibit potentials for creativity and giving them this platform to express the hidden talents would go a long way to grow and groom the talents.
Unlike in the past when a lot of emphasis was placed on white collar jobs, things are different now and young people are discovering themselves and making the megabucks too. Once there is an avenue for such discoveries it would ensure a future with a difference for them.
What is the focus of your organisation?
We are focused on the talent hunt show for children, musical shows and production for children.
What makes yours different from others?
Asides showcasing the talents, we still go the extra mile to help them improve and develop the talent in them. It is better to encourage children and young people to have something that they are passionate about. This way they would not be restless and would have confidence in themselves. Energies would be channelled positively and there would be less time to spend on vices.
Tell us some of the projects you have carried out. What inspired you to do them?
We have carried out nine successful projects, out of which five have been focused on children (Kids got Talent).
We have produced kid’s stars from our shows. A lot of encouragement from parents and kids to see this show every year has been a great source of inspiration. Some of our winners have become brand ambassadors and even won awards. I look forward to the 10th anniversary where all these can be unveiled.
What about your educational and professional background?
I am a mathematician and I work in a bank.
How would you describe working with children and in the bank sector?
Working with children has been awesome. Apart from winning at the Kids Got Talent hunt, they have also performed at subsequent events and they are really doing well. One of them, Akorede Macaulay, last year performed at the first lady’s party and won. He has also won several awards after the show. The winner of the just concluded Kids got Talent is an eight-year-old singer and guitarist boy called Enosaze Omontuemen.
What are some of the challenges experienced?
Even though our world is evolving, some parent still believes that the four walls of the classroom is the only way out. We are using this avenue to let parents know that every child is talented and they should support the talent in these children.
What are the other things that occupy your time?
Majorly, my work.
Who or what would you describe as your greatest influence in life?
My mum has been a very great influence.
Some of your antecedents and plans for the future?
We will be having our Kids got Talent festival in 2014. It is going to be a unique opportunity and we will be celebrating 10 years of growing talents. The festival will also stage a colorful concert for past winners of the Kids got Talent show and there will be a number of other side attractions. Here we want people to see the difference and compare what it was like when they won and the difference and transformation that has taken place.
The next event actually marks our tenth anniversary and we are starting something new which will include those who are not arts-inclined. Even if you are not talented in the arts, we are creating what we call, “Exploring your numeracy IQ”.
If you had to advice children, what would you tell them?
The best thing that can happen to anybody is to discover that which is innate. As children, they should always have it at the back of their mind that they have talents. They should therefore make it a point of duty to exhibit it and not let it die. It is also important to note that no matter how hidden your talent is, it is better to express yourself. From experience, I have come to realise that a lot of young people are discovered during auditioning. They discover some of these potentials and gradually it begins to come out.
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Sanusi cautions banks on oil, gas financing
Banks should consider the environmental impact of their financing and investments, especially when they concern the oil sector, the Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, has said.
Speaking at the Banking and Allied Matters conference for judges, he explained that global environmental impact of businesses which are largely financed by the industry suggests that the sector has not given adequate attention to environmental impact of their funding.
The seminar, which has as theme, Sustainable banking practice in Nigeria: The journey so far and the way forward, was organised by the Chartered Institute of Bankers of Nigeria (CIBN) and the National Judicial Institute (NJI).
Sanusi said the tendency to view banking as an environment-friendly business was common place, adding that on the surface, it seems not to be of harm to the environment and society.
“However, the banking sector has been profiting from financing of environmentally unfriendly sectors. Financing of the energy sector, which is usually the villain on matters of environmental degradation across the world, is a trite example. This sector is perhaps the most capital intensive sector and depends on the financial system to mobilise funds for its highly capital intensive operations,” he said.
Sanusi said statistics abound on how spillage has degraded environment and destroyed farmlands and aquatic life, thereby incapacitating the people economically and perpetuating poverty, adding that there have also been various reports of chemical emissions from our industries resulting in health complications within affected localities with its attendant societal/public cost.
He said until recently, the country’s banking industry had not given much attention to sustainability beyond ticking off environmental impact assessment on checklist for credit risk assessment for evaluation of loan applications, other jurisdictions have for decades been engraving sustainability ethos in their financial system.
He said since the 1980s, banks in the United States had been held directly answerable (under CERCLA-Comprehensive Environmental Response, Compensation and Liability Act) for the negative impact the businesses they financed had on the environment and some of them became bankrupt thereof.
The Europeans followed suit in the mid-90s while the activities of multilateral development institutions, such as the World Bank, International Finance Corporation (IFC), European Bank for Reconstruction and Development, had influenced sustainability considerations in the financial sectors in Asia and South America.
CIBN President, Segun Aina said the seminar had become a significant forum where respected jurists, legal luminaries and other key legal personalities interact with the chieftains of the banking industry.
He said that it helps the stakeholders to discuss contemporary banking and legal issues aimed at improving the Nigerian banking environment and related judicial processes.
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CIBN, CAC urge on financial sector growth
The Chartered Institute of Bankers of Nigeria (CIBN) and the Corporate Affairs Commission (CAC) have charged bankers on the need to deploy their services to enhance the growth of the financial sector.
CIBN President Segun Aina, who spoke at the weekend after the institute issued practice licences and seal to 27 members, said the instruments confer credibility on the receivers, and serve as an indication of dedication, integrity and assurance of high competence. He said the certificates would make practising licensee more attractive to the clients, which would ultimately impact positively on their businesses and income.
He explained that getting the licemce, requires that such applicants would have worked for five years post Associate of the Chartered Institute of Bankers (ACIB) qualification, passed the qualifying professional examinations and fulfilled other procedures set by the agency, adding that the banking industry offers a variety and unique career patterns that provide opportunities, advancements and challenging assignments for practitioners.
“In approving the introduction of the Practice Licence, the Governing Council has taken the initiative to further empower the Licensees to practice what they know best using their cognate experiences. We are confident that they will provide invaluable services to a broad spectrum of individuals and organisations in a professional and ethical manner. I therefore take the liberty of this occasion to call on the public and private sector organisations, as well as individuals to give the licensees the opportunity to be of service to them,” Aina said.
It said the licencing aligns with the CIBN Act No.5 of 2007 which gives the Institute mandate, to among others; determine the standards of knowledge and skill to be attained by persons seeking to become members of the profession. Section 16 of the Act also stipulates that a person other than a corporate member shall be deemed to practice as a member of the banking profession if, he engages himself in the practice of banking, or holds himself out to the public as a member of the banking profession.
Registrar/Chief Executive of CAC, Bello Mahmud, said the corporation has beefed up its Information Technology connections for easier assessment of processing certificate for company’s registration.
Mahmud, who was represented by Aliyu Muhammed, stated that CAC has attained a giant stride of issuing certificates with 24 hours, which is facilitated by the aid of ICT.
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CIBN, UI partner on training
The Chartered Institute of Bankers of Nigeria (CIBN) and the University of Ibadan (UI) have entered into a partnership that will enable holders of the Associate of the Chartered Institute of Bankers (ACIB) professional qualification to undertake master’s degree programmes in the university.
During a visit yesterday by the President of CIBN, Mr. Segun Aina, to the office of the Vice-Chancellor of UI, Prof. Isaac Adewole, the two institutions agreed to sign a Memorandum of Understanding (MoU) as soon as the arrangements were concluded.
Aina, who was accompanied by the state Chairman of CIBN, Mr. Abiola Alli and other executives, said the partnership was aimed at promoting professional banking in Nigeria as well as supporting the growth of the economy.
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CIBN chief harps on professionalism
The Chartered Institute of Bankers of Nigeria (CIBN) has re-emphasised the need for professionalism and acquisition of needed skills by bankers.
Speaking at the induction of 817 new graduates in Lagos, CIBN President/ Chairman of Council, Segun Aina, said banking thrives on professionalism and ethical practices as there are no short cuts.
The inductees comprise 13 persons for Certificate in Banking; 162 new Associates (Chartered Bankers) and 642 Micro-finance certified bankers, who have successfully completed the qualifying examinations of the Institute.
Aina said graduation and inductions are special occasions as they simultaneously signify both an end and a beginning for most bankers.
He said the exercise logically conclude the formal professional examinations process and provide occasions for fulfillment for the students, their families and the Institute. As a beginning, such exercise provides the opportunity for the next and most important stage of practising with distinction, the knowledge and skills acquired through the examination process.
According to him, the exercise marks the transition from bank workers to Chartered Bankers or Certified Bankers as the case may be for the inductees.
He said the banking industry requires every practitioner to constantly add value and credibility to his institution in an ethical manner as well as continuously improve and add value and dignity to oneself.
“A greater level of versatility and intellectualism is required of today’s banking professionals. As your qualification of today is just a beginning; you need to participate in the Compulsory Continuing Professional Development Programmes (CCPD) of the Institute.
The CCPD is provided to ensure that your capabilities keep pace with standards both nationally and globally. You have to stay relevant, up to date and customer-centric in the face of ever changing and competitive banking environment,” he said.
Aina said the competency framework recently rolled-out by the Central Bank of Nigeria and Bankers Committee requires bankers to attain necessary competencies to stay abreast of global developments. Under the Financial Sector Strategy (FSS) 2020, the Institute is pursuing the drawing up the framework for attracting and developing world class talents within the banking industry.