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Tag: Emefiele

  • Nigeria gets $67b direct investments in four years, says Emefiele

    Nigeria gets $67b direct investments in four years, says Emefiele

    Central Bank of Nigeria (CBN) Governor Godwin  Emefiele has said the Federal Government  received foreign direct investments worth $67 billion in four years ending 2013.

    The apex bank boss, who spoke at the weekend, said Nigeria’s foreign exchange reserves, which stand at $39.5 billion, can withstand nine months import cover, against three months regarded as norms internationally.

    He spoke at the 2014 chartered Institute of Bankers of Nigeria (CIBN) Investiture. The apex bank boss said the regulator would take steps that will make Nigeria withstand the oil price shocks ravaging world economies.

    Emefiele, who was conferred with the Honorary Fellowship of the CIBN said the apex bank’s microeconomic reforms led to increased foreign direct investments.

    The CBN boss, who spoke on the theme: “Making Nigeria a major destination for foreign direct investment”, said the CBN is also creating policies that create macro-economic stability and growth, adding that price stability will remain a Monetary Policy Committee (MPC) role in short and medium term.

    He said despite pressures of speculative behaviours in the forex market, the CBN would continue to intervene where necessary to stabilise the naira.

    “We will maintain healthy external reserves position. We expect the naira to remain strong going forward,” he said.

    Emefiele said that the CBN would have zero tolerance for policies that undermine financial sector stability.

    He advised bankers to be honest and exhibit highest level of ethics in the course of their duties. “ We want sound corporate governance and professional ethics,” he said.

    Analyses of the reserves based on data from the CBN showed that reserves were at $39.65 billion on August 25 and $38.4 billion on July 17. The rate of accretions to the reserves has been marginal but consistent since the CBN reviewed the bureau de change (BDC) policy guidelines.

    The reserves were at $37.23 billion on June 25; $37.26 billion on June 26 and $37.31 billion on June 27. The reserves also rose to $37.54 billion on July 1 and continued the upbeat till the current position.

    Further analysis showed that before the upbeat, the reserves had maintained a steady decline after closing last year at $42.85 billion.

    The year-end figure represented a decrease of $0.98 billion or 2.23 per cent against $43.83 billion at end-December 2012. The reserves dropped to $38.79 billion as at March 12. Analysts said the reserves declined as imports of fuel and foods soared.

    But the CBN said the decrease was driven largely by the increased funding of the foreign exchange market in the face of intense pressure on the naira and the need to maintain stability. The CBN said the pressure on external reserves was deemed to be consistent with the seasonal annual payment of dividends to foreign investors.

  • Why banks must curb fraud, by Emefiele

    Why banks must curb fraud, by Emefiele

    Which continent has the highest fraud cases? It is Africa, according to the 2013 Global Fraud Report.

    Central Bank of Nigeria (CBN) Governor Godwin Emefiele, who made this known at the Chief Compliance Officers of Banks in Nigeria (CCOBIN) Conference in Lagos, said the report was a wake-up call for the region’s financial institutions to stem fraud and related incidences.

    According to him, among other regions surveyed, Sub-Saharan Africa scored 77 per cent as the area with the most prevalent fraud problems. For physical assets thefts, it scored 47 per cent; corruption, 30 per cent; regulatory or compliance breaches, 22 per cent; internal financial frauds, 27 per cent and misappropriation of organisational funds, 17 per cent. It also showed that 2.4 per cent of the regions revenues are lost to fraud.

    Represented by Deputy Governor, Operations Adebayo Adelabu, Emefiele said though the need for compliance has imposed additional costs on banks, the right thing must be done to protect the system from local and international fraudsters.

    He advised banks to always comply with regulations as risks of non-compliance is costly, saying: “If they think compliance is costly, let them try non-compliance.”

    Emefiele said while fraud and corruption were international in coverage, their incidence was pronounced in third world countries, including Nigeria because of result of perverse incentives.

    To overcome this challenge, he said financial institutions were required to keep track of transactions involving high risk customers, such as Politically Exposed Persons (PEPs) and Financially Exposed Persons (FEPs).

    He said it was because of these consequences that regulatory bodies, have set up standards and regulations to curb the menace.

    Emefiele said Nigeria has adequate legal and regulatory measures for addressing breaches of the Know Your Customer (KYC), Customer Due Diligence (CDD) and Enhanced Customer Due Diligence (EDD) provisions. “It is the application of these KYC provisions that are meant to reveal illegitimate sources of funds and trigger investigation by relevant stakeholders that matters. Like in many developing countries, compliance has been a major regulatory challenge in Nigeria,” he said.

    In his presentation, founder and Managing Director, DataPro Limited Abimbola Adeseyoju said criminals know that there are compliance procedures, such as KYC. They, therefore, come prepared, hence the need for lenders to go the extra mile in verifying their customers’ identities.

    He said fraudsters either modify their identity slightly, or create a synthetic identity which can be detected through a Link Analysis Solution. This applies advanced analysis to determine the risk level for both the network and every individual associated with the network, he said.

    Examples of attributes that could be shared and linked are Personal Identity Information, Account Information and Transactional Information.

    “Once the entities are linked together, advanced analytics are applied to determine the level of risk and create a risk score. The i2 Notebook used by the Financial Intelligence Unit (FIUs), among others, enables them to search multiple data sources simultaneously, find hidden links and entities and visualise transactions and timelines,” he said.

    Adeseyoju advised financial institutions to pay special attention to all complex, unusually large transactions, or unusual patterns of transactions that have no visible economic or lawful purpose. Continuing, he said the lenders should investigate suspicious transaction and report its findings to the NFIU immediately.

    Deposit Money Banks (DMBs) have in the last three years committed over N2 billion to the KYC, CDD and EDD provisions, The Nation has learnt.

    Management Executive, Obrien Research & Data Management Bright James said so much investment was going into KYC, CDD, EDD, pension statement verification and reference letters for banks’ staff, adding that the lenders were going the extra mile in verifying customers’ details at the commencement of business relationship.

    The verification, he said, became more helpful for banks, especially in handling those seeking credit, or customers that want to borrow.

    “The KYC verification by independent enquiry is good for banks. Bank staff are doing their best in carrying out these roles, but contracting it to consultants has proved to be more reliable for banks,” he said.

  • Emefiele emerges ECOWAS Central Banks Governors’ chair

    Emefiele emerges ECOWAS Central Banks Governors’ chair

    The Governor of the Central Bank of Nigeria (CBN) , Godwin Emefiele has been elected chairman of Committee of Central Bank Governors of the ECOWAS sub-region.

    Emefiele, who was elected by fellow central bank governors from ECOWAS countries at the 31st meeting of the Committee of Governors of the West African Monetary Zone (WAMZ) in Abuja yesterday,  hinted that the January 1, 2015 date for the commencement of the sub-regions monetary union may not be feasible.

    He lamented that “over the years, appraisals have continued to show that the level of macroeconomic convergence in the Zone has remained inadequate relative to the set targets.”

    He said since 2009, no two countries satisfied all the four primary convergence criteria consistently for two consecutive years.  “Accordingly, we have missed several launch dates for the monetary union,” he said.

    This development he said “may have informed the decision of the Heads of State and Governments to approve the Modified Gradualist Approach to monetary integration by 2020.”

    He noted that the performance of Member States’ on the convergence scale, relative to that required for the establishment of a monetary union was still inadequate.

    Also member countries’ business cycle synchronisation in terms of real GDP, inflation, broad money and interest rates remained weak, and their level of institutional preparedness for the monetary union remain inadequate, he added.

    He then urged other central bank governors, “to objectively examine the numerous challenges before us, assess the state of preparedness of member states for monetary integration at short notice, and realistically appraise the directive of the Heads of States and Governments for a Modified Gradualist Approach to monetary Integration by 2020.”

    He said their role “is to honestly appraise this directive and design strategies to ensure a sustainable monetary union in the zone.”

    In doing this, Emefiele urged other ECOWAS countries, “to think outside the box, realistically assessing and providing innovative options as well as the costs and benefits of implementing the Modified Gradualist Approach.”

    He however said that member countries “have continued to make remarkable progress towards the establishment of a common market and the implementation of the ECOWAS Trade Integration Protocols and Convention as well as significant progress towards the reforms of their financial systems.”

  • Fayemi, Emefiele for integrity award

    EKITI State Governor, Dr Kayode Fayemi and the new Central Bank of Nigeria Governor, Mr. Godwin Emefiele, will receive the 2014 prestigious integrity awards of the Nigerian Association of Christian Journalists (NACJ).

    The award is an annual event designed to specially recognise Nigerians who have demonstrated high sense of integrity in their respective official capacities.

    A statement by the Secretary General of NACJ, Charles Okpai, said the recipients were painstakingly nominated and voted for by the public in a transparent process.

    According to him, they become automatic ambassadors of the association as well as symbols of integrity.

    The 2014 edition of the awards, he stated, holds on June 12 at the Sheraton Hotels, Ikeja Lagos.

    Lt General Theophilus Danjuma(Rtd.) will chair the occasion while Lagos lawyer, Femi Falana, will deliver the keynote address with the theme: Integrity in leadership: A panacea to peace, economic growth and sustainability.

    Professor Jerry Gana will be the special guest of honour while Rivers State Police Commissioner, Tunde Ogunsakin, will be the presenter of the most prestigious integrity man of the year award to the winner.

  • CBN to pursue gradual reduction of interest rates – Emefiele

    CBN to pursue gradual reduction of interest rates – Emefiele

    The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, on Thursday assured Nigerians that the apex bank would focus on gradual reduction of interest rates under his leadership.

    Emefiele gave the assurance at a news conference to outline his policy focus as the new CBN Governor in Abuja.

    The News Agency of Nigeria (NAN) reports that Emefiele who assumed office on Tuesday is the 11th CBN Governor.

    He replaced Sanusi Lamido Sanusi, who was suspended by President Goodluck Jonathan before the expiration of his tenure.

    “We shall pursue a gradual reduction in interest rates.

    “A comparison of selected macro-economic aggregates from some emerging market countries, including South Africa, Brazil, India, China, Turkey and Malaysia indicate that Nigeria has one of the highest Treasury Bill rates.

    “Such high rates creates preserved incentives for commercial banks to simply buy virtually risk-free government bonds rather than lend to real sector,’’ he said .

    He said that to enhance financial access and reduce the cost of borrowing credit, there was the need to pursue policies targeted at making Nigeria’s Treasury Bill rate more comparative to other emerging markets.

    Emefiele said that while reduction in both deposit rates would encourage investment attitude in savers, a reduction in lending rates would make credit cheaper for potential investors.

    “The bank will also begin to include unemployment rates as one of the key variables considered for its monetary policy decisions.

    “In the interim, we will continue to maintain a monetary policy stance, reflecting the liquidity conditions in the economy as well as the potential fiscal expansion in the run-up to the 2015 general elections,’’ he said.

    On the exchange rate policy, he said the key goal would be to maintain exchange rate stability in view of the high import dependent nature of the economy and the significant exchange rate it passed through in recent years.

    According to him, a systematic depreciation of the Naira would literarily translate to considerable inflationary pressure with attendant effect on macro-economic stability.

    “Therefore, under my leadership, the bank will continue to focus on maintaining exchange rate stability and preserve the value of the domestic currency.

    “We will sustain the managed float regime in the management of the exchange rate as this will allow the bank to intervene when necessary to offset pressure on the exchange rate.

    “To support this strategy, we will strive to build-up and maintain a healthy external reserve position and ensure external balance,’’ Emefiele said.

     

  • Jonathan, Emefiele meet

    Jonathan, Emefiele meet

    President Goodluck Jonathan yesterday met behind closed doors with the new Governor of the Central Bank of Nigeria (CBN), Godwin Emifele at the Presidential Villa.

    Emifele’s visit yesterday was the first since he resumed duty as the chief executive of the country’s apex bank.

    He however declined to speak with State House correspondents at the end of the meeting that lasted for about one hour.

    It was gathered that his visit was to discuss with the President his new agenda for the economy and the banking sector, which he plans to unveil today.

  • Jonathan meets new CBN chief

    President Goodluck Jonathan on Wednesday met behind closed doors with the new Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele at the Presidential Villa.

    The visit was Emefiele’s first since he resumed duty as the chief executive of the country’s apex bank.

    He, however, declined to speak with State House correspondents at the end of the meeting that lasted for about one hour.

    It was gathered that his visit was to discuss with the President his new agenda for the economy and the banking sector, which he plans to unveil Thursday.

  • Senate screens Emefiele, Bulkachuwa Wednesday

    The Senate Tuesday shifted the screening and confirmation of President Goodluck Jonathan’s nomination for the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele and President of the Court of Appeal, Honourable Justice Zainab A. Bulkachuwa to Wednesday.

    Although, Tuesday was earlier slated for the screening, sources said the screening had to be moved till Wednesday to allow for live transmission of the exercise.

    Senate Leader, Victor Ndoma-Egba had moved a motion that Emefiele’s and Bulkachuwa’s confirmation be committed to the Committee of the whole for further legislative work.

    Senate President David Mark announced that the screening and confirmation of the two nominations would be carried out Wednesday following the approval of the motion by lawmakers through a voice vote.

    The screening and confirmation of the nomination of Mr. Adelabu Adebayo Adekola for appointment as Deputy Governor of the CBN, was however committed to the Senate Committee on Banking, Insurance and other Financial Institutions for further legislative work.

    Chairman Senate Committee on Media, Information and Public Affairs, Senator Enyinnaya Abaribe confirmed that the screening of the two nominees would be transmitted live.

    Abaribe who spoke at a press briefing said the live transmission would afford Nigerians the opportunity to witness how the two nominees who are vital to the dispensation of justice and the nation’s economy would be screened.

    Abaribe said:  “I want to confirm that Wednesday,  in line with the constitutional provisions and the Senate rules, we will do the screening and confirmation of the President Goodluck Jonathan’s request for two persons: Hon. Justice Zainab Bulkachuwa as President of the Court of Appeal and Mr. Godwin Emefiele as the Governor of the Central Bank of Nigeria.

    “Both events will be aired live on the Nigerian Television Authority. I am very certain that it will give Nigerians the opportunity to witness, firsthand, the screening of the two individuals that are very vital to both the dispensation of justice in Nigeria and management of our economy.”

    On the constitutionality of Emefiele’s screening and confirmation by the Senate when the tenure of the suspended CBN Governor, Mallam Sanusi Lamido Sanusi has not ended, Abaribe said it made good sense to avoid a lacuna.

    He said: “There is nothing unconstitutional in the screening of CBN governorship nominee.

    “Every person that will emerge as the CBN governor must be screened and there is nothing in the Constitution that says that he will be screened only after the end of the tenure of the present incumbent.

    “In fact, good sense means that we should screen somebody and go through all the processes so that on the date that the tenure of the incumbent ends he could handover to his successor.

    “So we should not allow for lacuna in the process and that is why we are taking this process to make sure that there is no gap at all and of course, three months give us enough time for us to go through this process in such a way that whatever Nigerians want as the new CBN governor, they will get it and will resume when the tenure of the current occupant ends.”