The Nation Newspaper

Tag: exceptional

  • Ibrahim: Appreciating an exceptional public servant

    The letter notifying the Nigerian Deposit Insurance Corporation (NDIC) boss, Mallam Umaru Ibrahim, of his selection by the board of BusinessDay Media Limited for recognition at its annual Nigerian banking industry’s recognition award said it all: “The recognition awards are for exceptional public officials who are involved in the day-to-day regulation and management of the Nigeria’s financial industry. The award committee based its decision to consider you for the award due to the safety of customers’ deposits in the last few years as a result of your rigorous oversight functions.”

    Depositors’ protection is the watchword here. And by all account, those words form the slogan of the NDIC. The Nigeria Deposit Insurance Corporation (NDIC) established by Act No. 16 of 2006 is a risk minimizer with the broad mandate of deposit guarantee, bank supervision, distress resolution and bank liquidation.

    The award could not have come at a better time than now, when all hands are on deck to salvage the country from a major financial crisis. The harsh economic weather in the country has made Nigerians more conscious of the safety of their deposits. That’s why the recent news of some sudden change of management at the Skye Bank Plc elicited some form of panic withdrawals among depositors. It took a lot of campaigns by Central

    Bank of Nigeria (CBN) to calm the frayed nerves of depositors.

    Deposit insurance is a measure implemented in many countries, including Nigeria to protect bank depositors, in full or in part, from losses in the event of failure of a bank. Deposit Insurance System (DIS) is one component of the three components of the financial safety net to promote financial system stability. DIS as an integral part of the global stability framework, plays significant roles during depression and other forms of financial crisis.

    A lack of investor confidence results in the reduction in the value of stocks while a lack of consumer confidence results in a reduction in the flow money within the economy which means businesses see reduced profits. Such scenarios resulted in the Wall Street crash of 1929 and the eventual Great Depression. As a consequence, the United States, the epicentre of the Great Depression, under the leadership of Franklin D. Roosevelt, created the Federal Deposit Insurance Corporation (FDIC) in 1933.

    The liberalization of the Nigerian banking Industry in the 80’s necessitated the establishment of a body that will among other things engender confidence in the system. Nigeria Deposit Insurance Corporation (NDIC) was established in 1988 following the promulgation of the Nigeria Deposit Insurance Corporation Decree No 22 of 1988 which has since been amended and re-enacted as the Nigeria Deposit Insurance Corporation Act No 16 of 2006. The NDIC was established to administer the Deposit Insurance Scheme [DIS] by providing financial guarantee to depositors in the event of failure of deposit taking financial institutions by reimbursing funds up to a certain maximum limit as provided by law.

    Countries have a choice between adopting a flat-rate premium system or a premium system that is differentiated on the basis of individual-bank risk profiles. The primary advantage of a flat-rate premium system is the relative ease with which assessments can be calculated and administered.

    However, in a flat-rate system, low-risk banks effectively pay for part of the deposit insurance benefit received by high-risk banks. However, because flat-rate premiums do not reflect the level of risk that a bank poses to the deposit insurance system, banks can increase the risk profile of their portfolios without incurring additional deposit insurance costs. As a result, flat-rate premiums may be perceived as encouraging excessive risk taking by some banks, unless there is a mechanism to impose financial sanctions or penalties.

    Risk-adjusted differential premium systems can mitigate such criticisms and may encourage more prudent risk-management practices at member banks. What does Deposit Insurance Institutions pay depositors when a bank bursts? This is country and economy dependent.

    In the United Kingdom, all savers have the first £85,000 of cash protected in the event of their bank or building society going bust from January 1, 2011. However, just before the Brexit, this was reviewed down by EU to £75,000 – but not without vehement protests. The limit is applied ‘per individual, per bank’. That means joint account customers can get up to £170,000 refunded if their bank fails.

    In Ukraine, an economy in transition, the amount is UAH 1200. The coverage amount could be increased by the decision of the Administrative Board of the Fund, depending on market trends according to the Law on Deposit Guarantee Fund, which took effect on October 24, 2001. There was a review of the Law in 2012, but the amount remains.

    The NDIC-insured limit, until recently, was a maximum of N500,000 for each depositor in respect of deposits held in each insured deposit money bank (DMB) and N200,000 for each depositor in Microfinance Bank (MFB) and Primary Mortgage Bank (PMB) in same right and capacity. This remains the case except with regards to the PMBs for which there was an upward review last two months from N200,000 to N500,000 per depositor and the extension of differential premium assessment system (DPAS) to the PMBs. The approval for the upward review was granted by Minister of Finance on August 4.

    It is part of its statutory functions as a deposit insurer as specified in Section 20 (2) of the NDIC Act 2006, which empowers the NDIC’s Board to periodically review the maximum deposit insurance coverage (MDIC) for licensed banks and other deposit taking financial institutions in accordance with changes in deposit structure, income levels and in line with global best practices. The MDIC review is carried out through studies and surveys and is aimed at ascertaining the adequacy or otherwise of the deposit insurance coverage level for insured institutions in Nigeria. The outcome of the most recent survey conducted in August, 2015 revealed the compelling need for the upward review of the current MDIC for the PMBs from N200,000 to N500,000 per depositor. The survey also revealed that the MDIC increase would cover 99% of depositors of the PMBs in Nigeria.

    The adoption of DPAS in assessing the annual premium payable by PMBs will promote better risk management in the banks in line with international best practices. Presently, over 120 countries across the globe have adopted DPAS as an objective method of insurance premium pricing.

    This is but just one example that NDIC under the leadership of Mallam Umaru Ibrahim has been alive to its mandate. No wonder BusinessDay Media Limited, the publishers of BusinessDay, West Africa’s premier business newspaper, selected him among many existing regulatory institutions for recognition during its 2016 Nigerian banking industry’s recognition award.

    Mallam Ibrahim was recently reappointed for another five –year term as MD/CEO of NDIC. He is a long-standing member of the NDIC family, having been with the institution from its beginning and rising through the ranks to the pinnacle of its management position. Ibrahim joined the Nigeria Deposit Insurance Corporation in May, 1989 as a Deputy Director and a Departmental Head in charge of Financial and Technical Support, one of the key operational departments of the corporation then. In 1991, he became a full Director in charge of the administration department. Between 1992 and 2007, he headed several other departments amongst which were the Human Resource and Corporate Development Departments.

    Since assuming office as MD/CEO of the NDIC in 2010, Malam Ibrahim has repositioned the corporation for improved performance through enhanced capacity building, focusing mainly on risk-based supervision (RBS), compliance with International Financial Reporting Standards (IFRS), Enterprise Risk Management (ERM) and the improvement of the corporation’s internal systems and processes which include the automation of ERM processes, automation of performance management system and enhancement of Financial Liquidation Management System (e-FILMS) to make it web-enabled and facilitate depositor reimbursement process, amongst others.

    The achievements of Mallam Ibrahim in the wider financial industry in the last six years are conspicuous. Five years ago NDIC saved 3.7 million depositors from their distressed banks through the bridge bank failure resolution mechanism that became a celebrated case study in the global community. Depositors now look up to the NDIC to offer relief to them when their funds are threatened or trapped in failed or ailing financial institutions. The bridge banking option placed priority on the interests of the banking public, especially the depositors. It prevented outright liquidation, which would have had systemic consequences on the financial system and undermined or eroded public confidence in the banking system.

    The recognition of high performing individuals, as in the case of Ibrahim, will go a long way in boosting the morale of chief executives to achieve more— especially now that the only way out for the country is for its talented lots to excel in whatever they do to get the country out of the woods.

     

    • Owolabi, a financial analyst contributed this piece from Abuja.

  • The ‘exceptional’ columnist

    A simple but profound Igbo adage has a queer manner of relating the saying: “Enough is Enough.” It says it to the effect that when a matter or an occurrence gets too overwhelming or sinister, we must point at it. It is not clear from the expression what the motive of our elders was in pointing at the matter. Could it be to draw attention to it; to repudiate it or perhaps to cast a spell on it? Whatever the case may be, the very act of pointing at something ominous and foreboding is in itself an enactment of valour.

    Hardball is therefore of the opinion that time has come to point to the weekly column of a certain Femi Aribisala published in Vanguard  every Tuesday. Yes, he has indeed made a reputation for himself as a controversial columnist who seems to love to hold extreme views.

    In fact his views rub against the grain so much they hurt like the sharp cut of the razor. Sometimes some wonder whether Mr. Aribisala truly means what he writes or he is just kidding. His support for the former President Goodluck Jonathan would make a case study in the art of intellectual endorsement for a candidate in a major election.

    Of course, he is entitled to his views and standpoints. One can even grant a columnist some spell of propaganda especially of the subtle and intellectualised type. They are his prerogative so long as they are within the bounds of decency and journalism ethos.

    But Hardball posits that Mr. Aribisala’s views are designed perhaps to damage the mind. His thoughts are often obdurate and at variance with edifying national sentiment.

    His last piece (Vanguard, Tuesday, December 15, 2015) comes particularly insensitive and raises a lot of questions in the minds of compatriots of goodwill. Titled: “Goodluck Jonathan was an exceptional president”, it is an extension of some of the electioneering sing-songs he rendered early in the year. Now that the elections have been won and lost, it would be expected that all sword would be sheathed and we all return to making the best of our mother land.

    In the face of the current revelation of large scale pillaging of the treasury during the administration of President Jonathan, one would expect all compatriots to work in tandem to see that our looted treasure is restored. But not Mr Aribisala; hear him: “Thanks to Jonathan, agriculture now accounts for 22 per cent of Nigeria’s GDP, more than oil and gas which only account for 15.9 per cent. Under Jonathan, Nigeria recorded more than 50 per cent reduction in food imports… With the innovation of dry season farming, Nigeria reached 60 per cent self-sufficiency in rice production…? Where is the rice, where is the food?

    He says the ongoing investigation of public officials is a witch hunt of the Peoples Democratic Party (PDP) but what is his take on the billions of dollars being revealed? Is Mr. Aribisala not troubled that so much money was removed in cash from our apex bank? As an Oxford alumnus, which other country has he heard that $2 billion cash is taken from the apex bank? Would he rather this grand thievery is not probed?

    Where is the public consciousness of an intellectual- columnist that Aribisala supposedly is. He is indeed an exceptional columnist!

  • Nissan Teana: exceptional, exquisite

    The new Nissan Teana, unlike its predecessor, is unique. Its features are: bold and sophisticated appearance, bumper, projector type headlights and a duck tail spoiler at the back, writes TAJUDEEN ADEBANJO

    Fresh from a total makeover last year, the Nissan Altima, known as Teana, has opted out of the mid-sized sedan segment to provide customers with premium experiences and high technologies for this year’s model.

    Nissan says it is enhancing the Teana’s package with better value proposition to keep it fresh against increasing competent rivals.

    Teana’s innovations are designed to reposition the car ahead of competitions from Toyota Camry that underwent full model change recently, just as the Honda Accord, Mazda 6 and the imperious Volkswagen Passat did.

    The Teana, according to Nissan, in spite of the new twist, is affordably priced than its rival and ultimately a game changer in the increasingly competitive entry D-segment.

    “We are simply re-emphasising leadership in the D-segment not only by enhancing class-above premium and thought-provoking technologies, but by introducing class-leading driving pleasures,” the company said.

    Some of Teana’s distinctive features are to be found in the customised 3D meter, HMI voice communication and full mobile connectivity, the complete set of around video monitor and intelligent transport system.

    The 2014 Teana, unlike its predecessor, comes equipped with a darkened grille slats at the front end, which gives the car a bold and sophisticated appearance with seamless bumper and projector type headlights, and a duck tail spoiler at the back.

    This is in addition to a longer sloping rear roofline and raised trunk that creates a more fluidic silhouette supported by a sloped A-pillar angle, and a raised waist-line that gives a lower coefficient aerodynamic drag.

    And down the flanks, there are additional details such as sculpted side, sill covers running beneath the doors and blind spot warning (BSW) radar system that warns drivers, using LED lights mounted inside the base of the side mirror.

    Nissan also stressed Teana maximum efficiency for its conventional version that constitutes the lightest in this group.

    According to the automaker, the class-exclusive use of a continuously variable transmission (CVT) is to achieve an impressive 76km per gallon on the Environmental Protection Agency (EPA) highway driving cycle for the 4-cylinder model.

    Auto lovers obsessed with performance are to opt for a potent V6; a rare feature in the family sedan category.

    Although previous incarnations of the Teana 2.5L featured beige interior with wood trim that gave it two-tone elegance and luxurious ambience. The version is a lot more improvement with cabin–black leather seats and dashboard that give a premium feel.

    A change of colour does not, however, take away the fact that the cabin is spacious with copious amounts of head and legroom even though the Teana still comes with a wheelbase of 2,775mm.

    Amit Sharma, Head – Sales and Marketing, Stallion NMN, Nissan national sales distributors, said the Teana is undoubtedly exceptional and comfortable for long drives. And when stuck in traffic through the usually crawling pace, he said, it definitely offers a less fatiguing experience.

    Sharma described Teana as Nissan’s solution to the market customers needs, adding that the car shows top-level fuel economy and acceleration supported by the CVT with wide gear ratio and less friction and a thicker torque engine.

    The Teana, though achieves dynamic driving with the support of newly structured Rear Multi–Link active under-steering control and refinement in body rigidity and braking system, its highpoint is the car’s creamy–smooth engine options of 2.5SV, 2.5Sl or 3.5SL that lets out a pleasantly distinctive rumble when revved.

    The 2.5-litre EFI (electronic fuel injection) QR25 petrol engine, for instance, has six in-line cylinders fitted with 24 valves and a DOHC (dual overhead camshaft) with the ability to displace close to 2,496cc with a pounding toque yield of 244Nm, 180ft-ib at 4000rpm with an incredible 135.7kw and 182bhp @ 6000rpm, a remarkable design for Nigerian roads and traffic conditions.

    In addition, Teana’s VQ35 (3.5SL) engine, which is currently the only engine in the world that has been awarded world’s 10 Best Engines for 17 consecutive years since 1995, churns out 135.7kw, 340.31Nm and 270bhp at 6400rpm.

    Sharma said beyond Teana’s remarkable engine configuration, “its suspension absorbs the shocks from bumps and potholes smoothly just as its dual climate control air conditioning keeps occupants pleasurable on the cozy leather seats.”

    The car is nevertheless, reassuring on safety especially when viewed against the overall crash testing and side crash test, which recently earned the car a plush credit in safety.

  • Anichebe ‘exceptional’ says Moyes

    Anichebe ‘exceptional’ says Moyes

    Everton manager David Moyes has showered praise on his Nigeria forward Victor Anichebe, describing his display at Swansea as “exceptional”.

    Anichebe, who came off bench last weekend to help Everton recorded a 2-2 draw against Newcastle United, scored the opening goal as they ended Swansea’s unbeaten home record courtesy of a 3-0 bashing of the Swans on Saturday.

    “We’ve been telling Victor Anichebe for years he is capable, he needs to have a little bit more self-confidence and self-belief. He is getting some goals and if he starts believing in himself, he will score more, he could have maybe had two or three today,” Moyes told BBC Sport.

    “He is doing a good job, he’s a good player and if he concentrates, he’s got a good future.”

    Moyes said he is delighted the big Nigeria striker has always delivered when called upon.

    “What you need when players do go out are players to step in and do the job and Victor Anichebe stepped in and if you keep playing like that then you’re a threat in every game,” the Everton manager remarked.

    “The supporters will soon get behind him if his performances continue to be like that.”