The Nation Newspaper

Tag: lending

  • Banks boost lending despite hard times

    Banks boost lending despite hard times

    An analysis of the 2016 audited financial results of 13 banks, including Stanbic IBTC Bank, has shown that despite low productivity in the manufacturing sector, the lenders recorded about 16.1 percent increase in total credit to the real sector, from the N1.8 trillion in 2015 to N2.1 trillion in 2016. This underscores the pivotal role banks play in the resurgence of the economy, writes COLLINS NWEZE.

    Moses Martins, a Small and Medium Enterprise (SME) operator based in Lagos, was one of thousands of Nigerians that benefited from bank loans to start his business.

    Within the last one year, the entrepreneur has secured a short-term loan worth N12 million to enable him boost his business, that includes sourcing for rubber needed by plastic companies.

    Today, Martins is happy that his lender  had, despite the ongoing recession in the country, continued to support his business by providing him with enough credit to thrive.

    Interestingly, data from 2016 audited financial results of 13 banks, including Stanbic IBTC Bank Plc, showed that the lenders gave loans worth N2.1 trillion to customers within the period, despite the economic recession.

    The funds were advanced to beneficiaries despite low productivity in the manufacturing sector, underscoring the pivotal role banks play in helping the economy to grow.

    “It is gratifying to see that despite the prolonged economic downturn in Nigeria, which reached an all-time-high in 2016, made worse by the hard-hitting recession, Stanbic IBTC Bank Plc, and a few other Nigerian banks, were still able to provide a significant level of funding to drive and sustain growth in the real sector in critical areas like manufacturing, trade and Small and Medium scale Enterprises (SMEs),” Martins said.

    He said that many of the commercial lenders are now retooling their strategies to drive digitisation, increase focus on real sector and diversify their lending.

     

    Real Sector Support Facility (RSSF)

    In January, last year, the CBN introduced a N300billion special intervention fund which was meant to unlock the potential of the real sector to stimulate output, growth, value added productivity and job creation.

    The N300 billion Real Sector Support Facility (RSSF) was geared towards increasing credit to priority sectors of the economy. Five commercial banks, including Stanbic IBTC Holdings Plc, invested about N245.8 billion in the facility.

    Others are Zenith Bank Plc, United Bank Plc, Access Bank and Diamond Bank Plc. The N300 billion was meant to unlock the potential of the real sector to engender output growth, value added productivity and job creation.

    The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, said the RSSF is expected to support large enterprises for start-ups and expansion of financing of up to N10 billion.

    Commercial banks were to contribute five per cent of total naira deposits, and  the facility will be used to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion. Stanbic IBTC contributed N20.8 billion towards the special intervention fund in 2016 and has already signified its intention to sustain its support for the sector.

    It is expected that the trade would be boosted in 2017 as the CBN continues to support the market by pumping in millions of dollars, making the banks better placed to meet the needs of their customers. Already, reports have shown a rise in forex transactions in the last few months, which is a plus for trade.

    According to Emefiele, Nigeria’s trade balance sheet in the last few years points to the need for concerted effort by both the government and the private sector to stimulate trade, local production and export to ease the pressure on foreign exchange demand.

    “Basically, Nigeria is an import-dependent country. Importation requires foreign exchange and given the current forex situation, it is very difficult for the country to provide the required foreign exchange because of declining revenue from oil export due to falling prices. It then becomes very challenging for many import-dependent industries to source much needed raw material and machinery,” he said.

    Financial analyst and Chief Executive Officer, Financial Derivatives Company, Bismark Rewane, expressed optimism that the economy is on the right path to recovery and growth.

    Nigerian private sector activity expanded for a second straight month in February, driven by a rise in new business despite a fall in export sales, a survey showed on Friday.

    The  Stanbic IBTC Nigeria Purchasing Managers’ Index (PMI) rose to 52.2 last month after rising to 51.9 in January, the strongest reading since December 2015. A reading above 50 denotes growth.

    Economists expect the economy to slowly emerge from its ongoing recession this year, buoyed by improved government spending and dollar availability.

    “The faster than anticipated recovery in the economy may not be unrelated to the fact that surveyed respondents continue reporting an expansion of output, perhaps due to increased supply of FX needed for import activity and domestic investment,” said Ayomide Mejabi, Economist at Stanbic IBTC Bank.

    The CBN has increased forex sales on the official market in recent days after effectively devaluing the naira for individuals, offering to sell them dollars at about half the premium charged on the black market.

    Nigeria’s economy suffered its first annual contraction in over two decades last year amid galloping inflation owing to lower oil income and dollar shortage as the country battled a recession.

    Mejabi said output prices continued to rise in February, but the pace was significantly slower and fell to their lowest level since January 2016.

    On Wednesday, Central Bank’s PMI report said private sector activity slowed in February as new orders and production levels fell due to a shortage of hard currency that made it difficult for companies to source raw materials.

    The Stanbic IBTC Markit report said an overall increase in new business led to a rise in purchasing activity as companies added to their inventory at a faster rate, and that growth occurred despite a fall in new export sales.

    On technology, Co-Founder and Director of Programmes, Co-Creation Hub Nigeria, Femi Longe, explained at a forum organised by Stanbic IBTC that opportunities abound around innovation and digital technology for Nigerian businesses.

    Longe, who spoke on ‘Technology and the Nigerian economy,’ said the benefits of technology and innovations are innumerable for the individual, business and economy. The ability to identify new opportunities and develop appropriate business strategies based on the ingenious application of cutting edge technology will make a huge difference, he said. Rather than wait for foreign investment to drive Nigeria’s development, he said the country should explore home-grown solutions to its economic needs.

    In pursuing this objective, Longe said, partnerships between start-ups and businesses are imperative. The expansion of social and economic enablers such as power, roads, communication, ICT, transport, education and health will trigger exponential economic growth and aid the ease of doing business in the country, he added.

     

    Trade finance

    Stanbic IBTC Bank Plc, interestingly, long before the forex squeeze actually kicked in, had the foresight not to focus on importation alone having realised that this was just one aspect of trade. Instead, it gleaned from the experiences of its parent company’s financing trade in over 20 African countries and other developed economies outside of Africa to focus on exports, which generate foreign exchange rather than requiring foreign exchange.

    Presently, the bank is very big on exports and continues to expand that footprint. The bank currently supports SMEs in the production and export of cocoa, sesame seeds, hides and skin, and ginger among others.

    The bank supports quite a number of clients in a wide array of the export sector and that the sector is constantly expanding, which is why the scope of service and support provided by the bank goes beyond financing and advisory services, in line with what the government is trying to do in getting non-oil exports off the ground and moving.

    Stanbic IBTC Bank provides support for manufacturers, big traders and general goods merchants in the markets. Asserting that part of the ways the bank is trying to fix the gaps in the forex situation is coming out with other innovative solutions and engaging with suppliers of its clients to explain the situation here in the country. These engagements has led to very favourable terms for many of the bank’s clients as it strives even further to help structure different dynamics by putting in guarantees on behalf of its clients to help them move some of the trade ahead.

    Realising the peculiarity of the period we are in, which requires creativity in dealing with trade; the bank is using a lot of guarantees where it acts as an intermediary for its clients’; based on its understanding of their businesses and the importance of commerce and trade to driving the economy.

     

    Global experience

    Stanbic IBTC Bank’s connection to Africa’s largest bank by asset, Standard Bank Group, without doubt puts it at a vantage position to support the Federal Government’s effort to diversify the economy and to better cater for the needs of its clients from both a continental and global perspectives.

    Standard Bank Group’s in-depth knowledge and connection to ICBC reinforce the bank’s expertise and experience in trade financing, especially with China’s fast growing fame as one of the biggest trade partners to many African countries, including Nigeria.

    Coincidentally, ICBC, the biggest bank in the world, has 20 per cent stake in Standard Bank; so, by extension, it means that ICBC also has a share in Stanbic IBTC. The implication of this is that Stanbic IBTC Bank by virtue of its heritage and connection can play a major role in improving the ease of trade with China as well as with other developed economies.

    Last year, the Federal Government announced a currency swap deal between the Nigerian Central Bank and ICBC. Although this is yet to reach fruition, if things work out as planned, importation from and exportation to China would be better processed, expedited and seamless. So rather than invoicing in dollar, and then converting to Yuan, invoices can be prepared directly in Yuan or RMB. Eliminating third currency cross as currently obtained, where Nigerian traders use naira to buy dollar and then cross the dollar to Yuan. Traders would be able to just take the naira to buy the Yuan. This is supposed to reduce demand pressure on dollar. However, since the announcements, there has been no further action from the CBN.

    In the meantime, the nation waits patiently to see what the guidelines and modalities would look like. However, if it works out according to plan, it should ease the pressure on the dollar. Presently, 22 percent of imports into Nigeria come from China. If that 22 percent leaves the demand for USD, it should go a long way to ease the dollar crunch and might even affect the exchange rate in the long run. Stanbic IBTC Bank, being a part of ICBC, is uniquely positioned to take advantage of that when it comes fully on-stream.

  • Fed Govt urges BoI to increase lending to agric sector

    Fed Govt urges BoI to increase lending to agric sector

    The Federal Government has called on the Bank of Industry (BOI) to increase its lending rate to the agricultural sector. This is part of its strategies to accelerate the diversification process of the nation’s economic base.

    The Minister of Agriculture and Rural Development, Chief Audu Ogbe, made this call during  a visit by the management team of BoI led by the bank’s Acting Managing Director,  Waheed Olagunju in Abuja. He said there is urgent need to boost productivity along the agricultural value chain, particularly with the attention of the current administration focusing on diversifying the economy away from oil.

    Ogbe said: “There is a lot of disenchantment in the country as a result of the huge level of unemployment. I commend the management of the bank for its zeal in the development of the financial institution.

    “I will like to request your bank to see what you can do to assist us in financing young people in agro processing business. Young people are finding it difficult to access loans. If we want young people to live and achieve their aspiration, we need to do what we can to shift the focus by creating a platform for them to access loan and become entrepreneurs.

    “The degree of frustration and disenchantment among the youth is very high and it’s time we did something to make funding available for businesses. Government would put in place adequate mechanism as well as the needed support to ensure that the loans are repaid by borrowers.

    “To achieve this, the ministry is planning to build an agro-processing park for young people, which will assist in reducing some of their operating costs. We are also trying to move industries to the villages so that people don’t have to migrate into the big cities for  jobs.”

    Responding, Olagunju said the request by the minister was in line with the objective of the bank in reducing the level of poverty and unemployment in the country.

  • IMF approves new access lending framework

    IMF approves new access lending framework

    Director of Communications at the International Monetary Fund (IMF), Gerry Rice, has said the Executive Board has approved an important reform to the Fund’s exceptional access lending framework.

    The framework also includes the removal of the systemic exemption that was introduced in 2010. He said the objective of this reform is to better calibrate IMF lending decisions to members’ debt vulnerabilities, while avoiding unnecessary costs for the members, their creditors, and the overall system. In developing the reform proposals, IMF staff conducted extensive consultations with key stakeholders, including market participants.

    “The reforms are a central component of the IMF’s work on preventing and more efficiently resolving sovereign debt crises. The IMF launched a four-pronged work program on sovereign debt restructuring in 2013. Two of the four components of this work stream have already been completed: on strengthening the contractual framework to address collective action problems (October 2014) and on reforming the IMF’s policy on the non-toleration of arrears to official creditors (December 2015),” he said.

  • First security lending product makes debut in capital market

    More than three years after the establishment of security lending framework and appointment of security lending agents (SLAs), security lending is formally making its operational debut in the Nigerian capital market with the launching of a security lending product by Stanbic IBTC Bank, one of the SLAs.

    Security lending or stock lending simply refers to the lending of securities by a holder of the securities to another market participant for a specified period, usually a short period of time. An SLA acts as agent to security lenders by facilitating the extension of securities as loans to a borrowing retail or institutional investor thereby encouraging fluidness in the trading process on a stock exchange. The borrowing investor will only be required to make collateral available in securities, letter of credit or even cash to benefit from securities lending.

    Chief executive officer, Stanbic IBTC Bank, Mr. Yinka Sanni said the bank introduced the security lending product to help investors derive optimal value for their investments.

    He said the launch of the first security lending product demonstrated the bank’s commitment to help to develop the Nigerian capital market through products and initiatives that could help investors harness investment opportunities that exist in Nigeria.

    According to him, investors need to spread their investment options into different financial derivatives, and in doing this, minimize risks associated with tying investments in particular stocks and securities.

    He noted that diversification into different asset classes reduces risk levels, while offering higher returns.

    He explained that in driving success for the product, Stanbic IBTC Bank would be relying on its extensive product knowledge and expertise; rich technology capability; access to lenders and borrowers to drive utilisation; sound risk management fundamentals and extensive reporting capability.

    ”We are delighted to be introducing the Stanbic IBTC Securities Lending Product into the Nigerian market. The product launch is a further demonstration of our commitment to facilitating stability and growth of the Nigerian capital market, via confidence-building initiatives and leveraging investment opportunities in the market. Other derivatives will be introduced in the future,” Sanni stated.

    Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, assured on the prospects of the Nigerian capital market noting that various initiatives have been introduced to strengthen the capital market, including the derivatives market.

    He described the investment opportunities in the capital market and Nigeria’s economy as huge, pointing out that despite the prevailing challenging operating environment and the attendant indifferent performance of the capital market, characterized by low level investor confidence, there still exists enormous investment opportunities for Nigerians to leverage.

  • Reps to CBN: reduce interest rates on lending

    Reps to CBN: reduce interest rates on lending

    The House of Representatives yesterday urged the Central Bank of Nigeria (CBN) to reduce interest rates on lending to small and Medium enterprises within the nation.

    The Green Chamber also mandated its Hon. Jones Onyereri-headed Committee on Banking and Currency, to liaise with the CBN, so as to arrive “at measures that will reduce lending interest rate to a single digit and report back to the House within four weeks.”

    The resolution was sequel to the passage of a motion sponsored by Hon. Bode Ayorinde and titled: ‘Call for regulatory lending rate charged by commercial banks.”

    Ayorinde, in his argument noted that the 21 licensed banks in Nigeria to serve as financial intermediaries between those who have surplus funds and those who require borrowings for various purposes.

    He said the banks charge astronomical high interest rates ranging from 23 per cent and 28 per cent on lending, against 2 per cent to 3 per cent interest on savings.

    Ayorinde expressed displeasure over the five per cent to 10 per cent monthly interest rate charged by microfinance banks, which he said  translates to 60 per cent and 100 per cent per annum on loans and overdrafts.

    His words: “Commercial banks use the benchmark interest rate otherwise known as the Minimum Rediscount  Rate, as the basis for fixing the lending rates to their customers, while the CBN is accountable to Nigerians for the 13 per cent benchmark interest rate, the licensed banks achieve their super profits by whatever percentage they add to the 13 per cent.”

    He said businesses that are largely dependent on credit, such as SMEs, are adversely affected due to rising production costs which significantly constrain output and growth, adding that consumers have had to pay to higher prices as businesses have lost the capacity to generate employment opportunities and facilitate economic growth.

    Ayorinde noted that the benchmark interest rate in some countries of the world as at July 2015 according to the Trading Economic website is as follows :

    Italy 1.56 per cent, Candidate 0.05 per cent, Japan 0.00 per cent, South Korea 1.50 per cent, Switzerland 0.75 per cent, UK 0.50 per cent, USA 2.5 per cent, Australia 2 per cent, China 4.85 per cent,  Turkey 7.5 per cent, Indonesia 7.5 per cent, India 7.25 per cent and South Africa 6 per cent and wondered why Nigeria’s case should be different..

    The motion was supported by members when the Speaker, Hon. Yakubu Dogara called for a voice vote, and subsequently refered to the House Committee in Banking and Currency for further legislative imput.

  • Lending their hand of support

    Lending their hand of support

    Ex-students of the Department of Geography,  University of Nigeria, Nsukka (UNN) have returned to the school to donate some cash and vehicles to aid research and teaching at the department. OLADELE OGE (NYSC, Enugu) reports.

     

    Call it a homecoming, you would not be wrong. Years after their graduation from the University of Nigeria, Nsukka (UNN), the alumni of the Department of Geography have returned  with gifts to boost research and learning.

    Last Friday, the old students donated some cash and two vehicles – a saloon car and an 18-seater bus – to the department to aid academic excursion. The items were given to the leadership of the department at a homecoming and award held at the Princess Alexandra Hall.

    The event, tagged: Technological advancement in surveying and mapping: The Nigerian adaptation, had Prof Peter Nwilo, a former Surveyor-General of the Federation and Geoinformatist, delivering the keynote lecture.

    Declaring the event open, Prof Polycarp Chigbu, Deputy Vice-Chancellor for Academics, who represented the Vice-Chancellor (VC), Prof Benjamin Ozumba, described geography as necessary for human growth and development.

    Geography, he said, has aided understanding and prevention of natural disaster, such as flooding and climate change, noting that establishment of Geographical Information System (GIS) would put the school on the world map.

    In his lecture, Prof Nwilo urged the government to focus on rural development, while charging surveyors to stick to the guideline of their profession. He lauded the review of the department’s curriculum, saying introduction of Quantitative Geography and other subjects crucial to spatial analysis.

    The Head of the Department (HOD), Prof P.C. Onokala, condemned the notion that graduates of geography are to be employed only as teachers, saying the discipline had produced world-class professionals. She advised students to brace up for the challenges ahead, observing that the department’s certificates were meant for students trained in good characters and learning.

    Prof Onokala said: “We have several challenges as a department and one of the ways to tackle them is to partner with the alumni body in moving the department forward. The fruit of our partnership is the donation of a cash gift and two vehicles to convey our staff and students for field work.”

    Speaking on other challenges facing the department, the HOD urged the alumni to help in equipping the department’s library and laboratory with modern books and materials that would promote quality learning.

    She added: “We cannot continue to teach our students in old style and with antiquated materials. Therefore, there is need to equip our library, cartographic and physical geography laboratory for the benefit of our students.”

    The Dean, Faculty of Sciences, Prof I.A. Madu, highlighted essence of the ceremony, noting that it became necessary for the department to partner with its ex-students for support in developing its facilities and establishing linkages with international communities.

    He hailed the ex-students for supporting their alma mater, describing the donation as a good gesture. He advised students emulated the alumni members by supporting the institution.

    Five of the alumni were honoured for their contributions to social and economic growth of the country. They are Dr Oluyemi Akande, Surveyor Ugochukwu Obiora, Dr Anthony Obiora, Chief Emeka Okonkwo and Mr Emeka Ezeh.

    Dr Akande said the event was not held to display wealth, but to intervene in solving problems facing students and the school. He said the alumni’s efforts would enable the department achieve growth in its academic research, appealing to staff and students to use the items judiciously.

    For Chief Okonkwo, he was happy to see his former department producing students who are making waves in various places, including government offices and private sector. He urged other graduates of the department to contribute their quota to its development.

    Highpoint of the event was the presentation of vehicles to the department. Hon. Uko Nkole, a member House of Representatives presented a cheque to students to encourage research and learning.

  • Mortgage lending hits six-year high

    Mortgage lending in the United Kingdom (UK), rose to its highest level in six years at the end of last year.

    But, first-time buyers returned to the housing market, figures from banks and building societies showned last week. However, the number of new buyers is still much lower than before the credit crunch, and the data came as separate official analysis showed how far the number of young homeowners has collapsed over the past decade.

    Despite a slowdown in sales in the final three months of the year and fears tighter rules on lending introduced in April would slow the market, an estimated £205.6billion was lent during the year, the bulk of it for house purchases, the Council of Mortgage Lenders (CML) said. It was an increase of 17 per cent on 2013’s figure of £176billion and the highest level of lending since 2008. The increase was driven by strong lending in the spring and summer as confidence returned to the housing market, driving up activity and prices in many parts of the country, and lenders became more willing to offer loans to borrowers with small deposits.

    The CML’s Chief Economist, Bob Pannell, said the number of first-time buyers had increased in 2014, but remained below the high seen in 2007. “First-time buyers were a key driver, helped by government initiatives such as Help-to-Buy. As a result, the number of first-time buyers topped 300, 000,” he said. “While a far cry from the half-million that we might regard as ‘normal’, this was the highest number of first-time buyers since 2007.”

    Analysis by the Office for National Statistics, also showed how young people have dropped out of home ownership over the period since 1980. The report revealed that as recently as 1991, around 65 per cent of 25-to-34-year-olds in England had bought their own home, but by 2012 – the latest figures available – the percentage had declined to less than 45 per cent. Among 35-to-44-year-olds, the proportion of owners was also down sharply, from almost 80 per cent to around 65 per cent. The report showed that through the 1980s and into the 1990s one in three 16-to-24-year-olds could afford to buy their own home, compared with one in 10 today.

    The ONS said the number of UK first-time buyers peaked nearly three decades ago in 1986, when more than 600,000 young people climbed on to the property ladder.

    •Culled from The Guardian UK

  • Lending a helping hand

    Lending a helping hand

    Hug For the Needy Foundation, a non-governmental organisation (NGO), that caters for widows and orphans, was born last Saturday at Neca Event Hub in Alausa, Ikeja, Lagos State. SAFIYYAH ABDUR-RAZAQ writes.

    For the President of Hug For the Needy Foundation, Pastor Felix Olorundamilola, it was a day of fulfilment. It was the official launch of the foundation and the celebration of his 50th birthday.

    The NECA Event Hub in Alausa, Ikeja, Lagos State was tastefully decorated in blue and white for the twin event.

    The celebrator was dressed in black suit, his wife, Oluwafunmilayo, dazzled in black dress and blue jewelry, with matching shoes.

    The Chairman on the occasion, Pastor Peter Oludipe, urged the guests to do good.

    He said: “What you do in life is what people would say about you when you die.”

    The celebrator’s wife assisted him to cut his 50th birthday cake.

    It was followed by the inauguration of the four-member board of trustees for the foundation.

    Inaugurating the board, Pastor Oludipe said: “The poor would never cease to exist in the land. It is part and parcel of this day. I pray that God should use you to be a blessing to people around you.”

    The celebrator appreciated his guests for coming and said he was using the opportunity of his birthday to make the foundation public and to raise funds.

    He said: “The foundation was founded in October 2009 and has been running on private funding. I am using the occasion of the birthday to make it as public as it can be and to inaugurate the members of the board of trustees.

    He said he feels great, good and happy that he is able to make 50.

    “I have always thought of 50 as too far. Now that I have made it, I am grateful,” he said.

    He said he is not completely fulfilled because his foundation has not been thriving as much as he would like.

    He said the NGO has been using private funds in the past five years, noting that it needs to attract public funds and philanthropic organisations to help it.

    He urged Nigerian youths not to lose hope easily.

    “Nigerian youths should not lose hope. They should not give up. There are public-spirited people out there that are ready to assist,” he said.

    The board of trustees Chairman, Pastor Simeon Afolabi  said the foundation was established to assist the widows, helpless and the needy in the society.

    “The foundation is there to lend them a helping hand and provide for their basic needs”

    He described the celebrator as a man that has passion for the poor and needy in the society.

  • Access Bank’s N68b Rights Issue targets lending, IT upgrade

    Access Bank’s N68b Rights Issue targets lending, IT upgrade

    The Access Bank Nigeria Plc Chief Financial Officer (CFO), Seyi Kumapayi, has said the lender will deploy the N68 billion it plans to raise through Rights Issue on its working capital to boost lending and support Information Technology (IT) upgrade.

    The CFO who disclosed this yesterday at a media briefing held in Lagos, said part of the funds will also be deployed on branch expansion, renovation and facility upgrade, as well as replacement of obsolete equipment.

    Kumapayi, said Nigeria with 170 million people, enjoys stable political and economic environment as well as excellent demographics, making the business environment exciting. He said the lender has overtime, consistently delivered superior returns to its shareholders.

    “We have shown that we can integrate and add value to institutions based on our successful acquisition of Intercontinental Bank,” he said.

    Kumapayi said the lender has Asset Management Corporation of Nigeria (AMCON) bonds worth N65 billion, which will mature and be retired this month.

    He described Access Bank as a Tier 1 bank with robust financial indicators, enlarged resource base with strong upside potentials, credible leadership with a clear focus on value creation for shareholders.

    The bank, he added, also enjoys strong returns for investors –capital appreciation and dividend payout. The bank is listed on the Nigerian Stock Exchange and London Stock Exchange.

    On timing for the Rights Issue, the CFO said the timing is right. He said shareholders have been contacted and they approved the time frame for the Rights Issue. “Our shareholders have approved the Rights Issue. We have been on it for a long time during which we engaged both local and international investors,” he said.

    The bank’s shareholders are expected to vote on October 13 on the proposal to sell shares to existing investors.

    Banks are preparing to sell equity and debt after the Central Bank of Nigeria (CBN) changed the way lenders calculate capital buffers.

    The CBN is seeking to increase banks’ ability to withstand losses five years after the AMCON bought bad debt from banks to save the industry from collapse.

    The regulator removed some assets lenders can count as capital in preparation for the implementation of Basel II and III, while limiting Tier 2 capital to 33 per cent of higher-quality Tier 1 capital, according to an August 5 circular.

    The lender announced in April that it had received shareholders’ approval to raise $1 billion, including through debt and equity to fund lending targeted to rise to 20 per cent this year.

  • Lending others a hand

    Lending others a hand

    A non-governmental organisation, Support Bridges Initiative (SBI), has celebrated its ninth anniversary in Lagos, reports OLATUNDE ODEBIYI .

    It was a day full of fun for pupils, who converged on Isale Eko Senior Grammar School in Lagos Island last Thursday. The day began with an essay competition in which the winner got an HP laptop. The first  runner-up, an iPad and the runner-up, a smart phone.

    It was at the 9th anniversary of a non-governmental organisation, Support Bridges Initiative (SBI) which inspires and empowers young people to discover their potential and life goals.

    Its Chief Executive Officer, Mrs Folasade Adetiba, while welcoming guests sang praises to God, saying He made everything possible,

    A  SBI member, Mr Kunle Taiwo introduced items on the programme. and Mrs Omolara Eucer-Ajayi said the opening prayers.

    Second Vice President of the Nigerian Bar Association (NBA),  Mr Taiwo Taiwo, who chaired the event, stressed the need for effective use of English which he said, is crucial to whatever one wants to do in life.

    He urged the pupils to take their education with all seriousness and start pursuing their desire to take their education to the highest level.

    In a good will message, the Tutor General and Permanent Secretary, Education District III, Mr Gbemi Olaniyi, represented by the Deputy Director, Schools Admin Department Mrs Odunsi –Titus Aderonke, expressed happiness to support the initiative which helps students.

    Hon Commissioner for Education, Mrs  Olayinka Oladunjoye represented by Mr Hakeem Lamidi said the initiative was one that is committed to impacting lives and  she described the nine years journey as a successful one.

    The ceremony continued with the cutting of the anniversary cake. Mrs Adetiba, her team members, students and other well wishers joined her on the cake stand. She coordinated it.

    Presentation of awards and prizes put smiles on the faces of the students and some guests.

    Mr Taiwo was presented with appreciation award in recognition of his notable contributions towards the success of the initiative.

    Mrs Adetiba described the nine years journey as interesting because the initiative is doing something which the state ought to have dealt with.

    “We are here to build the character and culture of students. Over the nine years, we called experts to talk, mentor and inspire the students. I and my team put in all it required to achieve our goals in the life of the students. We put in a lot of efforts but the joy we put in the face of the students makes me happy.

    “We also ensured that the students were not dropped out of school and remained relevant to their society. We are giving them good quality gift to motivate them,” she said.