The Nation Newspaper

Tag: Prof. Segun Ajibola

  • 2019 budget: reduce high cost of governance, Economist advises FG

    An Economist, Prof. Segun Ajibola has advised the Federal Government to do everything possible to reduce the high cost of governance and block all drain pipes used in siphoning the country’s wealth.

    Ajibola gave the advice in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja, while reacting to the signing of the 2019 Appropriation Bill of N8.92 trillion into law.

    President Muhammadu Buhari had on Monday signed the 2019 appropriation bill into law, signaling beginning of the implementation of the 2019 fiscal calendar.

    The budget was increased by the legislature by N90 billion from the N8.83 trillion presented by Buhari on Dec. 18, 2018.

    According to him, the recurrent expenditure of N4.65 trillion in the budget is still on the high side.

    “The debt service of N2.25 trillion is high.

    “However, the projects financed by the loans must directly generate enough revenues and surpluses and indirectly create sufficient multiplier effects to help galvanise the economy.

    “This is the only way such huge debt service ratio can be rationalised.’’

    Ajibola, a former President of the Chartered Institute of Bankers of Nigeria, however, said the capital expenditure of the budget would help to build infrastructure.

    “The 2019 budget seeks to reposition the Nigerian economy by concentrating attention on the critical sectors and industries, and provision of basic infrastructure.

    “With N2.94 trillion of the N8.92 trillion devoted to capital expenditure, it is expected that some key projects across industries and zones of the country would be completed during the year.

    “This will help the economy to end on a stronger note in year 2019.

    “One also expects the various projects tied and infrastructure related borrowings from China and others to strengthen the productive capacity of the country,’’ he said.

    In addition, Ajibola said that January to December fiscal year was more acceptable and globally practiced by corporate institutions and economic players.

    He said the proposed budget cycle of January to December was not a stand-alone strong factor in the quest for improved implementation records but that it would enhance smooth budget process.

    “It goes with the global and national culture of most leading corporate institutions wherein their annual budget is January to December.

    “Hence financial reports, tax records and other financial dealings are computed using January to December cycle. The government fiscal year would align with this practice.

    “The National Assembly has the statutory power to propose changes to the budget.

    “ However, I believe such changes should receive the blessing of the Executive arm of the government which is the arm that will be responsible for the budget implementation.

    “Unilateral decision of the National Assembly to impose such amendments may not help a healthy working relationship between the two arms of government,’’ he said.

  • NDIC to lead Africa in deposit insurance

    NDIC to lead Africa in deposit insurance

    The Nigeria Deposit Insurance Corporation (NDIC) is set to lead the African Sub-Region in enhancing capacity building and bridging skills gaps in the banking industry in general and the Deposit Insurance Scheme (DIS) in particular.

    The NDIC’s Managing Director/Chief Executive, Alh. Umaru Ibrahim made this remark during the accreditation ceremony of the NDIC Academy as a training service provider for its staff and the banking industry by the Council of the Chartered Institute of Bankers of Nigeria (CIBN) at the Bankers House, Victoria Island, Lagos.

    Ibrahim said with the NDIC Academy’s new status, it is positioned to fulfil the Corporation’s goal of serving as a center of academic excellence for capacity building on the Deposit Insurance Scheme (DIS) for countries in the Sub-SaharanAfrica. He added that the Corporation prides itself on establishing high standards of professionalism and competency among its staff through the Corporation’s NDIC Academy and other human capital development initiatives, including the Chartered Banker/MBA program of University of Bangor, Scotland in partnership with the CIBN. 

    NDIC’s head, Communication and Public Affairs, H. I. Birch I made this disclosure in a statement yesterday.

    The NDIC CEO emphasized the importance of continuous high level training in order to achieve the Corporation’s core mandates of deposit guarantee, bank supervision, bank distress resolution and bank liquidation. The ultimate goal, he said, would be to enhance depositor protection and public confidence in the banking system.

    In his earlier address, the President and Chairman, Council of CIBN, Prof. Segun Ajibola commended the Corporation for its consistent efforts toward meeting high standards for the benefit of the banking industry and larger economy. Prof. Ajibola described the NDIC’s readiness to subject itself to the rigors of the accreditation process as a testimony of its Management’s commitment towards capacity development in order to equip its workforce with critical skills to enhance their performance and productivity. 

    He said that there would be periodic monitoring to ensure that standards were maintained, adding that the accreditation would last for three years after which the Corporation would require recertification.

  • Gov. Lalong urges banks to revert to 4 p.m. closing time

    Gov. Lalong urges banks to revert to 4 p.m. closing time

    Governor Simon Lalong of Plateau state has called on banks operating in the state to revert to the 4 p.m. closing time, instead of the 3 p.m. they adopted when the state was in crisis.

    Lalong made the call on Wednesday in Jos, when the President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, paid him a courtesy call.

    “Peace has returned to Plateau; there is no need for banks to hold unto the 3 p.m. closing time.

    “Please appeal to your members to start closing by 4, instead of 3, because closing by 3 gives an impression that we are still crises-ridden,” he said.

    He appreciated the institute’s contribution to the Plateau economy, and promised to engage more chartered bankers as senior government officials and civil servants.

    Lalong promised to attend the 22nd International Conference of Bankers slated to take place April 25 in Lagos, and also promised to look into CIBN’s request for a property for its branch in Jos.

    Ajibola had earlier said that the group was in in Jos to invite Lalong to its Lagos conference.

    He commended Lalong for restoring peace to Plateau, and regretted that the state, which was once revered by many as the home of peace and tourism, became a scary environment in the past few years.

  • Naira stabilises against dollar

    Naira stabilises against dollar

    The Naira on Monday, stabilised against the dollar at the parallel market, the News Agency of Nigeria (NAN) reports.

    The Nigerian currency exchanged at N365 to the dollar, maintaining same value as at Friday.

    However, the naira weakened further against the Pound Sterling, but maintained same value with the Euro as it exchanged at N475 and N400 respectively, from N470 and N400 it traded on Friday.

    At the interbank window, the naira exchanged at N292.15 to a dollar.

    Currency traders blamed the poor performance of the naira to the scarcity of the greenback, adding that the demand for dollar far outstripped its supply.

    Meanwhile, Prof. Segun Ajibola, President, Chattered Institute of Bankers of Nigeria (CIBN) urged the Federal Government to resolve unsettled transactions prior to the introduction of the new forex policy.
    Ajibola, at a recent event in Lagos, said that unsettled transactions by banks before the introduction of the flexible exchange rate was still a major factor in the banking industry.

    He noted that the liquidity challenges in the forex market seemed unsolved because of banks’ demands to settle their old issues.

    The banker added that it had impacted on the economy because the 4 billion dollars injected into the interbank market to ease the demand for forex had not been felt.