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Tag: savings

  • ‘Why workers should have savings’

    ‘Why workers should have savings’

    Many workers are unaware of the goal of pension, as they misconstrue it for the income they can have access to and use for various business ventures, build or buy a house, or expend on other commodities.

    They are unaware that pension is a regular income received by a person at retirement when he or she stopped working having reached a certain age or based on health condition to cater for his or her needs at old age.

    They are also unaware that pension savings is just one out of many savings they should have.

    The Director-General, National Pension Commission (PenCom), Mrs Aisha Dahir, clears the air on the misinformation.

    She said unlike pension savings, workers could only spend personal savings after retirement.

    She said public saving, which is what the Nigerian Contributory Pension Scheme (CPS) stands for, binds workers under law to compulsorily save for retirement.

    She pointed out that governments all over the world compel workers to save for their retirement through various pension schemes to avert old age poverty and destitution, adding that this is why the government introduced Pension Reform Act (PRA) 2004, repealed by PRA 2014 which established the CPS. 

    She noted that the CPS remains a major form of savings for workers, advising them to  imbibe other saving cultures.

    They also need to understand that pension savings is strictly for basic needs at old age.

    Mrs. Dahir-Umar said workers should consider supplementary retirement savings.

    She said: “While the CPS is a crucial component of retirement planning, exploring additional savings options such as savings accounts, real estate investments, and mutual funds can provide further financial security. It is imperative for workers to make other preparations for retirement as additional income, aside from pension, is desirable for retirees.

    “Preparing for retirement under the CPS requires proactivity, financial literacy, and discipline. Embracing these principles will benefit individuals and contribute to a stronger and more financially resilient society. 

    “Therefore, let us take charge of our financial future for a rewarding retirement,”she urged.

    The DG, however, advised the workers to take advantage of making Voluntary Contributions into their Retirement Savings Account (RSA) as enshrined under the CPS to increase their pension income upon retirement. 

    Objectives of CPS

    The DG further stated that the CPS empowers individuals to take control of their retirement planning. 

    She said: “It offers greater transparency and flexibility, allowing workers to monitor their retirement funds actively. Pension Fund Administrators (PFAs) send Statement of Accounts to RSA holders periodically, entrenching the culture of transparency in the CPS. In addition, RSA holders are allowed to transfer their accounts from one PFA to another once in a year, giving them control over their pension funds.

    “The CPS instils a sense of ownership and personal responsibility, encouraging individuals to make informed decisions and adjust their savings accordingly. The PRA 2014 allows employers and employees to make additional contributions and even increase the minimum 10 per cent employer and eight per cent employee contribution. 

    “Another compelling advantage lies in the portability and mobility offered by the CPS. In today’s dynamic job market, where career changes and relocations are increasingly common, individuals require flexibility in managing their retirement savings. With contributory pensions, employees can seamlessly transfer their accumulated funds when changing jobs, ensuring continuous growth and uninterrupted savings accumulation. This mobility empowers workers to pursue new opportunities without sacrificing their retirement security.

    “Furthermore, the CPS promotes a fair and equitable distribution of retirement benefits. Under the defined benefits system, the pension payouts are often heavily skewed in favour of long-tenured employees. Sacked employees and those who worked less than a certain number of years end up without retirement benefits under defined benefits arrangements. This creates disparities and inequities within the pension system. In contrast, the contributory system ensures that retirement benefits are based on the individual’s contributions and investment returns, eliminating biases and promoting a more egalitarian approach to pension provision.”

    She continued: “PenCom developed strong investment guidelines underscoring fair returns and safety of pension funds. PFAs strictly adhere to these guidelines, ensuring steady growth of pension assets. As of June 2023, total pension assets stood at N16.8 trillion and still growing.

    “Noteworthy is that the defined benefits system carries its own risks, as demonstrated by numerous cases of pension funds facing significant shortfalls and delay in payments to retirees due to non-release of budgeted funds.” 

  • Deepening savings through financial literacy

    The week-long yearly global focus on financial literacy, earnings and savings emphasises the importance and linkages between income growth and savings and national development. In this report, Capital Market Editor, Taofik Salako, examines the relevance of this year’s global theme and Nigeria’s efforts at achieving broader and higher savings.

    Last week’s Global Money Week and Financial Literacy Day refocused the global financial industry and economies to the linkages and missing links in national financial and economic development.

    With the theme: Learn, Earn, Save, the Global Money Week redirected nations to the importance of the three critical elements of financial literacy, income and savings in building a virile investment base necessary for sustainable economic growth.

    Nigeria yearly combines the annual global events marking the Global Money Week with its national initiative of Financial Literacy Day to underscore the national urgency and imperative of financial literacy to addressing many pressing national challenges. The relationship between financial literacy, income growth, savings, investments and national development is a global aphorism, all reputable studies and scholars have found positive relationship between these elements.

     

    Revolving cycle

    It is a well-established fact that the extent of poverty, financial exclusion and economic underdevelopment relate to the level of financial literacy and inclusion. It has also been established that financial literacy-the culture and awareness about income opportunities, growth and management, like every culture, develops from early learning through adolescence to adulthood. Globally, less than five per cent of all children in the world have access to financial education and financial inclusion. There are about one billion children living in poverty while many young people are struggling with large amounts of debts due to financial illiteracy. These lead to several negative socio-economic consequences, including drug abuse, civil disorder, financial crimes, and the entrapping cycle of poverty and underdevelopment. The Week aims at inspiring children and youths to learn about money, saving, income sources, employments, entrepreneurs and most importantly, self confidence and esteem that come with knowledge and control. The 2019’s theme underscored the importance of children and youth to be economically equipped and empowered to close inequality gaps and build a brighter future.

    Such campaign is more important to Nigeria, which occupies the lower rung of the ladder in global financial literacy, savings and investments. A report by the United States Central Intelligence Agency (US CIA) showed Nigeria within the lower third of a global sample. Nigeria was rated lowest within the emerging countries bloc of Brazil, Russia, India, China, South Africa and Nigeria (BRICSN). Less than five per cent of Nigerian population invest in the country’s stock market and only a fraction of this national investing public, some six to seven per cent, invest in mutual funds. These compare with average of some 20 per cent among many emerging countries. Subscriptions to several offers aimed at national participation have remained narrow and in many instances, state governments had to acquire pre-allotted shares under government’s privatisation programme. For instance, with its minimum subscription of N5,000 and double-digit, quarterly payable coupon or interest rate, subscription to the Federal Government of Nigeria Savings Bond (FGNSB) has remained narrow, since inception in 2017. The maiden FGNSB had received a nationwide total subscription of 2,577 bids with a total size of N2.067 billion.

    In 2012, the Federal Government launched the National Financial Inclusion Strategy (NFIS) as a medium-term plan to champion financial literacy and inclusion. The NFIS aims at reducing the number of eligible adult Nigerians that are excluded from the formal financial system from 46.3 per cent to 20 per cent by 2020.

    In 2014, the Central Bank of Nigeria (CBN) launched the Financial Literacy Day as a focal point of the activities to mark the Week to highlight the national importance and urgency of financial literacy. Besides, the Nigeria’s Economic Recovery and Growth Plan (ERGP), launched by President Muhammadu Buhari, plans to improve Gross National Savings (GNS) steadily to 15.53 per cent, 18.19 per cent and 21.31 per cent in 2018, 2019 and 2020. Yet, more than one-thirds of Nigerian population do not have access to formal financial services. With the 2020’s targets around the corner, the apex bank and other stakeholders recently revised and revved up strategies to deepen financial literacy. Last week’s activities showed renewed commitments of stakeholders to achieving the targets.

     

    Early savers and investors

    Across the financial services industry, from Polaris Bank Limited to Union Bank to Nigerian Stock Exchange (NSE) and several others, financial institutions devoted the week to promoting the ideals of financial literacy, earnings and savings. Polaris Bank’s Managing Director, Mr Tokunbo Abiru, led other staff of the bank in catch-them-young nationwide campaign across secondary schools. From the bank’s Lagos head office to Mado Government Secondary School, Tudun Wada, Jos, Plateau State, Polaris Bank stressed the need for students to imbibe the culture of savings to enable them secure their future.

    Abiru assured that Polaris Bank would continue to sustain efforts aimed at promoting financial literacy among secondary school students in particular and Nigerians in general. He noted that there are many negative consequences of low saving culture.

    “We have issues relating to finance which people do not know anything about. An attitude of not saving money is not good for the future. We need to learn, earn and save money. You do not save after spending but rather, you save first before spending. The idea is to catch them young in terms of educating them on finance and financial investment so that in future, their personal and financial lives can be guaranteed. To achieve this, we need to imbibe the culture of saving, no matter how small,” Abiru said.

    According to him, the annual campaign is one of the bank’s tactical approaches to entrenching savings culture at an early age and ensuring an empowered life and a sustainable economy in line with CBN’s financial inclusion mandate.

    “As a responsible corporate citizen, it behoves on us to do what is appropriate for the betterment of individuals and the society at large,” Abiru said.

    Abiru, who taught students ways to be thrifty and conscious of savings, urging the students not to spend all monetary gifts they get on buying things, but rather to learn to keep and grow part of monetary gifts.

    “You are not too young to start saving. The time to start is now so that it can become a habit that will stand you in good stead in the future. You also need to be financially literate to avoid making poor financial decisions and to curtail the development of poor financial habits that can adversely affect you. When visitors come to your house and give you money, don’t spend it on snacks. You should learn to save such monies,” Abiru advised.

    He said the bank has developed several products and services for children and teenage savers with a lot of exciting incentives, gifts and opportunities.

    Group Head, Northeast Zone, Polaris Bank Limited, Mr. Olayinka Obikanye, who represented the bank’s management at Government Secondary School, Tudun Wada, Jos, Plateau State, urged the students to be champions for financial literacy by passing the message to their friends and other family members.

    He noted that the annual campaign is a further testimony to the commitment of the bank’s to the wellbeing of Nigerians and the national economy.

    “For us in Polaris Bank, we will continue to engage schools, parents and teachers, because we believe that by being financially literate, students and indeed the young ones, will be able to build their capacity for future business endeavours, thereby securing their future from poverty and other financial challenges,” Obikanye said. Highlights of the programme at Mado Government Secondary School, Tudun Wada included topical lecture on financial literacy and management, questions and answers session and presentation of gifts by the bank.

    Principal of Mado Government Secondary School, Tudun Wada, Mrs. Zumunta Dancheng praised Polaris Bank and the CBN for bringing the campaign on financial independence and literacy to the doorsteps of the young generation in their school. She urged the students to ensure that the knowledge they acquired during the sensitisation exercise were put into good use.

    In Cross River, Akwa Ibom, Ebonyi, Zamfara, Oyo, Bauchi and Benue States, Polaris Bank reemphasised the ideals of financial literacy and management to students. More than 155 employees of the bank participated in educating school students across the federation.

    At Offot Ukwa Secondary School, Calabar, Cross River State and four other schools in Akwa Ibom State – Uyo High School, Bright Future International School, Nigerian Christian Institute and Redemption Academy, students were taught useful lessons on managing and saving money.

    In Ebonyi, participating schools included Fountain of Knowledge International Schools, Jesus is Lord International School, Great Minds Academy International School, Success Impact Academy and Our Lady Schools.

    In Zamfara State, students from Alhaq Academy, Gusau; SBMC Model School, Iman Global International Nursery and Primary School, Caliphate School and College of Education Staff School benefitted from Polaris Bank’s campaign. Students in Oyo State were not left out as sessions held at Rosebud College, Valencia College, Seed of Life College, Ogunsanya Girls Science Academy and Frontliners Primary and Secondary Schools. Overall, about 6,000 students benefited from the training.

    In Uyo, Head, Sustainability and Consumer Protection, Polaris Bank Limited, Bola Adesanoye, urged the students to be frugal and show more inclination to savings than spending.

    According to her, the activities marking the  Week and Financial Literacy Day were part of efforts by the bank to deepen financial literacy and inclusion, especially, among students.

  • ‘Mutual funds are better options for savings, investments’

    Cordros Capital Limited Group Managing Director (GMD) Mr. Wale Agbeyangi leads one of Nigeria’s most vibrant investment banking groups. In this interview with Capital Market Editor Taofik Salako, he speaks on the investment market outlook, wealth creation and management and other issues.

    Why do people need to trust fund managers with their funds rather than managing them themselves?

    Fund managers are licensed by the Securities & Exchange Commission (SEC) to perform investment management functions and this regulation ensures fund managers act in the best interest of their clients always. It is important to note that understanding the inherent risks involved in investing is of the utmost importance when making an investment decision and fund managers have the necessary infrastructure and expertise in identifying successful investments. Some of these infrastructures, which include portfolio analytics and risk management software, are readily not available to all individual investor.  So, the fund managers are better placed to manage the intricacies of the market and still deliver competitive returns. They relieve the investors of the challenges that come with investment decision making, thus enabling them to direct their energy to additional productive ends.

    What are the attractions of collective investment schemes compared with direct personal investing in similar assets as contained in the portfolios of the collective investment schemes?

    For many potential investors in the retail segment, the procedures as well as the financial requirements of investing in the financial market constitute stumbling blocks. Mutual funds simultaneously offer affordability and professional management. The financial capacity needed to achieve the standard portfolio diversification is clearly not within the reach of most retail investors. Investing activity requires involvement of experts in making, buy or sell decision and the average retail investor does not have the capacity to engage the entire gamut of experts to full dimension the possible risks and returns at every point in time.

    What is your assessment of the outlook for the Nigerian investment markets?

    Despite the attractive valuations of the Nigerian equity market, outlook remains negative in view of the political risk and external factors that have affected frontier and emerging markets. Nigerian equities valuation is currently attractive relative to history and other frontier market equities. Judging by the fundamental drivers of equities performance – the economy, currency condition, and corporate earnings – we think the local market’s discount valuation to frontier market peers is not justified, but will likely remain so for the rest of 2018. This, in our view, presents opportunity for strong foreign portfolio investors (FPI) consideration of the local risk assets over most of frontier market peers, in the event that the external concerns causing uneasiness across emerging and frontier markets settle one year from now. We believe sell-offs over the last quarter of the year will enhance the attractiveness of equities, and will expand opportunity for new highs in 2019, amidst continued favourable currency condition, supportive macro-environment, and improving earnings.

    In the fixed income market, we expect current buoyant liquidity to persist on the back of inflows from maturing Open Market Operations (OMO) bills, bond coupon payments, and the budgetary allocations to state and local governments. Despite market liquidity, our expectation of higher yields in the fixed income market in the near term is anchored on domestic monetary policy direction, capital flight amid higher yields in safe haven assets, political uncertainty stemming from the upcoming general elections, and government borrowing to fund the 2018 budget. We are of the opinion that the Monetary Policy Committee (MPC) will increasingly focus on managing currency risks by issuing securities at higher yields. They will, however, continue to use Open Market Operations (OMO) to control money supply versus altering the Monetary Policy Rate (MPR) in our view.

    What do you think should be done by all stakeholders-government, regulators, operators to deepen domestic savings and investments?

    We need a collective effort from both the regulators and the operators. The Securities & Exchange Commission has done a lot in this regard as the industry is a lot more regulated and the investing publics are better informed about the opportunities that mutual funds offer. However, we  think both the operators and regulators can still do a lot more with regards to financial literacy and adequate wealth management strategies. Operators also need to come out with more investment solutions that cater to the various needs of investors. Government can also look at providing incentives and enabling environment that encourage savings and investments.

    What are the challenges being faced by assets managers?

    One of the major challenges is the issue of adequate capitalisation. You need adequate capital to be able to meet the requirements for success in the industry. The industry is highly driven by technology and with specialised skill requirement. The need for huge investments in technology and people to achieve the required scale and low-cost positioning could be high and thus a significant barrier to entry.

    Also, adequate capital is needed for a robust research platform, capacity building and information and communication technology (ICT). Besides, in order to ensure security and safety of funds under management, asset management firms must build strong internal capacity in investment and risk management frameworks. We also face a major challenge in the area of effective distribution channels at minimal cost. You can also talk about paucity of investment options, which limits the spread and horizon of asset managers.

    How do you forestall conflict of interest in managing mutual fund, especially when your related party is involved in an investment under consideration?

    At the moment, there is no regulation that disallows engaging the services of an issuing house that is a sister company when coming out with a public offer. However, in engaging professional parties for an offer, we have selection criteria that we consider. Two of the criteria include professional fee and track record in similar transaction. However, in the actual fund management business, we ensure that trades are done through several brokers and not limited to our securities business.

    Given the propensity of the average retail Nigerian investor to direct investing, what do you think should be done to encourage the culture of collective investment scheme?

    The low level of financial and wealth planning education is a major drawback. The people lack proper understanding of the importance of savings and the different vehicles tailored to an individuals’ risk tolerance. Educating the populace on the need to start investing at an early stage will encourage increased culture of collective investment scheme. Operators and regulators should organise seminars and workshops focused on financial literacy. Also, while the regulators have done a lot with regards to sanitising the industry, they should also ensure that operators of fraudulent schemes are brought to book.

    Long-term investments rest on the assurance that the asset management firm will sustain over the long-term to grow and reward the investor, what assurance do investors in mutual funds have in the event of insolvency or corporate crisis involving the asset management firm?  

    Firstly, mutual funds in Nigeria are registered with the Securities and Exchange Commission (SEC) and all Fund Managers are required to be registered and regulated by the SEC. The regulatory oversight ensures the safety of investors’ funds and ensures that the Fund Managers are transparent with the methods with which investors’ funds are utilised. In addition, all mutual funds are required to employ the services of a Trustee. The Trustee essentially represents the investors and their interests. The trustee’s role is to monitor the fund manager, making sure that the funds under their management are being managed in the best interest of the investors.

    Also, mutual funds require that monies deposited by investors as well as any assets purchased with the money must be held by a Custodian. A Custodian is an independent company, solely tasked with protecting customers’ funds and investment by maintaining the safety and custody of all assets of its clients.

    So, in case of insolvency or corporate crisis involving the asset management company, the funds under management would be transferred to another fund manager by the regulators, in this case – Securities & Exchange Commission, since the assets reside with the Custodian and not the Fund Manager.

    What are the competitive advantages of Cordros Asset Management Limited (CAML) compared with others? Why should people entrust their savings under your management?

    Our people are our foremost competitive advantage. We have a committed and visionary board with a highly skilled and competent workforce. Our investment process and strong research-based investment approach ensure competitive investment performance. The Cordros brand has grown significantly in the mutual fund space and we believe having a strong brand, backed by a track record of performance, is critical to retaining market share and achieving future profitability. Also, CAML has built a strong internal capacity in investment and risk management and leverages technology in achieving product distribution.

    What makes the Cordros Milestone Funds unique and competitive?

    With the Cordros Milestone Fund, the decision on how to invest for milestone goals becomes less difficult. It is structured in such a way that individuals can invest in the Fund closest to the time when they intend utilising the fund. The Cordros Milestone Fund invests with an initial mix of securities that seek capital growth and gradually shift to those that seek capital preservation and income as the target date approaches.

    The changing asset allocation according to the pre-determined path, the glide path, is the key feature of the milestone fund and is a real advantage over the do-it-yourself approach towards saving for future goal. The time horizon till the target date determines the appropriate mix of investments over the life of the fund. Historical records show that while stocks and other growth assets are volatile in the short term, they usually outperform income assets over a long-term horizon and provide an inflation hedging benefit.

    What are the unique advantages of Cordros Money Market Fund?

    Cordros Money Market Fund’s competitive advantage lies in the proven expertise of our people, processes and performance. We have skilled and dedicated financial professionals that manage the affairs of the Fund. In terms of processes, we try to ensure that client’s redemption is paid within 24 to 48 hours. Also, we always ensure that quarterly dividends are paid within the first two working days of a new quarter. With performance, the fund has had one of the best performances in terms of yield in comparison to other money market mutual funds and yield on the comparative benchmark in the last two years.

    Generally, what are the track records of returns of assets under your management compared with average returns in the market?

    We have track records of outperforming the average benchmark indices and we have done very well to preserve our clients’ wealth, irrespective of the challenges in the polity. Since inception of Cordros Money Market Fund in October 2016, the fund has constantly maintained attractive yields in comparison to the benchmark yield. In 2017, average yield on the fund was 18.89 per  cent while average yield on the 91-day treasury bill was 16.66 per  cent. As at the end of September 2018, average yield on the Fund was 13.78 per  cent while average yield on the 91-day bill was 13.08 per cent.

  • Why some Nigerians prefer to keep money at home instead of banks

     

    Some Nigerians, especially those of the older generation still prefer keeping money at home rather than taking it to the bank.

    This archaic behavior sometimes is as a result of lack of confidence in the banking sector, lack of financial education, illiteracy etc.

    Findings reveals that 41.6 per cent of Nigerian adults keep their money at home.

    According to Mrs Saidat, a trader in Lagos, “I love keeping my money with me rather than keeping it in any unreliable bank”.

    She further explained that the reason she prefers keeping her money at home is because of the ease of accessibility of her funds whenever she needs them.

    “Also bank charges are one of the problems which make Nigerians keep their money at home,” she added.

    While interviewing a few Nigerian adults, we gather that bank charges seems to be a major scare in their decisions not to save their hard-earned funds in the bank.

    Also, corruption is one of the factors why some affluent Nigerians who have obtained their monies through corrupts means vehemently downplay the importance of taking and saving their “mazuma” in the bank.

    According to Dr Michael Oke, a senior lecturer in the Banking and Finance Department, Ekiti State University, Ado Ekiti, “those keeping money at home are mostly politicians hiding embezzled funds.”

    He further explained that many public officers, who had stolen public funds, need a safe haven for their loot which the conventional banks could not offer.

    Sad stories about monies kept in homes being burnt or flooded away across the many tabloids in the country. Victim of such circumstances find themselves become either destitutes or suicidal.

    Therefore, the anachronistic idea of keeping money in the house should be totally discouraged as it adds no economic value to the owner.

    In addition, the essence of keeping money in banks is good because saving is a factor for investment and those in need of money in banks could access it through loan for investment.

    It is clear that monies need to be kept in banks, however, before we begin to lambast our people for choosing the “self-care service”, the write thinks it is high time our financial institutions (banks) swallowed the bitter pill of truth.

    Some banks are simply lazy and opportunistic. They only feed fat and big on depositors’ monies instead of practicing true and universal systems of banking and finance.

    On a final note, banks are advised to increase interest rates on savings and reduce charges for services such as ATMs, Transfers etc.

    Also, improvement in the use and deployment of technologies should be adopted by banks. Issues like long queues in and outside the banking milieu should become a thing of the past. Also, frequent network issues that frustrate financial transactions should be improved upon.

  • ‘CPS has provided savings for Nigerians’

    The establishment of the Contributory Pension Scheme (CPS) has provided a platform for Nigerians to have savings with over N7.52 trillion pension fund assets.

    The newly-inaugurated President of the Pension Fund Operators Association of Nigeria (PenOp), Mrs Aderonke Adedeji, who spoke with reporters, said people who didn’t think they would have savings now have it through the scheme.

    She said the country could  boast of long-term funds, adding that the pension industry has come to stay.

    She also said with good regulatory functions, pension fund managers have been able to build a solid foundation over the years.

    She said: “The new pension scheme has made a lot of difference in people’s lives. Sometimes, I think it is underestimated because, you have people who didn’t think they will have savings now have savings.

    “Nigeria now has a pool of long-term funds. These are some of the benefits of the scheme and we are happy about it. We have had challenges but a lot of progress has been made.”

     

  • American equity firm stakes N77b on Resort Savings

    Milost Global Inc-an American private equity firm is staking $250 million, about N76.5 billion, on Resort Savings & Loans Plc in another major acquisition after the American firm entered into a binding commitment to invest $350 million in Japaul Oil & Maritime Services.

    Milost, combining its traditional equity and debt approach, will be staking $100 million as equity capital and $150 million as debt capital. Already, Milost Global and Resort Savings have signed a commitment letter, giving the private equity firm the mandate to proceed with due diligence and other regulatory issues. The board of Resort Savings had approved the proposed transaction at its meeting on February 26, 2018.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, the board of Resort Savings indicated that the mortgage bank has executed a $250 million deal with Milost Global. The regulatory filing was signed by Managing Director, Resort Savings & Loans Plc, Mr Olayemi Rabiu and Chairman, Resort Savings & Loans, Senator Sunday Fajinmi.

    With the signing of the commitment letter, Milost Global will conduct due diligence on Resort Savings after which substantive agreement and other documentations will follow. The Central Bank of Nigeria (CBN) has been notified of the proposed transaction.

    The board of Resort Savings indicated that the transaction will be executed in phases through private placement to Milost Global and another local investor, which is currently undergoing approval process at the apex bank.

    “It is the belief of the board and management that the proposed investment will assist the bank in no small way in recapitalising the business, growing capacity and in becoming the leader in the mortgage finance industry. With this, we expect to be able to deliver impressive returns to our shareholders and satisfy the expectations of our other stakeholders in the very near future,” the board stated.

    The Nation had reported that Milost Global is seeking to invest more than $8 billion or about N2.6 trillion on Nigerian investments as a demonstration of the New York-based firm’s confidence in the Nigerian economy.

    Headquartered in New York City, Milost Global Inc is at the intersection of creative investing and value creation and has more than $25 billion in committed capital. Milost provides alternative capital, mezzanine finance, and alternative lending to a broad range of industries across the world including technology, transport, cannabis, education, distribution, mining, oil and gas, financial services, healthcare, pharmaceuticals, real estate, alternative energy and infrastructure development.

  • Wema Bank marks World Savings Day

    Wema Bank marks World Savings Day

    Wema Bank Plc has joined the world in celebrating the World Savings Day under the theme “Our future starts with savings”. The Deputy Managing Director of the bank Ademola Adebise was at Edokpolor Grammar School, Benin City, Edo State, where he encouraged students to imbibe the savings culture.

    “There is no future as secure as the future of a person who saves. Saving shows how dedicated you are to planning for the future and anyone who plans usually succeeds,” said Adebise in an interactive session with the students of the school.

    “Your future starts with savings. How much do you get from family and friends? Have you thought about saving the money for books or to ensure you study at a University you really like? There are many possibilities you can explore if you commit to saving. Don’t ever forget that your future starts with savings,” Adebise told the students who gave a rousing applause as he ended the session.

    The DMD also answered questions asked by the students on savings and ensured that they understood every explanation clearly.

    The World Savings Day emphasizes the importance of savings to economic development, and provides a good occasion to look at how fintech may help solve the challenge of savings.

    In its 72 years of existence, Wema Bank has encouraged the savings culture among its customers and has reinforced this position by setting up ALAT, a digital bank that offers 10% interest on savings. There are two variants of savings on ALAT; ALAT Stash and ALAT Savings Goal. Customers can enjoy 10% interest on both variants regardless of despite the flexibility they offer.

    Commenting on ALAT’s unique proposition Funmilayo Falola who heads Brand & Marketing Communications at Wema Bank says the Bank understood the importance of saving, hence the 10% interest rate it offers on ALAT Savings Goals and ALAT Stash.

  • Stanbic IBTC Bank supports savings drive

    Stanbic IBTC Bank supports savings drive

    The desire by Nigerians to get better returns on their savings received a boost with the launch of Max Yield Savings Account (MYSA) by Stanbic IBTC Bank, a member of Stanbic IBTC Holdings PLC. The bank said MYSA is a high interest paying account that pays interest at fixed deposit rate (currently up to 6.2% per annum) on savings balances of N100,000 and above, thus increasing the interest returns enjoyed on the account in excess of the regular savings account rate. The product is the latest addition to the bank’s bouquet of products aimed at rewarding medium savers who may not have the large amount required to open fixed deposit accounts.

    The Stanbic MYSA account is well suited for people who desire to save towards a target purchase or investment, like property purchase, school fees payment, vehicle purchase, vacation, annual rent, etc. The high interest yield helps them achieve their target savings faster while also allowing easy access to the fund through the bank’s multiple transaction channels.

    Head, Personal Banking, Stanbic IBTC Bank, Nkolika Okoli, said the product was introduced to help customers achieve their savings and investment objectives. According to her, in line with the retail banking drive of the Stanbic IBTC Group and the financial inclusion policy of the Central Bank of Nigeria, the bank will continuously explore ways to develop financial solutions that are relevant to the financial and economic aspirations of Nigerians.

  • More millionaires emerge in FCMB savings promo

    More millionaires emerge in FCMB savings promo

    First City Monument Bank (FCMB) Limited has produced another set of millionaires in its ongoing bumper reward scheme tagged:FCMB Millionaire Promo Season 4.

    The latest millionaires, who won N1 million each, emerged from the electronic draws held last week  across the country.

    In addition, 640 other customers of the bank were rewarded with various exciting gift items, ranging from LED televisions, power generating sets, decoders, tablets, smart phones and other consolation prizes.

    At the Lagos regional draw held at FCMB’s Broad Street branch, Musa Mohammed emerged the winner of N1 million, while at the Abuja/North regional draw in Abuja, Yahaya Mohammed was rewarded with the same amount.

    In addition, Vidal Effiong was announced the lucky winner of N1million from the South-East/South-South draw that took place at the Oron Road branch of FCMB in Uyo, Akwa Ibom State, just as Mr. and Mrs. James Okechukwu (joint account) are now N1million richer on account of their winning at the South-West regional draw held at the Gbongan-Ibadan Road branch of the bank in Osogbo, Osun state.

    The “FCMB Millionaire Promo Season 4” began in March this year and will run till October. It follows the huge success recorded in the third phase of the Promo, which ran from April to December, 2016 and produced 16 millionaires and 2,496 other winners of various top-range gifts.

    The latest promotion has been designed to provide extra empowerment and create value for customers of the bank, while encouraging financial inclusion and savings culture. The promo is targeted at all segments of the society, especially existing and potential savings account customers of the bank. This however, excludes salary and domiciliary account holders.

    Speaking on how to participate in the FCMB Millionaire Promo Season 4, the bank’s Executive Director, Retail Banking, Olu Akanmu, said all an existing or a new customer of the bank needs to do is to increase his or her balance by N10,000 in any of the eligible savings account and maintain it for 30 days to qualify for the Zonal and Regional  electronic selection of winners where the star prize of N1 million and other fantastic prizes will be won.

    Multiple savings of N10,000 will increase the probability of winning. To qualify for the grand finale draws in November, 2017 existing and new customers are to increase their balances up to N50,000.00 and maintain it for 30 days. Multiple savings of N50,000 will also increase the chances of winning.

  • Access Bank boosts savings with ‘Family Savings Scheme’

    Access Bank boosts savings with ‘Family Savings Scheme’

    Access Bank Plc has unveiled a new savings scheme tagged ‘Family Savings Scheme’ initiated to give its customers a boost in their savings. The exercise is in line with the bank’s commitment to promote savings culture among the populace.

    The ‘Family Savings Scheme’ is a savings scheme designed to encourage families to save together and enjoy exclusive privileges such as high interest rates and family rewards while they continue to enjoy the confidentiality of their banking relation and manage their accounts as unique individuals.

    The scheme provides access to people who are presently excluded from financial services whilst promoting capital accumulation and investment boom.

    Under the scheme, a minimum of four family members are encouraged to bank with Access Bank and enjoy exclusive value propositions. Eligible family members include partners, children, parents, aunts, uncles, cousins and grandparents.

    According to the bank’s Executive Director, Personal Banking, Victor Etuokwu, the scheme comes under new segment in the Bank – Family Banking Segment. “This is not a new product but a new segment in the bank. We have basically pulled together the various products we offer to unique family members under this Segment,” he said.