Banking - NEWS AGENCY OF NIGERIA

Afonne Emmanuel
Jul, Mon, 2023

Experts preach caution as CBN holds first MPC meeting under Tinubu

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By Kadiri Abdulrahman

As the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) prepares for its July meeting, some financial experts have called for moderation in its policy decisions.

The News Agency of Nigeria (NAN) reports that the CBN has announced that the 292nd meeting of the MPC will hold on Monday and Tuesday, to be chaired by Mr Folashodun Shonubi, the Acting Governor of the CBN.

This will be the fourth MPC meeting of 2023, and the first in about nine years to be chaired by someone other than the suspended CBN Governor, Godwin Emefiele.

At the last MPC meeting in May, Emefiele had announced the committee’s decision to raise the Monetary Policy Rate (MPR) for a seventh consecutive time, from 18 per cent to 18.5 per cent.

That is the highest since the MPR was established in 2006.

The CBN started its monetary policy tightening in May 2022, when the MPR, which is the benchmark interest rate, was increased from 11.5 per cent to 13 per cent.

A financial expert, Prof Uche Uwaleke, told NAN that the decision of the MPC in the July meeting will be influenced by the rising inflation expectations due largely to the sudden removal of fuel subsidy.

Uwaleke, a Professor of Capital Market at the Nasarawa State University, Keffi, said that pressure on the naira and exchange rate volatility occasioned by the recent Naira float would also influence the MPC decision.

According to him, those considerations tend to recommend a further rates hike aimed at taming the stubborn inflation.

“The acting CBN governor, who will be chairing the meeting, has been part and parcel of the hawkish MPC stance for months now, and so another rates hike will not come as a surprise.

“Be that as it may, the MPC should equally recognise that the removal of fuel subsidy has slowed down economic activities considerably with attendant drop in productivity.

“So, economic growth and jobs are already negatively impacted such that a further monetary policy tightening would only worsen the situation.

“Cost of capital will further increase and access to credit by small businesses will become more difficult,” he said.

He said that a further increase in the MPR was also likely to endanger the asset quality of banks through an increase in non-performing loans as Deposit Money Banks (DMBs) repriced their loans.

“In this regard, the balance of risks dictates that the MPC should pause the policy rate hikes, which has been on since May last year by maintaining a hold position on all policy parameters.

“The MPC should recognise that much as its primary mandate is to maintain price stability, it equally has a responsibility to support output growth.

“This is against the backdrop of the fact that many of the factors driving inflation in Nigeria, such as insecurity affecting food output and high energy costs, are outside the control of the CBN,” he said.

Uwaleke urged the MPC to seize the opportunity of its forthcoming meeting to signal readiness to support output growth.

“This can be done through policies geared towards fostering a low interest rates environment while keeping an eye on inflation, using a mix of hererodox measures,” he said.

According to Mr Okechukwu Unegbu, a past President of the Chattered Institute of Bankers of Nigeria (CIBN), the MPC should lower the MPR to allow easy access to credit for the productive sector of the economy.

Unegbu said that since lending rate in banks is dependent on the MPR, lowering it would be more beneficial for economic growth by allowing easier access to funds for the manufacturing sector and for small businesses.

He, however, said that the idea of DMBs using the MPR to decide their lending rates should also apply to interest rates on savings.

“The banks use the MPR to increase their lending rates, but savings interest rates are always very low.

“Interest rates on savings should guide the banks on their lending rates. They are supposed to look at average interest rate on savings to consider their own lending rates.

“I expect the MPC to reduce the rates this time so that banks can reduce their lending rates in order to encourage lending to the productive sector of the economy,” he said.

Mr Yemi Kale, partner and Chief Economist at KPMG Nigeria, said that the MPC was facing a dicey meeting since the suspension of Emefiele.

According to Kale, economic growth is slow and fragile, and in need of liquidity.

“At the same, inflation rates are high and rising, and with the recent subsidy and FX reforms, inflation is almost definitely going to rise higher and all happening at a time confidence in its ability to control inflation is weak,” he said.

He said the inability of the CBN to control inflation had been largely due to the main drivers of inflation being structural and supply-based, which could not be controlled effectively with the money supply tools available to it.

He added that the recent growth in money supply following the various reforms would likely worsen inflation.

“Excess liquidity may also find its way into the FX market and put pressure on Naira, both at official and parallel markets.

“The MPC will therefore have a difficult decision on how to pull inflation down without hurting economic growth further, which further tightening might cause.

“However, I expect that the CBN will be more concerned about inflation being its core responsibility and will tighten the MPR further but release the Cash Reserve Ratio (CRR) to support the economy,” he said. (NAN)(www.nannews.ng)

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Edited by Idris Abdulrahman

CBN’s Aisha Ahmad and Rami Aboulnaga of the CBE at the event

Afonne Emmanuel
Jul, Wed, 2023

Banking , Economy/Business

CBN, Egypt’s apex bank partner on joint fintech bridge

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By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN), and the Central Bank of Egypt (CBE) have signed a Memorandum of Understanding (MoU) to establish a Nigeria – Egypt Fintech Bridge.

According to a statement obtained from the website of the CBN, the MoU was signed on Tuesday at the Seamless North Africa Conference 2023 in the Egyptian capital, Cairo.

It came after a series of engagements on issues around payment system, financial technology, and financial inclusion in Africa.

The apex bank said that the MoU represented a partnership of the central banks of the largest economies in Africa.

According to the CBN, the MoU encompasses a broad range of collaborative initiatives, joint registration, innovative projects, coordinated licensing and supervisory framework, and information sharing.

The News Agency of Nigeria (NAN) reports that fintech bridges represent agreement outlining collaboration between two governments; cooperation between regulatory bodies and connectivity between two markets and ecosystems.

Speaking at the event, Deputy Governor, Financial System Stability, Aisha Ahmad, who signed on behalf of the CBN, said that the Nigerian apex bank was excited by the partnership with the CBE.

According to Ahmad, the partnership was actualised after several months of engagements on payments, fintech and financial inclusion.

“We look forward to cultivating an innovative space for fintech startups and entrepreneurs in Egypt and Nigeria, to accelerate financial inclusion, deepen our payment systems and drive economic growth across Africa,” she said.

Also speaking, the Deputy Governor of the CBE, Rami Aboulnaga, expressed delight at the partnership, adding that it would meet the desired expectations.

NAN reports that the conference was hosted by the CBE and had policy makers, payment service providers, financial institutions and technology startups from Egypt, Nigeria and across Africa in attendance. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa

Vivian Ihechu
Jul, Wed, 2023

Banking , Business

Uncertainty: Firstbank tasks SMEs on staying strong

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By Lydia Ngwakwe

Mrs Oludolapo Adigun, Group Head, Retail Banking, South, FirstBank, has advised Small and Medium-sized Enterprises (SMEs) to see opportunity in adversity and make good use of it to stay strong in business.

Adigun gave the advice at a SMEConnect webinar, organised by the FirstBank for individuals and business owners in Nigeria, on Tuesday in Lagos.

The News Agency of Nigeria (NAN) reports that the webinar had the theme: “The Power of Resilience: Building a Strong Business in Times of Uncertainty’’.

SMEConnect webinar is one of the ways through which FirstBank delivers its capacity-building pillar of its value propositions to SMEs.

The initiative focuses on impacting SMEs in areas that affect their business growth and development.

Adigun said: “Nigeria is a blessed land. We have the potential, we have over 200 million people, we are said to be the most populous and in population, we have the market and it’s a growing large consumer base.

“So, there is immense opportunity for SMEs; and with the growing middle class and increasing opportunity, we need to tap into it as an SME.’’

Adigun named some of the challenges SMEs faced to include infrastructure, regulatory environment, informal economy like those that are not exposed to education, rising inflation, petrol subsidy removal, currency devaluation, Foreign exchange rate, among others.

She said these challenges, like uncertainties, would always happen in business as they are norms in the business world and in everyday life.

According to her, how ready SME operators are to handle them are essential.

She said: “So, the strategies for businesses to adapt to economic condition and seize market opportunities, they need to navigate through regulatory framework to address infrastructural challenges and harness the entrepreneurial skill.’’

Adigun urged businesses to plan and maintain a long term loan, financial management, prioritise strategic partnership, strengthen customer relationship, adjust business model and enhance operational efficiency, among others.

She also said that most of the challenges and uncertainties that businesses in Nigeria go through, Firstbank had gone through it and yet still standing.

She said that the bank had carried out a dynamic adjustment of its operations, structure and system, adding that it was still reviewing its process.

She said, “FirstBank is SME’s focused bank with over 1,000 MSMEs in its book.

“And what do we do with them? We know your challenges and what you are going through and because of that we know your pain point.

“We have products that have been suited for you; we have assets, products, liability products, and others, all about you and for your sustenance and growth and we also have the seven pillars,’’ Adigun said.

She urged individuals who aspire to own a business and business owners to register on the SMEconnect@firstbanknigeria.com as there were a lot in there for them to gain.

She also introduced to the participants the firstbank business diagnostic tool which the bank uses to analyse businesses and give advice on areas of strength and improvement.

Earlier, Mr Damilola Aransiola, Chief Growth Officer, WhoGohost, urged the participants to find unique ways to solve the challenges that the hard times had thrown on their businesses.

According to him, this is what WhoGohost did to stay resilient in business.

“Resilience is the capacity to withstand or to recover quickly from difficulties and toughness.

“For us (WhoGohost) to be stable, we built a product that will allow us to earn in dollars and that was what we did with Muzu.co, a website builder, that allows people to create websites quickly for themselves,’’ he said.

He, therefore, urged business owners to build resilience by innovating and pivoting.

He advised that if a particular business strategy was not working, they could look for other ways to create products that would allow them to earn quick money as revenue was the lifeline of every business.

He said, “ revenue is the lifeline of your business, you don’t want to lose that, so you have to think of creative ways to make money.

“And don’t have the mindset that Nigerians don’t have money, though there are some people that might not be able to afford your product but don’t have that mentality that you cannot earn money

He also urged them to creatively partner with others and use that to grow. (NAN)(www.nannews.ng)

Edited by Olawunmi Ashafa

L-R: Past-Chairman, Anglo-Nigerian Welfare Association for the Blind(ANWAB), Ogie Eboigbe; Tutor, Pacelli School of the Blind, Sister Christiana Ekechukwu; Board Member, ANWAB, David Okon; Chairman, ANWAB, Ms Barbara Wey; Official, Ministry of Education, Grace Abimbola; Former, Senior Special Assistant to the Lagos State Governor on Persons Living with Disability, Adenike Oyetunde-Lawal; Executive Director, Finance and Risk Management, United Bank for Africa(UBA), Ugochukwu Nwaghodoh; Nigerian Musician and Producer, Cobhams Asuquo; and Executive Director, Group Operations, UBA, Alex Alozie, during the launch of Braille Account Opening Form for virtually impaired people, held in Lagos on Tuesday

Afonne Emmanuel
Jun, Wed, 2023

Banking

UBA introduces Braille Account Opening Form for visually impaired

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By Lydia Ngwakwe

United Bank for Africa (UBA) has unveiled the UBA Braille Account Opening Form, designed specifically to cater for the financial needs of the visually impaired.

The News Agency of Nigeria (NAN) reports that the new UBA Braille Account Opening Form was launched at the bank’s head office on Tuesday in Lagos.

The event which had in attendance key executive members of the bank and guests including Multi-Award Winner, Nigerian Musician, Producer, and Songwriter, Cobhams Asuquo, is the first of its kind initiative in the Nigerian and African market,

The General Manager, Lagos State Office for Disability Affairs (LASODA), Dare Dairo; Former Senior Special Assistant to the Lagos State Governor on Persons Living with Disability, Adenike Oyetunde-Lawal, as well as students from the Pacelli School of the Blind also attended the programme.

Mr Ugo Nwaghodoh, the Executive Director, Finance and Risk Management, UBA, said that the bank would continue to look for ways to make the physically challenged and others to be comfortable in their life-long relationship with the financial industry.

He said, “in our quest to drive all-encompassing financial inclusion, we decided to support the visually impaired by developing a Braille Account Opening Form and these special customers now have the same opportunities available to our customers.

“The ultimate benefit is to ensure that everybody has the right to select and choose the kind of account they want to operate, and this account opening form will go a long way to ensure this.”

He said that the UBA Braille Account Opening Form was produced with the support of Anglo-Nigerian Welfare Association for the blind and the first of its kind in the industry.

According to him, it is designed specifically to cater to the needs of visually impaired individuals.

With this innovative solution, he said, UBA had empowered blind customers to independently initiate and complete the account opening process, ensuring their seamless integration into the financial system.

“Until now, this unique and special section of the society has been disadvantaged, but with this ground-breaking initiative, UBA has fully demonstrated its unwavering commitment toward providing an excellent user experience for all its customers, regardless of their individual abilities or disabilities,” he added.

Endorsing the laudable initiative, Asuquo, described the braille account as an innovative initiative that would presents UBA as a bank with a heart that pays keen attention to the needs of the blind and disabled.

Asuquo said, “before now, we have always been at the mercy of the reader when we want to do things like open accounts for ourselves, but this account opening form has come to solve the problem of access which has previously been a huge limiting factor for people like me who are blind.

“With this initiative, UBA has promoted our ideal of inclusivity and has helped to put back freedom in our hands while opening us up to the variety of opportunities and options available to us.

“UBA has blazed the trail, I am beyond elated, as this new initiative will send a strong note to others to replicate the same feat and make people realise that banking services can and should be done with humanity in mind,” Asuquo said.

He thanked the bank for amplifying this much needed cause.

“I endorse this 100 per cent and I believe it is a much needed first-step that will lead to so many others,” he said.

Dairo, General Manager, Lagos State Office for Disability Affairs; LASODA, commended the entire team for conceiving the idea.

He said, “I am so elated at this initiative, and I am happy to hear that this is also going to be replicated in the 19 African countries where UBA is present.

“I say thank you to this bank for this beautiful project. It is true that government cannot do it all, and we are glad when we see institutions charting the course for others.”

UBA is one of the largest employers in the financial sector on the African continent, with 35,000 employees group wide and serving over 35 million customers globally. (NAN)(www.nannews.ng)

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Edited by Chinyere Joel-Nwokeoma

Afonne Emmanuel
Jun, Mon, 2023

Banking , Health

How COVID-19 pandemic, Ukraine crisis exposed Africa’s vulnerability – Afreximbank President

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By Vivian Ihechu

Prof. Benedict Oramah, President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank) says the COVID-19 pandemic and Ukraine crisis exposed the vulnerability of Africa in many ways.

According to him, these events dramatise Africa’s over-dependence on others for our basic needs of food and healthcare.

Oramah spoke on Monday at the 30th Anniversary Celebration and 30th Annual Meetings of Afreximbank holding in Accra, Ghana.

However, he said the bank had brought a new kind of hope to Africa, especially with the capacity to confront global challenges without going “abegging”.

“The COVID-19 pandemic and Ukraine crisis exposed the vulnerability of Africa in many ways.

“It also exposed our inadequacies in financing these dependencies in times of emergency.

“It is to the credit of those who founded Afreximbank that the catastrophe that loomed was averted.’’

He said that from the break of the pandemic in 2020 to the Ukraine crisis in 2022, the bank had disbursed over 45 billion US dollars into the continent.

This, he said, enabled many governments, central and commercial banks, corporates, Small and Medium Enterprises to weather the combined effects of these crises by helping countries to honour maturing trade debt payment obligations.

“To pay for critical imports and to pursue strategic investments.

“The support of Afreximbank was, by far, one of the most significant investments by a single entity in the last three years.

“In an era where international banks are exiting the continent, from where will Africa have gotten 45 billion US dollars to fight a global crisis if not from within?

“We are fully aware that the dream of continental integration and self-reliance can only be built on a robust and dynamic domestic economy that produces what it consumes.

“We don’t produce the goods that can be traded within the continent, others will [do so] and export the jobs, wealth, and the continent’s prosperity,” he said.

Oramah urged Africans to be united and resilient in building the “Africa that we want’’ in the next 30 years.

“I want to remind us that although we celebrate 30 years today, the journey to the next 30 years will require that we win the battle against those who are doing everything to weaken African multilateral institutions.

“ We may say no to them and ensure we do not will tools in destroying what Africa’s pioneer leaders toiled to build,” he said. (NAN)(www.nannews.ng)

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Edited by Chioma Ugboma

Afonne Emmanuel
Jun, Fri, 2023

Banking , Economy/Business

Tinubu suspends Emefiele

113 total views today

By Okon Okon

President Bola Tinubu has suspended the Central Bank Governor (CBN), Mr Godwin Emefiele from office with immediate effect.

The Secretary to the Government of the Federation (SGF), Sen. George Akume, made this known in a statement on Friday in Abuja.

According to Akume, this is sequel to the ongoing investigation of the CBN boss office and the planned reforms in the financial sector of the economy.

“Mr Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), who will act as the CBN Governor, pending the conclusion of investigation and the reforms,” he said. (NAN)(www.nannews.ng)

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Edited by Isaac Aregbesola

Afonne Emmanuel
Jun, Thu, 2023

Banking , Environment

World Environment Day: How Nigeria can combat plastic waste pollution – AfDB

156 total views today

By Lucy Ogalue

The African Development Bank (AfDB), says addressing plastic pollution requires effective multi-stakeholder partnerships among the government, private sector, youth groups and Civil Society Organisations (CSOs).

The Director-General, Nigeria Country Department of AfDB, Lamin Barrow, in a statement, was quoted to have spoken at a Webinar to commemorate the World Environment Day.

Barrow said that collaborative efforts would help to mitigate the challenges posed by plastic pollution and create a sustainable future for the continent.

”Nigeria and other African countries must explore new strategies to control, if not entirely eliminate, single use plastic.

”Among the crucial steps in combating plastic pollution is raising public awareness and educating citizens on environmental and health impacts of plastic waste pollution.

”Through comprehensive campaigns, leveraging various communications platforms, workshops and educational programmes, individuals can be sensitised to adopt environmentally friendly and sustainable practices to reduce, reuse and recycle plastic waste.

Barrow said by highlighting the negative consequences of plastic pollution and providing viable alternatives, awareness campaigns could inspire behavioural changes and promote responsible plastic consumption.

He said it was also important to mention some of the opportunities that plastics offered through repurposing and reuse.

According to him, the theme for this year’s World Environment Day is well-aligned with the AfDB’s priorities.

”Specifically, the 2023 edition of the African Economic Outlook inaugurated recently at the Bank Group’s Annual Meetings in Sharm El Sheikh, Egypt, underscores the need for increased private sector participation.

”In financing environmental and climate actions in Africa, with specific focus on the role of natural capital and application of circular economy approaches for the efficient utilisation of our environmental assets.

”Finding lasting solutions to plastics waste pollution in Nigeria requires a combination of hard and soft interventions along the plastics value chain.

”To this end, we commend the Federal Government for supporting the Nigeria Plastics Action Plan (NPAP),” the said.

According to the director-general, the plan provides a framework for stakeholder collaboration to tackle the problem of plastic waste pollution in the country, and promote circular economy practices.

Barrow restated the need for Nigeria to invest in infrastructure for waste collection, sorting and recycling.

”By establishing recycling facilities and encouraging waste segregation at source, the country can significantly reduce plastic wastes that end up choking landfills and the natural habitats.

”Strengthening partnerships with private sector actors, youth groups, Non-Governmental Organisations (NGOs) and local communities will help accelerate actions to implement sustainable waste management practices and create job opportunities in waste recycling.

”Another viable solution is the use of biodegradable alternatives to conventional plastic.

”Fiscal incentives and regulations can be deployed to stimulate adoption of biodegradable packaging by businesses, reducing demand for traditional plastics, thereby lessening plastic pollution.”

Barrow further said that implementing strict regulations and bans on single-use plastics was an effective measure to combat plastic pollution.

He urged government to take a queue from countries like Rwanda, which had successfully implemented such policies and regulations.

He said that Cote D’Ivoire, since 2014 had banned the production and use of plastic bags in the country.

”Nigeria can encourage industries to adopt sustainable practices and develop innovative solutions to reduce plastic waste throughout the supply chains.

”Promoting corporate social responsibility, supporting research and development of eco-friendly packaging, and establishing partnerships with organisations focused on sustainable development can further facilitate a more integrated approach to tackling plastic pollution,” he said.

The director-general reiterated some programmes the bank and its key partners had rolled out to address plastic pollution in Africa through the circular economy approach.

He named some of the programmes to include; host of the Secretariat of the Africa Circular Economy Alliance to spur Africa’s transition to a Circular Economy.

”The Bank also has established the Africa Circular Economy Facility as a multi-donor trust fund to provide grants to support the mainstreaming of the circular economy approaches.

”As an inclusive green growth strategy, this facility/Trust Fund will help African countries meet the goals of the Paris Climate Agreement, the Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.

”Nigeria can tap into this facility to support some of its work on the circular economy, including managing plastic pollution.

”More specifically for Nigeria, the AfDB and partners established the Nigeria Circular Economy Working Group in 2019.

”To provide a platform for key stakeholders including State Governments, Development Partners, the private sector and NGOs to share ideas, experience and coordinate actions to support the development of circular economy policies and bankable projects in Nigeria, among other projects.”

Barrow said with concerted efforts, sustainable solutions could be found to tackle the problem of plastic pollution, which poses a major threat to the environment, ecosystems and public health.

He said by raising public awareness, strengthening waste management systems, promoting biodegradable alternatives, implementing regulations, and fostering greater collaborative partnerships with industry and other Non-State actors, Nigeria could effectively address plastic pollution.

He, therefore, urged government, businesses, youth groups and communities to develop innovative partnerships to create a cleaner and healthier future.

The director-general urged the preservation of Nigeria’s natural beauty for the present and future generations, saying “We must say NO to single use plastics.”

Barrow assured the Bank’s strong commitment to supporting the endeavours to turn the challenges posed by plastic and other wastes into opportunities toward building a greener and circular economy.

Plastic pollution poses a significant environmental challenge worldwide.

It is estimated that seven billion tons of plastics are produced each year globally and about 21 million tons finds their way to the rivers, the seas, and the oceans where they can remain for a thousand years.

Only about 10 per cent of the plastics are recycled globally. The rest are dumped arbitrarily in open spaces, creating public health problems, damaging our ecosystem and defacing the aesthetics of our cities.

The story of Nigeria, Africa’s most populous nation, is not different.

Indeed, plastic pollution ranks among the topmost environmental challenges in the country, evidenced by the huge tons of plastic waste generated on a daily basis, particularly in our teeming cities and urban areas. (NAN) (www.nannews.ng)

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Edited by Remi Koleoso/Ese E. Eniola Williams

Vivian Ihechu
Apr, Sat, 2023

Banking

Afreximbank bags 7 awards at capital markets Africa awards

41 total views today

By Okeoghene Akubuike

The African Export-Import Bank (Afreximbank) has bagged seven awards at the Bonds, Loans and ESG Capital Markets Africa Awards 2023 across the transactional and house categories.

This is contained in a statement issued by Afreximbank’s Media Contact, Amadou Sall, in Abuja on Saturday.

Sall said Afreximbank’s success at the awards reflected the bank’s increasingly well-established leadership position in the loan and debt capital markets on the continent across the main industry sectors.

He said the 8th Annual Bonds, Loans and ESG Capital Markets Africa Awards recognises and seeks to showcase the most innovative and groundbreaking deals from sovereign, corporate and financial institution issuers and borrowers.

Sall said candidates were nominated by a wide selection of parties, which includes other banks and their clients.

According to him, the awards reflect the culmination of an exhaustive selection process that tests Africa’s most pioneering transactions and market actors.

Sall said under the transactional category, the bank won awards for the following deals:

“Agency Bond Deal of the Year: Bank of Industry 750 million euros (in which Afreximbank acted as a Bookrunner).

“Oil and Gas Deal of the Year: Sonangol 1.3 billion dollars (in which Afreximbank acted as Joint Coordinator, Co-MLA and Co-Bookrunner).

He said the bank also won the “Project Loan of the Year: Canal Sugar 750 million dollars (in which Afreximbank also acted as Co-MLA)

Sall said others included “Export Finance Deal of the Year: Project Gleam / MoF Angola Rural Electrification 1.3 billion euros (in which Afreximbank acted as MLA of the commercial tranche).

“Power Finance Deal of the Year: Project Gleam / MoF Angola Rural Electrification 1.3 billion euros (in which Afreximbank acted as MLA of the commercial tranche).”

He said under the house category, the bank won awards for Sovereign, Supra, and Agency Debt House of the Year and Project Sponsor of the Year: NNPC.

“The award was in recognition of Afreximbank’s leading role in providing debt solutions to sovereigns, state-owned enterprises, central banks, and other government-owned financial institutions over the last year.”

Sall said importantly, the awards constituted an appropriate platform for Afreximbank to recognise and celebrate the outstanding achievements of its clients and partners.

“”Also to celebrate the outstanding contributions of a coalition of individuals and institutions working to advance the economic development of the African continent.”

He said the awards, launched in 2015, continued to play a significant role in promoting the importance and sophistication of Africa’s financial services sector and its pivotal role in accelerating economic development on the continent.

“These awards have made a substantial contribution to the increasingly positive and prestigious status of Africa’s financial markets, as well as their vast untapped potential.

“The awards achieve this by highlighting the achievements of African financial institutions, corporate entities, and individuals.”

The statement quoted Denys Denya, Executive Vice-President, Finance, Administration and Banking Services, as saying “we are pleased to receive these awards.

“We are also grateful that Afreximbank’s strategic work in financial markets is being recognised even beyond the continent of Africa.”

Denya said the awards constituted an important validation of the bank’s interventions in financing, promoting, and facilitating trade and its ever-broadening work to facilitate sustainable economic growth and development in Africa.

“We appreciate the support and trust of our partners and clients, and we will continue to collaborate with them to drive Trade and Investment in Africa.”(NAN) (www.nannews.ng)

OKE/VIV

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Edited by Vivian Ihechu

Vivian Ihechu
Apr, Fri, 2023

Banking

IoD admits 4 directors of First Nominees as members

98 total views today

By Lydia Ngwakwe

Four Directors of First Nominees, a Subsidiary of FirstBank Nigeria Ltd., have been inducted into the Institute of Directors (IoD), alongside 96 others.

Seven others were also upgraded into different cadre.

The four Directors were inducted into the institute on Thursday night, at Oriental Hotel, Lekki in Lagos.

They are Mr Ramon Olayiwola, Omolade Olawore, Mr Raymond Mgbeokwere and Mr Kunle Olorunfemi.

Speaking on behalf of the new members, Mgbeokwere thanked the institute for considering them fit and proper in character and qualification to be members.

He also thanked the founding fathers for the role played in investing and bringing the institute alive and standing.

He said that some institutes in Nigeria that were established years back could not stand the test of time.

He, therefore, urged the new members to use their role as directors to create a new sense of nationhood in Nigeria.

““We are joined from today and I like to, on behalf of myself and all other new members, thank you very much for admitting us. We are glad to be here.

“But my remark would speak more to what I think is the role of directors. Most of us know what it is in our various sectors and boards, but I would speak to it about nation building.

“Our country is at a stage where we need all hands on deck to create a new life; a new sense of nationhood in this land.

“This is because we are opportune to work and play in sectors where we have influence, I think we are able to start the correction and the entrenchment of good governance in where we operate.

“That way, if all of us take this back home, we’re able to assemble a good aggregation of people who are bent on entrenching the right things in this nation,” he said.

Mgbeokwere expressed a strong belief that the new members had the capacity to create a new beginning in the country.

He said, “it’s a privilege to grow at work, or to come out to appointment to sit on boards of organisations, being where strategic decisions have been made, and a sense of direction is being created.

“If we muster a good number of people who are committed to entrenching good corporate governance where we work and where we operate, we can also engage the public sector and government itself in bringing the much desired change that we all desire in this nation.”

He urged them not to see the certificates as one other thing added to their library or as one other thing they all have acquired.

Mgbeokwere advised them to rather, think about the sub-committees they signed on to and do the work of introducing thoughts, experiences and things they had garnered over the years.

He also said that this would help to bring about the desired change that the members clamour for.

Earlier in his speech, Chairman, Board of Bank Directors Association of Nigeria, Mr Mustafa Chike-Obi, urged the new members to focus on people to drive innovation in the institute.

Speaking on the theme “Smart Boards, Smarter Thinking: Innovating for Improved Board success”, Chike-Obi said that what drives innovation was people.

He said: “It is the quality of the membership of the organisation that drives innovation.There is nothing else that does it.

“You can read all the books you want, you can do all the work you want, but eventually, the quality of your people is the driving force for innovation.

“So, please, you are all in senior positions or will be very shortly. Focus on your people. Without people all this talk is talk. They will drive your innovation, they will drive your thinking and they’ll make it reality,” he said. (NAN)(www.nannews.ng)

Edited by Olawunmi Ashafa

Vivian Ihechu
Apr, Fri, 2023

Banking

Silicon Valley Bank: NDIC tasks regulators on risk management

104 total views today

By Lydia Ngwakwe

The Nigeria Deposit Insurance Corporation (NDIC) has urged regulators in the banking industry to draw supervisory lessons from the failure of Silicon Valley Bank and Credit Suisse by ensuring proper risk management.

Mr Mustapha Ibrahim, the Executive Director (Operations), NDIC, gave the advice at the Chartered Institute of Bankers of Nigeria (CIBN) advocacy dialogue series 7.0, held physically and virtually, on Thursday in Lagos.

The News Agency of Nigeria (NAN) reports that the discussions were under the theme: `Failure of Silicon Valley Bank in USA: Global Impact and Lessons for the Nigerian Financial System.’

The CIBN Advocacy Dialogue Series is a thought-leading programme created to empower various stakeholders with knowledge on emerging issues affecting the banking industry and the economy.

The series typically features subject matter experts and operators with the aim to generate ideas that can help individuals and organisations make better and informed decisions amid challenges in matters relating to banking, finance, and the economy, at large.

Giving illustrations from the insights provided by Clive Briualt, Chairman of the Toronto Centre, Ibrahim drew up 10 lessons that financial supervisors in Nigeria should leverage.

According to him, there is a need for financial sector managers and regulators to, first and foremost, understand the business that they are involved in.

He explained that knowing the nature of the business would help in structuring and regulatory approach as well as aid supervisors’ understanding of the business on both sides of the balance sheet — liabilities and asset sides.

Ibrahim urged supervisors to bear in mind the dangers involved in rapid growth expansion and treat it as a warning sign of higher risk.

He called on supervisors to understand the nature of deposit risks.

“It is not just enough to mobilise deposits but there is a need to know the behavioural pattern and nature of the depositors,” Ibrahim said.

According to him, supervisors have to understand the nature of the markets to be involved, the need for stress testing, consideration of the issue of recovery planning, crisis preparedness, among others.

He, therefore, charged Nigerian banks to prioritise risk management, responsible lending practices, market awareness and collaboration with regulators.

This, he said, would help in ensuring that they were operating in a sustainable and responsible manner while supporting the growth of the local tech and startup industries.

Ibrahim also explained that effective regulation and supervision of banks had the potential to make banks less likely to fail and also contribute to the stability and robustness of the financial systems.

Earlier, Dr Ken Opara, President/Chairman of CIBN, noted that Silicon Valley Bank was one of the most prominent lenders in the world of technology start-ups.

Opara said that it had grown extraordinarily fast, with total assets almost doubling from $116 billion at the end of 2021 to $216 billion at the end of 2022, making it the 16th largest bank in the U.S.

Opara, who was represented by Prof. Pius Olanrewaju, First Vice-President, CIBN, noted that the bank, however, collapsed for multiple reasons which sent shockwaves through the financial system, reviving memories of the global crisis in 2008.

“This occurrence has sparked a chain reaction of similar failures, including Credit Suisse, First Republic Bank, Signature Bank and Silvergate Bank while amplifying the need for experts across the globe to discuss the systemic issues plaguing the U.S. banking system, the regulatory gaps as well as its global impact.

“Additionally, policymakers and regulators are sifting through the rubble to consider what steps must be taken to prevent a similar crisis from occurring again.

“It is important to state that this event, of course, happened in the United States, however, because the world is inextricably linked by globalisation, could greatly destabilise markets and economies around the globe.

“So, it is pertinent to discuss the global impacts to extract insights to strengthen the banking system and ways to further improve the operational efficiency of Nigerian banks, in particular,’’ Opara said. (NAN)(www.nannews.ng)

Edited by Kamal Tayo Oropo/Chinyere Joel-Nwokeoma