By Rukayat Adeyemi

The Fiscal Responsibility Commission (FRC) on Saturday highlighted the risks associated with banks lending in a manner that contravenes the Section 45 of its Fiscal Responsibility Act.

Its Executive Chairman, Mr Victor Muruako, who spoke at a one-day stakeholders dialogue in Lagos, said such manner could also have severe consequences for banks and the Nigerian economy as a whole.

The dialogue was on implementing Section 45 of the Fiscal Responsibility Act.

The News Agency of Nigeria (NAN) reports that the commission began discussions with banks and financial institutions in the country to ensure that their lending practices consistently comply with provisions of the Fiscal Responsibility Act(FRA).

Muruako emphasised that although borrowing by the government and public institutions is a tool for development, lending by banks and financial institutions in violation of the provision is unlawful.

Despite the simplicity and clarity of the Act’s language, he pointed out that banks often approve and disburse loans to subnational governments without fully adhering to the provisions of the FRA.

Muruako said: “Not once in the commission’s verification exercises, has it confirmed that a Proof of Compliance With Provision of the FRA was specifically requested for and obtained by a bank or financial institution before lending to any government.

“Also, only one, out of a recent sample of 13 loans to governments across the country, had an associated ‘Cost-Benefit Analysis’, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.

The FRA chairman said there lawsuits in courts across the country, challenging the propriety of some bank loans to governments and public institutions, based on provisions of the FRA 2007.

Muruako said: “The unsavory effect of this non-compliance, may spread well beyond the individual banks to the inside macroeconomic space.

“Since the commission has responsibility toward macroeconomic stability, we thought it necessary to hold this stakeholders dialogue to get the perspectives of banks and also stem the tide before it’s too late.

“I urge the banks and other financial institutions to support the bold macroeconomic reform initiative of President Bola Tinubu’s administration.

“By being intentional in helping to reduce the risk of macroeconomic instability through ensuring that their lending practice consistently comply with provisions of the FRA.”

Muruako appreciated the leadership of Access bank for their support in organising the event and stakeholders in the financial industry for their cooperation with FRA.

In his remark, Mr Felix Obiamalu, a lawyer, advised the FRC to work toward engaging the Nigeria Governors’ Forum (NGF) and carry them along to ease the implementation of the provision.

Obiamalu, also Associate Director, Legal and Sanctions, Nigeria Financial Intelligence Unit,
stated that the FRA should also be empowered to enforce compliance to the FRA.

This, he noted, could be done by enabling laws to sanction and penalise defaulters of the Act.

In his presentation, Prof. Uche Uwaleke of the Nasarawa State University, Keffi, also harped on the need to curb borrowings from government at all levels.

He said this had become more for consumption, rather than for capital projects.

Uwaleke noted that government borrowings over the years had been on the rise, as the country currently has over N87 trillion public debt.

According to him, this is causing strain on government balance sheet and stifling the nation’s development.

The News Agency of Nigeria (NAN) reports that stakeholders at the dialogue included: representatives of NGF, Nigeria Deposit Insurance Corporation (NDIC), Chief Compliance Officers, Chief Risk Officers, Chief Legal Officers and Chief Executive Officers of banks, among others. (NAN)(www.nannews.ng)

Edited by Olawunmi Ashafa

By Rukayat Adeyemi

Access Bank Plc says it has enhanced its Agriculture Desk to boost sustainable agricultural business and attract global investments.

The Executive Director, Commercial Banking, Access Bank, Ms Hadiza Ambursa, at a news conference in Lagos, said that the move aimed at improving value for its customers and stakeholders.

Ambursa said that the advancement positions the bank at the forefront of Nigeria’s agricultural financing market segment to serve and support agribusinesses in Nigeria.

According to her, this is in line with the Central Bank of Nigeria’s (CBN) directive to banks.
She said that the agriculture desk serves as a specialised unit which is charged with the responsibility of offering financial and advisory services.

She said that the desk also supports prospects and existing players in the agri-business value chain.
Ambursa said this is in the areas of input and supply, primary production, storage, processing, marketing, mechanisation, among others.

The executive director explained that the creation of the desks was to actualise the ‘From Farm to Table’ Policy thrust of the CBN, which aligns with the bank’s vision of contributing to the country’s achievement of sustainable food security.

“Access Bank’s agriculture desk is first of its kind in the Nigerian agricultural financing market segment to bridge the funding gap in Nigeria’s agricultural sector.

“This is done by promoting agribusiness activities through sustainable lending to customers, while providing sustainable and innovative agribusiness solutions for the markets and communities the bank is serving.

“This is done by collaborating closely with the market to understand their unique needs, offering tailored financial products and services to optimise their operations and facilitate expansions.

“Accelerate the growth of agribusiness and enhance the livelihoods of farmers and agro-entrepreneurs, by strategically aligning its services with the evolving needs in the agricultural industry,” she said.

According to her, the bank provides tailored financial solutions that address the unique challenges faced by farmers, agribusinesses and other stakeholders in the value chain with the value addition services.

Ambursa said these include provision of financial and advisory services, market linkages to support sales, capacity building, with special focus on women and youth, stakeholders’ engagement, project monitoring and reporting.

She mentioned that the bank’s agriculture desk has a seamless and simplified process for the accessibility of the service.

The executive director said: ” The agriculture desk is not only about financing; it is about driving transformational change within the agricultural landscape.

“Our commitment extends beyond monetary support to encompass capacity building, technology adoption and market access for our clients.

“The desk’s impressive track record has been built on partnerships with key stakeholders, including government agencies, international organisations and industry associations.

“This collaborative approach has reinforced our reputation as a reliable driver of growth in Nigeria’s agricultural sector.”

Ambursa noted that the bank has positively contributed to the nation’s achievement of self-sustained food security.

She revealed that the bank’s investment in agribusiness, so far, is over N200 billion, which has benefitted over 10,000 Agribusinesses, across Small Holder Farms (SHFs).

Also, Small and Medium Enterprises (SMEs), organised farmer associations or cooperatives and corporates who are financed under various bank’s product and government schemes.

The executive director said that the support for these projects has had impacts, such as increase in food security, job creation, growth in customers’ businesses and increased revenue.

Ambursa stated that with a steadfast commitment to sustainable agricultural business and strategic stakeholders partnerships, the bank is steering the nation and continent toward greater self-sufficiency and global prominence.

She said that the bank had earned several awards to its credits, which includes: 2021 and 2022 Global Brand Magazine Award of “Best Agro Banking Brand, 2021 Nigeria Agriculture Award of Agric Bank of the year.

It also won the 2020 African Banker Awards of “Agriculture Deal of the Year, 2019 Central Bank of Nigeria ‘Agricultural Credit Guarantee Scheme’ Award, 2018 and 2019 Central Bank of Nigeria ‘Most Sustainable Bank in Agriculture’ award. (NAN)

Edited by Olawunmi Ashafa

By Lucy Ogalue

The African Development Bank(AfDB) has unveiled the Africa Climate Risk Insurance Facility for Adaptation (ACRIFA) to insulate countries against catastrophic weather-related events.

The AfDB’s President, Dr Akinwumi Adesina, said this in a statement on the bank’s website.

Adesina spoke on the sidelines of the African Climate Summit in Nairobi, Kenya.

The facility, which will be hosted by the bank, expands its pioneering Africa Disaster Risk Insurance Program into a facility that will develop insurance to help African countries.

“Specifically, their agriculture sectors, prepare for, adapt and build resilience against adverse effects of climate change such as flooding and drought.

‘It will raise an initial one billion dollars of concessionary high-risk capital and grants to catalyse the development and uptake of insurance solutions.

“This will help countries, businesses and communities adapt to climate change,”he said.

According to the AfDB boss, the initiative is the bank’s effort to scale up support to insure countries and households against extreme weather patterns.

He said extreme weather patterns negatively impact the livelihoods of millions of farmers in Africa, majority of who are women.

According to him, one way of tackling this issue is to ensure farmers have access to crop and livestock insurance.

“The Africa Climate Risk Insurance Facility for Adaptation will extend credit insurance to investment portfolios related to climate, agri-food system and enterprise development.

“It will engage primary insurers across Africa to ensure business opportunities flow through them to continental and international re-insurers.

“In addition, it will support national governments to more efficiently manage climate disasters,” he said.

The Comoros President Azali Assoumani, Chair of the African Union, who spoke at the event described the initiative as a necessary innovation.

“Considering the frequency and impact of national disasters in African countries, ACRIFA has come at a time when African countries are facing enormous challenges affecting agriculture, such as floods and drought.

“It will help us to strengthen our adaptation and resilience capacities.

“Comoros is just 2,000 square kilometers. We cannot unlock our touristic potential when we face severe climate risks.

“And therefore the importance of this facility to Comoros, which continues to experience adverse realities of climate change,” he said.

Ibrahima Diong, the Director-General of the African Risk Capacity Group and United Nations Assistant Secretary-General, said ACRIFA would help to scale up what the African Risk Capacity Groupi s doing.

He said risk transfer is not just about premiums but also about what happens before the disaster strikes, hence the facility which would help to build data that feeds early warning systems in Africa.

He said ACRIFA would expand partnerships to carry out services to clients, such as the World Food Programme.

Martin Frick of the World Food Programme, expressed excitement about ACRIFA’s potential to expand insurance cover to farmers who need it.

Frick said,“The Facility will help to unlock private sector capital and we can inject trust in the market and unleash more capital than is currently provided in the market.”

Following a panel discussion about the facility’s potential, AfDB’s Vice President for Agriculture, Human and Social Development, Dr Beth Dunford, said it needs to move into action quickly.

“What we are talking about today, is not just about policies; the impact of a thriving climate insurance industry in Africa is about lives.

“It is about an Africa that doesn’t just survive in climate uncertainties but thrives in them,” she added.(NAN)(www.nannews.ng)

Edited by Ijendu Iheaka/Julius Toba-Jegede

By Nana Musa

The Chief Executive Officer (CEO) of the First Bank Group, Dr. Adesola Adeduntan said that the group had made banking transactions convenient for its customers to transact all their business.

He said this at the cocktail party organised by the Annual Banking and Finance Conference in Abuja on Monday.

Adeduntan, who was represented by Mr Callistus Obetta, the Group Executive, Technology and Services at the bank, said technology had rebuilt a lot of the transmission across many industries within the financial services space.

He said that technology within the financial sector had come in different stages which had helped to drive development level leveraging on Artificial Intelligence (AI).

According to him, technology has made it easy for customers to make payment, withdrawal and other transactions.

“Customers has more time to do their personal things because technology has enable the bank to do business at easy.”

He said that technology would continue to change the society in the way it envisaged the future.

“We live across the globe and the key to move forward is to build a future driven by technology and no one can be be left behind.

“As we talk about next generation, we are talking about how to really drive access, drive convenience, drive development, leveraging on technology or intelligence and more data,”.

Earlier, Dr. Ken Opara, the President/Chairman of the Council of the Chartered Institute of Bankers of Nigeria (CIBN) and Executive director with Fidelity Bank, said that the future of banking industry had gone digital.

He said that the youth were the future of the banking industry and charged them to work hard as the sector belonged to them in the nearest future.

While commending the organizers, Opara said that the event was about networking, sharing ideas and experiences. (NAN) (www.nannews.ng)

Edited by Maureen Atuonwu

By Lydia Ngwakwe

The Chartered Institute of Bankers of Nigeria (CIBN) has inducted 1,212 graduated banking professionals,  urging them to continuously learn and adapt to new changes.

The President/Chairman, CIBN, Dr Ken Opara, gave the advice at the 2023 CIBN graduates induction and prize award on Saturday in Lagos.

The News Agency of Nigeria (NAN) reports that the ceremony has its theme as: “The Dynamics of Work and Current Realities: The Way Forward for Financial Service Professionals.”

Opara said that the theme resonated deeply with the rapid changes that had continued to shape the landscape in the financial services sector.

“We live in a world of unceasing transformation, fuelled by the convergence of technological breakthroughs, shifting market dynamics, and changing customer expectations.

“According to a report by the World Economic Forum in ‘Future of Jobs Report 2022’; it was noted that by 2025, emerging technologies such as artificial intelligence, robotics, and data analytics are expected to drive significant shifts in labour markets, necessitating new skills and adaptability from professionals across all industries.

“Statistics from the same report underline the urgency of embracing change: approximately 40 per cent of the core skills required to perform existing roles in financial services sector are expected to change by 2025.

“This underscores the importance of aligning our skill sets with the emerging demands of the industry, enabling us to navigate the disruptions and seize the opportunities that lie ahead.

“It is imperative to state that as an institute, we are in tune with the dynamics shaping the financial services landscape and recognise the profound impact of technological innovations, which have orchestrated a significant transformation within our industry,” he said.

The CIBN president pledged the institute’s commitment to executing strategic capacity-building initiatives that would bridge skill gaps and empower professionals.

According to him, this will help them to remain at the forefront of industry advancements while also ensuring their sustained competence in an ever-evolving landscape.

Opara, who celebrated the inductees, said that they represented the future of the industry.

He said, “We are confident that your knowledge, skills, and ethical values will contribute significantly to the continued growth and development of the financial services landscape in Nigeria and beyond.”

The CIBN president, later announced that going forward, the induction ceremony of the institute would hold twice a year, beginning from February 2024.

This, he said, was a strategic move by the institute to ensure it turned out graduands more rapidly and enable them use the ACIB/MCIB designations almost as soon as they completed their programme.

The institute inducted a total of 1,212 graduates, comprising 27 from the CBMBA route, 29 from the MSc/ACIB route, 354 with the ACIB designation, and 804 as Microfinance Certified Bankers.(NAN)

Edited by AbdulFatai Beki/Olawunmi Ashafa