The Chartered Institute of Bankers of Nigeria (CIBN) has commended President Bola Tinubu for unifying the Naira exchange rate to save the country from financial crisis.

The President/ Chairman of Council of CIBN, Dr Ken Opara, said this at the 2023 Lagos Bankers Night with the theme, ” Exchange Rate Unification: Glocal Implications, Organisation’s and the Country “, on Friday night in Lagos.

According to him, the institute has always advocated transparency and a free market that would allow the interplay of supply and demand.

He said, “The Chartered Institute of Bankers of Nigeria totally supports the Central Bank of Nigeria’s reform as it relates to the unification of the exchange rate and other measures basically taken to ensure the true value of the Naira.

“As a matter of fact, we have been advocating for this and during the week, Dr ‘Biodun Adedipe, leading other scholars, and Mr Laoye Jaiyeola of the Nigeria Economic Summit Group, gathered at the Bankers House to applaud the reform, especially as it relates to the unification of the exchange rate.

“We have seen that the effort that the Central Bank of Nigeria has initiated is already yielding dividend.

“We can see that the exchange rate between the Naira and the dollar has started coming down which means it is a good initiative that is well thought out.”

Opara said that the institute recently organised a half year economic review, where captains of industries also spoke in support of the reform.

He urged Nigerians to take advantage of the good opportunities that the reform had presented, saying wherever there are challenges lie in opportunities.

The CIBN president pledged the institutes continued commitment to making contributions and suggestions relating to what should be done to support and grow the country.

He said, “As it is the concept of the industry; we played this role very well when the industry was facing challenges and we will continue to do that because we believe that the banking industry is very solid, stable and efficient.”

He described the payment system in Nigeria as “the best” all over the world, stressing that it is a system that one could consummate transactions on an online real-time basis.

Opara said this showed that the banking industry and its regulator had done well in stabilising what an effective payment system.

He debunked media reports that its Lagos branch was not in support of the exchange rate unification, describing as “untrue”, but calculated to cause panic.

Chief Consultant of B. Adedipe Associates Ltd. (BAA Consult), Dr ‘Biodun Adedipe, said that the exchange rate unification, which was not new in Nigeria, had gone through the route before with different appellations.

“Let me trade very quickly what I brand as Nigeria’s journey to exchange rate unification.

“Nigeria has gone through this route before but with different appellations like devaluation, correction, alignment, depreciation, all of which are matter of semantics.

“The simple interpretation of this is to remove the premium on the official rate and the parallel market or road side market.

“Of course, this is a typical Bretton Woods recipe; keep premium within five per cent to decentivise round tripping and then find liquidity to sustain it.

“This is the easy way out; but, it never brings enduring solution to the persistent crisis in the external sector of the Nigerian economy.”.

According to him, there are 54 evidence-based research documents to establish that free float is not always the most appropriate for all economics.

Giving historical illustrations, the expert noted that exchange rate movements had a more significant impact on all other prices more than interest rates adjustment.

He said the only period that Nigeria experienced a successful and stable rate convergence in the country was when it had a significant external reserve.

Adedipe said it took the country an average of two to six weeks for the parallel market rates to diverge from the official exchange rate during each episode of premium removal.

He added that speculative attack on the currency occured each time there was no clear sight to a stable and enduring supply.

NAN recalls that President Bola Tinubu, had during his inauguration on May 29, said his administration would seek to bring the different exchange rate regimes being operated across the country’s foreign exchange channels under a single regime.

However, in June, Tinubu through the Special Adviser on Special Duties, Communications, and Strategy, Dele Alake, announced the implementation of a unified exchange rate to save the country from a financial crisis.

He emphasised that his decision to implement a managed float, similar to his approach to fuel subsidy removal, was in the best interest of Nigeria.(NAN)

Edited by Olawunmi Ashafa

By Lydia Ngwakwe

The Nigeria Electronic Fraud Forum (NEFF) has called on stakeholders in the financial sector to collectively address and mitigate risks posed by electronic fraud.

Mr Musa Jimoh, Director, Payment Systems Management of the Central Bank of Nigeria (CBN), made the call at the company’ third quarter 2023 general meeting on Friday in Lagos.

The News Agency of Nigeria (NAN) reports that the meeting has “New Strategies for Combating e-Fraud in a Cashless Environment,” as its theme.

Jimoh, who is also the Chairman, NEFF, noted that the criminals in the cyber world had increased and that if not addressed could increase individuals and organisations exposure to financial losses.

He said, “Today, we are here to look at the new strategies by which we can combat fraud; If we don’t combat the cyber criminals; they will weigh us down and breed the entire system.

“So, we all need to work together to see how we can make life extremely difficult for the cyber criminals.

“You know like the popular saying today; they say you should let the poor breath, but we shouldn’t let this criminals breath.

“We should actually suffocate them to death because our hard earned money is what these guys are forcibly taking away from us,” he said.

The Chief Executive Officer, Ignis Solutions Ltd., Simon Martin, while speaking on the topic, “e-Fraud in a Cashless Environment: Trends, Threats, Emerging Typologies and International Standards for Regulators”, urged stakeholders to pay more attention to building capacity to be able to combat e-Fraud.

She said, “I think it’s important that we build our capacity; I think it’s important that we pay attention to possible emerging threats that could hamper our developments in digital payments and moving toward a cashless society.

“I think education is definitely important, not only for our systems and for people, but for our individual self and it’s one of the reasons why I identify myself as an unconventional regulator.

“It’s important that we apply design thinking in our lives as we go forward. Things are evolving, and so too, we must evolve as well.”
Martin, therefore, urged individuals and organisations to protect, properly store and manage their data to avoid bad actors leverage on it.

Mr Premier Oiwoh, Managing Director, Nigeria Inter-Bank Settlement Systems (NIBSS), urged stakeholders to pay more attention on mobile channels, saying it was the most significant point used for defrauding.

Oiwoh, represented by Mr Temidayo Adekanye, spoke on the topic, “The Current and Emerging e-fraud Landscape in Nigeria: Data Analytic”.

Oiwoh said, “So, I will advise that everyone focuses on mobile channels as the most significant point used for these fraudulent actions.

“But what we see most importantly is the fact that the primary channels are the betting platforms.

“So, once the money leaves the betting platform; Wallet account, or in some cases PoS agents; once it is cashed out, it is a black hole. There is no way you can recover that money.

“Literally we’re talking about potentially five per cent recovery rate across the industry.

“So, we all have to identify those betting Wallet accounts, PoS agents, cryptocurrency accounts, and in some cases purchases,” he said.

NAN reports that the goal of NEFF is not only to identify the latest fraud trends but also to craft dynamic and effective countermeasures.

The forum serves as a catalyst for stimulating dialogue, enhancing collaboration, and fostering partnerships that will result in practical solutions to combat e-fraud.

The major highlight of the meeting was the unveiling of the NEFF website (neffng.com/site/new-home) to share information that is fit for public consumption.(NAN)

Edited by Yinusa/Olawunmi Ashafa

By Lydia Ngwakwe

The Association of Corporate Affairs Managers of Banks (ACAMB) has urged traditional financial institutions to embrace innovation and adapt in a changing environment to remain relevant.

The President of ACAMB, Mr Rasheed Bolarinwa, gave the advice at the association’s second National Stakeholder Conference 2023 edition in Lagos.

The News Agency of Nigeria (NAN) reports that the theme of the conference was: “Marketing Financial Services in Dynamic Times’’.

“As good news as this seems to be, for us as financial services providers, the rate at which fintechs and neo-banks have, and continue to transform the finance industry, is a wake-up call for the traditional financial institutions to keep up with latest innovations in order to succeed and thrive.

“Part of the imperative of these dynamic times is the demand on us in the industry to embrace innovation, adaptation, and agility if we must remain relevant in today’s marketplace,’’ he said.

According to him, the topic underscores the dynamism of the present time and the impact on the financial services industry.

Bolarinwa said among the key indicators of these dynamic times were macroeconomic headwinds that redefine the financial market as well as other markets across the board.

He added that rising inflationary trend, purchasing power parity and supply shocks occasioned by foreign exchange scarcity had a significant impact on production and ability of people to save money and invest.

He said digitalisation was also a major trend that was rapidly disrupting the general ecosystem including the financial services sector.

Bolarinwa noted that consumer’s behaviour was being altered as the mode of buying and selling shifted from the brick-and-mortar traditional mode to online purchases, while fostering increasing adoption of digital payment systems.

“It is not just that; demand for safer, faster and cost-efficient services is also getting higher as consumers become more sophisticated while competition also gets fiercer by the day,” he added.

The Lead Partner, CMC Connect LLP, Mr Yomi Badejo-Okunsanya, urged financial institutions to rebuild customer trust by finding new ways to meet their needs.

According to him, a study by PricewaterhouseCoopers Ltd. reveals that only 39 per cent of Nigerians trust their banks in contrast to the global average of 56 per cent.

He said, “this lack of trust impedes financial inclusion and digital service adaptation.

“When you are promoting your product, you make it look easy in the promotion but when I get there you make it very difficult.’’

Okunsanya urged the banks to know their customers and market, adding that the era of mass marketing was gone.

He said, “in those days when you wanted to sell financial products, you just put a couple of pretty girls in a sweet looking car and sometimes, the higher their skirt line, the better; but you cannot do that anymore.

“A customer has become so aware; the issues of corporate governance does not allow that anymore and also how many banks were there in those days compared to how many they are now? So, competition is key.’’

He also advised financial institutions and other industries to create a strong and active research and development unit in order to succeed.

Okunsanya noted that institutions were not investing enough in research and service.

He added that innovation and digital revolution was one of the most significant effects of the digital evolution in finance urging banks to democratise financial services, among others.

NAN reports that ACAMB is a body of corporate affairs and marketing communication professionals in Nigerian banks.(NAN)

Edited by Chinyere Joel-Nwokeoma

By Lydia Ngwakwe

The Lagos State Branch of the Chartered Institute of Bankers of Nigeria (CIBN) has perfected plans to hold its 2023 Bankers Night on key policy issues affecting the nation’s economy.

The Chairman, Lagos State CIBN, Mr Adeyemo Adeoye, said at a media briefing on Tuesday in Lagos that the event would hold on Aug. 18, at the Federal Palace Hotel, Victoria Island.

Adeoye said the event with the theme: “Exchange Rate Unification: Global Implications for Households, Organisations and the Country,’’ would x-ray the challenges affecting the nation’s economic.

The theme, he said, was important because Nigeria’s economy was driven by imports and rarely manufactures anything.

“We are once again bringing to you our Lagos Bankers Night this year, after a period of absence of three years, due to slip-over effects and factors that were not unrelated to the global pandemic. The last outing was in 2019.

“This is our flagship programme and we use it as a platform to raise revenue, rally-round a large number of professionals, within and outside the industry, to discuss topical issues and improve networking opportunities for our members.

“It is the institute’s larger strategy of promoting financial enlightenment, and providing platforms for discussing key policy issues that will strengthen the nation’s economy,’’ Adeoye said.

Adeoye said Dr Biodun Adedipe, Founder and Chief Consultant at B.Adedipe Associates (BAA Consult), would be the guest speaker.

He added that Mr George Onafowokan, the Managing Director, Coleman Wires and Cables, would be the Chairman of event.

According to him, the Chief Host of the event will be the President of the CIBN, Dr Ken Opara.

The News Agency of Nigeria (NAN) reports that the event is an annual event where major financial policies are reviewed and new focus articulated, with well over 500 high profile banking/financial practitioners and other institutions in attendance. (NAN)(www.nannews.ng)

Edited by Chinyere Joel-Nwokeoma

By Ibukun Emiola

The Chief Executive Officer (CEO), First Bank of Nigeria Ltd., Mr Adesola Adeduntan, says technology will drive financial inclusion and increase efficiency in the banking system as trends evolve globally.

Adeduntan said this in Ibadan on Wednesday at the inauguration of the FirstBank Digital Xperience Centre, in the University of Ibadan (UI) campus.

According to him, the centre is the second of its kind established by First Bank, adding that it is the only bank in Nigeria with a fully automated digital banking system.

Adeduntan explained that people without internet access could use the machine to open accounts, transfer money or issue debit cards on their own, with the help of the humanoid robot without interacting with human beings.

The CEO noted that automated digital banking would help solve challenges customers faced in their banking operations.

“The robot can help you make enquiries and you can even work with the robot to help you block your account, in case you suspect fraud.

“The first branch of the digital experience centre is located in Victoria Island, Lagos, and we purposely chose University of Ibadan as the second location because of our longstanding relationship with the city of Ibadan and the institution itself.

“We believe that the students, lecturers and all our customers in this neighbourhood will benefit significantly by making use of this facility,” he said.

He added that the centre had cash recyclers, adding that this meant that customers did not have to visit any of its branches to deposit, and customers would no longer be stranded because banks do not open during the weekend.

Adeduntan said the technology used relied on biometrics, making it secure and safe for customers, while also creating more value-adding jobs for staff.

In his remarks, the Vice-Chancellor, University of Ibadan, Prof. Kayode Adebowale, said it was a privilege for UI to have the digital experience centre of the bank.

Adebowale said it would bring benefits to the staff and students and, as stated by the bank’s CEO, it would be a meeting point between the gown and town.

Similarly, Mr Callistus Obetta, Group Executive Technology Officer, Digital Innovation, and Banking Services, First Bank of Nigeria Ltd., said technology had been changing the way people live, work and interact as well as the way people do business.

“Nigerians are known to be pioneers, both in terms of banking and education. We are here in the University of Ibadan and technology is embedded in the way we do things and we are ready for that,” he said.

Obetta noted that the centre would enhance effectiveness and efficiency in business operations, and save time which would enhance overall productivity.

The News Agency of Nigeria (NAN) reports that the first Digital Xperience Centre by the bank was launched at the remodelled Adetokunbo Ademola Branch, Victoria Island, Lagos.

Edited by Deborah Coker/Oluyinka Fadare

By Rukayat Adeyemi

Mr Oliver Alawuba, Group Managing Director, United Bank for Africa (UBA), has reiterated  the bank’s commitment to enhancing customer experience.

He also expressed optimism on greater achievements for customers and shareholders.

In a statement signed by Mr Nasir Ramon, Group Head, Media and External Relations of Corporate Communications, UBA, in Lagos, Alawuba, was quoted to have said this while marking his first year anniversary in office.

He also promised investors and customers that the best is yet to come.

The News Agency of Nigeria (NAN) reports that ‘UBA 4.0 Team’, led by Alawuba, took over the reins of leadership in August 2022.

According to him, the bank has since achieved record-breaking profit margins and witnessed transformative growth across the international and African markets.

Alawuba, who expressed gratitude to his team and other internal stakeholders for the many successes achieved in the last 12 months, said that through their collective efforts, the bank had celebrated major business wins across various markets.

This, he said solidified its position as a leading financial institution in the region.

He said, “I want to express my gratitude to every one of you, our dedicated and talented team leaders and members for your commitment to our customer-centric vision and the spirit of execution displayed in our successes so far.

“Through our collective efforts, we have recorded major business wins across our various markets, improved on our financial performance, enhanced customer service delivery and are on the way to achieving a more connected brand.

“These achievements have not only strengthened the bank’s standing but have also provided a solid foundation for even greater accomplishments in the future,” Alawuba said.

The chief executive officer explained that the bank would not rest on its oars in its drive to deliver on its promise of being the leading financial services provider in Africa and beyond.

“We will continue to focus on our three levers of transformation, these being People, Process and Technology,” he added. (NAN)

Edited by Olawunmi Ashafa

By Kadiri Abdulrahman

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), on Monday raised the country’s Monetary Policy Rate (MPR) from 18.5 per cent to 18.75 per cent.

The Acting Governor of the CBN, Mr Folashodun Shonubi made this known on Tuesday, while presenting the communique from the MPC meeting.

The News Agency of Nigeria (NAN) reports that the MPR is the baseline interest rate upon which other interest rates are built.

Shonubi announced that the committee also adjusted the asymmetric corridor from from +100/-700 to to +100/-300 basis points around the MPR, retained the Cash Reserve Ratio (CRR) at 32.5 per cent; and retained the Liquidity Ratio at 30 per cent.

According to Shonubi, the committee is confronted with only two policy options, to hold or marginally hike the policy rate to offset the moderate increase in headline inflation.

“Considering the option to a hold, the committee reviewed the impact of the continued rise in inflation on various macroeconomic variables, noting the potential dampening effect on output growth.

“Members agreed unanimously that the previous series of rate hikes had indeed greatly moderated the pace of price development and was gradually but steadily yielding the expected outcome.

“The option to continue to hike the policy rate, albeit moderately, also presents a strong aliternative,” he said.

He said that this was premised on the expected liquidiiy injections into the economy, from the recent policy developments and the likely impact on inflation.

“The committee remained cautious in arriving at a policy decision as members noted the need to continue to support investment which will ultimately lead to the recovery of output growth.

“The balance of these arguments thus, leaned in favour of a moderate rate hike, to sustain efforts at anchoring inflation expectation, narrow the negative real interest rate gap, and improve investor confidence.

“The MPC, thus, resolved by a majority vote to raise the Monetary Policy Rate (MPR) by 25 basis points. Six members voted to raise MPR by 25 basis points while five memnbers voted to hold the MPR Constant.

“All members, however, voted to narrow the asymmetric corridor from +100/-700 to +100/-300 around the MPR,” he said. (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams