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  • CIBN backs CBN on banking reforms

    CIBN backs CBN on banking reforms

    The Chartered Institute of Bankers of Nigeria (CIBN) has hailed the Central Bank of Nigeria (CBN) for the recent reform in some banks.

    Recall the apex bank on Jan. 10, dissolved the boards and management of Union, Polaris, Keystone and Titan Trust banks due to their non-compliance with the Banks and Other Financial Institutions Act, 2020.

    The CIBN in a statement by Mr Akin Morakinyo, the Chief Executive of the Institute, on Thursday, reassured the public of the safety and soundness of the banking system.

    Morakinyo encouraged the banking public to continue their transactions and activities without hesitation.

    “CIBN will like to reassure the general public that the Nigerian banks remain strong and resilient and that the CBN is committed to ensuring a stable financial system,” he said.

    Morakinyo said the institute would continue to support laudable initiatives of the CBN and other stakeholders for a virile economy.

    The CBN appointed new management team for the three banks it earlier dissolved.

  • Nigeria’s rising inflation consistent with global trend – Emefiele

    Nigeria’s rising inflation consistent with global trend – Emefiele

    Mr Godwin Emefiele, Governor, Central Bank of Nigeria (CBN) on Friday said the steady increase in headline inflation from 15.60 per cent in January to 20.77 per cent in September was consistent with global trends.

    Emefiele said this at the 57th Annual Bankers Dinner, organised by the Chartered institute of Bankers Nigeria (CIBN), on Friday in Lagos.

    The dinner had the theme, “Radical Responses to Abnormal Episodes: Time for Innovative Decision-making” wass appropriate and well timed.

    He also said headline inflation soared to 20.77 per cent in September, indicating eight consecutive months of uptick, and that the upward momentum was after a successive period of decline in 2021, due to balanced monetary policy actions.

    He said upside pressure on consumer inflation re-emerged during the year, as global conditions complicated existing local imbalances to undermine price stability.

    “Food remains the major component of domestic consumer price basket. The annualised uptick in headline inflation mirrors the 6.21 percentage points upsurge in food inflation to 23.34 per cent in September.

    “During this period, core inflation also resumed an upward movement from 13.87 per cent in January to 17.60 per cent.

    “In addition to harsh global spill overs, exchange rate adjustments and imported inflation; inflation was also driven by local factors such as farmer herder clashes in parts of the food belt region,” he said.

    Emefiele said during the early part of 2020, the world economy experienced the most significant downturn last witnessed since the Great Depression following the outbreak of the COVID-19 pandemic.

    He said the effect contracted global GDP by about 3.1 per cent in 2020, and commodity prices went into a state of turmoil as the price of crude oil plunged by over 70 per cent.

    He said as the world struggled to recover to pre-pandemic conditions, the global economy was yet again hit by another adverse occurrence with the eruption of the Russian-Ukraine war.

    He said the war, along with the sanctions placed on Russia by the US and its allies, led to a spike in crude oil prices.

    He said in the attempt to contain rising inflation, advanced markets such as the US, began to increase their policy rates, which led to a tightening of global financial market conditions along with a significant outflow of funds from emerging markets.

    “The subsequent strengthening of the US dollar further aggravated inflationary pressures, along with a weakening of currencies, and depletion of external reserves in many emerging market countries.

    “Today close to 80 per cent of countries have reported heightened inflationary pressures due to a confluence of some of the factors mentioned above,” said Emefiele.

    He explained that central banks in emerging markets and developing economies, in a bid to contain rising inflation were also compelled to raise rates, which was expected to lead to a tapering of global growth over the next year.

    “In fact, the short-term global growth projections by the IMF have been downgraded three times in 2022 and is likely to be below the 3.2 per cent and 2.7 per cent estimates for 2022 and 2023, respectively.

    “Average growth among advanced economies is projected to plunge from 5.2 per cent in 2021 to 2.4 per cent in 2022 and 1.1 per cent in 2023.“Estimated output growth in emerging markets, is expected to slow from 6.6 per cent in 2021 to 3.7 per cent apiece in 2022 and 2023,” he said.

    He said in view of the food, energy, and cost-of-living crises in many countries, there were growing restrictions on food exports from many countries.

    “As at the last count, about 23 countries, mainly in advanced economies, according to the World Bank have banned the export of 33 food items. “Seven other countries have additionally implemented various measures to limit food exports,” said Emefiele.

    On currency redesign, Emefiele said, “Analysis of the key challenges primarily indicated a significant hoarding of banknotes, as over 85 per cent of currency in circulation were held outside banking system.

    “This is even as currency in circulation more than doubled from N1.46 trillion in December 2015 to N3.23 trillion in September 2022; a worrisome trend that must be curbed.”

    He, therefore, said the policy would quicken the attainment of cashless economy as it was complemented by increased minting of the eNaira.

    According to him, the redesigned notes will also curtail currency outside the banking system, and as the monetary policy becomes more effective, it will help rein in inflation.

    Earlier, Dr Ken Opara, CIBN president, commended Emefiele, saying he had during the year, continued to be purposeful in curtaining economic shocks from the aftermath of the fourth wave of the COVID-19 pandemic.

    He commended him for keeping inflation and other related economy indices, especially the naira, from distortions exacerbated by declining production levels fueled by high cost of production, insecurity, dwindling government revenues, foreign exchange volatility and uncertainty in the global oil market.

    Opara said, “through the careful management of the Monetary Policy Rate (MPR), the CBN continued to drive the recovery path of the Nigerian economy through the expansion of credit to the real sector, guided management of foreign reserves and promoting sound financial environment and monetary policy.”

    The Annual Bankers’ Dinner is a platform where stakeholders of the banking community gather to reflect on the developments in the banking industry and economy over the past year, while gaining economic insights for the year to come.

  • CIBN, PAPSS sign MoU to resolve payments-related barriers in continental trade

    CIBN, PAPSS sign MoU to resolve payments-related barriers in continental trade

    The leadership of the Chartered Institute of Bankers of Nigeria (CIBN) has signed a Memorandum of Understanding (MoU) with Pan- African and Payment Settlement System (PAPSS) in a bid to resolve payments-related barriers in the actualization of the African Continental Free Trade Area (AfCFTA).

    The MoU was signed between both organizations at the CIBN’s just-concluded 15th annual Banking and Finance Conference which held from Wednesday 13th to Thursday 14th September, 2022 in Abuja.

    Themed: ‘Repositioning the Financial Services Industry for an Evolving Glocal Context,’ the Conference featured five business and four plenary sessions with A-list faculty.

    The business session featured the following topical issues; Banking in Africa: The Role of AfCFTA and PAPSS; Nigeria’s economy in the last five years: lessons learnt and choices to make in the next five years; Workforce globalisation: Opportunities and threat; Banking & Fintech: The nexus and opportunities; Climate change: The role of financial services sector.

    The plenary session addressed the following; Sustainable financing: Opportunities, challenges and solutions for the energy sector; Food security: Unlocking Nigeria’s potentials to feed Africa; Creating economy: Scaling for jobs; Harnessing the untapped opportunities in Nigeria’s healthcare system.

    According to a communiqué released by the Institute at the end of the two-day conference, both sessions recorded highly-engaging and intellectual discourse aimed at charting a new partway to unlocking Nigeria and Africa’s untapped potentials in Agriculture, healthcare, financial services and other key sectors.

    Highpoints and resolutions from the Business and Plenary Sessions include;

    1. Focus on improving trade by resolving payments-related barriers isa fundamental requirement for the success of the AfCFTA and this has been highlighted by the PAPSS. PAPSS provides a model that would support international payments in local currency, thus resolving specific payment-related challenges.
    2. There are a lot of opportunities for Africa and the wealth that is not being tapped because of the low level of trade interaction in the continent.
    3. The Nigerian business model should be reshaped to address the unfriendly macroeconomic issues.
    4. The growth of on-lending facilities for companies that have proper ESG goals and workable plans presents opportunities for businesses.
    5. Infrastructure development needs to be facilitated to ensure the success of both the AfCFTA and PAPSS.
    6. The new digital infrastructure should be explored to boost financing in the creative sector is minimal and not yet understood. The players in this industry need to identify the technocrats who understand the way the technology works and play with them.
    7. Understand how comparative economies finance the creative sector. We should consider the depth of equity financing with emphasis on creating special needs banks, investment banks, and/or large asset funds, which are ways of financing the creative sector in other jurisdictions. In some instances, deliberate rebate schemes are also employed.
    8. There is a need to leverage collaboration among various international financial institutions to boost growth and development of the creative industry.
    9. With technological advancement, telemedicine has presented a viable solution for the provision of high-quality and low-cost health services.
    10. With the policy change which has seen social insurance now being made mandatory, there will be a huge expansion in the pool of people who will require health insurance, and this presents an opportunity for the financial services industry to provide workable solutions.
    11. Social dialogue in banking enterprises must be held on issues of common interests.
    12. HR managers need to identify the factors that are within their control and strive to understand why their staff are emigrating to be able to tackle the ‘japa’ syndrome.
    13. With the growing globalisation of work, talent has become fluid and borderless. Rather than recruit new workforce, organisations could improve or train internal talent.
    14. The academic curriculum needs to be modernised to match the demands of businesses in the current clime.
    15. The financial sector has a pivotal role to play in achieving the net-zero ambitions of the country.
    16. The growth of green finance presents an opportunity for financial institutions to lay more emphasis on green-related assets financing.
    17. CIBN should be involved in negotiating the terms for access to clean technology solutions needed to tackle the adverse effects of climate change.

    Meanwhile, the Chairman, Conference Consultative Committee and Managing Director/Chief Executive Officer of Sterling Bank Plc, Mr Abubakar Suleiman advocated for the institution of US$20 million Capacity Building training fund to be housed in the CIBN. According to him, the proposed fund will be used to train and retrain workers who can fill the gap left by their colleagues who emigrate. He also pledged a donation of US$1 million by Sterling Bank to kick start the fund.

    Dignitaries at the Conference include President Muhammadu Buhari, represented by the Minister of Finance, Mrs Zainab Ahmed, the Governor of Lagos State, Babajide Sanwo-Olu represented by the Commissioner of Finance, Doctor Rabiu Olowo, Central Bank Governor, Godwin Emefiele who also doubled as the Chief Host. Others in attendance include CEOs, seasoned bankers and industry stakeholders. The CIBN President, Ben Opara was host of the Conference.

  • CBN receives accolades for injecting $265m into aviation sector

    CBN receives accolades for injecting $265m into aviation sector

    Some stakeholders have commended the Central Bank of Nigeria (CBN) for injecting $265million into the nation’s aviation sector.

    This action, the stakeholders said would bail some of the foreign airlines operating in the country out from the shortage of dollars.

    Recall that the apex bank on Friday released the sum of $265million to settle outstanding ticket sales for foreign airlines. The release was made in a bid to check the crisis brewing in the sector.

    A breakdown of the figure indicates that the sum of $230 million was released as a special FX intervention, while another sum of $35 million dollars was released through Retail SMIS auction.

    A Professor of Economics at the University of Ibadan, Prof. Lanre Olaniyan, described the gesture as a welcome development.

    According to Olaniyan, some of the airlines that threatened to pull out of the country’s aviation sector will now have a rethink.

    He, however, said that the inability of the airlines to repatriate their monies in the first place would affect confidence.

    “It is a welcome development, but like any other business, confidence will be low. Confidence is what makes businesses to thrive. Most of the airlines will now be treating Nigeria with caution,” he said.

    According to Mr Okechukwu Unegbu, a former President of the Chattered Institute of Bankers of Nigeria (CIBN), the apex bank only did what it ought to have done earlier.

    He described the release as debt that was being repaid, adding that the release could even have implications for the country’s foreign exchange reserves.

    “The CBN ought to have settled the problems with the airlines before it got out of hand,” he said.

    A personnel of a foreign airline, Isaac Olanipekun, commended the CBN for taking bold steps to solve the dollar crunch facing the aviation industry.

    He called on the Federal Government and the CBN to ensure that such a situation does not recur.

  • Emefiele begs economists to stop creating panic, says Nigeria will be out of recession soon

    Emefiele begs economists to stop creating panic, says Nigeria will be out of recession soon

    The governor, Central Bank of Nigeria (CBN) Godwin Emefiele has projected that the economy will grow by two percent in 2021, but begged economic analysts to stop creating panic.

    Emefiele stated this in Lagos in a keynote address delivered at the 55th Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria (CIBN).

    While expressing confidence that the various intervention of the Apex bank will make Nigeria emerge out of recession in the first quarter of 2021, Emefiele said: “We also expect that growth in 2021 would attain 2.0 percent.”

    He however stressed the need to insulate the economy from shocks that may undermine the attainment of the projected 2.0 per cent economic growth.

    Emefiele reveals He said: “However, downside risks remain, as restoration of full economic activities, particularly in service-related sectors, remains uncertain until a COVID vaccine is produced and made available to millions of people across the world.

    “Second, with the significant rise in cases in advanced markets and the imposition of lockdowns in parts of Europe, concerns remain on the impact this could have on growth in advanced economies, commodity prices and the financial markets.
    ]
    “We must therefore find ways to insulate our economy from the impact of these shocks through our diversification efforts, while also working to ensure that we adhere to safety protocols in order to prevent a surge in COVID-19 related cases, as this could further cripple economic activities.”

    On the other hand, the CBN Governor appealed to economic analysts from analysis that can create panic and thus hamper the economic recovery process. He said: “When you overdramatized you create panic in the system and that slows down the process of recovery.”

  • Why social unrest looms large in Nigeria – Dogara

    Speaker of the House of Representatives, Hon. Yakubu Dogara, has attributed lack of opportunities as a contributory factor to social unrest in Nigeria.

    The Speaker made this known while receiving a delegation from the Chartered Institute of Bankers of Nigeria in his office.

    He said the inability of many young, talented and gifted Nigerians to access funds to take their dreams to reality has led to their involvement in activities that are detrimental to the growth and development of the society.

    He, therefore, challenged the banking sector to contribute to the fight against violence, terrorism and sundry acts of criminality by providing opportunities to Nigerians to pursue dreams that will yield positive outcomes.

    “When citizens are alive, they are free but they are excluded from pursuing their dreams and realising them, they cannot be said to be enjoying the promise of democracy.

    “Unfortunately, that is the biggest challenge of our democracy in Nigeria and it is giving birth to other challenges that are even threatening the entire democratic architecture and that is lack of opportunities and we see that manifesting in violent crimes, in terrorism.

    “Most of the people doing this, the young people are involved in kidnapping, sundry acts of criminality. If they had opportunities where they can release their latent energies or potentials, they would have definitely be doing other things for the benefit and good of the system and not joining the coalition of the enemies of open society,” he said.

    He urged the bankers to take a very in-depth look at the possibility of reducing their bank rates to encourage small and medium businesses in the country to thrive as this would lead to strengthening of the democratic architecture of the country and enable Nigerians to enjoy life, liberty and pursue what makes them happy.

    Hon Dogara expressed confidence that with the commitment of bankers, reduced interest rates can be achieved, while assuring that the House is committed to the ease of doing business in Nigeria.

    “To be candid, when you borrow monies from banks to fund businesses, especially in Nigeria, it is like you are signing your cheque to poverty because in some cases, you struggle with the interest, not even the principal, and years and years, you have not been able to sort it out and once you run into any misfortune, banks are even like in a rush to ensure that you either pay or they close it on you,” he said.

    Earlier, the President and Chairman-In-Council of the Institute, Professor Segun Ajibola, commended the speaker for promoting the ease of doing business in Nigeria through the passage of landmark bills, including the Collateral Registry Act, by the National Assembly.

     

  • Recession:CIBN, others harp on empowering non-oil sector

    The Chartered Institute of Bankers of Nigeria and some financial analysts on Tuesday said the Federal Government must empower the non-oil sector to prevent sliding into economic recession again.

     

    They gave the advice at the Fourth Economic Outlook on Tuesday in Lagos, noting that the economy was still fragile.

     

    The News Agency of Nigeria (NAN) reports that the theme of the outlook was “Implications for Businesses in Nigeria in 2018”.

    The event was organised to review Nigeria’s economy in 2017 and chart the way forward.

     

    The CIBN Centre for Financial Study (CIBNCFS) held the programme in conjunction with Biodun Adedipe Associates Ltd. (BAA).

    The CIBN President, Prof. Olusegun Ajibola said that Nigeria’s economy in 2017 could be adjudged successful considering the manner the country weathered economic storms.

     

    Ajibola said: “After five consecutive quarters of contractions, the country rebounded from recession with approximately 0.6 per cent growth recorded in the second quarter of 2017.

     

    “Inflation dropped from its peak of 18.72 per cent in January 2017 to the current value of 15.98 per cent, the lowest rate in 16 months.”

    He said that there was triumph for small and medium businesses as Movable Assets Bill was signed into law, adding that the Credit Reporting Bill also passed in 2017 was a step in the right direction.

     

    “These developments contributed to Nigeria’s jump by 24 places from 169th to 145th position on the World Bank’s Ease of Doing Business Report for 2018.

    “On the global stage, we witnessed the rise in prices of crude oil from an average ofapproximately $41 per barrel in 2016 to approximately $52 per barrel.

    ” Consequently, Nigeria’s foreign reserves currently stand at over $40 billion, ” he said.

     

    Ajibola, however, said that although there were notable achievements in the past year, high unemployment rate which rose from 14.2 to 18 per cent in 2017 should be addressed.

     

    He urged Federal Government to improve electricity generation and distribution, give enabling environment for businesses to thrive to yield the desired results.

    “It would not be misplaced to categorically state that a state of emergency should be declared on security, particularly between farmers and Fulani herdsmen.

    “This is needed in order not to scare away foreign investors from prominent economic hubs of the nation.” he added

    The Chief Consultant of BAA, Mr Adeoye, cautioned the Federal Government against over confidence on crude oil production.

    He also said that strong measures should be in place to guard against the collapse of capital market.

     

    He said: “Investors are trooping into the country because of the positive economic indicators of 2017.

    “This is a year of elections, there will be much money in the circulation.

    ” However, foreign investors may withdraw investments in the capital market before elections for fear of the unknown.

    “It happened in 2008, ” he said

     

    Mr Mike Olajide, Executive Director, Sidmach Technologies Ltd., said the Federal Government should give attention to technology development.

    He said the country would need modern technologies that could facilitate generation of reliable data to develop right policies to tackle problems.

    “For instance, only 500 out 1,700,000 pupils that graduated from secondary schools yearly advanced.

    ” Did this problem developed overnight? Isn’t the remaining 1,200,000 a challenge to national security?.

    “Only 30,000,000 out of 90,000,000 bankable Nigerians use banks. The herdsmen, market men and women still keep money under the pillows

    “We need technology to reach them,” he said

     

    Nigeria Ranks Second Worst Electricity Supply Nation In 2017

     

  • CIBN received complaints worth N27.6bn from bank customers in 2016 – Report

    CIBN received complaints worth N27.6bn from bank customers in 2016 – Report

    The Chartered Institute of Bankers of Nigeria (CIBN) says its Ethics and Professionalism Division received 136 petitions with claims that amounted to N27.6 billion from bank customers in 2016.

    The institute made this known in its 2016 Annual Reports and Accounts signed by the Registrar, Mr Seye Awojobi.

    The report was released on Saturday in Lagos.

    It said that 79 cases were fully resolved out of the 136 petitions, translating into a total refund of three billion naira.

    The CIBN said that it also raised N439.58 million as annual development fund and corporate subscription during the year under review.

    The institute noted that the figure was lower than the N443.38 million expected in 2016.

    It said that the payments were received mostly in the first quarter of the year, thereby increasing its portfolio of investible funds.

    The body also noted that the figure represented a balance of N3.8 million representing 0.86 per cent as outstanding at the end of the 2016 financial year.

    CIBN said that regulators and commercial banks paid N400 million, development banks, six million naira; mortgage banks, N1.2 million; and microfinance banks, N2.2 million.

    It added that the institute’s individual membership grew from 118,802 in 2015 to 122,680 in 2016.

    The figure is an increase of 3,893 new members which represented 3.36 per cent into various categories which include honorary fellows and seniors as well as students and ordinary members.

    On corporate members, the institute said it registered additional 16 microfinance banks in 2016, and that they were issued certificates in line with CIBN Act No. 5 of 2007.

    It said that micro-finance banks which it had registered were 363 out of the 979 microfinance banks licensed by the Central Banks of Nigeria.

     

     

     

    NAN

  • CIBN partners 50 varsities, polys on curriculum development

    CIBN partners 50 varsities, polys on curriculum development

    Professor Segun Ajibola, President, Chartered Institute of Bankers of Nigeria, CIBN, says the Institute has established linkage agreements with about 50 universities and polytechnics in Nigeria on curriculum development.

    Ajibola told journalists on Monday in Lagos that the linkage agreements were aimed at streamlining CIBN’s curriculum with those of the respective universities and polytechnics.

    “The linkage agreement is to train the young students and blend their respective training in universities and polytechnics with the CIBN’s professional curriculum.

    “What we intend to achieve is that as they are graduating with either B.sc or HND, within a space of time, they just need to write a few papers to become chartered bankers,’’ the CIBN president said.

    According to him, the CIBN has also started postgraduate programmes in over 20 universities with a view to build capacities at various levels of the country’s banking industry.

    Ajibola said that the CIBN has trained and certified about 3500 management staff of microfinance banks as part of its 16 certification programmes covering all areas of banking.

    The CIBN president noted that the major crisis facing the nation’s banking industry was skill gap and dearth of experienced and competent hands.

    He said that the Institute has introduced Continued Compulsory Professional Development for its members to bridge the skills gap.

    Ajibola said that the CIBN has inaugurated a new body of bank chief executive officers under a new leadership to ensure effective communication among practitioners, operators and regulators and government.

    He said that the CIBN would soon introduce new radio and television programme – You and Your Banker – where members of the public could dialogue with experienced hands in banking industry.

    “We’ll be bringing authorities and personalities in banking industry on radio and television to communicate directly with citizens at the grassroot in the language they understand in anything banking.

    “New concepts are coming into banking lexicon in recent times and the dictionary is getting bigger and bigger every day.

    “So we need to continually enlighten the man on the street concepts such as TSA, BVN, for instance,’’ The CIBN president said.