Search Results for “microfinance” – :::…The Tide News Online:::…

SMEs Dev: Firms Launch N100m Loan Scheme

The Tide — Mon, 30 Mar 2026 02:40:55 +0000

The Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN), the umbrella body of non-bank microfinance institutions and cooperative societies in Nigeria, in partnership with NEAT Microcredit, has unveiled a N100 million joint loan facility aimed at supporting small and medium-scale enterprises (SMEs) across the country.

The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.

The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.

Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.

“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.

He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.

According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.

“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.

Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.

He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.

“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.

He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.

“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.

EFCC Indicts Banks, Fintechs In N162bn Scams

The Tide — Fri, 23 Jan 2026 01:10:52 +0000

The Economic and Financial Crimes Commission (EFCC) has indicted a new generation bank, six Fintechs and some microfinance banks in major financial scams by allowing fraudsters to launder huge sums of money.

Director of public Affairs of the Commission, Mr Wilson Uwujaren, made this known at a press briefing at the commission’s headquarters in Abuja, yesterday.

According to him, the compromised institutions allegedly allowed cryptocurrency transactions worth N162 billion to pass through without proper due diligence within the 2024/2025 financial year.

He said that the financial institutions clearly compromised banking procedures and allowed the fraudsters to safely change their ill-gotten gains into digital assets and move them to safe destinations.

“A total sum of N18.1 billion was moved through the financial system without due diligence of customers by the banks.

“It is worrisome that investigations by the commission showed that cryptocurrency transactions to the tune of N162 billion passed through a new generation bank without any due diligence.

“Investigations showed that a single customer maintained 960 accounts in another new bank and all the accounts were used for fraudulent purposes.

“That is bad news but the good news is that following our intervention the commission has been able to recover N33.62 million, which has been returned to some of the victims.”

He explained that the scams were in two categories, adding that the first was a syndicate of fraudsters that employed an airline discount scheme to lure their victims.

He said that they advertised a discount system for the purchase of flight tickets of a particular foreign carrier.

“The payment module is designed in such a way that the victims’ payment is actually made into the account of the airline.

“After payment is made the passenger’s entire funds in his bank account are emptied.

“Investigations showed that more than 700 victims have been scammed so far, with a loss of N651 million,” he said.

According to him, investigations show that the scheme is being masterminded by a foreign national; the commission has so far recovered and released N33 million to victims of the fraud.

He said that another scheme involved a company named Fred and Farid Investment Limited, simply called FF investment, which lured Nigerians into a bogus investment arrangement.

“More than 200, 000 victims have been defrauded in this regard. A total sum of N18 billion was raked in through nine companies offering diverse investment packages.

“The companies are: Credio Banco Limited; Deliberty Rock Limited; Liam Chumeks Global Service; Ngwuoke Daniels Technology; and Icons Autos and Import Merchant.

“Others are : Newpace Technology Services Limited, Primepath Ways Ventures Limited, Kaka Synergy Network Limited and Sunlight Tech Hub Services Limited.”

He said that foreign nationals were behind the schemes, while there are three Nigerian accomplices who have been arrested and charged to court.

He said that the masterminds were on the run and efforts are being made to bring them to book.

“The Commission is calling on regulatory bodies to bring financial institutions to compulsory compliance with regulations in the areas of Know Your Customers (KYC), Customer Due Diligence (CDD), Suspicious Transaction Reports (STRs) and others.

“Deposit Money Banks, Fintechs, Micro Finance Banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution.

“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be allowed,” he said.

While cautioning members of the public to be wary of these actors, he said that the EFCC would continue its works against money laundering by fraudulent actors.

Uwujaren urged financial institutions to firm up their operational dynamics and save the nation leakages and compromises bleeding the economy.

Ikwerre Leaders Eulogise President General …As Who Is Who in Ikwerre Is Unveiled In PH

The Tide — Mon, 22 Dec 2025 01:11:54 +0000

Prominent personalities from the Ikwerre ethnic nationality have showered encomiums on the President General of the Ogbakor Ikwerre Cultural Organisation Worldwide, Eze (Barrister) Godspower Onuekwa, following the successful unveiling of his book titled Who Is Who in Ikwerre (Iwhuruohna Nation).

Leading the tributes, former Chief Judge of Rivers State, Justice Peter Agumagu (rtd), described the publication as a landmark achievement for the Ikwerre people.

Speaking as chairman of the unveiling and launch ceremony held at Hotel Presidential, Port Harcourt, Justice Agumagu said the book represents a historic contribution that will serve as an enduring reference for present and future generations.

According to him, the Ikwerre ethnic nationality is deeply grateful to Eze Onuekwa for ensuring that a comprehensive record of the people has been documented.

He urged Ikwerre sons and daughters, as well as other Nigerians, to purchase copies of the book and share them with friends and associates.

Justice Agumagu expressed confidence that the book is an authentic portrayal of Ikwerre history, noting that the ethnic group has faced threats from overambitious neighbours seeking to annex its identity and territory.

He stressed that the publication would help safeguard the true history of the Ikwerre people.

“We are Ikwerre. We are the ones to tell who we are, not others. The Ikwerre people are strong and resilient, and nobody will be able to subdue us,” he declared.

Also speaking, former Commissioner for Youth and Sports, Sir Owene Wonodi, commended the author for the time, energy, resources and dedication invested in producing the book.

He described the work as a compendium worthy of celebration, noting that it captures the essence and contributions of the Ikwerre people.

Sir Wonodi said he was delighted to attend the unveiling ceremony, which brought together scholars, leaders and stakeholders to discuss Ikwerre culture and heritage. He observed that the book has bridged a potential communication gap in an increasingly globalised world.

He warned that without deliberate efforts to document history, future generations could lose access to vital cultural knowledge when current leaders and elders are no longer around.

He, therefore, urged continued documentation of Ikwerre history, particularly in the face of claims of ownership by other ethnic groups over Port Harcourt and Ikwerre land.

Reviewing the book, Prof Eric Amadi of Ignatius Ajuru University of Education described it as a special compendium that highlights individuals who have made, and continue to make, significant contributions to the development of Ikwerre land.

He said the book compares favourably with existing literature on Ikwerre history and deserves commendation.

Another reviewer, Prof C. D. Chukwu, also praised the author, describing Who Is Who in Ikwerre (Iwhuruohna Nation) as a well-researched and valuable publication.

In his response, Eze (Barrister) Godspower Onuekwa expressed gratitude to all who attended the ceremony and to those who supported the project in various ways.

He said the book was inspired by his deep love for the Ogbakor Ikwerre Cultural Organisation and his desire to contribute meaningfully to the development of Ikwerre land.

According to him, the publication is the product of extensive discussions, interactions and research, and expressed hope that other Ikwerre scholars and professors would build on the foundation laid by the book and further document the history and achievements of the people in the coming years.

Dignitaries at the event included Justice Peter Agumagu (rtd); Sir Owene Wonodi; former Secretary to the State Government, Chief Sampson Agbaru; former President General of Ogbakor Ikwerre Worldwide, Prof. Otonti Nduka; Prof. Emenike Wami; Chief Alex Amadi Wochi; Prof. Samuel Chisa Dike; Senator Andrew Uchendu; Comrade Levi Atuzie; Prof. Aaron Ojule; Prof. Michael Emeji; and several others.

[12/21, 7:53?AM] Mr. Done Tide: Rivers Microcredit Loan Beneficiaries Laud Gov. Fubara, RIMA Boss for Transparent Scheme

Beneficiaries of the Rivers State Microcredit Loan Scheme have expressed deep appreciation to the Rivers State Governor, Sir Siminalayi Fubara, and the management of the Rivers State Microfinance Agency (RIMA) for what they described as a rare, transparent and impactful government intervention.

Speaking in separate interviews, several beneficiaries commended the governor and the RIMA leadership, led by Pastor Jonathan Tobin, for the seamless and inclusive implementation of the scheme, which they say has significantly improved their businesses and livelihoods.

One of the beneficiaries, Mrs. Adanma Wilnifred Echefu, said the programme exceeded her expectations, describing Pastor Tobin as an extraordinary administrator who has demonstrated sincerity, transparency and trustworthiness in coordinating the scheme.

“I was honestly sceptical when I first heard about it. It felt like the usual government promise, but I decided to try. To my surprise, barely three weeks after submitting my application — without knowing anyone in government — my account was credited,” she said.

According to her, the loan has greatly improved her business, adding that the interest rate is extremely low. “This is the first of its kind for Rivers people. Governor Fubara is truly God-sent. This programme has restored my confidence in governance and leadership,” she added.

Another beneficiary, Mrs. Boma Florence, also praised the process, describing it as stress-free and genuine. “This is not a gimmick. It is real. Since I was born, this is the first time I am receiving a credit facility without having any connection in government,” she said.

She explained that the loan enabled her to expand her business and employ more people. “This is what governance should be — thinking about the poor and those without connections. I am a living testimony,” she noted.

Mr. Barry Peter, who disclosed that he received over ?3 million through the scheme, described the intervention as more than just support. “Our people often doubt government promises, but this administration has proven otherwise. I applied, trusted the process, and today I have received millions to grow my business,” he said, adding that Rivers people are rejoicing across political divides.

Similarly, Mrs. Gladys Agala from Abua/Odual Local Government Area said she received over ?1 million to support her farming business. “It didn’t take up to one month before my account was credited. This is truly a government of the people, by the people and for the people,” she stated.

She commended RIMA officials for their fairness, noting that applicants are assessed based on basic requirements such as business verification, rather than personal connections. “This is like an American wonder happening in Rivers State,” she remarked.

Another beneficiary, Mrs. Amadi Previous from Obio/Akpor, said the loan has positively impacted her clothing and POS business. She also confirmed her commitment to repaying the loan promptly to enable others benefit. “This government has a clear vision for everyone, not just a few,” she said.

Investigations revealed that many beneficiaries have already begun complying with the loan repayment terms to ensure the sustainability of the programme.

Recall that the Rivers State Government recently earmarked over ?4 billion for micro, small and medium-scale business owners across the state as part of efforts to stimulate economic growth, support entrepreneurship and alleviate poverty.

CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

The Tide — Fri, 05 Dec 2025 03:42:13 +0000

The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.

The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

World Bank to consider Nigeria’s fresh $1bn loan request

The Tide — Mon, 03 Nov 2025 00:15:05 +0000

The World Bank has fixed December 16 as a tentative approval date for a fresh $1bn Development Policy Financing loan to the country under a new initiative tagged “Nigeria Actions for Investment and Jobs Acceleration (P512892).”

According to a project document published by the bank on October 27, the new facility comprises a $500m International Development Association credit and a $500m International Bank for Reconstruction and Development loan.

The facility, which falls under the bannk’s Macroeconomics, Trade and Investment practice area for the Western and Central Africa region, is designed to strengthen ongoing economic reforms, promote job creation, and accelerate private investment.

The proposed loan is part of the bank’s broader support package aimed at consolidating the country’s post-reform stability and driving inclusive growth across key sectors of the economy.

The funding is designed to consolidate Nigeria’s ongoing macroeconomic reforms and support a decisive shift from economic stabilisation to inclusive growth.

It will be implemented through the Federal Ministry of Finance, with the World Bank confirming that the loan preparation process has been authorised to proceed.

“The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500m IDA credit and US$500m IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.

Since 2023, the country has embarked on many economic reforms, including the removal of the petrol subsidy, unification of exchange rates, and an end to central bank deficit financing.

According to the Federal Government, the measures, championed under President Bola Tinubu’s Renewed Hope Agenda, have helped stabilise the economy, narrow the fiscal deficit, and restore investor confidence.

But despite the improvements, growth remains sluggish, with more than 130 million Nigerians still living in poverty.

The World Bank report noted that while macroeconomic stability has returned, “Nigeria’s economy has yet to shift decisively into a higher and inclusive growth path,” underscoring the urgency of new investment to spur productivity, diversify exports, and create jobs.

The new policy loan is structured around two key pillars: unlocking private sector growth and lowering the cost of doing business, while expanding opportunities across agriculture, trade, and digital services.

Under the first pillar, the facility will expand access to financial credit and digital inclusion, with backing for the investment and Securities Act 2025, new credit enhancement facilities, and a CBN Rulebook aimed at improving microfinance and non-bank financial institutions.

It also supports the National Digital Economy and E-Governance Bill 2025, which will provide a legal framework for electronic transactions, authentication services, and digital records, key steps toward building a modern, paperless government system.

The second pillar seeks to lower costs for firms and households, reduce inflationary pressures, and enhance export competitiveness.

The bank’s report highlights plans to simplify trade barriers, adopt AfCFTA tariff concessions, and improve certified seed systems for key crops like rice, maize, and soybeans.

This is expected to raise productivity, boost food security, and attract new private investment into the agricultural value chain.

According to the document, the $1bn DPF loan forms part of a broader FY2026 package of World Bank interventions supporting Nigeria’s growth agenda.

Other complementary projects include FINCLUDE (to improve MSME financing), BRIDGE (digital infrastructure), and AGROW (agricultural value chain growth). Together, these are expected to crowd in private capital, expand access to finance, and create an enabling environment for small and medium-scale enterprises.

The programme is also aligned with the Paris Climate Agreement, with components targeting climate-resilient agriculture, reduced deforestation, and digital governance systems that lower emissions from paper-based processes.

The Bank estimates that the policy reforms supported under this operation will help reduce food inflation, increase seed productivity, and expand digital exports, while creating millions of direct and indirect jobs. It added that improved access to credit, particularly for MSMEs and smallholder farmers, will translate to “expanded economic opportunities by creating jobs, including for the poor.”

In addition, reduced import bans and lower tariffs on key inputs are expected to make goods cheaper and improve consumer welfare, while also boosting Nigeria’s competitiveness in regional markets.

Upon approval, the funds will be disbursed in two tranches as policy milestones are achieved, with implementation overseen by the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria and relevant line ministries.

The initiative is expected to anchor Nigeria’s transition from short-term stabilisation to long-term, inclusive growth, potentially marking one of the largest World Bank policy support operations for the country in recent years.

As of June 30, 2025, the country’s external debt stood at $46.98bn, figures from the Debt Management Office show.

The World Bank Group remains the country’s largest single creditor, accounting for $19.39bn comprising $18.04bn from the IDA and $1.35bn from the IBRD.

This means the bank holds 41.3 per cent of Nigeria’s total external debt, underscoring its dominant role in financing the nation’s development programmes.

Serve With Integrity, Innovation, Ibas Charges Inaugurated Boards

The Tide — Mon, 01 Sep 2025 05:58:45 +0000

The Administrator of Rivers State, Vice Admiral Ibok-Ete Ibas (Rtd), has called on newly inaugurated board members of key state agencies to approach their duties with urgency, integrity, and innovation, while also prioritizing professionalism and public accountability.

Speaking during the inauguration ceremony held at the Executive Chamber of Government House, Port Harcourt, last Friday, the Administrator urged the appointees to be proactive and deeply committed to delivering on their critical mandates for the people of the State.

The newly inaugurated boards include the Rivers State Universal Basic Education Board (RSUBEB), Rivers State Senior Secondary Schools Board, Rivers State Internal Revenue Service Board, and Rivers State Microfinance Agency.

Others are Rivers State Contributory Health Protection Programme Board, Rivers State University Teaching Hospital Board, and Rivers State Waste Management Agency (RIWAMA).

Addressing the education sector, the Administrator stressed the urgent need to enforce discipline, reduce overcrowded classrooms, improve infrastructure, and reverse poor performance indices.

He specifically called on the RSUBEB and the Senior Secondary Schools Board to move beyond their boardrooms and personally assess conditions in schools, especially those in remote areas.

“Accountability must guide every kobo spent,” he warned, while urging the establishment of robust data systems to accurately track enrollment, teacher deployment, infrastructure, and student performance.

The Administrator also challenged the Internal Revenue Service Board to automate systems, reduce the state’s dependency on federal allocations, and plug revenue leakages.

According to him, building public trust and transparency is the cornerstone of effective tax collection.

“The work you are about to embark on is not just about collecting taxes. It is about financial sustainability, trust, and accountability,” he stated.

He further tasked the Microfinance Agency with stimulating the local economy by improving access to credit for micro and small businesses, thereby empowering grassroots entrepreneurship and fostering economic growth.

On healthcare, which he described as both a moral responsibility and a strategic priority, Ibas pledged that the government would achieve its goal of providing affordable and free healthcare for vulnerable populations, including pregnant women, children, the elderly, and those with chronic conditions.

“This programme is not only about healthcare; it is about dignity, security and the promise of a better quality of life,” he said.

He described the teaching hospital as a critical treatment center and a vital training ground for future health professionals, noting that “the progress we make here will directly influence the quality of healthcare delivery across the state and beyond.”

Addressing the Board of the Rivers State Waste Management Agency (RIWAMA), the Administrator was unequivocal, stating that sanitation is an issue of public safety, not mere aesthetics.

He called on the board to lead a comprehensive and disciplined approach to waste management.

“The task before this board is urgent and enormous. You must lead the charge to rid our cities and communities of filth,” he said, adding that, “This is not just about clearing waste, it is about instituting a system of efficiency, sustainability, and discipline.”

He disclosed that the government has already procured modern equipment for waste collection and landfill management and is constructing access roads to dump sites to improve operational efficiency.

He challenged the board to explore innovative ways to convert waste into valuable assets such as energy and industrial raw materials.

“Around the world, waste is being transformed into power and products. Our state cannot be left behind,” he said.

He also called for strict enforcement of sanitation laws and greater public awareness.

In his concluding remarks, the Administrator reminded all newly appointed board members that their appointments are a call to service, not a privilege.

APC CANDIDATE SAYS RIVERS LG POLLS PEACEFUL, HAILS RSIEC

The Tide — Fri, 01 Aug 2025 00:49:20 +0000

The Khana Local Government Area All Progressives Congress (APC) Chairmanship Candidate for Saturday elections, Dr. Thomas Bariere, has declared the poll as peaceful and well organized by the Rivers State Independent Electoral Commission (RSIEC).

He described the conduct of the election they as unprecedented, adding that RSIEC has proven that they can up their game from the point of materials distribution to the point of electoral personnel and the security personnel.

Dr Bariere stated this on Saturday in an interview with Journalists after casting his vote at Unit 4, Ward 18 in Bean community of Khana Local Government Area of Rivers State.

He said that, if elected for the second term, he will usher in a new phase of economic revolution in Khana Local Government Area.

According to him, while his first tenure was largely dedicated to tackling insecurity and restoring peace, his administration would focus on driving sustainable economic growth and improving the livelihoods of the people in his second coming.

“The electorate has been so wonderful, there is no record of any incident across the 19 wards and 359 units in Khana LGA.

“It showed that the people have been yearning for the return of democratically elected structure in the grassroots level.

“The greatest challenge we had before now as a local government was insecurity.

“In the past three years, we fought insecurity to a standstill, restored peace, and returned our people to their homes. It is now important that we grow our economy.

“Politics as a way of life must translate into economic ideas that put money in the pockets of our people,” he stated.

Dr. Bariere promised to establish a Khana Local Government Microfinance Bank to provide loans and grants to support small and medium enterprises, thereby creating jobs and empowering local businesses.

He also promised to set up Khana LGA Transportation Company to ease the burden of high transport fares and improve mobility for residents.

Dr Bariere emphasized that these initiatives are aligned with the Renewed Hope Agenda of President Bola Tinubu, which prioritizes economic empowerment, youth employment, and infrastructural renewal.

“Khana is one of the richest local governments in terms of natural resources.

“Our duty is to convert that wealth into real development that touches every household.

“We shall put food on the tables of our people, create jobs, and open up new opportunities,” he assured.

He therefore thanked the people of Khana for coming out en masse to vote for candidates of their choice.

By: Kiadum Edookor

NGOs Urge RSG To Prioritise Child Protection Funding

The Tide — Fri, 20 Jun 2025 01:02:20 +0000

The South South Sexual and Gender Based Violence Prevention Info Hub, in partnership with the Child Protection Network(CPN), Rivers State and the Gender and Development Action (GADA) has called on the Rivers State Government to prioritise dedicated funding for child protection and the eradication of Sexual and Gender-Based Violence(SGBV), and put measures in place to facilitate transformative reforms in the State’s budgeting and planning, to prioritise children’s rights, with focus on combating SGBV.

The NGOs, which made the call during a media briefing as part of activities to commemorate this year’s Day of the African Child in Port Harcourt last Monday, said Rivers State particularly faces a severe SGBV crisis, profoundly affecting children and caregivers.

They noted that this year’s theme of the Day of the African Child, ‘Planning and Budgeting for Children’s Rights:Progress Since 2010’, is apt and timely, as it urges African Union(AU) member states to assess progress in integrating children’s issues into national budgets since 2010 and adopt child rights-based budgeting approaches.

According to the media statement signed by Inyingi Irimagha of the Gender and Development Action(GADA); Darling Ogbulu Peter of the Child Protection Network (CPN); and Loretta Ahuokpeme of the South South SGBV Prevention Info Hub, in Rivers State, SGBV, inadequate funding, and political instability exacerbate vulnerabilities, leaving critical social services under-sourced.

The NGOs frowned at a situation where Rivers State is the only State in the South South without accredited Sexual Assault Referral Centres(SARCs), saying, this leaves child survivors without critical medical care, psychological support or legal aid, thus, resulting in prolonged trauma, physical injuries, and social stigmatisation, violating their rights to safety and well-being.

They, therefore, urged the state government to prioritise dedicated funding for child protection and the eradication of SGBV, contending that as the only State in the South South region without an accredited SARC, Rivers State must act swiftly to establish explicit budget lines and engage stakeholders to address critical issues affecting children and caregivers.

To align with the African Union’s theme for this year’s Day of the African Child, they called on the State to reform her budgeting, to prioritise SGBV and child protection; and the State’s Ministry of Budget and Economic Planning and the Ministry of Finance, to prioritise funding for critical infrastructure supporting vulnerable populations.

The organisations equally urged the state government to adequately fund the Ministry of Social Welfare and Rehabilitation to protect, safeguard and rehabilitate susceptible children and persons, and harped on the need for the government to strengthen the Ministry of Women Affairs to enhance its legal capacity.

They challenged the government to without further delay establish SARCs in the State and allocate funds to build and operate them; fund safe spaces and halfway homes to shelter SGBV survivors and at-risk children; strengthen child protection infrastructure by investing in shelters, counselling centres, and legal aid, to safeguard children from abuse and exploitation; as well as support caregivers by implementing vocational training, microfinance, and financial assistance to empower them, preventing child abandonment and supporting children’s right to a family.

The NGOs called on the state government to enhance law enforcement capacity by training and equipping the police and the Nigeria Security and Civil Defence Corps(NSCDC) to handle SGBV cases, ensuring children’s right to justice; and also strengthen the Ministry of Women Affairs by establishing a legal department within the Ministry to handle SGBV cases and refer them to courts. They also advocated for a special SGBV court, to expedite justice, ensuring swift prosecution of offenders and perpetrators.

They stressed the need for the state government to fully fund the Ministry of Social Welfare and Rehabilitation by providing adequate resources to enable effective protection, safeguarding and rehabilitation services for vulnerable children and persons, thereby reducing the burden on NGOs, saying, the government could as well improve inter-ministerial coordination by funding regular meetings among Ministries and agencies like the police and NAPTIP, for cohesive responses.

The NGOs urged the government to promote transparent budget tracking by establishing monitoring mechanisms for child- specific allocations, ensuring accountability in accordance with AU standards.

The event also featured the presentation of a short film screening highlighting the dangers of SGBV against children and vulnerable persons.

Ibas Presents ?1.48trn Rivers 2025 Budget To Reps, Laments Sabotage

The Tide — Thu, 12 Jun 2025 11:00:25 +0000

The Rivers State Administrator, Vice Admiral Ibok-Ete Ibas, has presented the proposed 1.48 trillion 2025 budget for the state before the House of Representatives.

The budget presentation which was made on Tuesday reveals a bold fiscal framework to restore infrastructure, improve social services, and drive inclusive development under the ongoing state of emergency.

Ibas, however, lamented a lack of cooperation from some suspended state officials, which he said hindered comprehensive budget planning.

The budget, totalling ?1.48 trillion in expenditure with a projected ?1.4 trillion in revenue, was transmitted to the National Assembly following presidential approval after the Supreme Court ruled on the legality of the Rivers State 2025 appropriation process.

The budget reflects strategic priorities in line with the Rivers State Development Plan 2017–2027.

In his opening remarks, Ibas thanked the committee for its dedication, saying “We in Rivers State are most grateful for your commitment. Despite your tight schedules, you have shown unwavering resolve to fulfil your constitutional duties.”

“Regrettably, some state officials withheld critical information required to ensure a more complete capture of expenditures already undertaken during the first quarter of the fiscal year by the suspended administration,” Ibas disclosed.

He added that despite the challenges, the budget framework was revised to lawfully ratify those expenditures while ensuring transparency and alignment with national appropriation standards.

The administrator highlighted several major allocations thus: ?324.5 billion for infrastructure and transportation projects; ?55 billion to relocate and expand Rivers State University Teaching Hospital; ?50 billion for zonal hospital upgrades; ?38.85 billion for shoreline protection and erosion control; ?30 billion for zonal secondary schools and ?5.75 billion for primary school rehabilitation.

Others are ?2.5 billion for women’s economic empowerment; ?3 billion for youth resource centers; ?20 billion to recapitalise Rivers State Microfinance Bank for MSME support; and ?117 billion in pension, gratuities, and employee benefits.

“God willing, every Rivers citizen with a great idea, carefully thought out and well-planned, will find the funding required to turn their dreams into successful ventures, irrespective of tribe, ethnicity, or political divide,” Ibas declared.

Responding, the Chairman of the House of Representatives Committee on Rivers State oversight, Hon. Julius Ihonvbere, commended Ibas for the detailed presentation and affirmed the committee’s readiness to partner with the administrator in restoring peace and development to Rivers State.

“I want to especially thank you and let you know that this committee is committed to working with you to restore stability, peace, growth, and development in Rivers State.”

Ihonvbere said, “Rivers has always been a shining example of what is possible with good leadership, and that is why this commitment is here.”

He emphasised the importance of proper scrutiny of the proposed figures, stating: “We will scrutinise the budget. We will invite you to send your relevant officials for a proper defence of the budget. Since we are committed to joining hands with you to get Rivers State back on track, we are not going to cut corners.”

Ihonvbere also noted key social welfare components in the budget, such as women’s empowerment and pensions for retirees, describing them as necessary and people-centred interventions.

Bank Supports Female Entrepreneurs With Grants

The Tide — Fri, 28 Mar 2025 06:17:07 +0000

Kolomoni Microfinance Bank has awarded grants to five female entrepreneurs to boost their businesses as part of its commitment to promoting women in business.
The initiative, organized to mark International Women’s Day, was themed “Accelerate Her Growth.”
According to the bank, the decision to support women was inspired by World Bank data, which shows that 41 percent of Nigeria’s micro-businesses are owned by women.
Delivering the keynote address, business strategist, Ebun Akinwale, emphasized that entrepreneurship requires resilience, creativity, and passion.
She illustrated this by recounting her own business challenges and highlighting the critical role passion plays in overcoming obstacles.
The event underscored Kolomoni’s mission to empower women and support small businesses in Nigeria.
Other speakers at the occasion were Odunayo Oyebolu, a seasoned entrepreneur; Victori Ajiboye, a marketing strategist with global experience; and Simi Ojumu, a finance expert.
The beneficiaries said the financial support was a validation of their hard work and a boost of confidence towards scaling through in their businesses.
The winners were selected after sharing their entrepreneurial journeys and presenting business proposals for financial assistance from the bank.

Ahaoda West’s Impactful Projects Excite RIMA Boss

The Tide — Wed, 05 Feb 2025 05:16:13 +0000

The Chairman of RIMA Growth Pathway Microfinance Bank Limited, Engr Sunday Dressman, says he is excited over the milestones recorded by the Chairman of Ahaoda West Local Government Council, Hon Iyeko Okporo just within three months in office.
The Chairman of the Board of Directors of RIMA Growth Pathway Microfinance Bank Limited expressed gratitude to the Governor of the State, Sir Siminalayi Fubara, for facilitating the choice of Hon Okporo, saying he remains the best thing that has happened to his people , as impactful projects are littered in all nooks and crannies of the local government.
He said the massive turn out of the people
to receive the council chairman goes to show that their joy knows no bound.
“As you can see ,the people are happy over the milestones of the chairman in just three months in office. In less than three months, ordinary people can feel the essence of leadership .They can see visible projects on their doorsteps.This is democracy in action in Ahoada West, no wonder, the people call him miracle chairman.
The solar-powered water project, being commissioned today by the chairman was abandoned by the Shell Petroleum Development Company some years ago, but the chairman, having known the suffering of the people in terms of enjoying potable water supply, decided to complete it for the use of the people.During the flood, the Late EzeEkpeyeLogbo palace fence collapsed, today, as you can see, the chairman has reconstructed it, rebuilt the generator house and the security post.
Other administrations abandoned these facilities, but our people are proud that their own has come to rescue them, hence,the mammoth crowd. We can see him complementing the efforts of His Excellency at the grassroots level. Our people associate with him for making us proud .We are ready to give Governor Fubara the necessary support to succeed .The chairman he gave us is working like every other council chairmen, while we appeal to the chairman to continue in the same spirit”, he said.

RIVCHPP Partners RIMA As Acting Executive Secretary Records Another Milestone

The Tide — Wed, 04 Sep 2024 04:53:08 +0000

As part of measures to bridge the healthcare gap in Rivers State, the Rivers State Health Contributory Protection Programme, has partnered with the Rivers State Microfinance Agency (RIMA) for improved service delivery.
This milestone is geared towards actualising the blueprint of the Governor Fubara administration in addressing the health needs of the people of the State.
Driving the mandate of Governor Fubara is Dr Vetty Agala, the Acting Executive Secretary of Rivers State Health Contributory Protection Programme ( RIVCHPP).
On a courtesy visit to the management of Rivers State Microfinance Agency (RIMA) in Port Harcourt, recently, Dr Agala said one of the reasons for the visit was to partner with RIMA in order to enhance the partnership and collaboration of both agencies.
Dr Agala said the Governor Fubara deserves applause for taking the huge health burden off Rivers people and residents of the State.
She said Governor Fubara means well for the well-meaning Rivers people including those residing and doing business in the State, hence, the need to support him.
Dr Agala, former Vice Chairman 1 of the Nigeria Medical Association (NMA), Rivers State Branch, said Rivers State remains the best in healthcare provision, courtesy of Governor Fubara with a renowned medical practitioner in the person of Dr Adaeze Oreh supervising the State Ministry of Health.
She said Dr Oreh as State Commissioner for Health has proved her worth by taking Rivers State health sector to enviable heights.
The Acting Executive Secretary commended the RIMA boss for keying into the health contributory scheme, saying, partnering with RIMA would assist in achieving the agency’s set goals.
She said the partnership will secure the health of the staff of the agency and better their living conditions by allowing them to access funds to carry out their businesses and make profits.
Earlier, the Managing Director and Chief Executive of RIMA, Pastor Jonathan Tobin expressed gratitude to Dr Agala and her team for the visit, assuring them that necessary assistance will be accorded to them to make their agency achieve its objectives.
The RIMA CEO said his staff and beneficiaries of the agency’s loan scheme shall be part of the programme.
He said health is wealth, hence, members of staff of the agency shall be part of the scheme approved by the state government to cater for the health needs of the citizenry.

Fubara’s Assistance To SMEs, Yielding Fruits -RIMA Boss

The Tide — Wed, 04 Sep 2024 03:10:19 +0000

The authorities of the Rivers State Microfinance Agency (RIMA) say efforts of the Rivers State Government in reducing hardship and hunger in the State through the disbursement of matching loans to Small and Medium scale Enterprises are yielding fruits.
The Managing Director and Chief Executive Officer of RIMA, Pastor Jonathan Tobin, who gave the indication during a media briefing in Port Harcourt, commended the Governor Fubara administration initiating a loan scheme aimed at encouraging business owners to succeed in the State.
Pastor Tobin also said the assistance to the SMSEs/ NANO businesses is part of the blueprint of the Governor Siminalayi Fubara administration in reducing the hardship faced by Rivers people.
The RIMA MD revealed that so far N800 million had been disbursed to beneficiaries.
He hinted that out of the 1,387 businesses that applied, the females accounted for 58.9 percent while their male counterparts accounted for 41 percent.
The RIMA CEO explained further that persons living with physical disabilities were considered in the scheme.
He said the mandate of the state government will not be compromised as the loan facility has spread to the 23 LGAs of the State, with staff of Rivers State Ministries, Departments and agencies benefiting.
Tobin said the programme of the state government christened, ‘Touching Lives, Creating Wealth’, in conjunction with the Bank of Industry (BOI) was geared towards ensuring that Rivers businessmen enjoy access to finance.
According to him, an average of four tranches had been released each, amounting to N200million.
He said leveraging on the Memorandum of Understanding signed with the Bank of Industry, RIMA was meant to disburse N50million per batch after names of the beneficiaries had been submitted and screened.
He said both the first, second and third batches of beneficiaries have been disbursed accordingly as the fourth batch of beneficiaries were in the process of being paid.
He further disclosed that 75.6 per cent beneficiaries have repaid the matching loan.
He encouraged beneficiaries to endeavour to repay the revolving loan facility, stressing that anyone who repays could be granted another opportunity.
Tobin warned that failure to repay as at when due would not be tolerated as debtors would be compelled to pay back through legitimate means, insisting that sustenance of the loan scheme depends on repayment by the beneficiaries.

Moniepoint Harps On MSMEs Importance

The Tide — Wed, 03 Jul 2024 01:31:50 +0000

The Managing Director, Moniepoint Microfinance Bank (Moniepoint MFB), Babatunde Olofin, has underscored the importance of micro, small and medium enterprises as enablers of diverse economic growth.

Olofin said MSMEs can lead the charge towards a sustainable and prosperous future with proper support from governments, financial institutions and consumers.

He noted that from economic downturns to global crises, MSMEs have continued to demonstrate remarkable resilience and adaptability, in facilitating economic growth and development across borders.

He outlined that, driven by the increased need to improve access to financial services to power sustained and inclusive progress, Moniepoint MFB remains committed to providing peerless and holistic support for MSMEs in order to boost their capacity to achieve the Sustainable Development Goals.

He said the bank would continue to promote innovation, creativity, and sustainable business practices across the country.

According to him, Moniepoint is willing to partner with all stakeholders to create an environment that supports MSMEs in their efforts to invest, trade, and thrive in local and global markets, harnessing the attendant developmental benefits.

“We recognize that MSMEs are the lifeblood of the Nigerian economy. Millions of people depend on them everyday for food, daily necessities, and sustenance.

“For businesses across Nigeria, we have just one promise – we’re always going to be here to make you happy.

“As we celebrate this year’s World MSME Day, we must all acknowledge the hard work, dedication, and perseverance of MSMEs and the driving charge to not only bolster economic stability but also foster sustainable development, helping to eradicate poverty and improve quality of life for Nigerians.

“On a day like this, we must renew our commitment to join hands – agencies of government, private sector operators, and all stakeholders – to continue supporting MSMEs through policies, funding, and capacity-building initiatives. By empowering MSMEs, we pave the way for a more sustainable, inclusive, and prosperous future for all, especially the coming generations”, Olofin said.

He noted that Moniepoint MFB has been widely recognised for its innovative efforts at giving small businesses access to digital financial services, including the ability to accept payments, access working capital loans and manage their finances, that helps them to increase productivity, serve customers better, and ultimately to grow.

According to him, in its bid to further champion the survival of small businesses, Moniepoint MFB recently provided incentives to some business owners across Nigeria to ensure the lights are kept on.

Gift vouchers ranging from three-month worth of inventory restock for a general retail services provider to two-month worth of sewing material to a tailor even as a food and drinks supplier received a fuel voucher in order to solve his logistics needs amongst other recipients.

The beneficiaries, who expressed their gratitude to Moniepoint, noted that the gesture would go a long way to boost their productivity and ensure that they can better serve their local communities.

“As the sector closest to local communities, MSMEs are essential for creating local jobs, empowering women, youth, persons with disabilities and other groups in vulnerable situations. Commemorating MSME Day is a recognition that this vital sector, who are the agents of innovation, growth, and sustainability, at the heart of our societies has tremendous potential to unlock critical pathways to accelerate SDG progress across the globe”, Olofin said.

According to the United Nations, MSMEs account for over 90 per cent of businesses and 60 to 70 per cent of employment worldwide.

#These enterprises make up 50 per cent of global Gross Domestic Product (GDP). They contribute to the global economy and sustain livelihoods, particularly among the working poor, youth, women, and workers in vulnerable situations.

It will be recalled that following a resolution adopted by the UN General Assembly in April 2017, 27th of June was designated as “Micro-, Small, and Medium-sized Enterprises Day” to raise awareness of the tremendous contributions of MSMEs to the achievement of the United Nations Sustainable Development Goals (SDGs).

Eradiri Emerges AAASME’s President

The Tide — Tue, 25 Jun 2024 23:08:25 +0000

The All Africa Association for Small and Medium Enterprises (AAASME) has elected a Nigerian-born and former Director-General of the Bayelsa State Microfinance and Enterprise Development Agency, Dr. Ebiekure Jasper Eradiri, as its President.

The election, as contained in a statement made available to the newsmen, said Eradiri was unanimously elected for meritoriously serving the AAASME for 6 years as Secretary General, then two and half months as Interim Administrator.

According to the Statement, a 13-member Executive Committee was also put in place to work with the President in achieving the Objectives and Mandates set out by the AAASME Constitution.

Eradiri in his acceptance speech pledged to discharge the assignment with the Fear of God and to the benefit of Africa’s 100 million SME ecosystem.

He further thanked the past Executive and the entire AAASME family for the high confidence reposed in him and assured them that he will not betray their trust.

He said his leadership would be guided by what he called the “four cardinal C’s”, namely “Cooperation, Collaboration, Coordination, and Communication”, which he regards as the pillars of his administration .

He reiterated his desire to broaden the work with partners, Alliances and Friends of Africa to deepen engagements for a Continental SME Revolution to birth economic prosperity as enshrined in AU Agenda 2063 #TheAfricaWeWant.

Meanwhile, the World SME Day would be celebrated on June 27 with AAASME hosting on the Margins the Africa SME Roundtable, with a side event at Abuja, Nigeria, from June 28 to 29, 2024.

The President of AAASME also used the opportunity to Congratulate, The Africa Development Bank for 60 years of Service on the Continent, the United Nations Conference on Trade and Development (UNCTAD) for its 60 Anniversary, as well as International Trade Center for its 60 yrs Anniversary and the African Union over the adoption and ratification of Continental Definition for SMEs which has been an advocacy item of AAASME for the past 6 yrs.

Before his election, Dr. Eradiri had served in various capacities which include: Pioneer Secretary-General of AAASME, Director-General of the Bayelsa State Microfinance and Enterprise Development Agency; Senior Special Assistant to Governor of Bayelsa State of Nigeria on Small and Medium Enterprises Development (2012-2020); Member of the World Association for Small and Medium Enterprises (WASME); Board member of BDIC Organic Polymers Ltd and Bayelsa Enterprise Hubs Management Limited; and Technical Advisor to Bayelsa State Government on Economic Development and Liaison (2022-2024).

Other positions previously held include Global Chief Enterprise Officer, SureAid Africa Holdings Consortium with over a decade of experience in the SME development space as an entrepreneur and consultant, amongst other boards of organisations in Africa and around the globe.

Lilian Peters

Tinubu Bows To Pressure, Suspends Cyber Security Levy

The Tide — Wed, 15 May 2024 04:42:59 +0000

President Bola Tinubu has instructed the Central Bank of Nigeria to suspend the implementation of the 0.5 per cent cybersecurity levy in response to public backlash and opposition following its announcement.
Minister of Information and National Orientation, Mohammed Idris, disclosed the suspension of the levy, yesterday.
Idris stated that President Tinubu has directed the CBN to temporarily halt the enforcement of the 0.5 per cent cybersecurity levy and to review the methods for its application.
Recall that members of the House of Representatives last Thursday asked the CBN to withdraw the circular directing financial institutions to commence implementation of the 0.5 per cent cybersecurity levy, describing it as “ambiguous”.
The introduction of the new levy sparked varied reactions among stakeholders as it is expected to raise the cost of conducting business in Nigeria and could potentially hinder the growth of digital transaction adoption.
The CBN had, on May 6, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
Financial institutions are required to apply the levy at the point of electronic transfer origination.
The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution. All financial institutions are required to start implementing the levy within two weeks from the issuance of the circular.
By implication, the deduction of the levy by financial institutions should commence on May 20, 2024.
However, financial institutions are to make their remittances in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.
The circular also stipulates a timeframe for financial institutions to reconfigure their systems to ensure complete and timely submission of remittance files to the Nigeria Interbank Settlement Systems Plc as follows: “Commercial, Merchant, Non-Interest, and Payment Service Banks – Within four weeks of the issuance of the Circular.
“All other Financial Institutions (Microfinance Banks, Primary Mortgage Banks, Development Financial Institutions) – Within eight weeks of the issuance of the Circular,” the circular noted.
The CBN also emphasised strict adherence to this mandate, warning that any financial institution that fails to comply with the provisions will face severe penalties.
As outlined in the Act, non-compliant entities are subject to a minimum fine of two per cent of their annual turnover upon conviction.
The circular provides a list of transactions currently deemed eligible for exemption, to avoid multiple applications of the levy.
These are loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and intra-bank transfers between customers of the same bank.
Exemptions include other financial institutions’ transfers to their correspondent banks, interbank placements, banks’ transfers to CBN and vice versa, inter-branch transfers within a bank, cheque clearing and settlements, letters of credit, and banks’ recapitalisation-related funding.
Others are bulk funds movement from collection accounts, savings, and deposits including transactions involving long-term investments such as treasury bills, bonds, and commercial papers, and government social welfare programmes transactions.
These may include pension payments, non-profit and charitable transactions including donations to registered non-profit organisations or charities, educational institutions transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions, and transactions involving the bank’s internal accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.

Former Perm Sec Lauds Fubara’s Loan Scheme

The Tide — Fri, 10 May 2024 04:02:29 +0000

A former Permanent Secretary in Rivers State, Sir Kingsley Fubara Hart, has applauded the Governor of the State, Sir Siminalayi Fubara for the N4billion loan scheme recently flagged off by the Governor and disbursed to 3,066 beneficiaries by the Rivers State Microfinance Agency(RIMA) in conjunction with the Bank Of Industry(BOI).
Sir Hart, who made the commendation while speaking with newsmen in Port Harcourt, described the loan scheme for Small and Medium Scale Enterprises and NANO as a landmark achievement recorded by the present administration.
According to him, Governor Fubara’s efforts to ameliorate unemployment and the harsh economic conditions of the people of the State are yielding fruits.
The former House of Representatives aspirant noted that the loan scheme is a frugal innovation geared towards addressing the financial challenges faced by Small and Medium Scale Enterprises in the State.
According to him, it creates a simplified, affordable and sustainable solution to complex challenges in business for those doing business in the State.
Sir Hart further indicated that the immense benefits and impacts of the loan scheme can never be over-emphasised, considering the current economic situation in the country.
He noted that it would go a long way in increasing the revenue base of the State, thereby enabling the Fubara administration to carry out more development projects in the years ahead.
He, however, appealed to other States in the country to borrow a leaf from Governor Fubara in order to curtain youth restiveness across the country.
He also called on well-meaning Rivers people to support the Governor as he intends to create the enabling environment for industrialisation of the State.
This, he said can be attested to going by the plethora of people-oriented projects going on across the nooks and crannies of the State.
“Let me congratulate the beneficiaries.It has never been like this. It is left for them to be prudent in managing the funds to enable others to be part of it.The Governor means well for everyone in the State despite the distractions.It is a frugal innovation to address the challenges facing small and medium scale industries in the State.It has created a simplified, affordable and sustained solution to complex challenges in business in the State.The IGR of the State will increase and militancy would be addressed. Every sane mind is expected to automatically leverage on this wonderful opportunity provided by the Fubara-led government,” he said.
Sir Hart, therefore, advised those opposing the government to sheathe their swords and support the government to deliver the dividends of democracy to the people.

Fubara Empowers 3,066 MSMES With N4bn Soft Loan

The Tide — Thu, 09 May 2024 10:17:28 +0000

Rivers State Governor, Sir Siminalayi Fubara, has formally launched the N4billion matching fund loan scheme that will stimulate business activities in the State while also creating wealth.
The launching, which took place at the Dr Obi Wali International Conference Centre in Port Harcourt last Friday, signaled the commencement of the disbursement of Rivers State Government/Bank of Industry (BOI) Limited N4billion marching fund loan scheme for nano, small and medium-scale businesses in the State.
Governor Fubara said the lack of access to credit had continued to aggravate financial exclusion and choked the prospects for individuals to realise their economic aspirations for a better life.
But with the scheme, which is a partnership between Rivers State Government and BOI, now launched, Governor Fubara emphasised that a surest path has been secured to achieve entrepreneurial success while serving as an enabler of economic prosperity in the State.
“Today, we are all here to witness the formal launch and distribution of cheques to 3,066 micro, small, and medium-scale enterprises and 100 companies in the State from all 23 local government areas, including businesses owned by non-indigenes valued at over N3.6billion only.
“We are satisfied with today’s outing and professionalism, believing even more strongly that the potential outcome will be greater to both BOI and the Government and good people of Rivers State.”
Governor Fubara explained that as a campaign blueprint, he promised, during his electioneering campaigns, to support entrepreneurial development and the growth of businesses through access to credit in the form of soft loans.
The Governor said, upon assumption of office, he noticed more closely how most businesses, especially those of small scale, struggled and either died or gasped in accessing credit that were only offered by banks at neck-breaking interest without success.
Governor Fubara pointed out that: “As a State, we cannot talk about economic growth without stimulating business activities to create wealth and jobs through policies and programmes that will engender greater public access to credit and financial inclusion.
“MSMEs are well-known as critical drivers of inclusive economic growth and development. By empowering our people to cultivate available economic opportunities, access to credit is a powerful tool for achieving financial security.
“We can only keep imaging the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the local government areas in terms of gross domestic product, increased tax returns, employment creation, income distribution and production of good and services.”
Governor Fubara made it clear that even if the loan appeared very liberal, it is not given as charity, and insisted that beneficiaries must pay back so that others can access it to fund their businesses.
The Governor, therefore, instructed the management of the Rivers State Microfinance Agency (RIMA) to monitor the progress of the beneficiaries in their businesses and ensure a 100 percent recovery of the loans to guarantee the sustainability of the programme.
Governor Fubara noted the gains of the symbiotic economic partnership between the State Government and BOI, and the transformed commitment to further strengthen and cultivate it for the benefit of the people of Rivers State.
In his address, the Managing Director/Chief Executive Officer of Bank of Industry (BOI) Limited, Dr Olasupo Olusi, represented by the Executive Director of Corporate Services and Commerical, Mr Usen Effiong, said they were particularly interested in ensuring that the collaboration is realised in steering socio-economic growth, creating jobs, checkmating social vices and growing the IGR of Rivers State.
“BOI remains committed and a strong pillar of development financing in Nigeria for over 60 years. Our remarkable record and total assets exceed N4trillion, which makes BOI the largest and most successful development finance institution in the nation.
“It will interest us to know that our total investment in Rivers State as at today stands at N55.65billion, which accounts for 55 percent of the total investment in the entire South-South. So, Rivers State alone is taking the chunk of our investment.
“We, as the Bank of Industry Limited, play a major role in supporting Nigerian enterprises by providing financial services, advisory services, and watch businesses grow from Nano to Micro to Small, Medium and getting to large enterprises.
“Our mandate is to create development impact which is in line with the economic blueprint of His Excellency, the Governor of Rivers State, and this cuts across various sectors ranging from agriculture, oil and gas, power and aviation, hospitality. This, we believe will crystalize industrialization and economic sustainability in Rivers State.”
Delivering his welcome address, the Managing Director and Chief Executive Officer of Rivers State Microfinance Agency (RIMA), Pastor Jonathan Tobin, said it was exciting that they were given the opportunity to contribute to achieving the dream project of Governor Fubara christened, “Touching Lives, Creating Wealth.”
Pastor Tobin stated that the timing of the launching of the scheme is auspicious because it was coming when the operating capital of most businesses have been eroded.
He explained that there are grave inflation rate and fluctuation of the foreign exchange regime, which have posed unbearable challenges to most micro businesses.
Pastor Tobin said the interest rate for loan collected under the scheme is single digit, which is 7.5 percent per annum, and reckons as the lowest in the country.
“Today, Your Excellency, we have four categories of borrowers. Those who are borrowing from N1,000 to N1,000.000. Those who are borrowing from above N1,000.000 to N50,000,000 are treated by our partners, Bank of Industry.
“If you are borrowing from N100,000 to N450,000, all you need to provide is just your passport photograph, the passport photograph of your guarantor, your NIN, and local government identification.
“For those who are borrowing from N500,000 to N1,000,000, all they need to provide is two passport photographs, their NIN, their means of identification, BVN, a guarantor with a cheque leaf. These categories of borrowers are treated in RIMA,” he added.
Pastor Tobin said further: “Those who are borrowing from above N1,000,000 to N10,000,000 will be treated in Bank of Industry. All they need is just a proof of registration of their businesses, two guarantors, a valid identification card, and a simple business plan.
”For those who are borrowing N10,000,000 to N50,000,000, all they need is a Corporate Affairs Commission Registration, two years’ audited financial record, a Certificate of Occupancy, BVN, tax clearance of the company and or the directors.
”Your Excellency, as at today, we have brought on board 3,066 beneficiaries, and they all are requesting for N1.632billion. Interestingly, women borrowers account for 58 percent while the men borrowers account for 42 percent.”
He urged Rivers people interested in forging a good and sustainable business path to approach the agency for support yo enable them contribute to the economic revival and growth of the State.
Highlight of the event was the official launch of the loan scheme and presentation of cheques to some successful beneficiaries from across the 23 LGAs and some small business owners by the State Governor, Sir Siminalayi Fubara.

SMEs Critical For Sustainable Dev – Commissioner

The Tide — Fri, 26 Apr 2024 05:43:52 +0000

The Commissioner of Finance, Lagos State, Abayomi Oluyomi, has described Small and medium Enterprises (SMEs) as a critical engine for sustainable development in any economy.
He said this recently at the 10th anniversary of the Alert Group Microfinance Bank and the opening of their new head office in Lagos.
According to the National Bureau of Statistics, SMEs accounted for about 50 per cent of Nigeria’s gross.
He commended the positive impact of the Alert MFB as it empowers SMEs in the State.
“Alert MFB in the past 10 years has been at the forefront of empowering SMEs in Lagos State, disbursing over N30bn in loans to over 30,000 individuals having small to medium businesses over that period, which is quite remarkable”, he said.
Speaking, the Group Managing Director of Alert Group, Dr Kazeem Olanrewaju, revealed that the financial institution commenced business in 2013 as a microfinance bank.
“We started this journey in 2013 and it has been expanding. Today, they have about 10 branches across Lagos. They have supported well over 30,000 clients and have disbursed over N30bn.
“The company has been profitable since the second year. Looking at the market and the available opportunity, the Alert MFB board decided to come together to establish a Microfinance Institute (MFI), which is the Auto Bucks Lenders”, Dr. Olanrewaju said.
The GMD further stated that the company was focused more on supporting businesses and small and medium enterprises.
“The loan to support business represents over 98 per cent. The consumer loans you will see are the ones given to entrepreneurs. So, the area of focus of Alert MFB and Auto Bucks Lenders is to support businesses across the country.
“With the establishment of Auto Bucks Lenders, we have the opportunity to also do business outside Lagos. So, presently, we have offices in Ogun State and Oyo State. We intend to go to every part of Nigeria to support what we are doing”, he declared.

Empire Trust MFB Unveils Agent Banking Solution

The Tide — Fri, 22 Mar 2024 01:22:04 +0000

Empire Trust Microfinance Bank (MFB) has introduced Empire-pay, an Agent Banking solution aimed at reshaping digital banking accessibility, particularly for Nigeria’s unbanked population.
The Managing Director/CEO of Empire Trust MFB, Ayobami Alabi, expressed profound enthusiasm for the incorporation of Agency Banking into the bank’s offerings, emphasising Empire-pay’s role as a people-centric financial innovation.
Ayobami stated, “Empire-pay represents a paradigm shift in electronic transactions, empowering our vast customer base and prospective clients to seamlessly engage in multiple transactions across diverse Nigerian communities, leveraging our extensive network of Empire Trust Agent locations”.
Highlighting the pivotal role of digital channels in modern banking, Ayobami underscored the bank’s commitment to addressing the estimated 64 million unbanked individuals in Nigeria, as reported by the World Bank.
Empire-pay marks a significant leap in Empire Trust MFB’s mission to provide modern banking solutions driven by technology and customer service excellence, effectively bridging the prevalent financial inclusion gaps in Nigeria.
“With Empire-pay, customers gain effortless access to a comprehensive suite of banking services without the constraints of physical branch visits, substantially enhancing convenience and accessibility,” he said.
He reiterated Empire Trust MFB’s dedication to, “catering to the evolving needs of its diverse customers.
“Empire-pay boasts a multitude of user benefits, including instant settlement for swift and efficient transactions, 24/7 network reliability ensuring uninterrupted access to banking services, and affordability, enabling seamless participation for middle players in the digital banking ecosystem.
“Empire Trust MFB envisions leveraging Empire-pay to extend its outreach to previously underserved communities, empowering individuals with access to essential financial services”.
He reaffirmed the bank’s commitment to innovation and financial inclusion, stating, “Empire-pay epitomises our unwavering dedication to leveraging technology and strategic partnerships to enhance accessibility and convenience in banking services, particularly for the unbanked and under banked segments”.

Financial Inclusion: MFB Attracts N1.8bn Savings In Three Months

The Tide — Wed, 06 Mar 2024 02:31:00 +0000

LAPO Microfinance Bank (LMB) Limited has revealed that over N1.8 billion was saved in three months by customers via the LAPO Xpress Save & Win Promotion, “Promo Season 2”.
Also, to boost savings culture, deepen financial inclusion, the bank rewarded the winner of the promo with N1 million star prize.
The bank said the LAPO Xpress Savings Promo Season 2, themed “Double Double”, reflects the bank’s proactive response to the current socioeconomic realities and its genuine commitment to empowering customers.
The winner, Halisu Kabiru, who is a customer from the bank’s Zaria 1 branch in Kaduna State, emerged after a raffle draw for the N1 million grand prize as well as other consolation prize winners of N40,000 each respectively.
Speaking at the raffle draw held at LAPO House in Lagos, Head, Corporate Planning Department LAPO MfB, Mrs. Dorcas Thorpe, said, “the bank which started the season 1 of the initiative with 50 thousand customers a few months ago, has increased its customers base to eight million.
“To qualify and participate in the winning category, customers must save at least N30, 000 within three months, 10, 000 monthly, saying 100 people were picked for the consolation prices while one was picked for the star prize”.
Earlier, Director, Marketing & Communications, Mr. Oluremi Akande, said the key objective of the Xpress savings account was to further deepen financial inclusion, achieve poverty alleviation, and support customers’ to build sustainable wealth.
He added that the management of the bank decided to increase the prizes upwards from N500, 000 as a star prize to N1 million while the consolation prize moves from N20,000 to N40,000 for 100 lucky winners, respectively.

Microfinance Bank Opens Up On CBN’s Intervention Facility

The Tide — Wed, 21 Feb 2024 00:17:20 +0000

A financial institution, the NIRSAL Microfinance Bank, has said the intervention facilities, given by the Central Bank of Nigeria (CBN) that helped to facilitate growth and bolster the economy were loans, and not grants, stressing that such facilities must be repaid.
The Head, Corporate Communications of the NIRSAL Microfinance Bank, Halimatu Omar, who made the clarification in a statement, noted that the loans were tailored for diverse purposes.
“The loans provided at various intervals were strictly intervention loans tailored for diverse purposes determined by the CBN, including the Targeted Credit Facility (TCF), popularly known as the COVID-19 loan due to its timing, as an initiative aimed at mitigating the pandemic’s impact, sustain businesses, and bolster the economy”, she noted.
Omar acknowledged recent challenges in loan recovery, saying the bank has launched a proactive recovery campaign via its social media platforms.
According to the image maker, despite the one-year extension of the moratorium, many beneficiaries have still defaulted on payment schedules.
“Despite offering an additional year to the initial one-year moratorium, numerous borrowers have unfortunately defaulted on repayment schedules.
”Hence, heightened efforts are being made to remind them, through text messages, of the repercussions of default”, she said.
Addressing concerns raised in a recent publication, the bank urged beneficiaries to identify and report individuals who purportedly acted as “agents” of the bank to the appropriate authorities.
She warned that the bank might rely on the Global Standing Instruction (GSI) to recover the loans.
”It is imperative for beneficiaries to understand that the Global Standing Instruction (GSI) represents one legal recourse for the bank in loan recovery, as authorised by the CBN. This policy empowers banks to debit accounts in other banks to settle defaults.
“Beneficiaries with genuine concerns about repayment are encouraged to approach the bank for evaluation and further discussion regarding their loan status. The bank’s website hosts valuable information to facilitate smooth repayment of the loans.
“The most prudent action for beneficiaries is to honor their repayment commitments, as evasion is not a viable option.

Funds Transfers: Banks To Disconnect Non-Deposit Institutions

The Tide — Mon, 11 Dec 2023 03:37:14 +0000

Banks and other financial institutions have been directed to disconnect switches, payment solution service providers, and super agents from its Instant Payment Outwards System (fund transfer channels).
The Nigeria Inter-Bank Settlement System (NIBSS) disclosed this in a circular dated December 5, 2023, with Ref: NIBSS/BD/NI/PO/005/051223 to Deposit Money Banks, merchant banks, switches, mobile money operators, payment service banks, microfinance banks, and mortgage banks, among others.
The NIBSS circular, obtained on Friday, explained that listing of non-deposit taking financial institutions as beneficiaries, contravenes the Central Bank of Nigeria (CBN) guidelines on electronic payment of salaries, pensions, suppliers and taxes in Nigeria dated February 2014.
“Directive to disconnect switches, Payment Solution Service Providers (PSSPs) and super agents (SA) from NIBSS Instant Payment (NIP) Outwards System.
“This is to bring to your attention that listing non-deposit taking financial institutions such as switching companies (Switches), PSSPs and SA as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria dated February 2014.
“For clarity, Switches, PSSPS and SAs may process outward transfers as inflows to banks, but are not to receive inflows as their licenses do not permit them to hold customers’ funds”, it stated.
This means that financial technology companies (Fintechs) that appear on the NIBSS Instant Payments platform as banks receiving deposits by generating reference numbers that mimic bank accounts, and by utilizing core-banking applications, will no longer carry out such practice.
Consequently, the name of any account created by Fintechs will not appear in the lists of banks when a customer attempts to credit such an account. However, outward fund transfer will remain operational.
It further explained that the directive does not affect those Fintechs that partner with banks, and that such collaborations allow them to generate dedicated accounts that carry the bank’s name.

By: Corlins Walter

DBN Secures €25m From Bank For MSMEs, Renewable Energy

The Tide — Wed, 29 Nov 2023 05:24:54 +0000

As part of its contribution to resuscitate the Nigerian ailing economy, the KFW Development Bank has injected €25million into the Nigerian economy for the growth and development of Micro, Small and Medium Enterprises (MSMEs) and the renewable energy sector through the Development Bank of Nigeria (DBN) Plc.
Commenting on the development at the DBN Office in Lagos, Managing Director/CEO of DBN, Tony Okpanachi, said KFW Bank has always been supportive of Nigeria’s economy in various sectors, and that it is keen to see MSMEs and the energy sector bounce back.
He said, “Today, we just signed an agreement for a credit line of €25m provided by KFW bank to DBN to finance MSMEs.
“We are wholesale Development Finance Institution (DFI) poised to provide access to credit to MSMEs through wholesale lending to financial institutions and other microfinance banks. We provide them with wholesale funds to onward lending to MSMEs”.
He said DBN already has 65 financial institutions in line with green and renewable energy and businesses in MSMEs that relate directly with the small businesses to support them.
According to him, the bank would do monitoring and evaluation of the process.
“By the time we provide them with the Line and they come to draw on the line, we will know which customers they are lending to directly, we sit down with customers and discuss and find out how they utilise the funds and how it has impacted their businesses.
“We are not just disbursing funds to our financing partners and relaxing, we shall monitor them throughout the process. The ultimate end is the impact on them and the economy”, he said.
The banker expressed optimism about the funding, saying there would be regular reporting feedback from the partners (financial institutions) when they draw the line.
As for cost, he said the banks would decide because they bear the credit risks. However, he noted that the criteria and conditions to access credit would be streamline.
“This is an interesting time for MSMEs because they are the bedrock of every economy. With this credit, they would expand businesses, create jobs and boost our GDP.
“We are not unmindful of the harsh economic environment and that is why in DBN we create access to funds in different areas, so we push for moratoriums, for longer tenures for MSMEs to ensure their businesses can mature and stay stable before they are able to pay”, he stated.
On his part, the Senior Portfolio Manager (Equity Investment/Funds, sub-Sahara Africa and Latin America) for KFW bank, Pierre Annutsch, said the financial institution would continue to offer support in diverse ways to the Nigerian economy.

Moniepoint Gets Brandcom Recognition

The Tide — Wed, 15 Nov 2023 03:13:17 +0000

As part of its contribution to the financial services sector in Nigeria, Moniepoint has won the most outstanding fintech company in financial inclusion and most outstanding microfinance bank in consumer engagement in the just-concluded 2023 Brandcom Award.
Announcing this in a statement made available to The Tide’s source, the firm said the awards signpost the company’s remarkable commitment to enhancing financial inclusion and delivering outstanding services to its customers.
Speaking on the award, the Vice President of Brands and Communications, Moniepoint Incorporated, Didi Uwemakpan, expressed gratitude and shared her vision for the future.
“We are honoured to receive these awards, which provide validation for the work that we do every day in providing innovative financial services, fostering inclusion, and powering the dreams of millions.
“This is only the beginning as we will double down on delivering exceptional value to our customers via innovative products and services, leveraging technology in more exciting ways to create engaging touch points in ways that redefine the banking experience and generally continue making a significant impact in the global financial services landscape”, she said.

UBA Takes Over Stallion Group’s Assets Following N156bn Debt

The Tide — Wed, 15 Nov 2023 03:08:06 +0000

The United Bank for Africa (UBA) Plc has taken over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt, and Kano.
This was sequel to an order given by a Federal High Court in Lagos, as a result of N156,026,032,804.84 debt suit, instituted against Stallion group.
The bank’s Receiver Manager, Romeo Michael, and court bailiffs protected by the police on Friday, in the three cities, executed the interim orders made by Justice Akintayo Aluko on October 20, 2023.
The Judge made the order after hearing Temilolu Adamolekun, who appeared with Mohammed Usman, move the motion ex-parte as counsel for the plaintiff/applicants, supported by an affidavit in support deposed to by Mr. Anthony Chilaka, in the suit.
In granting UBA’s prayers, Justice Aluko also restrained the defendants, their directors, shareholders, employees, officers, and agents, from interfering with or frustrating the receiver/manager from exercising all the powers vested in him or performing his duties as receiver of the mortgaged properties.
The order will last pending the hearing and determination of the motion on notice, which the court adjourned till November 20, to hear.
The affected assets include mortgaged property known as “all that piece or parcel of land together with any building thereon” at Plot 371, Trans Amadi Industrial Layout, Port Harcourt, Rivers State.
“Plot 353, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Plot 370, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, KM17, Lagos Badagry Expressway, Lagos State and No. 54, Challawa Industrial Estate, Kano State, Nigeria”.
The 1st to 4th plaintiff/applicants in the suit are UBA Plc, UBA Cameroon SA, Cote D’Ivoire SA and Romeo Ese Michael.
The 1st to 11th defendants/respondents are Stallion Nigeria Limited (In Receivership), Von Automobile Nigeria Limited, Popular Farms And Mills Limited, Havana Nigeria Limited.
The other defendants are KRBL Food Industries Limited, Qingqi Motorcycle Manufacturing Limited, Stallion Auto Keke Limited, Stallion Motors Limited, The Honda Place Limited, Yokohama Construction Limited and Mr. Sunil Vaswani.
The plaintiff/applicants also listed all the commercial banks in Nigeria and Kuda Microfinance Bank, Moneypoint Microfinance Bank, Piggyvest technology Limited, Cowrywise Financial Technology Limited, Opay Digital Services, the Federal Ministry of Defence and Federal Ministry of Finance as 12th to 44th respondents in a Mareva Order to protect the Res (subject matter) of the suit.
The court further granted an interim injunction restraining the defendants or anyone else, from tampering with, remaining in, selling, leasing, or dealing in whatsoever manner with any of the defendants’ assets/mortgaged properties covered by the order.
It also granted a mareva injunction restraining the 1st to 11th defendants or their agents from dealing with any of the monies standing to their credit in all of their accounts or howsoever, held with the 12th to 41st respondents up to the tune of the N118.6billion or its equivalent in any foreign currency pending the hearing and determination of the motion on notice.
They were also restrained from monies standing to their credit in all of their accounts with the 12th to 41st respondents and also monies standing to its credit in custody of the 1st to 3rd Plaintiffs and their affiliates and subsidiaries in other countries including UBA (Ghana) Limited up to N156b or its equivalent in any foreign currency.

The order also barred the (Federal Ministry of Defence and Federal Ministry of Finance from releasing to the defendants or any of their affiliates, any funds belonging or accruing to any of the defendants, up to N156 billion.

Fubara Appoints Tobins As Rivers Microfinance MD

The Tide — Wed, 25 Oct 2023 04:41:55 +0000

The Rivers State Governor, Sir Siminalaye Fubara, has appointed Pastor Jonathan Tobins, as the Managing Director of Rivers State Microfinance Agency.
The appointment was contained in a statement by the Senior Special Assistant on Media to the Governor, Boniface Onyedi, yesterday.
The appointment, according to the statement, is with immediate effect.
“This is to bring to the notice of Rivers people and the general public that His Excellency, Sir Siminalayi Fubara, GSSRS, Governor of Rivers State has approved the appointment of Pastor Jonathan Tobins as the Managing Director of the Rivers State Microfinance Agency.
“The appointment is with immediate effect”, the statement said.

Bank To Disburse N150bn To MSMEs

The Tide — Wed, 13 Sep 2023 05:51:42 +0000

The Development Bank of Nigeria (DBN) says it plans to disburse N150 billion to Micro Small and Medium Enterprises (MSMEs) across the country.
Chief Economist in DBN, Prof. Joseph Nnanna, said this in an interview with The Tide’s source, Monday, in Abuja.
Nnanna said the disbursement would be done through participating financial institutions for onward lending to MSMEs across various sectors of the economy.
According to him, the objective is to enlist 120,000 MSMEs in 2023.
“I think we are on track to get there, so we have a target to disburse around N150 billion this year and so far we are making some good progress, but the year isn’t over yet and the state of the economy is a bit in flux.
“A lot of Nigerians are challenged, a lot of businesses are challenged, the interest rate is increasing and as a result, we know that these business owners will need some able room to breathe”, Nnanna said.
He, however, said DBN had recorded growth in the MSME sector with the increasing employment rate.
“If you look at what we have done across the country, we have been able to impact over 300, 000 MSMEs and this cuts across trade, education, manufacturing, agriculture and ICT.
“By and large we have seen some growth across the MSME space because we measure the job creation levels of the money we disburse through our participating financial institutions.
“Over 240, 000 jobs have been created so far and that is commendable”, he said.
Nnanna urged the participating financial institutions to provide the needed aid for MSMEs to continue to grow amidst the prevailing economic challenges in the country.
“We know we are trying to create jobs and we know that the economy is a bit challenged now, the high-interest rates and uncertainty with the agriculture sector given that the Cameroon government is going to open up the dam.
“This might increase flooding risks which will basically damage a lot of crop production, and this is the peak when we should be harvesting crops.
“Consequently, I sincerely believe there is probably more now than ever development financial institutions have to spring into action to come to their aid.
“So our commercial banks and microfinance banks will surely intervene and support those actors in their space who need some cushion to continue to grow”, Nnanna said.
The economist continued that DBN would strengthen collaborations with stakeholders in the sector to achieve its target of financial inclusion.
“With support from the regulators, with support from our partner institutions; we need support broadly because, in the end, I will restate that we suddenly need to collaborate more to achieve inclusive growth.
“Without collaboration and if we are competing among ourselves, it is never going to work because somebody will feel cheated whether it is in the MSME lanes, commercial or microfinance bank lanes or even the regulators will feel like you guys are breaking the rules to achieve some targets”, he added.

Banks Sack 110 Top Executives, Others Over N82bn Fraud

The Tide — Fri, 01 Sep 2023 05:07:37 +0000

At least 110 top bank executives and junior staff members have been sacked for fraud-related cases in the past two years.
These were contained in the ‘Reports of Fraud and Forgeries in Nigerian Banks’’ released by the Financial Institutions Training Centre between the second quarter of 2021 and Q2 2023.
FITC’s institutional members are members of the Nigerian Banker’s Committee, which comprises the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, and all licensed banks in Nigeria.
A breakdown showed that while only four bank officials were sacked in Q2 2021, the figure rose by 175 per cent to 11 in Q2 2023.
The highest number of sacked top bank executives and junior staff members was recorded in Q3 2022as 20 officials were fired.
The report shows that between Q2 2021 and Q2 2022, 52 bank staff members were sacked for fraud-related issues.
However, between Q3 2022 and Q2 2023, 58 bank staff members were sacked for the same reason.
Also, within the period under review, the sacked staff members were involved in a total of 967 fraud cases.
The highest number of cases was recorded in Q4 2021, with 410 cases involving bank staff, while the lowest was recorded in Q3 2021, with 32 cases.
Also between Q2 2021 and Q2 2022, bank staff were involved in 657 cases, while between Q3 2022 and Q2 2023, they were involved in 310 cases.
Also, about N18.01bn was lost due to fraud committed by bank staff and outsiders within the reviewed period out of a total of N81.69bn involved in fraud cases.
It was gathered that the highest amount lost was N5.79bn in Q2 2023, while the lowest amount lost was N472.28m in Q1 2023.
For the total amount involved, the highest amount was N34.78bn in Q3 2021, while the lowest amount was N1.18bn in Q2 2022.
Mobile fraud, computer/web fraud, and P0S-related fraud were reported to be the most prevalent types of fraud, and this trend persisted in Q2 2023.
In June 2022, three former workers with the First Bank of Nigeria were tried over attempted fraud charges before a Lagos State Special Offences Court, Ikeja.
The defendants, Ozioma Ugorji, 35; Ugwu Emeka, 32; and Obike Chukwuka, 38, were arraigned by the Economic and Financial Crime Commission for allegedly attempting to steal N20bn from the bank.
It was learnt that the defendants conspired to tap into the bank’s server to grant access to a syndicate.
They were, however, apprehended by the EFCC on March 6, 2021, following an intelligence report.
In June this year, four men were arraigned at the Yaba Magistrates’ Court for allegedly defrauding their employer, Think Finance Microfinance Bank, of N150m in the FESTAC Town area of Lagos State.
The defendants include the company’s Head of Risk Management, Ojimi Ayodeji; the Loan Officer, Isaac Eddy; Joseph Setonji and Juwon Irinyemi, and were arraigned before Magistrate Patrick Nwaka on three counts of theft.
There were recent reports that four Nigerian deposit money banks lost a total of N1.77bn to fraudulent activities involving the banks’ employees and consumers in 2021.
This was contained in the 2021 financial statements of the banks, which included Access Bank Plc, Guaranty Trust Bank Plc, First Monument City Bank, and Wema Bank.
Access Bank, GTB and Fidelity Bank recorded 26,877 fraud cases in the first six months of this year, according to analyses of their financial reports for the first half of 2022.
This was a 56.45 per cent decrease from the 61,715 fraud cases that were recorded by the banks between June and December, 2021.
The President of the Bank Customers Association of Nigeria, Dr Uju Ogunbunka, recently urged banks to educate their staff and create protective measures that would discourage fraud.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, recently urged the CBN to introduce sanctions and eliminate policies that promote corruption.
He said, “I think what they can do is to activate sanctions on anyone found wanting. Aside from the tracking, there must be evidence. And once there is evidence, they should close in on anyone they find. Cyber fraud is the biggest threat in the banking industry.’’
The FITC advised banks to strengthen their security protocols and utilise advanced fraud detection systems.

NDIC To Investigate Directors Of 183 Failed MfBs, PMBs

The Tide — Wed, 23 Aug 2023 01:15:36 +0000

The Nigeria Deposit In surance Corporation (NDIC) has said directors of the recently closed 183 microfinance banks, MfBs, and Primary Mortgage Banks, PMBs, will soon be investigated for their roles in the collapse of their institutions.
Managing Director/ Chief Executive, NDIC, Bello Hassan, disclosed this in Lagos, Monday, at a workshop organised by the Corporation for law enforcement agencies.
Addressing participants at the workshop, including members of the Inter-Agency Task Force on the Implementation of Failed Banks Act, Hassan said: “As you are all aware, the Central Bank of Nigeria recently revoked banking licences of 183 MFBs and PMBs which may require us to investigate some of the directors and officers of these institutions with a view to bring to book those found culpable in the collapse of these institutions”.
Hassan said the workshop is a demonstration of NDIC’s commitment to collaborating with other agencies against financial malpractices and insider abuses in banks.
He said, “There is no gainsaying this collaboration has yielded and is still yielding results, particularly in the area of investigation and prosecution.
“This workshop, like similar initiatives by the Corporation aims to compliment the efforts of the Inter-Agency Task Force on the Implementation of Failed Banks Act.
“The Corporation, whilst bearing in mind the positive impact of such collaboration will continue to strive at enhancing the synergy between all of us in the areas of law enforcement relating to investigation and prosecution of financial malpractices.
“I want to use this forum to appeal to the members of the Task Force not to relent on your oars but to execute the given mandate diligently thereby achieving the objectives of establishing the Task Force”.

NDIC To Pay 182 Liquidated Banks’ Depositors

The Tide — Mon, 07 Aug 2023 05:55:11 +0000

The Nigeria Deposit Insurance Corporation said it had commenced the process to pay depositors of 182 banks affected by the recent revocation of the licences by the Central Bank of Nigeria.
The affected banks include 178 microfinance banks and four primary mortgage banks.
Sixty-two of them have already closed shop, while 74 were declared insolvent. Twelve were temporarily distressed and the remaining six voluntarily liquidated
The Managing Director of NDIC, Alhaji Bello Hassan, gave the assurance on Friday while speaking during a two-day capacity-building workshop organised for senior management staff of the corporation in collaboration with the Bureau of Public Procurement held in Ikot Ekpene with the theme, ‘Result-based procurement: A strategic approach”.
Hassan, who was represented by the Executive Director, Operations, Alhaji Mustapha Ibrahim, said that the corporation would not compromise standards and would also ensure that no room was left for public panic over the safety of bank deposits.
He stated that NDIC would continue to strengthen the financial system to appropriately support the economic advancement of the nation and also contribute meaningfully to financial system stability.
He said, “It is also pertinent to remind ourselves of the role the Nigeria Deposit Insurance Corporation continues to play as a key player in the Financial Safety-Net arrangement of the country’s banking system as a deposit insurer; others being the prudential Regulation and Supervision, Failure Resolution, Deposit Insurance and Lender of Last Resort function of the Central Bank of Nigeria (CBN).
Following the recent revocation of the licences of 178 microfinance banks and four Primary Mortgage Banks by the Central Bank of Nigeria, the NDIC has since commenced the liquidation exercise with the main purpose of paying the guaranteed sum, recovery of debts owed the banks, sale of physical assets and payment of liquidation dividend on the uninsured sum
“The NDIC is hereby assuring depositors of the closed banks of speedy payment of their insured sums,”
In his remark, the Director-General of the Bureau of Public Procurement, Alhaji Mamman Ahmadu, said that any public procurement without plans and records was tantamount to criminality.

After Darkness, Comes The Glorious Dawn

The Tide — Wed, 02 Aug 2023 02:03:43 +0000

Being The Full Text Of President Bola Tinubu’s National Broadcast On Current Economic Challenges On Monday.
My fellow citizens,
I want to talk to you about
our economy. It is important that you understand the reasons for the policy measures I have taken to combat the serious economic challenges this nation has long faced.
2. I am not going to talk in difficult terms by dwelling on economic jargon and concepts. I will speak in plain, clear language so that you know where I stand. More importantly, so that you see and hopefully will share my vision regarding the journey to a better, more productive economy for our beloved country.
3. For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure had outlived its usefulness. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.
4. This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance. To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.
5. The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.
6. The preceding administration saw this looming danger as well. Indeed, it made no provision in the 2023 Appropriations for subsidy after June this year. Removal of this once helpful device that had transformed into a millstone around the country’s neck had become inevitable.
7. Also, the multiple exchange rate system that had been established became nothing but a highway of currency speculation. It diverted money that should have been used to create jobs, build factories and businesses for millions of people. Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair.
8. It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy.
9. I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight. This fight is to define the fate and future of our nation. Much is in the balance.
10. Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them. As we moved to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary.
11. Our economy is going through a tough patch and you are being hurt by it. The cost of fuel has gone up. Food and other prices have followed it. Households and businesses struggle. Things seem anxious and uncertain. I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love.
12. What I can offer in the immediate is to reduce the burden our current economic situation has imposed on all of us, most especially on businesses, the working class and the most vulnerable among us.
13. Already, the Federal Government is working closely with states and local governments to implement interventions that will cushion the pains of our people across socio-economic brackets.
14. Earlier this month, I signed four (4) Executive Orders in keeping with my electoral promise to address unfriendly fiscal policies and multiple taxes that are stifling the business environment. These Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in manufacturing sector to continue to thrive and expand.
15. To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.
16. Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.
17. Out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country.
18. Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months.
19. To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.
20. In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices. We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.
21. Our plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:
-Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.
-N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.
22. This expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric business with strong performance record.
23. In this regard, the expertise of Development Finance Institutions, commercial banks and microfinance banks will be tapped into to develop a viable and an appropriate transaction structure for all stakeholders.
24. Fellow Nigerians, I made a solemn pledge to work for you. How to improve your welfare and living condition is of paramount importance to me and it’s the only thing that keeps me up day and night.
25. It is in the light of this that I approved Infrastructure Support Fund for the States. This new Infrastructure Fund will enable States to intervene and invest in critical areas and bring relief to many of the pain points as well as revamp our decaying healthcare and educational Infrastructure.
26. The fund will also bring improvements to rural access roads to ease evacuation of farm produce to markets. With the fund, our states will become more competitive and on a stronger financial footing to deliver economic prosperity to Nigerians.
27. Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.
28. These buses will be shared to major transportation companies in the states, using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.
29. In the same vein, we are also working in collaboration with the Labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.
30. Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.
31. I want to use this opportunity to salute many private employers in the Organised Private Sector who have already implemented general salary review for employees.
32. Fellow Nigerians, this period may be hard on us and there is no doubt about it that it is tough on us. But I urge you all to look beyond the present temporary pains and aim at the larger picture. All of our good and helpful plans are in the works. More importantly, I know that they will work.
33. Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully on line. However, we are swiftly closing the time gap. I plead with you to please have faith in our ability to deliver and in our concern for your well-being.
34. We will get out of this turbulence. And, due to the measures we have taken, Nigeria will be better equipped and able to take advantage of the future that awaits her.
35. In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families.
36. For example, we shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money.
37. Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter.
38. We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.
39. I assure you my fellow country men and women that we are exiting the darkness to enter a new and glorious dawn.
40. Now, I must get back to work in order to make this vision come true.
41. Thank you all for listening and may God bless Federal R

Stakeholders Hail Microfinance Bank’s Giant Strides

The Tide — Wed, 08 Mar 2023 06:41:31 +0000

The authorities of the University of Port Harcourt, staff, students and other stakeholders, have commended the management of the UNIPORT and Choba Microfinance Bank for providing strategic and robust development services to the university and the society in general within the past 15 years.

The stakeholders, who made the commendation during the celebration of the 15th anniversary of the bank in Choba community, near Port Harcourt recently noted that it was worthwhile seeing the dreams of the bank’s founding fathers being kept alive till date.

Vice Chancellor of the University of Port Harcourt, Prof Owunari Georgewill, expressed delight over the giant strides recorded by the bank, particularly in the banking sector, and assured that his administration would continue to support the bank to achieve its desired and set goals.

On his part, the Dean of the School of Graduate Studies of the institution, Prof Kinikawa Anele, said the high standard the bank has maintained over the years should be sustained, and assured that the graduate school would continue to partner with the bank.

He commended the management and Board of Directors of the bank for the bold initiative of marking the 15th anniversary ceremony of the bank.

Another stakeholder, the Paramount Ruler of Choba Community, Eze Rowland Okocha, expressed happiness over the impressive turn out at the ceremony, stressing that it is an indication that the bank is on the right track.

According to him, the community would never cease to give its support to the bank following its giant development strides over the years.

In his welcome address, the Managing Director of the bank, Dr Paul Nnaji, disclosed that the bank has recorded modest achievements in such areas as customer services, product delivery and infrastructure.

He hinted that the bank was at the verge of collapse before the timely intervention of the authorities of the University of Port Harcourt.

According to him, this led to the modification of the name of the bank to Uniport-Choba Microfinance Bank, a situation, he said, turned out to be the beginning of the opening of new grounds for the bank.

Nnaji noted that “15 years after obtaining its operational licence, the bank has gained stability, which has led to the increase of its asset base from N350million to over N1.3billion.

“The bank has extended its business services to Mile 3, Diobu, Port Harcourt, Rumuolumeni, Rumuokoro, while its Etche Branch is nearing completion”.

The Managing Director also noted that the infrastructure of the bank has received a major boost as its ultra- modern corporate head office is now in use, while its banking services have tremendously improved, saying that “these have transformed electronically to become top notch”.

According to him, “the bank’s credit facilities and deposit products are rewarding, and its clientele has equally soared from 3,000 to 30, 000 as at today.

“The bank remains grateful to the founders, shareholders and the customers who have contributed to its growth”.

High points of the occasion were the presentation of awards and the unveiling of the corporate head office of the bank at the Abuja Park of University of Port Harcourt.

UPWA President Advises U&C Microfinance Bank On Investment

The Tide — Mon, 30 Jan 2023 02:34:49 +0000

The President of University of Port Harcourt Women Association (UPWA), Dr. Udeme Owunari, has advised the management of U&C Microfinance bank to ensure stability, sustain investment and gain customer’s confidence.
She further advised the management to put more effort on customer’s drive, saying that for any finance house to remain in the business, marketing should be key.
Owunari, gave the advice in a statement made available to The Tide at weekend during the 15th year anniversary celebration of the bank, tagged, “Crystal Jubilee Celebration” held at its Corporate Head Office, Abuja.
According to her, she was impressed with what the Management and Board of Directors were doing towards sustaining the dreams of the founders.
“I am overwhelmed with the achievements recorded by the management of the bank. We are proud to identify with you on this auspicious moment.
“The policy on manpower development and professionalism carried out over the years by this bank has actually yielded fruit. I am still optimistic that the bank will achieve more significant achievements if given the support.
“I use this opportunity to commend past VCs for ensuring
that the bank was sustained and achieved its aims and objectives,” Owunari said.
Also speaking, the Dean School of Graduate Studies in University of Port Harcourt, Prof Kinikawa Anele, also commended the management of the bank.
He equally lauded the Vice Chancellor of the School, Prof. Georgewill Owunari for his enormous achievements since he assumed office.

By: Tonye Orabere

Microfinance Banks, Major Driving Force For Financial Investments – Expert

The Tide — Tue, 03 Jan 2023 23:30:45 +0000

Acting Managing Director, Egwafin Microfinance Bank, Mr Abdulateef Husseni, says microfinance banks were the major driving force for financial investments in Nigeria in 2022.
Husseni, who disclosed this in an interview with The Tide source on Monday in Abuja, said, this was based on the data from the National Bureau of Statistics (NBS), which recognised the banks as the driving force for businesses, especially Small Scales and Medium Enterprises.
“Available information has shown that local industries depend on this financial institutions to the tune of about 60 per cent of financial investments which now insure economic development of the country.
“Microfinance banks in Nigeria recorded an 82 per cent boost in lending rising from N300.2 billion in 2019 to N546.6 billion in 2020. This is according to the latest data from the NBS.
“Also, an interesting observation to be made is the impact of total lending to the private sector alone as it increased by 18.5 per cent (N5.58 trillion) year-on-year to N35.73 trillion in December 2021, up from N30.15 trillion in 2020,” he said.
Husseni continued that microfinance institutions were the fuel which helped to drive other sectors to success in 2022.
He said the increase in the private sector lending was supported by the growth of business activities of FinTech and technology based companies.
“And this aforementioned is why microfinance banks should have not given credit for the economic development as a whole in Nigeria,” he said.
Husseni stated further that the economic development depended solely on the activities of financial institutions based on the capital accumulation being financed mainly by the activities and tools of financial institutions and its intermediation mechanism.
According to him, the financial institutions were integral part of the nations financial intermediation mechanism through which the saving of households’ firms, public corporations and even oversea residents were made available to borrows at home.
The Egwafin Microfinance Bank boss explained that such driving force needed to be empowered and strengthened in order to sustain the growth of other sectors reliant on it and to sustain the nations economy.
He said when a financial system was well developed, it would enhance investment by identifying and funding good business opportunities, mobilises savings, enable trading, hedging and diversification of risk and facilitates on exchange of goods and services.
Consequently, he called for a more well-developed financial system in the country to foster an open and vibrant economic system that would build a sustained economic growth.
“It is a well-established fact that financial institutions play a vital role in the development of any economy and serve as lubricant for the survival of an economy.
“Countries with well-developed financial institutions tend to grow faster; especially the size of the banking system and the liquidity of the stock markets, tend to have strong positive impact on economic growth.
“In spite of the absence of all of this, it is imperative to know that the industry in Nigeria is still a strong growing industry, yet the banking sector alone contributed up to N168.4trillion to the country’s gross domestic product between 2017 and 2020.
“This is indicating an incredible resilience and growth despite two difficult recessions in the country,” he said.

Firm Awards N2m Grant To SMEs

The Tide — Wed, 21 Dec 2022 00:45:38 +0000

A business development service, Kilsah Consulting, has awarded a business support grant of N2 million to six Small and Medium Enterprises (SMEs) owners.
The Founder, Kilsah Consulting, Mrs Elfreda Sheriff, said this in a statement recently in Lagos.
Noting that most SMEs lacked credit facilities to undertake operations, Sheriff stated the need to provide finance for the SMEs.
“The idea is to give small businesses access to finance because we know that access to finance is the top obstacle that affects the growth of small businesses.
“This is especially for women entrepreneurs who face more obstacles when trying to access finance, whether it is through the traditional loan method or any other method.
“The whole idea is to be a full-fledged small business support firm where we provide them access to finance, training, mentoring and access to the market,” Sheriff said.
She said the basis for accessing the grant was for the business to be registered with the Corporate Affairs Commission (CAC), which would make the business a legal entity.
“The criterion is that they should be registered with the CAC because we feel that provides some sort of structure, and we will help them grow from informal to formal.
“A good start for that process is for them to be a legal entity,” she added.
Also, the Managing Director of Primera Microfinance Bank, Mr Unwana Esang, enjoined small business owners not to throw in the towel in the face of challenges.
“My message to small business owners is never give up, never stop growing. Always do everything possible to improve the quality of your craft, the quality of your product and service.
“Continue to build structures around your business. Ensure strong corporate governance because that is what makes you attractive as a business owner to stakeholders whether they are customers, investors or regulators,” he said.
The beneficiaries expressed appreciation to Kilsah for the training and financial grant, which they said would spur them to work hard in growing their businesses.
A beneficiary, Judith Idialu of BigFarm Foods Ltd., said she would use the grant to expand her production capacity, create employment that would grow the Gross Domestic Product.
“I feel very excited. My expertise, experience, impact and innovation are what qualified me for the grant,” she said.
Also speaking, Abolanle Adeniyi of Depeju Foods, said with the grant, they would get a continuous bag sealer to make their production neater and faster as they are presently using the small sealing machine which causes leakages.

CBN Football: FIRS Narrowly Beat SEC 1-0

The Tide — Mon, 12 Dec 2022 21:32:13 +0000

ThankGod Ikeagwu’s 20th minute goal in the final against Securities and Exchange Commission crowned Federal Inland Revenue Service FC champions of the 35th All-Financial Institutions Football Competition organised by the Central Bank of Nigeria, in collaboration with the Nigeria Football Federation.
The keenly contested final, which held at the Pantami Stadium, Gombe on Saturday night, kept fans on their toes, but FIRS held on after their early goal to clinch a hard-fought 1-0 as well as the title and the star prize of N2m.
Runners-up SEC received N1.5m, while Unity Bank, who emerged third after defeating Bubayero Microfinance FC in the losers final, were given N1m.
Speaking shortly after the event, Governor, Central Bank of Nigeria, Godwin Emefiele, who was represented by Shehu Alhaji-Goringo, expressed continued support for the competition, following its far-reaching impact.
“Since its inception in 1979, the AFIFC has become a significant tournament among financial institutions in Nigeria, particularly as it creates an opportunity for social interaction among financial institutions and regulators, as well as facilitate the promotion of harmony in Nigeria’s financial system,” Emefiele stated.
While enumerating the importance of the event, Emefiele added, “The competition, over the years, has also served as a grooming ground for young football-playing bankers to become full professionals and national team players. It is on record that some of our decorated football heroes such as Nwankwo Kanu, Henry Nwosu and Stephen Keshi of blessed memory participated in this competition.
“As part of our corporate social responsibility, the bank remains committed to making positive contributions towards the promotion and development of football and other sporting competitions such as golf and tennis.”
Also speaking, Gombe State Governor, Muhammadu Yahaya, who was represented by Chairman, Gombe Sports Commission, Larry Daniel, lauded the CBN for hosting the final in Gombe State.

CBN’s New Cash Withdrawal Limits

The Tide — Fri, 09 Dec 2022 05:14:14 +0000

In an obvious move to reposition Nigeria’s national currency, the Naira, for effective performance and control of the amount of cash in circulation, the Central Bank of Nigeria (CBN) has introduced new cash withdrawal limits for banks and other financial institutions. The new policy comes on the heels of its recent currency redesign project, in which it expresses concerns about immense amounts of cash outside the banking system.
The directive on the new cash withdrawal limits was contained in the CBN letter dated December 6, 2022, which was addressed to all Deposit Money Banks, and other financial institutions like Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs). The letter was formally endorsed by Mr Haruna Mustafa, Director, Banking Supervision Department, CBN.
Under the new regulations, the Central Bank capped weekly over-the-counter (OTC) cash withdrawals by individuals and business organisations to N100,000 and N500,000, respectively. However, the apex bank states that withdrawals above the threshold will be charged a processing fee of 5% for individuals and 10% for corporate bodies. Also, third-party checks over N50,000 are not eligible for OTC payments, while the existing limit for cleared checks remains at N10 million.
The new cash withdrawal regime further limits maximum cash withdrawals via Automated Teller Machines (ATMs) to N100,000 per week and N20,000 per day. According to the CBN, ATMs can only load denominations of N200 and below, while the maximum amount that can be withdrawn via point-of-sale (POS) terminals is limited to N20,000 per day.
However, the Central Bank declares that in cases of last resort, not more than once a month, if cash withdrawals exceeding the prescribed limit are required for legitimate purposes, the withdrawal amount of individuals and corporate organisations shall not exceed N5 million and N10 million respectively, and shall comply with the referenced processing fee. This would be in addition to enhanced due diligence and further information requirements.
Furthermore, the CBN says that monthly re-runs of cash withdrawal transactions exceeding the prescribed limit should be referred to the banking supervisory authority. While needing to comply with existing Anti-Money Laundering/Combating the Financing of Terrorism regulations related to Know Your Customer (KYC), ongoing customer due diligence and suspicious transaction reporting, among others, are required in all circumstances.
Moreover, the Central Bank encourages bank customers to use alternative channels including Internet Banking, Mobile Banking Apps, USSD, Card/POS, eNaira, etc., for banking transactions. The CBN also warned banks and other financial institutions that aiding and abetting circumvention of the new policy would attract severe sanctions.
Current moves by the CBN point to an effort to curb vote-buying ahead of the 2023 general elections, check and diminish the amount of cash in circulation. It is also aimed at containing the ease by which the Nigerian currency has been counterfeited by criminal gangs. Most significantly, these policies would help the apex bank regain control of excess cash floating in the economy, thereby upscaling the value of the Naira and curbing inflation.
The CBN governor, Godwin Emefiele, had revealed in last October that out of N3.23 trillion Naira in circulation, N2.73 trillion was lying outside Nigeria’s banking system. This figure, which represents about 85%, is what the CBN is trying to mop up back into the system to be able to control the money supply. We commend the bank for the initiative, which is quite positive. Many Nigerians will benefit from the new policy.
The government and banks would equally gain from the practice in the sense that it would reduce the cost of holding large amounts of cash, and capture more e-transactions and e-revenue for the institutions. Crimes like armed robbery, burglary, and kidnapping for ransom will drop because it will be difficult to raise the huge amount of money the criminals usually demand from the banking system.
Drastically reducing cash in circulation will likewise compel more transactions to be conducted electronically. There would be less currency outside the banking system, which will make monetary policy interventions more effective. This would reduce the size of the black economy and provide more intelligence for the tax authorities to expand the tax net to economic activities which were previously under the radar. Additionally, the volume of Naira to be printed every year will reduce significantly.
Apparently, the CBN is trying to drive a cashless economy by placing stiffer restrictions on cash withdrawals. However, a more effective strategy could have been to first enhance the cashless economy infrastructure to remove or significantly reduce the challenges and irritations that people experience when transacting using electronic payments. Many Nigerians regularly experience unsuccessful electronic payment transactions either due to bad network, switch failure or even lack of electricity to charge the devices.
A different strategy could have been employed to make a cashless economy attractive as was the case with Mesa in East Africa, so people voluntarily embrace it rather than the stick approach, which will, unfortunately, punish many people for circumstances that are beyond their control, especially the large unbanked population in rural areas. If not properly handled, the situation could result in a lull in economic activities, which may slow down GDP growth in the short to medium term.
Though there will undoubtedly be implementation challenges, the policy is a step in the right direction for sanitising the economy. The excess liquidity floating around in the economy needs to be mopped to minimise price escalation. However, the slow adoption of e-banking, the rise in cybercrime coupled with an election year, and other macroeconomic factors could dramatically slow the benefits of the policy.

FG Approves Five-Year Tax Break For Agric Investors

The Tide — Fri, 28 Oct 2022 04:09:51 +0000

The Federal Government has approved new incentives for investors in the agricultural sector to improve high-level private sector participation in the nation’s food production and processing industry, the Minister of Agriculture and Rural Development, Dr. Mohammad Abubakar, has said.
Among the incentives included tax and duty-free holidays for a period of five years for agricultural production and processing in Nigeria; tax-free agricultural loans with a moratorium period of over 18 months and repayment period of not more than seven years; and zero-tariff rates on the importation of agro chemicals.
Abubakar stated these in Abuja, yesterday, during the 29th edition of the LAPO Annual Development Forum with the theme, ‘Financing agriculture and rural development initiatives in Nigeria: Issues and way forward’.
While calling Nigerians to invest in agriculture, the minister explained that the sector was experiencing a reinvigoration with dedicated policies of the Federal Government aimed at allowing the private sector to get involved and make more contributions in growing the nation’s Gross Domestic Product.
He said, “Agriculture will continue to be an established driver of Nigeria’s GDP growth. The agricultural growth in Nigeria has steadily increased from 3.48per cent in 2015 to 6.48per cent as of 2020.
“The Federal Government, through the Ministry of Agriculture and Rural Development, harps on the imperative of improving the country’s agricultural produce and turning agriculture itself into big business.”
The minister reiterated the Federal Government’s commitment towards creating investment opportunities for the private sector to participate in industrialising the agricultural sector; adding that its annual budgetary allocation to agriculture had been increased.
Abubakar emphasised that the government was making efforts across the length and breadth of the country to ensure sustainable food security and agribusiness as its core.
He said, “The government of the Federal Republic of Nigeria has established viable institutions, which provide services that will accelerate the tempo of private investment in Nigeria’s agriculture.
“We have shown more commitment to secure investment in agriculture by increasing budgetary allocation from 7percent to 10per cent.”
He also said that under the proposed National Livestock Transformation Programme, some areas of cooperation would have to be addressed for the private sector to consider
They included beef and dairy production and processing, veterinary drugs and vaccine production, sheep and goat production, animal feed production and several others.
Delivering his keynote lecture, Prof. Ernest Aiyedun of the Faculty of Agriculture, University of Abuja, said that over the years, the Nigerian government had formulated good agricultural financial policies meant to encourage food production.
He, however, regretted that such policies have been found to be inefficient and ineffective, as the intended results were not realised.
“There is, therefore, a need to ensure adequate budgetary provision and releases targeted to specific areas of need.
“Bridging the demand and supply gap in food and fibre in Nigeria would be a mirage, if financing for agriculture is not taken seriously. It is, therefore, necessary that the public financing models in place that are effective should be intensified and those not wiring should be evaluated for possible retooling for effectiveness”, Aiyedun added.
Earlier in his welcome address, the Chief Executive Officer of LAPO, Dr. Godwin Ehigiamusoe, stated that agricultural-driven growth and food security in the country were being hindered by inadequate financing and poor use of technology amongst others, resulting in higher food prices, increasing poverty, hunger and malnutrition.
He said that LAPO had, over the years, supported the agricultural sector of the economy through the provision of flexible financial services to rural farmers and agribusinesses through the LAPO Microfinance Bank and the LAPO Rural Development Initiative.
“LARDI disbursed N75.4billion to 183,538 clients, who are predominantly rural farmers between 2015 and July 2022. The microfinance bank already disbursed the sum of N4.1billion to small scale farmers in 2022”, he added.
The Chairman of LAPO Board of Directors, Dr. Osaren Emokpae, said that aside increasing funding, it was imperative to fund agricultural researches in the country with efforts intensified to reduce the cost of basic agricultural implements and tools in order to increase accessibility by farmers.

Co-Operative Set To Begin Community Project In Rivers …Finaliises Arrangements For Microfinance Bank

The Tide — Wed, 03 Aug 2022 00:53:32 +0000

The President/Chief Executive Officer of iEBSMatrixx Co-operative Investment and Credit Society Limited, Dr. Larry Goodwill Ajiola, has said that the long awaited community project of the group would commence this week in Rivers State.
Disclosing this during the Co-operative’s Executive Meeting in Port Harcourt over the weekend, Dr. Ajiola said the preparedness of the co-operative to carry out the community project, was in line with the Supreme Family Entertainment International Initiative’s poverty alleviation programme.
According to the CEO, who is also a United Nations Eminent Peace Ambassador, the community projects would transform the lives and businesses of entrepreneurs, especially in the salon industry.
Ambassador Ajiola noted that the projects, funded by Supreme Family, is also expected to draw close the disbursement of Mama Supreme grant, “in line with the information and directives given by the Supreme CEO, JoiceHemni Matthew Andrew.
“The Supreme CEO has worked tirelessly to put smiles on the faces of the less privileged ones across the nation.
“This is one group that has nothing to do with tribalism but wants the youths, windows and small businesses to get to the next level”, he stated.
The iEBSMatrixx boss also said the Co-operative is fanalising the arrangements to float the proposed CBN approved Microfinance Bank, saying that, “all things being equal, our microfinance bank may commence operation before the end of this year.
“All those who invested in one project or the other in the Co-operative still have their investment intact. Their investments would be converted to the Co-operative bank shares when we fully commence”, he said.
He reiterated that the Co-operative has undergone many challenges over the years, adding that 2022 is marking the beginning of a new era for Small and Medium Enterprises (SMEs) in the organisation.
The CEO also said the Co-operative will elect new executive members that would run the organisation for the next four years.
He called on the members to ensure that they do everything possible to sustain their businesses, adding that there are better days ahead.

By: Lilian Peters

NASS To Verify Companies’ Claims On N375bn Grant

The Tide — Mon, 18 Jul 2022 04:44:23 +0000

The National Assembly will verify claims made by companies that are shortlisted for the N375billion Export Expansion Grant (EEG)
Director-General of the Nigerian Export Promotion Council (NEPC), Dr Ezra Yakusak, disclosed this during the signing of a memorandum of understanding between the NEPC and the Small and Medium Enterprise Development Agency of Nigeria in Abuja.
“I had announced that the FG had approved the EEG, but it is not automatic. It goes through the National Assembly either for ratification or approval. It is before the National Assembly who will look at it and justify or verify each of the claims made by the companies,” Yakusak said.
The EEG is a grant provided to exporters to enable them to stay competitive in the global market. The N375 billion is the backlog of the EEG from 2017 to 2020, whose payment was delayed due to budgetary constraints by the Federal Government. About 285 companies will benefit from the scheme.
According to Yakusak, the essence of the MoU between the two agencies is to expose Nigerian micro, small and medium enterprises to the West African market.
“This is the first time we are doing this. There is a need for us to collaborate, get our SMEs together for the purpose of empowering them and taking them to some key international markets.
“Right now, with this MoU, the first market we intend to go by way of trade fair or solo exhibition is The Gambia. It is an English-speaking country, and trade between Nigeria and The Gambia is not encouraging. We need to ensure we scale up trade between the two countries,” he noted.
He said, MSMEs would apply and the agencies would look at the possibility of their products being accepted in The Gambia.
He stressed that the agreement was another way of showing the general public the level of cooperation and synergy among related government agencies in boosting the Nigerian economy through the promotion of non-oil exports.

On his part, the Director-General, SMEDAN, Wale Fasanya, described the MOU as a marriage of two minds.

“We will take MSMEs with exportable products and create a market for them within the West African market,” he said.

“We are looking at other agencies of government doing things that increase MSMEs competitiveness. We are going to work with them and we will not work alone,” he noted.

Fasanya said SMESDAN was thinking out of the box, given that a number of MSMEs found it difficult to access funds. He stressed that the agency was looking at programmes where it would combine financial initiatives with capacity building.

He disclosed that before the end of this year, SMEDAN and other partners would set up a microfinance institution to empower MSMEs.

“Before the end of the year, we are going to roll out a microfinance institution in conjunction with a number of business member organisations. NASME met me and said they would like to even have shares.”

‘FinTech Operators Account For 63% Funding In 2021’

The Tide — Wed, 13 Jul 2022 04:25:03 +0000

The FinTech Association of Nigeria has said that Financial Technology (FinTech) operators accounted for about 63 per cent of the 1.37 billion dollars funding raised in Nigeria in 2021.
President of the association, Mr Ade Bajomo, said this during the FinTech Platinum Awards ceremony in Lagos State, recently.
Noting that Nigeria had been well-positioned in Africa and in the global FinTech ecosystem, he said Africa could currently boast of 10 unicorns out of which seven – Jumia, Fluttwerwave, Andela, Chipper Cash, Airtel Africa, OPay and Interswitch – are Nigerian.
“In a similar light, Nigerian start-ups raised 1.37 billion dollars of the four billion dollars raised in Africa in 2021. Of these, the FinTech space alone accounted for about 63 per cent of all total funding, compared with just 25 per cent in 2020.
“The growing investor confidence in African FinTech reflects the continent’s huge potential due to deepening mobile and internet penetration, a youthful population, increasing consumer sophistication and income, amongst many other factors”, he said.
According to him, in spite of the enormous achievements, there is always the need to look back and appreciate how far the FinTech ecosystem has come in the country.
He said FinTech in Nigeria further raised bout 600 million dollars in funding between 2014 and 2019, compared to more than one billion dollars raised in one year alone, adding that few years ago, real time payments and digital (quick) loans were almost impossible.
He further hinted that Nigeria is now home to about 250 FinTech companies, in spite of huge infrastructural, regulatory and financial challenges.
The association’s President said the trajectory was not set to slow down by any means as by 2025, Africa would be home to 1.5 billion people, most of who would have grown up with the internet.
According to him, the continent’s demographics would include a vast group of digitally-literate but under-banked customers, who could be tapped by home-grown and foreign FinTechs.
Bajomo said the FinTech Platinum Awards was to create a world class award ceremony which would raise the standard of the top global awards within the sector.
He said the association was strongly positioned to play strategic, critical and unbiased roles in creating an enabling environment for FinTech to continue to thrive in Nigeria.
This, he explained, would be by providing leadership for FinTech ecosystem evolutions in the country and across the continent.
The award for the “Female FinTech Trailblazer was worn by Ms Odunayo Eweniyi, Co-founder, PiggyVest, for starting something ground-breaking and at the same time, a strong force in the industry.
The award for “Ground-breaking Achievement’’ went to Carbon Microfinance Bank, as one of the first organisations to do something innovative in their space, while adhering to ethical standards.

The “Ecosystem Enabler’’ award was received by Banwo & Ighodalo Firm for providing significant resources and support for the Nigerian FinTech ecosystem.

“Leadership Award’’ (organisation and individual categories) were awarded to the Securities and Exchange Commission (SEC) and Mr Mitchell Elegbe, Group Managing Director of Interswitch.

This is for paving a pathway on how things should be done in the FinTech space and consistently raising the bar.

Mr Iyinoluwa Aboyeji, Founder, Future Africa got the “Tech Advocacy’’ award for being at the forefront of pushing for increased technological advancement in the ecosystem.He got the award also for fostering opportunities, networks and inclusion to make it a reality.

ACGSF: CBN Releases N130bn Yearly To Farmers

The Tide — Mon, 11 Jul 2022 02:41:18 +0000

The Central Bank of Nigeria (CBN) says it has made a yearly release of over N130 billion as interest draw back to farmers under the Agricultural Credit Guarantee Scheme Fund (ACGSF) since 1979.
The Head, Development Finance Office (DFO), Mr. Oruveigha Stanley, disclosed this, Thursday, in Port Harcourt at the 2021 ACGSF best farmers of the year and Participate Financial Institution (PFI) annual award in Port Harcourt.
He said the scheme was initiated by the Bank to encourage farmers across the country.
“What we have released or given yearly from 1979, what we have given as interest draw back paid to farmers that were part of the scheme from 1978, the cumulative Figure each year we do and we add to it that figure.
“That is the one that I told you is about #130 billion under the ACGSF cumulatively. So, next year will be added to this one, “he said.
He also said over one million farmers have benefitted from the scheme, adding that the programme is not only in Rivers State but across the nation.
Noting that the event was to honour farmers who meet the expectation in the period under review, Stanley commended Lapo Micro Finance Bank for its partnership with the CBN for the implementation of the scheme.
According to him, the target of the CBN is to see that one thousand farmers or more benefit from the scheme in Rivers State.
The DFO also urged the management of the Rivers Micro Finance Agency (RIMA) to get involve in the programme with the view to implementing the poverty alleviation programme of the State Government.
Also speaking, Permanent Secretary, Rivers State Ministry of Agriculture, Mr. Maurice Ogolo, said the State will key into the programme next year.
Ogolo also said Rivers State is doing well as far as agriculture was concern.
Dignitories at the event include the Port Harcourt Branch Controller of the CBN, Oke Chuks Godfrey, represented by George TomGeorge, Head, Branch Support Office, CBN.
Awardees at the event were Mr. Alia Abazua Ijajico, who emerged as best farmer of the year 2021; Mrs. Nwator Ngozi, who emerged first runner-up; and Okoro Samuel, who emerged second runner-up.
The participating financial institution award went to Lapo Microfinance Bank.

By: John Bibor & Oribim Ibama

Agric Credit Fund: CBN Releases N130bn To Farmers Yearly

The Tide — Fri, 08 Jul 2022 02:34:27 +0000

The Central Bank of Nigeria (CBN) has said that it has made a yearly release of over N130billion as interest drawback to farmers under the Agricultural Credit Guarantee Scheme Fund (ACGSF) since 1979.
Head, Development Finance Office (DFO), Mr. Oruyeigha Stanley, disclosed this in Port Harcourt, yesterday, at the 2021 ACGSF Best Farmers of the Year and Participate Financial Institution (PFI) annual award in Port Harcourt.
He said the scheme was initiated by the bank to encourage farmers across the country.
“What we have released or given yearly from 1979, what we have given as interest drawback paid to farmers that were part of the scheme from 1978.
“The cumulative figure each year we do and we add to it that figure. That is the one that I told you is about N130billion under the ACGSF cumulatively. So, next year will be added to this one”, he said.
Stanley also said that over one million farmers had benefitted from the scheme, adding that the programme is not only in Rivers State but across the nation.
He said the event was to honour farmers who meet up the expectation in the period under review.
He commended Lapo Microfinance Bank for its partnership with the CBN in the implementation of the scheme.
According to him, the target of the CBN is to see that 1,000 farmers or more benefit from the scheme in Rivers State.
The DFO Head also urged the management of the Rivers Micro Finance Agency (RIMA) to get involved in the programme with a view to implementing the poverty alleviation programme of the state government.
Also speaking, Permanent Secretary, Rivers State Ministry of Agriculture, Mr. Maurice Ogolo, promised that the state would key into the programme next year, adding that Rivers State is doing well as far as agriculture was concerned.
Dignitaries at the event include the Port Harcourt branch controller of the CBN, Oke Chuks Godfrey, represented by Head, Branch Support Office, CBN, George Tom George.
Awardees at the event were, Mr. Alia Abazua Ijajico, who emerged as the Best Farmer of the Year 2021; Mrs. Nwator Ngozi, first runner-up; while Okoro Samuel emerged second runner-up.
The participating financial institution award went to Lapo Microfinance Bank.

By: John Bibor & Oribim Ibama

Take Advantage Of Opportunities, Elechi Urges PHCCIMA Members

The Tide — Fri, 08 Jul 2022 01:54:37 +0000

The President of Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Sir Mike Elechi, has urged members of the association to tap into the advantage of what his administration has put on their table.
He gave the advice while addressing PHCCIMA members during the general monthly forum at its Secretariat in Port Harcourt, last Tuesday.
He said, “it is our promise to add value to the chamber and to ensure that you derive benefits out of your annual dues, and part of it is the consistent monthly general forum. As business men, whatever we do without marketing our produce to each other, we have done nothing. So, I felt that we should start trading within ourselves on our various products and services and translate it to our next door neighbour.
“In the monthly gathering, we share complementary cards and reach out to one another, we’ve designed the gathering in a way that each of the meeting day, we bring one or two organisations to talk to us on relevant topics as it affect our businesses and we have kept fate to that”, he added.
Elechi, who is the chairman and chief executive officer of Vintage Farms and Products Ltd, frowned at members who deliberately absent themselves from the monthly gathering, which according to him; do not tell good of their association in the eyes of their guest speakers who have clamoured to meet them in their numbers.
He, therefore, appealed to members to try and tap on the opportunities before them.
In his keynote presentation, the Regional Manager, Trustfund Pensions Ltd, Dr. Omaka Omaka, who spoke on “Various Subjects on the Contributory Pension Scheme”, encouraged corporate organisations on the advantage of partnership with the Trustfund Pensions Ltd as any contribution made keep appreciating over time.
He advised business owners, particularly those at the informal sector, to involve themselves in microfinance fund and enrol their staff in pension scheme, which were in stages with the essence of getting fund at the retirement age, adding that it was a motivational approach for their staff to turn in their best, and a criminal offence to withhold pension deductions.
The Permanent Secretary, Rivers State Ministry of Commerce and Industry, represented by the Deputy Director in charge of SMEs, Mr. Patrick Igbo, also spoke on the topic, ‘Rivers Cares’, advised business owners to take advantage of the national domesticated programme tagged, RivCares, an intervention programme put together by the Federal/State Governments and World Bank to cushion the effect of COVID-19 pandemic.
He explained the processes valid members of PHCCIMA would go about registering online, cautioning that there was no agent appointed for the programme, which according to him, would end on July 13, 2022.
In another keynote presentation on “How to Make Your Business Succeed In These Tough Times”, the Managing Director of Primeport Logistics Ltd, Otunba Femi Adewunmi, advised business organisations to consider their fundamentals when growing their businesses to be able to stand strong in tough times.
In an interview with journalists after the meeting, the Managing Director of Primeport Logistics Limited, Otunba Femi Adewunmi, explained that whereever problems exit, there was always an opportunity, adding that as business owners, one needs to calibrate and get prepared for an eventuality.
The clearing and forwarding expert also gave reason why the Eastern Ports were not making much progress against that of Lagos.
He said, “The truth is that we are not uptimising the limited things we have in the region.There is no structure on ground at the Eastern Ports, and that is what the Primeport is putting in place”.
Other executive and council members present at the forum include the 2nd Deputy President, Hon. Prince Charles Beke; Treasurer, Surveyor Emmanuel Ogbonda; Publicity Secretary, Pastor Uche Onochie; PHCCIMA HLVP and SESSCCIMA President, Dr. Hyke Ochia.
The rest includeelected council members: Barrister Innocent Amah, Chief Emeka Ezekwe, Mrs. Florence Nwosibe, who also is the chairman of Trade Missions Desk, Trade Group Chairmen and distinguished members, other guests, pressmen and the Director General, Mr. Erasmus Chukunda.
The July Members’ General Forum was sponsored by the Chamber Members’ Welfare Secretary and Managing Director of Goddie Chemicals International Company Ltd, Engr. Godwin Etim, and Trustfund Pensions Ltd.

By: Nelson Chukwudi

Adults With Bank Account Hit 45% In Nigeria – World Bank

The Tide — Wed, 06 Jul 2022 01:15:19 +0000

The World Bank has said that the number of Nigerians with accounts at regulated institutions such as a bank, credit union, microfinance institution, post office, or mobile money service provider, increased by 16 to 45 per cent in 2021.
The global bank stated that global account ownership increased by 50 per cent from 51 per cent in 2011 to 76 per cent in 2021. Nigeria’s account ownership growth grew from 30 per cent to 45 per cent in the period under review.
Disclosing this in its “The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19” report, the bank said the overall account ownership in developing economies grew by 30 percentage points, from 42 per cent in 2011 to 71 per cent in 2021, which is more than 70 per cent increase.
“Individual economies saw different rates of growth over the past decade. Between 2011 and 2021, economies such as Peru, South Africa, and Uganda drove up the average with account ownership increases of 25 percentage points or more.
“Uganda, in fact, saw its rate more than triple, from 20 per cent to 66 per cent. In India, account ownership more than doubled in the past decade, from 35 per cent in 2011 to 78 per cent in 2021.
“This outcome stemmed in part from an Indian government policy launched in 2014 that leveraged biometric identification cards to boost account ownership among unbanked adults.
“Other economies saw much smaller increases over longer periods. Pakistan, for example, grew by just 10 percentage points over the past decade, from 10 per cent in 2011 to 21 per cent in 2021.
“The Arab Republic of Egypt and Nigeria increased ownership by 18 percentage points and 16 percentage points, respectively – from 10 per cent to 27 per cent in Egypt, and from 30 per cent to 45 per cent in Nigeria”, the report stated.
The Washington-based lender explained that account ownership is a fundamental measure of financial inclusion and is the gateway that allows men and women to use financial services in a way that facilitates development.
It said owners of accounts – whether those accounts are with a bank or regulated institution such as a credit union, microfinance institution, or mobile money service provider – were able to store, send, and receive money, enabling them to invest in health, education, and businesses.
According to the lender, it is harder for account holders to slide into poverty because they can easily rely on savings or receive financial resources from friends or family in the event of a financial emergency.

Group Advocates Inclusive Financial Services For Women

The Tide — Wed, 18 May 2022 01:48:12 +0000

The Gender Centre of Excellence (GCE) at the Rockefeller Philanthropy Advisors (RPA) has reiterated the need for more inclusive financial services for Nigerian women.
The centre made the call recently during the launch of the Gender-Disaggregated Data Analysis of the Nigerian Lending Market Report, held at a stakeholder’s event in Ikeja, Lagos State.
As part of its key findings, the report revealed that 98 per cent of Nigerian women are left out of formal credit markets due to lack of trust in formal institutions and lack of awareness of credit products at-market, among other factors.
In her opening remarks, the Vice President, Economic Inclusion, RPA, Henrietta Bankole-Olusina, noted that the importance of the report cannot be over emphasised because it takes a closer look at the differences between men and women’s access to finance and how these differences impact credit performances, financial inclusion and the country’s potential for growth.
According to her, “Men and women have similar rates of formal borrowing. On the surface, this may suggest that men and women face similar preferences and challenges in accessing credit.
“However, the large gender gap in account ownership suggests that men and women do have different financial behaviours.
“If gender is considered as the only differentiating factor between these consumers, there may be key characteristics that are obscured by gender, but that also affect access and use of financial services, particularly credit.
“This is the aim of the Gender-Disaggregated Data Analysis of the Nigerian Lending Market Report – to explore gender differences and access to finance as well as help breakdown the perception of women consumers as a monolith.
“It is our hope that the report will help promote financial and gender inclusion in Nigeria by highlighting opportunities to reach this promising segment”, she stated.
Delivering the keynote address, the Managing Director, EdFin Microfinance Bank, Bunmi Lawson, emphasised the urgent need to drive financial and economic inclusion in Nigeria, especially among women.
“Beyond financial inclusion, we must equally prioritise economic inclusion, as one cannot exist without the other. Efforts must be made to address the major drivers of financial exclusion such as lack of income and economic capabilities, lack of education and low trust in financial service providers,” Lawson said.
She noted that efforts to boost financial inclusion by policy makers and financial service providers must move beyond product innovation to addressing these underlying drivers of financial and gender gaps through more systemic collaborations between all stakeholders.

AfDB Partners MFBs On Support For MSMEs

The Tide — Wed, 04 May 2022 01:03:13 +0000

The African Development Bank (AfDB) has said it will work with microfinance banks to expand support for Micro Small and Medium Enterprises (MSMEs) in order to deepen financial inclusion in Nigeria through increased uptake of financial technology tools.
President, AfDB, Mr. Akinwunmi Adesina, disclosed this in Abuja, while speaking at the seventh yearly symposium of the Nigerian Microfinance Platform (NMP).
Adesina, who was represented by the Director-General, AfDB, Nigeria Country Office, Lamin Barrow, said microfinance and MSMEs are key to the economy and job creation, which is at the core of the Bank and poverty reduction.
“But they need our support and so through our mediated support through Development Bank of Nigeria and others, we have supported about 20,000 MSMEs, but given the large number of MSMEs in Nigeria, this support is like scratching the surface.
“So, we need partners like yourselves and others to penetrate and even in larger numbers,” he said.
While commending the theme of the NMP Symposium, ‘Expanding the Frontiers of Financial Inclusion Through Innovation: The Microfintech Tools’, Adesina assured that AfDB will work with all stakeholders to expand financial inclusion in Nigeria, including through increased innovation and uptake of Fintech tools.
“It is the Bank’s belief that this symposium will help us develop a more holistic understanding of the financial needs of underserved households and small businesses and develop ways to enhance access to affordable products”.
He said the bank is seeing the development of powerful new technologies and there is, therefore, the need to seek ways to combine technologies in a way that moves the needle on financial inclusion.
“The bank, your bank, is keen to contribute to building a definitive ecosystem in Nigeria and we commend NMP for conveying this symposium.
“As an institution, the bank is open to dialogue and work with all stakeholders to expand financial inclusion in Nigeria, including through increased innovation and uptake of Fintech tools”, he said.
Also speaking at the symposium, Deputy Governor, Financial System Surveillance (FSS), Aisha Ahmad, challenged MFBs to recognise that microfintech, which is Fintech applications adapted to microfinance, is an important tool for surpassing the nation’s financial inclusion target and hence come up with ways to deploy them to provide a cost-efficient manner to microfinance clients.
“MicroFinTech sweeps that traditional cost structure away and can operate without huge overheads as the marginal cost of delivering software to a new user at near zero.
By leveraging technology – smartphones, peer authentication and even the e- Naira, the cost of delivering a microfinance service drops sharply. And as the cost drops, the cost-benefit ratio improves and profitability increases,” she said.
Similarly, the Managing Director/CEO, Nigeria Deposit Insurance Corporation, Mallam Hassan Bello, stressed the need for MFBs to come up with innovative products that will not only attract more people into the sector, but also restore truth and dignity to the people who are deficit in both the disruption of mobile technology operators, and to keep expanding and cut cost.

He added that the corporation on its part is currently reviewing its framework for financial and technical support to the MFBs sector to bring it up to the contemporary business dynamics and after it is done it will be more robust and accessible to eligible MFBs.

NDIC Partners MFBs For Depositors’ Reimbursement

The Tide — Wed, 13 Apr 2022 00:28:19 +0000

The Nigeria Deposit Insurance Corporation (NDIC) said it has developed a Single Customer View (SCV) platform to be deployed to microfinance banks (MFBs) to eliminate delays often experienced in reimbursing depositors following revocation of failed MFBs licences by the Central Bank of Nigeria (CBN).
Managing Director/Chief Executive of the Corporation, Bello Hassan, disclosed this when the executive members of the National Association of Microfinance Banks (NAMB) visited NDIC’s Management in Abuja.
According to the NDIC boss, the corporation introduced the Single Customer View platform in order to strengthen its processes.
He said the platform wouldnot only ensure rendition of quality, timely and complete data to NDIC by MFBs, but would also give the complete position of depositors’ data at any given time, which would go a long way in enhancing prompt reimbursement in case of bank failure.
The MD, however, said the corporation would expose the template for the platform to the association with a view to garnering additional inputs towards optimising the noble innovation.
He charged the association to promote the adoption of sound risk management practices by its members, stressing that it is key to the maintenance of a safe and sound MFB sub-sector.
The President of NAMB, Yusuf Gyallesu, lauded the corporation for its continued collaboration with the association and its members in strengthening microfinance bank operations in the country.
He recalled NDIC’s contribution towards the acquisition of the National Association of Microfinance Banks Unified Information Technology (NAMBUIT) and continuous capacity building for operators amongst other support that the Corporation had given to the association.
The President disclosed the establishment of a Monitoring and Evaluation Department by the Association aimed at promoting sound practices through self-regulation among MFB operators and called on the Corporation to assist in strengthening the operations of the new department.

Cooperative Gets CBN’s Approval For Microfinance Bank

The Tide — Wed, 06 Apr 2022 05:51:05 +0000

The President/Chief Executive Officer (CEO) of iEBS Matrixx Cooperative, Investment & Credit Society Limited, Dr. Larry Goodwill Ajiola, has said the body has gotten approval from Central Bank of Nigeria (CBN) to float a Microfinance bank.
Ajiola said this during the meeting of the different unit leaders of the cooperative in Port Harcourt over the weekend.
He said the bank will kick-off operations this year, saying that all the cooperative members would become the first customers of the bank.
The iEBS Matrixx boss, who is also a United Nations Eminent Peace Ambassador, informed that members would be given their cheque books and are entitled to loans without collateral.
He reiterated the willingness of the leadership to carry everybody along, but expressed dissatisfaction over members that sell out information of the cooperative .
“Everything we do in this cooperative follows due process. The members of this body have fair representation in all the nations of the world because of the finished work of her President”, he said.
Ajiola noted that the grant and other programmes of the cooperative are aimed at alleviating poverty and boosting the businesses of members and other Nigerians, adding that, “anybody that has registered for one programme or the other in the cooperative will benefit from good things that are in the pipeline”.
Secretary of the Cooperative, Mr. Ifeanyi Pius advised members to write their business plans and strategise on how the business would succeed, adding that, “if you wait until the money comes, you will spend without achieving your goal.
“The cost of the shop must not be greater than your income, if your business must break through. Your prayers should be, God, give me wisdom to find solutions where there are challenges”, he advised.
Pius charged members to come with their coded business plans to show their preparedness for business.
Speaking in an interview with The Tide shortly after the meeting, a cluster head, Pastor Eshiebor Triumph commended the President of the Cooperative for his selfless efforts to achieve success for everyone.
He noted that since 2017 he joined the group, he has benefited from the vast knowledge of the CEO, adding that the group is a place to be due to the love, care and integrity of the leadership.
Highlight of the occasion was the election of Mr. Collins Henry as the Provost of the Cooperative.

By: Lilian Peters

Russia-Ukraine War: IFAD Raises Alarm Over Food Shortages, High Prices

The Tide — Fri, 18 Mar 2022 06:05:07 +0000

The International Fund for Agricultural Development (IFAD), yesterday, raised the alarm over food shortages and high prices hitting parts of Africa as a result of the raging war between Russia and Ukraine.
Making this known was the President of IFAD, Gilbert Houngbo, while expressing deep concern over the impact it has on the Near East and North Africa.
He pointed out that it will be tragedy for the world’s poorest people living in rural areas who cannot absorb the price hikes of staple foods.
Meanwhile, according to IFAD, a quarter of global wheat exports come from Russia and Ukraine.
Forty percent of wheat and corn from Ukraine go to the Middle East and Africa, which are already grappling with hunger issues, and where further food shortages or price increases risk pushing millions more people into poverty.
Russia is also the world’s largest fertiliser producer.
Even before the conflict, spikes in fertiliser prices last year contributed to a rise in food prices by about 30percent.
IFAD’s analysis looks at the impact that the war will have on already poor small-scale producers and rural communities.
He said: “I am deeply concerned that the violent conflict in Ukraine, already a catastrophe for those directly involved, will also be a tragedy for the world’s poorest people living in rural areas who cannot absorb the price hikes of staple foods and farming inputs that will result from disruptions to global trade.
“We are already seeing price hikes and this could cause an escalation of hunger and poverty with dire implications for global stability.”
However, IFAD warned that as the war continues to rage in Ukraine, impacts of rising food prices and shortages of staple crops are already being felt in the Near East and North Africa region and spreading to the world’s most vulnerable countries, including in the Horn of Africa, with poorest people at greatest risk.
IFAD’s analysis shows that price increases in staple foods, fuel and fertiliser and other ripple effects of the conflict are having a dire impact on the poorest rural communities.
For example: In Somalia, where an estimated 3.8million people are already severely food insecure, the costs of electricity and transportation have spiked due to fuel price increases.
This has a disproportionate impact on poor small-scale farmers and pastoralists who, in the face of erratic rainfall and an ongoing drought, rely on irrigation-fed agriculture powered by small diesel engines for their survival.
In Egypt, prices of wheat and sunflower oil have escalated due to Egypt’s reliance on Russia and Ukraine for 85percent of its wheat supply and 73percent of its sunflower oil.
In Lebanon, 22 per cent of families are food insecure and food shortages or further price hikes will exacerbate an already desperate situation.
The country imports up to 80percent of its wheat from Russia and Ukraine, but can only store about one month’s worth of the crop at a time due to the blast in Beirut’s port in 2020 that destroyed the country’s major grain silos.
Central Asian countries that rely on remittances sent home by migrant workers in Russia have been hit hard by the devaluation of the Russian ruble.
In Kyrgyzstan, for example, remittances make up more than 31per cent of the GDP, the majority of which comes from Russia.
Remittances are crucial for migrants’ families in rural areas to access food, education and other necessities.
IFAD’s experts stress that small-scale producers are already reeling from the impacts of the COVID-19 pandemic, droughts, cyclones and other natural disasters.
Their incomes are expected to be affected by the rising cost of inputs, reduced food supplies and disrupted markets.
This is also likely to have devastating and long-term impacts on their nutrition and food security.
However, IFAD is working closely with governments, rural communities and other partners and exploring ways to step up global support to the regions most affected, including building on its Facility for Refugees, Migrants, Forced Displacement and Rural Stability (FARMS), which supports agricultural livelihood opportunities for refugees and host communities.
It is also intensifying its work to reduce post-harvest losses, improve storage and strengthen local and regional food markets.
The IFAD boss also maintained that, “IFAD is committed to increasing the resilience of the world’s poorest rural people who are critical for producing a third of the world’s food.
“We must do all we can to ensure they have the resources to keep producing food and be protected from additional shocks.
“In the short-term, however, it will be difficult to mitigate the global impacts of his crisis. I join the UN Secretary-General’s call to end the conflict now and restore peace. It is the only solution to avert global catastrophe.”
IFAD’s experience during previous food crises shows that interventions such as stabilising local market systems, cash transfers, strengthening remittances, setting up savings and loans groups, training and subsidies for agricultural enterprises, and value chain investments (including infrastructure, support for microfinance institutions, aggregation services that link farmers to markets) are effective in building resilience and reducing the impact of shocks.
IFAD will draw on this experience and its unique expertise as an International Financial Institution and UN rural development agency to guide its response to the current crisis.

SMEs can Leverage Technology To Thrive – Experts

The Tide — Wed, 09 Mar 2022 01:36:38 +0000

Experts in the business sec tor have reiterated the need for Small and Medium Scale Enterprise (SMEs) to digitise their structures to explore available loan facilities by different banks.
The SMEs, who currently experience the challenge of access to finance, were urged to simplify their process in data gathering and information analysis to get captured.
At a virtual event in Monday, organised by Sparkle Microfinance Bank, the experts said small businesses do not usually have the capacity and expertise to create and maintain proper documentations and financial records at the level and in a manner that would show transparency and efficiency for financiers to extend credits to them.
Chief Executive Officer, Flour Mills Nigeria, Boye Olusanya, said, “I think that the major challenge for SMEs is book-keeping and financial records. If this is resolved, I believe that financiers would be able to step forward and support SMEs.”
Olusanya stated that financial literacy is a priority, adding that most SMEs want to build trust and need to experience the value that the Fintechs and other players in the financial ecosystem will bring to the table.
Chief Executive Officer, MTN Nigeria, Karl Toriola, in his part, said there is abundant data between telecommunication and banks for SMEs but what is needed is collaboration.
Also speaking, the Deputy Director, Enterprise Development Centre, Pan-Atlantic University, Nneka Okekearu, said all SMEs should understand their business very well and realise that activity and profitability are two different things.
According to Okekearu, there is a need for the banking sector to create more innovations for entrepreneurs in access to financial literacy and access to market.
Senior Vice President, CEMEA, Visa, Otto Williams, further stated that SMEs need to digitise its process for access for financiers to locate them.
“Our approach is creating efficiency, capital to SMEs; promoting inclusive economic growth by providing global access to commerce”, he said.

NIPOST Set To Launch Digitised Microfinance Banking

The Tide — Wed, 02 Mar 2022 05:11:28 +0000

The Nigerian Postal Service (NIPOST) has concluded plans to launch a microfinance bank that would enable 52 million unbanked Nigerians to conduct financial transactions through its various outlets in all of the nation’s 774 local councils.
This proposed launch will be coming on the hills of its recent launching of e-debit card, which can be used both offline and online.
Minister of Communications and Digital Economy, Isa Ali Pantami, who disclosed this recently at a public function in Abuja, stated that the Federal Government is transforming the organisation to play a critical role in the Fourth Industrial Revolution.
While noting that it was impossible for any economy to be transformed without digitisation, the Minister said a digitised economy will improve ease of doing business, improve transparency and fight corruption.
“We are in the process of digital transformation. What we are doing today is to ensure that NIPOST is digitalised so that it will deliver on its mandate”, he said.
For the NIPOST’s debit card, he said that the agency was not agitating for the replacement of other debit cards, but rather an alternative banking platform.
According to him, it will be complimentary and provide other alternatives, particularly to those living in unobserved and underserved environments.
“NIPOST exists in so many places where other banks will not exist in Nigeria, because the service is in every local government.
“We want to leverage that, and ensure that with the use of NIGCOMSAT to provide Internet connectivity all over the country in places where there is no ATM machines and banks.
“It would be an alternative for underserved communities”, he said.
Accordingly, he revealed that it offers several economic advantage due to its simplicity in financial transactions for citizens, adding that it will enable them spend more at the comfort of their homes.
“Financial transactions have been increasing globally, and these transactions leverage digital technologies”, he said.
Earlier, The Post Master General of the Federation, Dr. Ismail Adebayo Adewusi, said the event marks another milestone in NIPOST’s efforts to reposition itself in line with the current digital transformation initiatives of the Federal Government.

SMEDAN Adopts Agric-Value Chain To Develop Economy

The Tide — Fri, 18 Feb 2022 01:51:43 +0000

The Small and Medium Development Agency of Nigeria (SMEDAN) has adopted “One Local Government, One Product” (OLOP) programme on agric-value chain with a view to develop the country’s economy.
Dr Dikko Radda, Director-General (DG) of the Agency stated this at the official signing of Memorandum of Agreement (MoA) with Microfinance Banks and Candidate-Beneficiaries under the Programme in Katsina on Monday.
Radda said that OLOP was adopted by SMEDAN for promoting the development of at least one identified agric- value product per Local Government Area in Nigeria.
He said that the aim was to add value to the identified raw material for branding and be certified for import and export.
According to him, the main objective of OLOP is to upgrade human capacity through technological and financial support for efficient and viable cooperative enterprises.
“This will improve productivity and quality of our products to achieve competitiveness to meet national and international standards.
“I am glad to inform you that the Agency will be supporting 199 cooperative/enterprises in199 local government areas under the OLOP 2021/2022 intervention.
“Out of 774 local governments (LGAs) in the country, 364 local governments have benefitted from the scheme from the 2016 to 2020 intervention.
“About 212 LGAs were covered in 2021 under our estimation, leaving a balance of 198 to be covered in 2022,” he added.
The DG noted that President Muhammad Buhari was committed to fighting unemployment through the development of agriculture and its value chain products.
He commended the Katsina State Governor, Aminu Masari, for his unflinching support towards the growth of Micro, Small and Medium Enterprises (MSMEs) in the state.
Malam Ibrahim Muhammad, responding on behalf of the beneficiaries, commended SMEDAN for the initiative, pointing out that they would not misuse any opportunity extended to them to develop the economy.

SMEs Can Leverage Technology To Thrive – Experts

The Tide — Wed, 09 Feb 2022 03:27:27 +0000

Experts in the business sector have reiterated the need for Small and Medium Scale Enterprise (SMEs) to digitise their structures to explore available loan facilities by different banks.
The SMEs, who currently experience the challenge of access to finance, were urged to simplify their process in data gathering and information analysis to get captured.
The experts who gathered at a virtual event, Monday, organised by Sparkle Microfinance Bank, said small businesses do not usually have the capacity and expertise to create and maintain proper documentations and financial records at the level and in a manner that would show transparency and efficiency for financiers to extend credits to them.
Chief Executive Officer, Flour Mills Nigeria, Boye Olusanya, said: “I think that the major challenge for SMEs is book-keeping and financial records. If this is resolved, I believe that financiers would be able to step forward and support SMEs.”
Olusanya said financial literacy is a priority, adding that most SMEs want to build trust and need to experience the value that the Fintechs and other players in the financial ecosystem will bring to the table.
Chief Executive Officer, MTN Nigeria, Karl Toriola, said there is abundant data between telecommunication and banks for SMEs but what is needed is collaboration.
Deputy Director, Enterprise Development Centre, Pan-Atlantic University, Nneka Okekearu, said all SMEs should understand their business very well and realise that activity and profitability are two different things.
Okekearu said there is a need for the banking sector to create more innovations for entrepreneurs in access to financial literacy and access to market.
Senior Vice President, CEMEA, Visa, Otto Williams, said SMEs need to digitise its process for access for financiers to locate them. “Our approach is creating efficiency, capital to SMEs; promoting inclusive economic growth by providing global access to commerce.”
Chief Sparkler, Sparkle, Uzoma Dozie, said there are a lot of credit facilities for SMEs but data is the challenge, as well as structure.
“We need to start using different data in engaging with SMEs. We need to look at other ways to access loans. For small businesses, everything starts online. If you are not digital, it would be difficult to operate in the present atmosphere. Small businesses must adopt digital payment with human intervention.” Dozie said.

PH Co-Operative Floats Microfinance Bank, Next Year

The Tide — Wed, 15 Dec 2021 05:05:40 +0000

The President of iEBS-Matrixx Co-operative, Amb Larry Goodwill Ajiola, says the group has concluded plans to float a Microfinance Bank in Port Harcourt in 2022.
Ajiola said this during the Co-operative’s last general meeting for the year at L A Kings in Port Harcourt over the weekend.
iEBS President said the Co-operative members would have their passbooks and identity cards, stating that the group would launch into, “real estate ownership, home appliance ownership and transportation business ownership”.
He also noted that other co-operatives are affiliating with iEBS-Matrixx on the federal government loan and other investment which would kick-off next year.
Ajiola reiterated that the group has met all the requirements for the disbursement of some of the loans, which he said maybe accessed before the end of the year.
He expressed worry over what he called impatient and insulting attitude of some members towards federal government loans and grants, adding that most times some leaders frustrate what is expected to benefit the masses.
The secretary of the Co-operative, Mr. Ifeanyi …….. stated the need for the members to be prayerful, adding that the leaders need the grace of God to execute the investment plans.
He noted that most times those at the herm of affairs sits on approvals that have already been given, adding that it takes prayers for such approvals go through.
In his contribution, the chairman of one of the affiliated group, ‘Crested Wealth co-operative’, Mr. Homfrey Ogebek, expressed satisfaction for affiliating with iEBS-Matrixx.
Ogebek noted that his group has generated over 250 members within two weeks for some of the Co-operative programmes, adding that his group has members across the nine states of the South South and South East zones.
Referring to the tension in the members, he said, “it is not easy to lead people. The challenges are much, so there is a great need for members to keep faith alive because iEBS-Matrixx has a huge investment at hand”

By: Lilian Peters

Agric Fund Diversion To Attract Five-Year Jail Term – CBN

The Tide — Sun, 21 Nov 2021 23:14:14 +0000

The Central Bank of Nigeria (CBN) has warned that borrowers who divert the funds provided under the Agricultural Credit Guarantee Scheme may earn a five-year jail term.
The CBN said this in a report titled ‘Guidelines for the Agricultural Credit Guarantee Scheme’, released last Thursday.
The apex bank said in the report that, “Banks should remind prospective borrowers under the scheme that it is an offence for which one may be imprisoned for five years to apply the loan for purposes other than those for which they are given”.
It said the maximum liability of the fund in respect of any guarantee given under the scheme would be fixed from time to time by the ACGSF board.
According to the CBN, the single obligor limit for non-tangible collateral is N100,000 while the obligor limit for individual, group/co-operative or a corporate society is N50m for secured loans.
It said the liability of the fund would be 75 per cent of the amount in default, net of any amount realised by the bank from the security it got from the borrower, subject, in the case of a loan to an individual, a co-operative society or a corporate body, to a maximum of N50m.
The central bank said the revised regulatory and supervisory guidelines of microfinance banks must be strictly adhered to as “it stipulates that the maximum principal amount for a microloan shall not exceed N500,000 or one per cent of the shareholders’ fund unimpaired by losses and or as may be reviewed from time to time by the CBN”.

LCCI Tasks FG On Enhanced Support For SMEs

The Tide — Tue, 09 Nov 2021 23:36:18 +0000

The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to increase support to Small and Meduim Enterprises (SMEs) due to their importance to economic growth and development.
The LCCI Chairman, Trade Promotion Board, Mr Gabriel Idahosa, made the call in an interview with the newsmen on Monday at the sidelines of the ongoing 2021 Lagos International Trade Fair ( LITF).
Reports say that the 2021 fair is holding from Nov. 5 to Nov. 14 at the Tafawa Balewa Square (TBS), Lagos and has as its theme as: “Connecting Businesses, Creating Value.”
Over 200,000 visitors are expected while about 1,500 exhibitors from 16 countries are participating in the 35th edition of the fair.
Idahosa noted that majority of the exhibitors in the trade fair were SMEs who see it as a huge opportunity to showcase their businesses and services to the world.
He said: “The SMEs constitute between 70 to 80 per cent of the economy. So, they are very critical and it is a major function of LCCI to empower and encourage the SMEs.
“Apart from having an SME group inside the LCCI, we have 26 sectorial group and each of these groups have SMEs which also get a lot of support.
“The SMEs are at the very core of everything the LCCI is doing and we even enable them to connect with the larger enterprises as suppliers and service providers.”
Idahosa commended the Federal Government for developing a framework to support SMEs called the Small and Medium Enterprises Development Authority (SMEDA).
He said : “SMEDA is doing a lot of programmes targeted at SMEs. From empowerment to skills development and financing that is growing.
“We also have the Development Bank of Nigeria (DBN). The entire capital of DBN is devoted to SMEs. DBN lends to microfinance banks which in turn lends to SMEs.
“The Central Bank of Nigeria itself has an SME programme. So there are a lot of programmes around the SMEs.
“The reason there is concern about the impact is that when you have over 40 million SMEs in the country as at the last count and you are having programmes reaching about five million, the impact will not be so obvious.LCCI Tasks FG On Enhanced Support For SMEs

NDIC Warns Bank Customers Against Ponzi Operators

The Tide — Fri, 08 Oct 2021 00:44:36 +0000

The Nigeria Deposit Insurance Corporation, NDIC, has warned bank depositors against falling for unrealistic high returns made by operators of Ponzi schemes in Nigeria.
The corporation also warned that most of these operators of Ponzi schemes are not licensed by it, and as such, should not be patronised by customers of financial institutions.
Speaking at the 16th International Trade Fair on Tuesday, the NDIC Managing Director, Bello Hassan, said people who deposit their money in insured banks and financial institutions can get a refund when the banks liquidate.
However, he added that those who put their funds in banks that are not covered by the corporation, risk losing their deposits during the liquidation process.
Hassan further debunked claims among Nigerians that when a bank fails, customers only get N50,000 from their deposits regardless of the amount they had in that bank.
He said the misinformation began in the 1980s when N50,000 was the maximum initial sum paid to people who had their money in a liquidated bank.
He explained that the corporation had since reviewed the amount over the years, noting that the current initial maximum sum paid to people whose monies are trapped is N500,000 for Deposit Money Banks and N200,000 for depositors of Microfinance banks.
The NDIC MD who was represented by the Head of Public Affairs, Mr Bashir Nuhu, said, “I would also like to serve a word of caution against patronising unscrupulous services of Ponzi schemes and illegal fund managers, otherwise called ‘wonder banks’ who masquerade as deposit-taking institutions to dupe unsuspecting members of the public of their hard-earned funds.
“They offer unrealistically high returns to lure their victims only to bolt away with their money. These entities are not licensed by the CBN as deposit-taking institutions and are therefore not covered by the deposit insurance.”
He said as a policy, the corporation has been involved in major trade fairs across the country as an avenue to engage with depositors, stakeholders and the general public to address their concerns and enquiries.
“We engage in all the major trade fairs across the nation, not to goods, but our services. We inculcate banking habits, financial inclusion and inform the public about the dangers of not taking their money to the bank.
“We have developed an app to enable depositors to fill in their claims when their money is trapped in a bank and apply for their money.”
Also speaking, Vice President of the Chamber of Commerce and Chairman of Trade Centre, Dr Johnson Anene, said the essence of the trade fair was to promote between exhibitors and visitors.
He called on the Bank of Industry and other financial institutions to relax their conditions for exhibitors to get easier access to credit for their businesses.

Anchor Borrowers: CBN Incurs N379bn Debt, Farmers Battle Insecurity

The Tide — Tue, 24 Aug 2021 23:33:58 +0000

The Central Bank of Nigeria (cbn) recorded a shortfall of N378.5 billion in loan repayment by beneficiaries under the Anchor Borrower’s programme in six years, data obtained from the CBN findings have shown.
Between November 2015 when the ABP scheme was introduced and November 2020, the CBN executed a total of 2.3 million projects under the programme and disbursed N497.2bn to farmers.
However, data obtained from the CBN’s Fourth Quarter 2020 Economic report showed that only N118.7bn had been repaid by the beneficiaries within the review period.
The Tide recall that President Muhammadu Buhari launched the ABP on November 17, 2015 in a bid to reverse Nigeria’s negative balance of payments on food.
Beneficiaries of this programme include farmers cultivating cereals (rice, maize, wheat etc.), cotton, roots and tubers, sugarcane, tree crops, legumes, tomato and livestock.
Loans are disbursed to the beneficiaries through Deposit Money Banks, Development Finance Institutions and Microfinance Banks, which the programme recognises as Participating Financial Institutions.
According to the CBN, the broad objective of the programme is to create economic linkage between small holders and reputable large-scale processors with a view to increasing agricultural output and significantly improving capacity utilisation of agricultural firms.
A cursory look at the agricultural sector shows that the scheme might have had a positive impact on the sector as the sector’s aggregate output maintained an upward trajectory throughout the period under review.
An analysis of Gross Domestic Product Reports (GDP) from 2015 to 2020 revealed that total output of the agricultural sector rose from N19.5tn to N37.3tn, indicating a 91.2 per cent increase.
Between 2015 and 2016, aggregate output in the sector grew from N19.5tn to N21.4tn, and rose to N23.9tn in 2017, N27.4tn in 2018 and N31.8 trillion in 2019.
It was observed that within the review period, sub-activities of the agricultural sector which the ABP programme focuses on such as crop production and livestock also recorded increase in economic performance.

NAMB Charts Monetary Roadmap For Improved MSMEs Funding

The Tide — Tue, 24 Aug 2021 23:21:13 +0000

The National Association of Microfinance Banks (NAMB) has advocated the need for the monetary authorities to broaden their policy scope towards improved funding of the nations Micro, Small and Medium Enterprises (MSMEs).
The President of the association, Malam Yusuf Gyallesu, stated this while speaking with newsmen on how best the MFBs could be better funded to improve their contributions to the nations Gross Domestic Product (GDP) after close to two years of COVID-19-triggered slowdown.
Gyallesu spoke on the backdrop of NAMB’s recently concluded, 11th Annual General Meeting in Abuja,
He commended the Central Bank of Nigeria (CBN) for its various intervention initiatives to support the MSMEs over the years.
He suggested that, new funds for the subsector could come in the form of interventions specifically designed and targeted at the MSMEs to be routed through MFBs.
He urged the apex bank to foster linkages between the Deposit Money banks, Development banks and other Specialiaed Financial Institutions to enable MFBs boost productivity of MSMEs.
“ What the microfinance subsector needs now is funding to be able to support MSMEs.
“This funding can come in form of intervention specifically designed and targeted at the MSMEs to be routed through MFBs.
“Another avenue is for CBN to foster linkages between the Deposit Money banks, Development banks and other specialised financial institutions such that MFBs can source wholesale funds and refinancing facilities from them.
“This is to widen their outreach and for on-lending to the MSMEs at relatively cheaper costs,” he said.
The NAMB President urged the CBN to establish a Microfinance Sector Development Fund to provide necessary support for the development of the sub-sector.
“Such support can be in terms of refinancing facility, capacity building, and other promotional activities,” he added.
Commenting on the recent intervention by the National Assembly which resulted in the shifting of the recapitalisation deadline for the MFBs, Gyallesu noted that the intervention was timely and a welcomed development.
“Even though it was persuasive to CBN, it came as a reprieve to our members who are now doubling their efforts to mobilize for additional capital,” he said.

We’re 90% Ready To Unbundle NIPOST, FG Assures

The Tide — Mon, 23 Aug 2021 05:23:45 +0000

The Federal Ministry of Communication and Digital Economy, has said that it is 90 per cent ready to unbundle the Nigerian Postal Services (NIPOST).
It said that the agency’s more than 2,000 property nationwide would be deployed to money spinning ventures.
The Minister, Dr Isa Pantami, said in its special interview programme, NAN Forum, that property and development, logistics, courier and a micro finance company were among the forthcoming ventures.
According to him all assets of NIPOST scattered all over the country would be fully utilised to maximise revenue generation for the emerging business enterprises.
The minister had on August 3, hinted that the Federal Government would soon unveil policies to unbundle NIPOST into property and development, logistics, courier and a micro finance company.
Pantami said that NIPOST had over 2,300 property scattered across the country with most of them decapitated and underutilised.
“NIPOST has over 2,300 properties in this country and you will discover it has property in some selected areas that are highly prestigious in Abuja, Lagos, Port Harcourt, Kaduna, Kano and all of them are decapitated,’’ he said.
According to him, some of the property has been there for over 30 years without proper utilisation.
“So, the wisdom is to establish some companies like Property and Development Company that will work under NIPOST.’’
The minister said the property enterprise would develop the dilapidated property, with some in partnership with the government, so that it would be able to put them into good use and generate something.
He also said the unbundling of NIPOST had reached advanced stages, with almost 90% work done.
“We have reached advanced stages of unbundling, most probably almost 90 per cent work done now.
“We will come up with NIPOST Microfinance Bank. We can use all our offices where there are no banks even in rural areas and they can serve as banks.
“We also propose to have transport and Logistics Company; most probably we are considering the ability of coming up with a NIPOST courier company as well,’’ he said.
He noted that NIPOST unbundling would lead to increased employment and revenue generation for the government.

A’Ibom Lauds N’Delta Recovery Plan For Ex-Militants

The Tide — Sun, 08 Aug 2021 22:38:19 +0000

Akwa Ibom State Governor, Udom Emmanuel, has lauded the Niger Delta Recovery Plan initiated by the Interim Administrator, Presidential Amnesty Programme, Col. Milland Dikio (retd), for economic empowerment of ex-agitators and the Niger Delta region.
Emmanuel particularly commended an aspect of the plan designed to enable ex-agitators to explore other economic potentials of the region instead of depending mainly on N65,000 monthly stipend.
Emmanuel, who spoke in Government House, Uyo, the state capital when Dikio paid him a courtesy visit, described the new model of Train, Mentor and Employ (TME) contained in NDRP as a step in the right direction, saying the strategy would turn ex-agitators into successful entrepreneurs.
He called on ex-agitators and beneficiaries of the programme to grab the opportunity offered them by Dikio and develop other economic potential in the region.
Insisting that stipends would not solve their economic problems, the governor urged them to embrace the opportunities in the maritime sector, which he observed was a major focus of PAP’s recovery plan.
According to the Governnor, “Maritime resource is key to the development of any economy and it is a sector where people of the Niger-Delta region need to be trained. The fishery industry will be of great benefit to the region as it is surrounded by water.
“There are endless opportunities beyond payment of stipends. As a people, we can launch into these different industries that will benefit the region.”
He thanked Dikio for acknowledging his work in the state and commended him for adding value to the region since he assumed office as the Interim Administrator.
Earlier, Dikio applauded the governor’s strides especially in floating the Ibom Air, which he described as a trailblazer and congratulated the governor for the crowning of Akwa Ibom United as the Nigeria’s Premier League champion.
Dikio said he planned to key into the human capital development of Akwa Ibom by seeking opportunities in the state to train ex-agitators.
“Akwa Ibom is known for its human capital development. Others are agriculture and financing, particularly microfinance banks. The industrial strenght of Akwa Ibom is well known so we have come to key into all these for the ex-agitators,” he said.
Dikko insisted that his major vision was to turn ex-agitators into successful entrepreneurs and job creators, who would look beyond N65,000 montly stipends.
He said, “Over the years, many of our people have been trained and they have all been added to the pool of the unemployed. We are looking out for big business concerns where our people can be trained.
“PAP will pay for the training but with the understanding that our people will be employed and mentored afterwards. We are adopting the Igbo apprentiship system so that at the end of the day it’s a win-win for everybody.”

MSME, Tool For Sustainable Economic Dev – Oyetola

The Tide — Fri, 06 Aug 2021 06:02:39 +0000

Govnor Adegboyega Oyetola of Osun State has described Micro, Small and Medium Enterprises (MSME) as the potent drivers for a sustainable economic development for the state.
Oyetola said that the values of MSME, in repositioning the economy had made his administration to focus on its growth, through various financial supports.
The governor made the remarks during the Sensitisation Programme for the beneficiaries of the seventh edition of Medium, Small and Micro Enterprise Development Fund (MSMEDF) on Wednesday, in Osogbo.
Oyetola was represented by his Special Adviser on Civic Engagement, Mr Olatunbosun Oyintiloye, at the event.
The governor noted that the development fund, which would be distributed for the growth of MSME, was part of the series of social intervention programmes, targeted towards economic recovery from the negative impacts of coronavirus.
“While our administration has executed and facilitated myriad of social intervention programmes focusing on the youths, women, farmers, and the socially vulnerable, among others, to serve as economic stimulus package after the negative impact of coronavirus.
“This is yet another one which comes with the intent to expand the capital base of our medium and small enterprises for the growth of our economic indices.
“The beneficiaries are hereby urged to use this privilege extended to them with the same purpose for which the funds were given to them, so as to bring the desired result in the state’s economy,” he said.
In his remarks, the Acting General Manager of Osun State Micro Credit Agency, Mr Adesanya Olopade, said the funds were relief loans for business owners in the state.
Also, Alhaji Salam Mojeed, the Chairman of National Association of Microfinance Banks, Osun State Chapter, said the funds were capable of improving medium and small scale businesses and the state economy at large.

‘49% Of Adults’ve No Access To Financial Services’

The Tide — Fri, 04 Jun 2021 01:37:16 +0000

Efforts by the Central Bank of Nigeria to drive financial inclusion across the nation is yielding result, as over 50 percent of Nigerian adults are using formal (regulated) financial services.
This was disclosed during the launch of Enhancing Financial Innovation and Access (EFInA), Access to Financial Services in Nigeria 2020 Survey, yesterday.
It was gathered that this is the first time, more than half of Nigerian adults are using formal (regulated) financial services,
The survey shows that, while more Nigerian adults are financially included, National Financial Inclusion Strategy targets were not met.
The survey also indicated that growth in digital financial services and agent banking highlights opportunities to drive faster progress toward financial inclusion, particularly for excluded groups such as women, rural and Northern Nigerians.
According to the survey, “51 percent of Nigerian adults are using formal financial services, such as bank, microfinance bank, mobile money, insurance, or pension accounts, up from 49 per cent in 2018.
“This has largely been driven by growth in banking, with 45 per cent of Nigerians banked in 2020, up from 40 per cent in 2018.
“Although financial inclusion has grown in the past decade, Nigeria fell short of the National Financial Inclusion Strategy targets for 2020.
“Nigeria had aimed to reach 70 per cent of Nigerians with formal financial services by 2020; the actual figure was 51 per cent.
“The strategy also set targets for overall financial inclusion, which counts Nigerians that use either formal financial services or informal financial services that are not nationally regulated, such as savings groups.”
Speaking during the launch, the Deputy Governor, Financial Systems Stability (FSS), CBN, Aishah Ahmad, stated that “financial inclusion … is a strong lever for bridging income inequality, combating poverty and preserving social harmony.
“The CBN has accordingly been at the forefront of the efforts to drive financial inclusion in Nigeria by championing the development and implementation of Nigeria’s National Financial Inclusion Strategy led by the CBN governor.”
Ahmad, who doubled as chair of the Financial Inclusion Technical Committee, noted that, “Despite progress achieved to date, critical groups remained excluded, including women, rural dwellers and citizens in the northern area.
“To address the issue with women, CBN launched a Framework for Advancing Women’s Financial Inclusion in Nigeria in 2020 and is leading the industry to implement the framework, which we expect to lead to significant increase in women financial inclusion in Nigeria.”
On his part, the Chief Executive Officer, EFInA, Ashley Immanuel, said, “At our current rate of progress, we will not reach the 2020 financial inclusion targets until around 2030. However, we can reach these targets much faster if we follow paths taken by other African countries that have seen rapid financial inclusion growth due to mobile money.
“EFInA’s Access to Financial Services in Nigeria Surveys show that use of digital financial services and agent networks started to grow significantly between 2018 and 2020.
“Phone ownership has also increased, with 81 per cent of Nigerians now owning mobile phones. Now is the time to build on this initial progress and drive faster financial inclusion growth through digital financial services such as mobile money.
“We can do this by creating an open and level playing field for a wide range of providers, creating the right environment for fin-tech to thrive, and encouraging partnerships between different providers.”
The Economic Development Team Leader, Nigeria for the UK’s Foreign, Commonwealth & Development Office, Gail Warrander, remarked that, “The EFInA Access to Financial Services in Nigeria 2020 Survey shows that Nigeria has made progress on financial inclusion but there’s still a way to go.
“The report models how the journey to the financial inclusion goal can be speeded up by encouraging the scale up of mobile money. I firmly believe that the majority of those excluded, especially women and youth, could then enjoy the convenience of financial services, including using remote payments systems. This survey is full of rich data for policy makers, development partners and financial services companies to use.”

CBN Begins Registration Of More Financial Institutions

The Tide — Tue, 13 Apr 2021 23:06:10 +0000

The Central Bank of Nigeria ( CBN) has started the registration of “Other Financial Institutions’’ (OFIs) on its Credit Risk Management System (CRIMS) to improve credit risk management.
“Other Financial Institutions’’ are Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Finance Companies (FCs)
CBN’s Director, Financial Policy and Regulation Department, Kevin Amugo, stated in a circular yesterday that with the successful implementation of CRIMS in commercial banks, it was time to accommodate other financial institutions.
He stated that the system was designed to improve credit risks in commercial, merchant and non-interest banks.
Amugo urged all affected financial institutions to report all credit facilities to the platform.
“Accordingly all DFIs, MFBs and FCs are required to report all credit facilities (principal and interest) to the CRIMS and to update same on monthly basis,’’ he stated.
He reminded the OFIs that Bank Verification Numbers and Tax Identification Numbers were the only basis for “regulatory renditions.’’
The CBN director also urged the OFIs to conclude the tagging of all live credit files for all borrowers by May 14.
He advised concerned OFIs to acquaint themselves with the regulatory guidelines for the operations of the redesigned CRIMS for commercial, merchant and non-interest banks.
The guidelines were issued in February and September of 2017.
“Note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions,’’ Amugo warned.

CBN Tasks Cooperative Federation On Women Empowerment

The Tide — Fri, 26 Mar 2021 03:45:08 +0000

The Central Bank of Nigeria (CBN) has urged the Nigeria Cooperative Federation Alliance (NICO-FA) to see itself as a channel for rural women empowerment in Nigeria.
The Head, Microfinance Department of the bank, Dr Adu Momah, gave the charge during the official flag-off of the Rivers State Cooperative Federation Alliance Limited (RICOFA) in Port Harcourt.
She said through the cooperative federation, the bank would reach out to the rural dwellers with a view to economically empowering women across the country.
Meanwhile, the Central Bank of Nigeria (CBN) says it is partnering with the United Nations Development Programme (UNDP) with a view to constructing rural storage facilities across the country.
Momah who said the bank was intervening in 37 sectors of the economy charged the federation to provide information on areas that need storage facilities in the country.
In her presentation, the national secretary of NICOFA, Lolo Gertrude Onyekachi Ehiridu, said the federation believes in the value of self-help, democracy, social responsibility, equality, solidarity and ethical values of honesty, openness, self-responsibility and caring for others.
“We evaluate ourselves through these values to ensure that our operations are on the trajectory leading to the realisation of our vision and mission. We internalise these values through cooperative education training as information dissemination,” she said.
Ehiridu regretted the continuous economic margi-nalisation of women through cultural practice, noting that this has made the voice of women not to be heard in major decisions in the country even at the family level.
She also said NICOFA would champion the cause of women emancipation in the country.
Earlier, the president of RICOFA, Mrs Happiness N.O.K Ijeruh had said RICOFA is the umbrella body of all Women Coope-rative Associations in Rivers State.
She said the target is to economically empower the women through skills acquisition programme, mentorship training and others.
Ijeruh assured that the federation would work with viable partners to enhance the welfare of its members.

UNICEF Tasks State Govts On Water, Sanitation Services

The Tide — Mon, 01 Feb 2021 02:22:33 +0000

A Water, Sanitation and Hygiene (WASH) Specialist with UNICEF, Mr Bioye Ogunjobi, has called on states to show more commitment toward scaling up sanitation services and access to water supply in the country.
Ogunjobi made the call while delivering a report at the end of the UNICEF funded Sanitation, Hygiene and Water (SHAWN II) programme at the monthly meeting of the National Task Group on Sanitation in Abuja.
He said it was worrisome that many states were not showing enough commitment to improving access to potable water and sanitation in the states.
He noted that it was time the Federal Ministry of Water Resources spearheaded and influenced states governors to respond to increasing needs in the WASH sector.
“As we all know, the momentum in the Federal level (Abuja) is very encouraging, but we don’t have the same momentum at the states level.
“In fact, we have very few states that are interested in combating open defecation, we have had governors of Jigawa, Katsina, Kaduna, Edo, Ekiti, Osun talking about it and taking the lead.
“In states like Cross River where we have wonderful platform with six LGAs that are open defecation free, we still do not have that kind of response that we expect from government.’’
The WASH Specialist noted that the 2019 WASH National Outcome Routine Mapping (WASHNORM) showed that only two per cent of Abia and Zamfara state population practiced open defecation as against four per cent in Kano state.
This, he said, was a cause for concern as the four per cent population in Kano practicing open defecation was huge, stressing the need for the state to step up action to change the narrative.
According to him, states ought to be supported in ensuring that they promote hygiene and scale up their sanitation ladder.
He noted that, there is the need to support and engage the private sector more in WASH service delivery, commending efforts of the Organised Private Sector for its present commitment.
Commenting on key learnings from the SHAWN II programme, Ogunjobi said so far, no fewer than 15 million people were reached on hygiene awareness and 12.1 million people gave access to safe water services.
He highlighted that such interventions were in the area of safe excreta disposal, proper handwashing at critical times, and water safety plans to ensure that water sources were safe till consumption point.
According to him, in the SHAWN II programme, UNICEF focused more on rehabilitation of water points through Tulsi Chanrai Foundation, as against construction of new water points as this is aimed at reducing borehole proliferation.
He said the concept of sanitation marketing was implemented, in which households were given small loans to build toilets from pit latrines to simple and affordable pour-flush toilets through Microfinance institutions.
Ogunjobi, however, said this was not sustainable as a large portion of the beneficiaries had issues with loan repayment, which was due to high interest rates among others.
In support of the Federal Government’s efforts to address the country’s water and sanitation challenges, UNICEF Nigeria implemented a DFID-funded Sanitation, Hygiene and Water (SHAWN II) project in Nigeria in 104 LGAs in eight states.

The overall goal of SHAWN is to contribute to the reduction of water and sanitation-related disease.
It is also to improve health and to facilitate the adoption of the LGA-wide approach to water and sanitation delivery in non-intervention LGAs.

‘CAMA Allows Electronic Share Transfer, Virtual Meetings’

The Tide — Wed, 06 Jan 2021 04:24:59 +0000

The Companies and Allied Matters Act 2020 now permits electronic share transfer and private companies to hold their general meetings virtually, the Head of Legal, Compliance and Governance, Advans Lafayette Microfinance Bank Limited, Jennifer Halim-Ubahakwe, has said.
She said this in a statement titled ‘CAMA 2020 allows electronic share transfer, virtual general meetings’ last Friday.
She described the new CAMA as Nigeria’s most significant business legislation in three decades, saying it introduced new provisions that promoted ease of doing business and reduced regulatory hurdles.
Speaking on the impact of the reduction of filing fees for registration of charges for those aspiring to register their businesses in Nigeria, Halim-Ubahakwe said the provision introduced a significant reduction in the fees payable for the registration of charges.
“It is a good incentive for potential and established businesses in Nigeria, especially for those in the lending market, as it saves cost and allows for ease of doing business,” she said.
Prior to the repeal of CAMA 2004, the fees for filing and registration of charges as applicable to both private and public companies were N10,000 on every N1million (1 per cent) and N20,000 on every N1million (2 per cent) respectively, the statement said.
It said, “By section 222 (12) of the new CAMA, 2020, the total fees payable to the commission with respect to the filing, registration or release of a charge with the commission should not exceed 0.35 percent of the value of the charge or such other amount as the minister may specify in the Federal Government gazette.
“The Act introduces a framework for rescuing a company in distress and to keep it alive, which gives some assurance and comfort to founders and investors as against allowing such entity to become insolvent.
“SMEs can leverage on the company voluntary arrangement and the administration provisions of the new Act.”
“Under company voluntary arrangement, the directors may make a proposal to its creditors for a negotiated arrangement towards the satisfaction of its debt or a scheme of arrangement of its affairs to prevent the company from being wound up.”

CBN Releases Framework For N75bn Youth Investment Fund

The Tide — Fri, 30 Oct 2020 01:36:44 +0000

The Central Bank of Nigeria (CBN) has released guidelines for implementation of the proposed N75 billion Nigeria Youth Investment Fund (NYIF).
CBN, in a statement by its Development Finance Department, stated that the fund was a built-in strategy to effectively respond to the challenge of youth employment in Nigeria.
The Fund, an initiative of the Ministry of Youth and Sports Development, is to be managed by NISRAL Microfinance Bank.
It stated that the major objective of the plan was to address fragmentation of youths initiatives that prevent assessment of impact.
According to the CBN, “The Federal Executive Council on July 22, approved N75 billion for the establishment of the NYIF from 2020 to 2023.
“It will provide Nigeria youths with investment inputs required to build successful businesses that can become sustainable employers of labour and contributors to the country’s development.
“ The plan targets young people between 18 and 35 years and details the needed actions required to support business establishment, expansion and consequent employment creation for youths in critical economic and social sectors.”
The apex bank said that the fund was dedicated to investing in the innovative ideas, skills and talents of Nigerian youths.
It added that it would institutionally provide the youths with special window for accessing the funds, finances, business management skills and other inputs critical for sustainable enterprise development.
“The ministry is the lead implementation entity and is responsible for budgetary provisions and for funds mobilisation.

Issues On Women And Youth Development

The Tide — Wed, 30 Sep 2020 23:15:38 +0000

Nigerian women have really come a long way. From the immediate post independence era to this 21st century, they have played major roles in social and economic activities which may have received little or no recognition at all.
In their bid to rise above the traditional Nigerian indigenous belief that the woman’s role is predominantly in the home where she is expected to act as a wife, mother and housekeeper, women are beginning to break out of such stereotypes. This is evident in their achievements in the various fields of endeavors which they now engage in.
60 years ago, women potrayed an image of a helpless, oppressed and marginalized folk. Yet, their desire to be involved in deciding the the fate of their environment, emboldened their muscles to struggle to make impact, no matter how minute. With division of labour being done along gender lines, women could only control such occupations as food processing and distribution.
Notably, in the south eastern part of Nigeria, women were involved in the production of palm oil and palm kernel, their successes in long distance trade in different parts of the country also accounted for the distribution of various food items and commodities.
Fish drying was done in the coastal areas of Calabar, Oron and the Niger Delta. Women in Okposi, Yala and Uburu were known for salt production. Pottery making and weaving were popular among the Afikpo women. The women in the north, even those in purdah, were also involved in food processing and trading. The resourceful nature of these women made them able to contribute to the sustenance of their families.
Beyond the household level, needless to say that power was generally dominated by men. Nevertheless, in many areas, specific titles were given to women. The queen mother; a powerful title among the Edo and Yoruba, could be bestowed upon the king’s mother or a free woman of considerable stature.
The most successful among them rose to the prestigious chieftaincy title of Iyalode, a position of great privilege and power. Although with time, patriarchy, combined with colonial changes altered gender relations which declined the position of female chiefs in importance
The under representation of women in political participation gained root due to the patriarchal practice inherent in our society, much of which were obvious from pre-colonial era till date.
In all of this, the most serious threat to the influence and privileges of women occurred during the 20th century, when the cultural orientation by which a woman is seen as dependent on her husband created an enabling environment for thier subordination and restriction in pursing education.
Their plight was made worse by the operational system of education that placed more priority on male-child over the female-child. This era witnessed a system that subjected women to a place of being seen and not heard.The exclusion of the girl-child from western education to a great extent, widened the intellectual gap between the two folks.
This situation did not only súcceed in placing the Nigerian woman in second fidlle in the scheme of things, it projected her as a mediocre personality stripped of the will and power to rule, dominate and impact her environment. A very serious impediment to the political and socio-economical enthronement of the Nigerian woman in the 21st century.
This was the reason behind the numerous struggles for the emancipation of the Nigerian woman from political mediocrity and stagnancy through education and participation in the socio-economic and political development of the nation.
Like women in other patriarchal societies, the subordinate position which Nigerian women were subjected to, predisposed them to various acts of gender-based discrimination. Being a patriarchal society, male dominance was reflected in the marriage institution, political, religious and governing institutions, and in other public and private institutions existing in the country.
The result was low participation of women in both elective and appointive positions as very few women in the country occupied leadership positions and participated equitably with their male counterparts in decision-making. All the same, as Nigeria marks her 60th independence anniversary today, there is every reason for the women to celebrate as their status have continuously evolved curtesy of formal education from which a large number of elite women have emerged.
Intelligent, educated, and confident, women can now be found in all leading occupations; they now challenge many aspects of patriarchy and are gradually organizing to ensure that the political arena expands sufficiently to accommodate them.Today, Nigerian women have demonstrated great resourcefulness, not only in nation building but as custodians of great legacy in a country with rich cultures and potential.
Although controversial, gender has come to be a very crucial instrument for shaping the society and based on this, the world’s governments adopted gender equality and women’s empowerment as the third Millennium Development Goal in 2000. To this end, Food and Agricultural Organisation, FAO, recognizes the importance of promoting the full and equitable participation of women and men in efforts to improve food security, reduce poverty, and fuel sustainable rural development.
Thus the millenium Development Goal3, MDG3, is targetted at eliminating gender disparity in primary and secondary education, and in all levels of education
The previous United Nation’s conferences such as the Convention on the Elimination of All forms of Discrimination Against Women (CEDAW, 1979), the World Conference on Human Rights, Vienna, (1993), the International Conference on Population and Development, Cairo (1994), the World Conference on Women, Beijing (1995), and the Security Council Resolution (2000), all focused on gender equality and women’s empowerment.
Many actions had to be taken by women in order to break loose from political backwardness and social subordination and from other contending factors to the political progress of women. More awareness is being created with regard to incorporating gender perspectives in policy-making and the adoption of gender-inclusive approaches in the implementation of development-related goals in order to empower women.
As we speak, there are obvious efforts made by government and non -governmental organizations to increase the level of participation of women in politics in line with the declaration made at the fourth World Conference on women in Beijing, which advocated 30% affirmative action.
In Nigeria, the extant National Gender Policy (NGP) recommended 35% affirmative action instead, and sought for a more inclusive representation of women with at least 35% of both elective political and appointive public service positions respectively.
At the federal level, in 2011, the Goodluck Jonathan-led administration’s cabinet had women occupying about 33% of the positions. This was more than the 30% reserved for women under the affirmative action guidelines contained in the National Policy of Women adopted in 2000. However, since then, the number of women in top government positions has dropped.
Here in Rivers State, the Executive Governor, Nyesom Wike provided an enabling environment for women to ascend political height by mandatorily reserving the local government vice chairmanship position for women as well as encouraging them into councillorship positions as a stepping stone into politics.
Right now, following the United Nations (UN) declaration on Millennium Development Goals (MDGs), which emphasize gender equality, economic empowerment of women has been spotted as a prerequisite for sustainable development, hence a global phenomenon.The MDGs 3 leverages on the understanding that promoting women‘s economic empowerment serves as a precursor for gender equality, poverty eradication and inclusive economic growth. To this end, governments and donor agencies such as the World Bank, the African Development Bank Group (AfDBG), International Finance Corporations (IFC) and several other organizations including the private sector, have developed various gender related polices to enhance WEP.
The Federal Government of Nigeria recently launched the WEP programmes alongside other women/youth related development projects. the Central Bank of Nigeria (CBN) through its financial inclusion strategy (under the Microfinance Policy), plan to reduce gender inequality by increasing women‘s access to financial services by fifteen per cent (15%) annually.
These are indications that Nigeria is keen in ensuring that women are economically empowered. Women make enormous contributions in every sector of the economy (markets, formal institutions, informal institutions, households, etc.). It is on record that in the last 30 years, 552 million women joined the labor force with a 4 per cent increase in Sub-Saharan Africa.
On the other hand, life that was much more abundant at independence gradually became difficult for the youths in the late 1970s and 1980s. Crushing economic hardships inflicted sorrow on many Nigerian youths. Thus, the picture of Nigerian youth since independence has been that of a marginalized group.
Most vulnerable for development and filled with vigour and the spirit to achieve, every one expects the young, agile, and virile to be innovative, unfortunately an enabling environment had remained elusive.
In a clime full of misery, the youths were left to contend with violence, pandemics of all sorts, assassination, examination malpractice, sexual promiscuity, joblessness and above all, poverty.
In an attempt to save their future from absolute deterioration, Nigerian youths disaggregated themselves into different forms of resistant militia groups, leaving questions in the air as to what hope the future holds for a ‘dishonourable’ future leaders?
Nonetheless, realizing that skills and knowledge are the driving forces of economic growth and social development, thus providing an opportunity to achieve inclusion and productivity within the country, the Nigerian government chose to harness Nigeria’s young demography through appropriate skill development efforts called N-Power Programme.
The modular programmes under N-Power is ensuring that each participant learns and practices most of what is necessary to find or create work. The N-Power Volunteer Corp involves a massive deployment of 500,000 trained graduates who will assist to improve the inadequacies in our public services.
The Nigerian Youth Employment Action Plan was also developed by the Federal Ministry of Youth Development (FMYSD), as a strategy to respond effectively to the youth employment challenge in Nigeria.
The major objectives of the plan are to address fragmentation and harness technical and financial resources for meaningful impact. The plan targets young people between the ages of 18-35 years and details needed actions in support of employment creation for youth in critical economic and social sectors and outlines the financing, implementation, monitoring and evaluation frameworks.
The Nigerian Youth Employment Action Plan (NIYEAP) has an implementation phase from 2019-2023 and emphasizes the 4Es: Employability, Entrepreneurship Development, Employment Creation and Equal Opportunity.
In addition, a Presidential Youth Empowerment Scheme (P-YES) was conceived and designed to: fight and reduce unemployment among Nigerian youth by creating at least 774,000 empowerment opportunities.
Here, youths are trained and empowered to have the capacity to empower at least one other youth within immediate community. It helps to create wealth among the growing youth population. While incomes will be stablised and sustsined, through this programme, it is expected to fight the scourge of criminality and drug abuse among the youth by keeping them productively engaged.
All these programmes if sincerely harnessed, no doubt would build the capacity of the youth to take charge of their own wellbeing and future by building their assets and realizing their potentials.
Hopefully, with the efforts of the federal and state governments as well as those of public spirited individuals and non governmental organisations at ameliorating the wellbeing of the youths, the hitherto devastated nigerian youth can contribute to GDP growth through the development of Micro, Small and Medium Scale Enterprises (MSMEs).

By: Sylvia ThankGod-Amadi

Nigerian Economy’ll Be 21% Digital By 2021, FG Boasts

The Tide — Fri, 11 Sep 2020 04:53:01 +0000

The Minister of Communication and Digital Economy, Dr Isa Ali Pantami, has forecasted that the Nigerian economy would be 21 per cent digital by 2021.
The minister, while speaking at the Chartered Institute of Bankers of Nigeria (CIBN) 2020 Graduates’ Induction and Prize Award’s Day, yesterday, said the Covid-19 pandemic has shown the importance of the digitalisation in the growth of any country’s economy.
Pantami noted that there has never been a more urgent time to fast track digital transformation in Nigeria, saying that the digital economy drive was aimed at rapidly enhancing digital identification, broadband penetration, how bank accounts are run, etc.
While stressing the need for professionals to develop more innovative digital tools and competencies, the minister said activities in the banking, customs, and ports sectors, including revenue collections are being digitalised.
He further noted that broadband penetration at the end of July rose to over 43 per cent an almost 10 per cent increase in less than a year.
The minister said compared to the usual two per cent penetration witnessed in the years before, this is a remarkable step in the digital direction.
Pantami went on to disclose that the ministry was working to ensure that indigenous digital solution providers and entrepreneurs get preference, saying that the current administration was committed to consuming what it produces.
“The latest Quarter Two (Q2) 2020 report recently released by the National Bureau of Statistics (NBS), showed that the Information and Communications Technology (ICT) sector contributed about to 17.83 per cent to the Gross Domestic Product (GDP), from 13.85 per cent in the same period of 2019.
“Yet, the digital economy was not included in the disclosed figure. If the digital economy was added, it would have risen well above 45 per cent to GDP,” Pantami added.
Also speaking, the President and Chairman of Council, CIBN, Bayo Olugbemi, in his speech, charged professionals to take advantage of the digital economy to shape the future of the banking industry.
He said it was in recognition of the important role the banking and finance industry plays in the growth and development of the economy that the Institute decided to x-ray the topic, “Digital Economy: The Role of Professional Bankers.”
According to him, Covid-19 accelerated the pace of the digital revolution, making it imperative for Nigeria to rethink its approach to the digital economy, which has become the new normal.
He maintained that technology has caused significant disruption in the financial sector, noting that the implication of the revolution to the institution was that professional bankers need to acquire new skills, to be able to combine digital awareness with great people skills.
His words: “I believe that highly qualified, knowledgeable, skilled, dedicated, customer-focused banking professionals will shape the future of banking, as much as the new technologies that are transforming the financial-services industry will.”
Also, Olugbemi disclosed that about 1,864 candidates were admitted into the various categories of membership of the Institute, with 899 admitted into the ACIB, 41 into Chartered Banker MBA, 22 into MSc/ACIB, and 902 into Microfinance Certification programmes, cutting across countries like Nigeria, The Gambia, Ghana, Rwanda, and Sierra-Leone.

80,000 Nigerians Jostle For CBN’s N50bn Intervention Fund

The Tide — Wed, 15 Apr 2020 23:51:37 +0000

A microfinance bank owned by the Central Bank of Nigeria funded Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) has received 80,000 applications from Nigerians seeking to borrow from the N50 billion facility earmarked for Micro and Small Medium Enterprises (MSMEs) subsector.
The applications are flowing in barely three weeks after the apex bank released guidelines on how to access the loan.
Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure, who gave hints on the number of applicants in a media briefing in Abuja on Tuesday said the CBN introduced the N50 billion Targeted Credit Facility as a stimulus package to support households and MSMEs smarting from the COVID-19 pandemic.
Based on the CBN guidelines, intending beneficiaries must be households or business concerns with verifiable evidence of livelihood adversely impacted by COVID-19; existing enterprises with verifiable evidence of their businesses being vandalised by the pestilence and enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.
The guidelines further noted that activities covered under the scheme include agricultural value chain activities; hospitality (accommodation and food services); health (pharmaceuticals, medical supplies) and airline service providers.
Others are; manufacturing/value addition; trading and any other income generating activities as may be prescribed by the CBN.
Giving a breakdown of the 80,000 applications, NIRSAL boss revealed that 40,000 applications were from households while 30,000 applications were received from Small and Medium Enterprises.
He said the staff were working remotely to ensure that disbursements commence next week to those who met the criteria set for the fund by the apex bank.
Kure who was accompanied to the media briefing by top officials of the apex bank and NIRSAL said, “We have over 80,000 application out of which 40,000 came from households while 30,000 is from SMEs.
“From next week, genuine applicants will start receiving alert for their loans.
“Our people are working remotely and disbursements will start next week.”
On the controversy surrounding the payment of N10,000 for business plan before the loan could be accessed, Kure said the management of the bank no longer considers having a business plan as mandatory but having a bank statement that shows the volume of business an intending beneficiary undertakes.

PDP Wants Eminent Nigerians’ Group To Handle Palliatives

The Tide — Wed, 01 Apr 2020 02:06:13 +0000

The Peoples Democratic Party (PDP), yesterday, called on President Muhammadu Buhari to immediately constitute an “Eminent Nigerians Group” to manage donations from the private sector and palliatives from the Federal Government aimed at curtailing the spread of the Coronavirus.
This is even as the party said the Presidential Task Force on COVID-19 chaired by the Vice President, Prof Yemi Odinbajo, should immediately hands off the management of palliatives so as to eliminate corruption as well as political and bureaucratic bottlenecks that would impede effective administration of the social panaceas to vulnerable Nigerians.
In a statement issued by spokesman, Kola Ologbondiyan, yesterday, the PDP also asked the President Buhari-led government to halt plans by the Nigerian Electricity Regulatory Commission (NERC), to hike electricity tariff, saying Nigerians “are going through excruciating pains and cannot carry the burden of a further increase in costs.”
The statement read: “It is a time we must bring in eminent Nigerians from the private sector to assist in developing and implementing operable target-specific strategies to reach the vulnerable Nigerians across all informal sectors of our economy.
“The party expresses concerns that the Federal Government has so far failed to reach vulnerable Nigerians in the informal sector, including cab driver, ‘Keke’ and ‘Okada’ operators, artisans, labourers, market women, traders, food sellers, fruit vendors, farmers and dealers of perishable goods, motor mechanics, among others, whose survival directly depends on daily income in the markets, shops, and streets, which has been crippled by lockdowns occasioned by the COVID-19.
“Our party is deeply worried about the cries of hungry children whose parents can no longer go out to provide for their families at this critical time.
“The PDP, therefore, holds that the situation at hand requires an urgent involvement of all Nigerians irrespective of political, ethnic or religious persuasion.
“The party calls for special interventions for farmers as well as Nigerians involved in the production, distribution, and marketing of perishable consumer items by undertaking emergency bulk purchase, storage initiatives as well as waivers on loans so as to check waste and buoy production.
“We also urge for strategic intervention for distressed Nigerians such as cab drivers, ‘Keke’ operators, traders and other small-scale entrepreneurs, who took bank loans for their enterprises but have been grounded by COVID-19 pandemic.
“The PDP further demands that the federal government should adopt strategies to cut interest rates on such loans by microfinance and commercial banks in the country.
“In the same vein, our party pleads with landlords, particularly those of residential apartments, to bear with their low-income group tenants, whose businesses have been crippled at this critical time.
“Moreover, the PDP restates its call on President Buhari to reduce the cost of fuel from N125 to the appropriate pump price of between N80 and N90 per litre to mitigate the suffering of Nigerians during this time.

On Lagos Okada, Keke Ban

The Tide — Mon, 16 Mar 2020 00:37:29 +0000

Recently, Lagos State Governor, Babajide Sanwo-Olu, outlawed commercial motorcycles (Okada) and tricycles (Keke Marwa) in the state, leading to pandemonium and criticisms from every nook and cranny of the state. From government’s side, the action was targeted at reducing the crime rate in the society.
Admitted, most of the heinous crimes are perpetrated in collusion with Okada operators which clearly manifested recently with the arrest of Okada riders with handguns and other arms concealed inside parts of their motorcycles, which could only be detected with eagle’s eyes. Kudos to the Police Intelligence Response Team (IRT) led by DCP Abba Kyari. The group has continued to show expertise in the career and, therefore, deserve encomiums.
However, as the society is tensed up over the unemployment ratio, it must be noted that tricycle and motorcycle transportation have been bridging the gap in unemployment, and thereby contributing positively in a measure to security of lives and properties. The question is; if with the engagement of such a great population of operators, security challenges are pronounced in the society, what will happen when they do not have means of livelihood. Sensibly, there will be fire on the mountain.
To ban the masses’ major means of livelihood without first providing alternatives is not ideal. Many of the operators opted for the vocation as a last resort after some ugly incidents knocked them out of the ring. Presently, there are no welfare packages for the masses and the microfinance banks that are supposed to support Small and Medium-Scale Enterprises (SMEs) do not help matters. Clearly, there are no sufficient job opportunities even for the employable class as are available in other countries. Many that are willing to work are roaming around.
Suffice it to say that Lagos State Government should responsibly plan it well; instead, it could put stringent measures in place towards organizing and monitoring it adequately for security reasons. Particularly, there should be compulsory registration of the operators and essentially, restricted in some designated routes. For operation in the highway, certainly, that’s a no-go area.
However, what then becomes the fate of residents in the remote area that, due to bad roads, can with less difficulty move around through motorcycles. Suffice it to say that it goes beyond banning but putting necessary infrastructures in place. If there are good roads for vehicles to ply especially mini-buses, certainly, many commuters will not go for motorcycles or tricycles.
The ban similarly occurred in the federal capital territory leaving commuters to suffer in moving around since the long buses in the fleet of Abuja Urban Mass Transit Company are insufficient and, therefore, rarely available at needed times. Commuters are getting excessively stressed up in the Federal Capital Territory unlike before while going to work and other places. So, governments must always ensure that palliative measures are put in place before adopting radical policies so as not to imperil the same lives they intend to protect. Government is essentially about service to the people.
Without doubt, the operators will find themselves in extreme tight corner without any means of survival. If government had designated mini-buses with a hire-purchase scheme as a model, the motorcycle and tricycle operators could key in, and the idea would be unique but to chase out poor masses that are struggling to survive without any provision for them is unconsciously endorsing insecurity.
Absurdly, this is a society where a minister, or lawmaker goes around in official fleets worth over N100 million, yet, ordinary social facilities to the masses are unavailable. The outrageous allowances in the legislative arm is a no-go area. Government must ensure that its policies, no matter how good they may become in the long run, do not first drain the masses.
To expect every business to operate in a modern plaza is a positive plan, however, not realistic vis-à-vis different financial capacities. Rome, they say, was not built in a day. As a coin has two sides, so is any society. Hence, there is need for equilibrium to be able carry both sides along. Otherwise, democracy may shift to become a government of the affluent and for the affluent. So far, the masses are not participants in reality, but reserved valuable assets for campaigns just to get into power. After this phase, everyone is on his own.
Recently, a former ‘distinguished senator’, on Twitter, brashly justified his passion for insatiably acquiring luxury automobiles when the people in his locality are living in abject poverty. Not even a factory or serious business of his anywhere to create jobs for his people, but displaying customized posh cars with special numbers in the garage. Yet, during electioneering campaigns, the masses put their lives into it for little or nothing.
Recently, about 40 stout bank accounts in foreign and local currencies were allegedly traced to former Abia governor and serving senator, Theodore Orji, and his son, Chinedu (Speaker of Abia State House of Assembly) by the anti-graft agency which buttressed the point well. Imagine the ones yet to be traced!
No wonder many unoccupied estates littered in many places particularly in the FCT with no identifiable owners, possibly for fear of investigation. Nigeria’s democracy presently reflects ‘lootocracy’ than democracy. Apparently, the military sold a looting template to the people, and not democracy as practiced around the world.
To sum, a society that neglects the masses in its plan cannot wake up with radical changes overnight, otherwise, the good policy may end up doing more harm than good. There are millions of adults willing to engage in one lawful endeavour or the other, but find themselves handicapped due to unavailability of jobs and capital. Ideally, any responsible and committed government must take cognizance of this, and put them in the blueprints prior to bans.
Umegboro, a public affairs analyst, wrote from Abuja.

Carl Umegboro

CBN Gives 15 Microfinance Banks New Licences

The Tide — Wed, 11 Mar 2020 00:19:48 +0000

No fewer than 15 microfinance banks commenced operations in the country after getting new licences from the Central Bank of Nigeria (CBN) between February 13, 2019 and December 2019, findings have revealed.
The CBN had earlier disclosed that the number of microfinance banks licensed in the country stood at 898 as of February 13, 2019.
In its newly released list on the recognised microfinance banks, the apex bank disclosed that the figure had risen to 913 as of the end of December, 2019.
The MFBs had, however, been making moves to meet the recapitalisation requirements of the CBN.
In a circular in March, 2019, the CBN had stated that the Tier 2-unit microfinance banks must have a minimum capital of N50m, while Tier 1 would maintain the N200m minimum capital introduced for unit microfinance banks in October, 2018.
It stated that Tier-1 unit microfinance banks must meet a N100m capital threshold by April, 2020 and N200m by April, 2021.
Tier-2 unit microfinance banks, it added, must meet a N35m capital threshold by April, 2020 and N50m by April, 2021.
The CBN stated that state microfinance banks must increase their capital to N500m by April, 2020 and N1bn by April, 2021.
The CBN recently issued the revised supervisory and regulatory guidelines for micro finance banks in Nigeria to support the development and sustainability of the sector.
The regulation said, “The need to reposition and strengthen the MFB towards improved performance had become apparent as revealed from the report of a recent review of the subsector.”
The CBN stated that an MFB would be allowed to engage in acceptance of various types of deposits including savings, time, target and demand deposits from individuals, groups and associations, provision of credit to its customers and provision of housing micro loans.
It stated that they could provide ancillary services such as capacity building on record keeping and small business management and safe custody and issuance of debentures to interested parties to raise funds from members of the public with the prior approval of the CBN.

More Rivers Youths To Benefit From Skills Programme, Banigo Assures

The Tide — Mon, 10 Feb 2020 02:58:31 +0000

A total of 4,000 youths drawn from Akuku-Toru, Asari-Toru and Degema local government areas of Rivers State have successfully completed a 5-week Intensive Skills Acquisition Training and Empowerment Programme initiated and funded by the Rivers State Deputy Governor, Dr. Ipalibo Harry Banigo.
Speaking during the closing formalities at the Degema Stadium, the deputy governor, who expressed delight with the enthusiasm displayed by the beneficiaries, disclosed that this was just the beginning of many more empowerment programmes to come to the area and many other local government areas across the state.
“I am very pleased with you, before now it used to be said that you don’t want to work. Now, you have shown the world and the world is watching that, that narrative is not true”, Banigo stressed.
According to Banigo, the State Chief Executive, Chief Nyesom Wike has a passion to give Rivers people the best at every given opportunity, noting that he was desirous to see that the youths were enabled and empowered to take over the mantle of leadership at the opportune time for them.
“I know that in the various areas, he has done infrastructural development like the building of roads, bridges, jetties, land reclamation, shore protection and the harmonization of taxes. These are all measures to provide an enabling environment, and so, I know that with what the world is seeing today, there will be a drive for more investors to come into Rivers State”, Banigo further stressed.
She expressed gratitude to Rev Stephen Akinola and the chairmen of the three local government areas for collaborating with her to put together the programme and for ensuring that it was supported with very good spiritual backing.
“We have had that you had over a thousand souls that were converted to Christ. I want to tell you that the greatest thing in life is to receive salvation, and I thank God that the skills acquisition programme has been wrapped around the spiritual growth of our people, and I want to specially thank Rev. Akinola for decreeing and declaring blessings upon the participants, the land and the people, so that this seed that has been sown will surely germinate”, she said.
The deputy governor, who informed the beneficiaries that the skills they have acquired would give them a source of livelihood, said the Central Bank of Nigeria (CBN), the Bank of Industry (BoI) and the Rivers State Microfinance Agency (RIMA) have indicated interest to support them.
In his remarks, the Chairman of the occasion, Dr. Emi Membere-Otaji said there was unemployment in the land and a lot of poverty in the county, noting that “we have to change and become entrepreneurs to survive”.
Membere-Otaji said the world and the economy have changed, stressing that soon, the crude oil the people of the country have been worshipping would not be needed again.
He commended the deputy governor for her bold initiative to organize the skills acquisition programme, noting that beneficiaries could turn out to become billionaires in the nearest future, if they take advantage of the opportunity.

20 Food Items, Pads, Others Get VAT Exemption

The Tide — Tue, 21 Jan 2020 00:21:41 +0000

About 20 basic food items, locally manufactured sanitary towels, pads and tuition fees relating to nursery, primary, secondary and tertiary education have been added to the exemption list of goods and services on the VAT under the Finance Law.
A statement by Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, Laolu Akande said this was part of efforts to ensure that the cost of living did not rise for Nigerians because of the changes in the Value-Added Tax.
The new Act recently signed into law by President Muhammadu Buhari raised Value Added Tax from five per cent to 7.5 per cent.
“To allay fears that low-income persons and companies would be marginalised by the new law, reduce the burden of taxation on vulnerable segments, and promote equitable taxation, the Finance Act 2019 had extended the list of goods and services exempted from VAT, it stated.
The statement gave the additional exemptions as, “Basic food items –additives (honey), bread, cereals, cooking oils, culinary herbs, fish, flour and starch, fruits (fresh or dried), live or raw meat and poultry, milk, nuts, pulses, roots, salt, vegetables, water (natural water and table water), locally manufactured sanitary towels, pads or tampons.”
Other exemptions included services rendered by microfinance banks, tuition fees relating to nursery, primary, secondary and tertiary education.
Among other benefits, the statement said the law would consolidate efforts already made in creating the enabling environment for improved private sector participation and contribution to the economy as well as boost states’ revenues.
The federal government stated, “The Finance Act will support the funding and implementation of the 2020 budget. We shall sustain this tradition by ensuring that subsequent budgets are also accompanied by a finance law.”
According to the Presidency, Nigeria’s increased new VAT rate of 7.5 per cent was still the lowest in Africa and one of the lowest anywhere in the world.
It stated that South Africa’s VAT was 15 per cent; Ghana; 12.5 per cent; Kenya, 16 per cent; Egypt, 14 per cent; Rwanda, 18 per cent and Senegal had18 per cent.

NDIC Extends N500,000 Maximum Cover To MMO Subscribers

The Tide — Thu, 07 Nov 2019 23:05:57 +0000

The Nigeria Deposit Insurance Corporation (NDIC) has extended its insurance coverage to subscribers of Mobile Money Operators (MMO) to the maximum limit of N500,000.
The Managing Director/ Chief Executive Officer, NDIC, Umaru Ibrahim, disclosed this during the NDIC’s special day at the 33th edition of Lagos International Trade Fair on Wednesday.
He said, “One of the most significant achievements of the corporation is the provision of the deposit insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000 through the pass-through deposit insurance framework.
“As it stands, the number of licensed MMOs by the Central Bank of Nigeria is 23, with eight being bank-led and the remaining 15 non-bank-led. As of 30th June, 2019, the number of subscribers to the MMOs stood at 9,249,265.”
As provided in the NDIC Act 2006, Ibrahim explained that when insured financial institutions failed, depositors of Deposit Money Banks, Non-Interest Banks and Primary Mortgage Banks were reimbursed up to a maximum limit of N500,000, while the maximum insured coverage for depositors of microfinance bank would be N200,000.
He added, however, that the insured limits were periodically reviewed by the board of the corporation to ensure that majority of depositors were covered.
He said that the corporation as of June this year, received a total number of 35 petitions and complaints from bank customers on various issues such as the ATM frauds, unauthorised fund transfers, cheque related issues and much more.
Ibrahim said investigations and mediation were carried out where necessary and customers were appropriately reprieved.
According to him, the corporation took the measures so as to engender confidence in the system and discourage bank customers from keeping cash at home, shops and other places outside the banks.

You Can Save Money Without Job -RIMA

The Tide — Tue, 05 Nov 2019 23:26:29 +0000

Board Chairman of RIMA Growth Pathway Microfinance Bank, Dr Ipalibo Watson Sogules, has urged secondary school children to inculcate saving habit, saying that they can save even without a job.
Dr Sogules, who was represented by the Director, RIMA Growth Patway Microfinance Bank, Mr Nuira Albert Gbarayorks, stated this recently during the 2019 World Saving Day (WSD) celebrations in Port Harcourt, noted that as children they could save from whatever money made available to them.
Sogules, who spoke on the heels of the focus of this year’s WSD, on children in secondary school, stated that the emphasis on children is to inculcate in them the habit of saving.
“It is believed that if you teach children how to save now, in terms of whatever money that comes to them, they would grow up with those values, and will not depart from it when they grow up”, he said.
Also speaking, the Bank’s Managing Director, Mr Augustine Nwiyordee, explained that the focus on school children was warranted by the knowledge that there was poor saving culture in the society.
“Statistics have it that in this part of the world, we lack saving culture. So, the Central Bank of Nigeria (CBN) decided to focus on school children in this year’s World Savings Day, in order to instill the habit of saving in them”, he stated.
According to him, “the good thing about focusing on children is that when they become used to saving, at an old age, they will no longer be under pressure because it would have become part of them.
He stated that for the 2019 WSD, a total number of 60 secondary school children were targeted to be reached in 10 schools based in Port Harcourt North and Port Harcourt South areas, with each school providing 10 students.
He used the opportunity to advice parents to learn to save for themselves and their children.
To the students, he urged them to learn to adhere to what they have been taught about the benefits of savings, noting that the Bank has an outreach purposely to work with them towards developing their saving habits.

Sogbeba Dokubo

NIPOST Buildings’ Remodelling: CBN To Engage Architects, Others

The Tide — Wed, 23 Oct 2019 01:37:27 +0000

Ahead of the proposed National Microfinance Bank, the Central Bank of Nigeria (CBN) is planning to engage architects for the remodeling of the Nigeria Postal Services (NIPOST) buildings needed for the project.
The Tide reports that the project is expected to throw up jobs for the nation’s real estate professionals, especially, architects, engineers, estate surveyors and builders.
New structures may also be built while the old facilities are expected to be reconstructed.
Sources hinted last week that the architects and other professionals needed for the projects will be hired by CBN from its pool of consultants, while the property arm of the Nigerian Postal Service is expected to involve their in-house officials in some aspects of the remodeling exercise.
Specifically, the buildings form the equity contribution of the postal system to the bank, which is expected to have an initial capital base of N5 billion. About 774 local councils have been penciled down for the project. The pilot phase will take off in six states and Abuja, namely Oyo, Rivers, Bauchi, Kaduna, Enugu and Kogi.
The design of the structure will include counters, strong rooms and offices for the banking operation.
The scheme is a mechanism, which the apex bank hopes to drive financial inclusion of the people living in rural communities. With locations in all the nooks and crannies of the country, NIPOST is providing accommodation for the establishment of the bank.
Confirming this development, CBN’s Director, Corporate Communications, Isaac Okorafor, said new structures would also be provided where there are none to facilitate physical contacts where necessary.
Okorafor stressed that the remodeling would be done to ensure that the buildings meet the standards set by the CBN.
He noted that the essence was to improve financial inclusion and capture those in the rural villages leveraging on the NIPOST’s presence in the 774 local councils across the country to reach its target beneficiaries.
“Nigeria is large with many rural areas without banking experience , we want to employ digital payment to reach this people in the villages and the best way to reach them is to get institutions that have a footprints like NIPOST that spread throughout the 774 local councils. So what the CBN and bankers committee has done is to register a company, a micro finance bank that has footprints across 774 local councils . Wherever there is a physical building of NIPOST already, we will remodel it and use it, if there is none, we will use fabricated building”, he added.
A NIPOST official, Musa Suleiman, an engineer, said the agency would do all the major maintenance while the CBN would remodel the areas allocated to it for the banking services.

NDIC Pays Off 526,414 Depositors Of Liquidated Banks

The Tide — Mon, 21 Oct 2019 01:46:58 +0000

The Nigeria Deposit Insurance Corporation has paid off 526,414 depositors of liquidated banks, the Managing Director of the corporation, Alhaji Umaru Ibrahim, has said.
He said all the depositors of the 17 defunct banks who came forward to file their claims had been paid all their money previously trapped in those banks.
Ibrahim, who spoke at a forum to mark the 30th anniversary of the corporation, said about N29.52 billion had been recovered from the debtors of the liquidated banks.
He said of this amount, N29.11 billion was recovered from debtors of the Deposit Money Banks in-liquidation, while N129.10 million was realised from debtors of failed microfinance banks.
He said the balance of N300m was recovered from debtors of failed Primary Mortgage Banks.
Ibrahim said the corporation would continue to ensure that depositors of liquidated banks suffered little loss or pain.
He said from 1994 to date, 53 DMBs, 325 MFBs and 51 PMBs were put under liquidation without disruption to the nation’s payment system.
In terms of recovery of assets, Ibrahim said N21.5 billion was collected from the disposal of physical assets of closed DMBs; while N404.74 million and N78.17 million had been realised from the MFBs and the PMBs, respectively.
He said debt collection and assets sales culminated in the payments of over N116.25 billion as liquidation dividend to depositors, creditors and shareholders of closed DMBs, MFBs and PMBs.
He said, “It is important to stress that through sustained and diligent liquidation activities, the NDIC has realised assets to pay in full, deposits of the customers of 17 of the DMBs in-liquidation.
He described the banking system as upwardly dynamic, sophisticated and complex, adding that the dynamism and complexity in the last three decades had resulted in the emergence of different operational models, products and services.
He said such developments challenged the corporation’s capacity to protect depositors in its role as a key member of the Nigerian financial safety net.

LG Boss Gives Artisans, Traders N10m Lifeline

The Tide — Mon, 09 Sep 2019 00:56:16 +0000

The Agege Local Government in Lagos State has given 100 artisans and traders N100, 000 each in its periodic empowerment scheme.
The Executive Chairman of the council, Mr Ganiyu Egunjobi presented the sums totalling N10 million to the beneficiaries drawn across the seven wards in the local government area.
The ceremony was held on Sunday as part of activities to mark Egunjobi’s two years in the saddle.
Egunjobi expressed his administration’s commitment to the growth of small-scale enterprises in the local government area as a pivot to residents’ wellbeing.
He expressed his reservation about the commitment of commercial and microfinance banks to providing loans to petty business owners, urging the beneficiaries not to divert the cash gifts, but deploy and use them judiciously.
“It is a sad commentary that in our clime, financial inclusion that caters to the need of petty traders and artisans remains a mirage.
“Getting bank loans, either from commercial banks or microfinance banks, is out of the reach of the ordinary people in petty business.
“Equally, the cost of doing business is killing. It’s on the back of these challenges that since the inception of this administration we have been supporting indigent business owners financially.
“Regularly, we gift them hundred thousand naira each with no strings attached. Over 400 persons have benefited from the scheme which we have been doing in a particular order,” the council chairman said.
Among the recipients are Princess Oluwatoyin Adebari, Mrs Afolabi Rukayat, Mr Lateef Ibrahim, Mr Olawale Akinsode, Mrs Mariam Tajudeen and Mr Aigoro Toyeeb.
Others are Mrs Fadipe Fausat, Mrs Monisola Omodele and Mr Saheed Afolabi.
Speaking on behalf of the recipients, Mr Lateef Ibrahim, promoter of a football viewing centre in Agege lauded the scheme, saying it had impacted positively on economic activities and cemented relations among families in the area.
“This scheme has helped to sustain activities of small business operators in Agege.
“Given the harsh economic realities confronting the indigents across the country precipitating feuds in several families, this programme in a way is sustaining ties of kinship in Agege.
“On behalf of other beneficiaries both present past, I say a big thank you to you our chairman,” he said.

EFCC Docks Ex-Sterling Bank Manager Over N187m Fraud

The Tide — Wed, 08 May 2019 02:00:44 +0000

The Economic and Financial Crimes Commission, EFCC, Enugu Zonal Office, yesterday arraigned a former acting branch manager of Sterling Bank Plc, Oliver Anidiobi, over alleged N187 million fraud.
The former bank chief was made to appear before Justice C.O. Ajah of the state’s High Court sitting in Enugu.
It was also gathered that Anidiobi, who was the Account Relationship Officer of OHHA Microfinance Bank, is facing a 32-count charge bordering on forgery and stealing from the microfinance bank.
EFCC spokesman, Tony Orilade, said this in a statement in Abuja.
He explained, “Investigations by the Commission revealed that he used his position to convince the microfinance bank to deposit the said amount with him with an accompanying letter of instruction (which he acknowledged) to Sterling Bank.
“He fixed the amount on behalf of the microfinance bank, only for him to forge a ‘Fixed Deposit Certificate’ as evidence of their investment”.
Orilade added, “Upon receipt of several instalments of the money totalling N187 million (One Hundred and Eighty-Seven Million Naira) diverted the money to his personal use to build a two-storey building of five flats, several plots of land along Enugu Port Harcourt Expressway and an uncompleted four bedroom bungalow at Centenary Estate, Enugu. He also made an investment of over N65 million (Sixty Five Million Naira).
The spokesman of the anti-graft agency affirmed that the accused journey to the dock began when OHHA Microfinance Bank decided to liquidate their two fixed deposits only to discover that there was no record of the transactions found in the system.
One of the counts, Orilade said it reads: “Anidiobi Oliver Chukwuka, sometime between 15th day of August, 2014 and 28th day of August, 2014 in Enugu, within the Jurisdiction of this Honourable Court did commit a felony to wit: stealing by fraudulently converting to your personal use the aggregate sum of N5 million naira only, being property of OHHA Microfinance Bank Limited and thereby committed an offence.” But Anidiobi reportedly pleaded not guilty to the charges.
On this premise, the defence counsel, O.A.U. Onyema reportedly informed the court that he had an application for the bail of the defendant, but the prosecuting counsel, Micheal Ani, told the Court, “the defence just served me in court this morning few minutes ago”.
After the ensued legal fireworks, Justice Ajah adjourned the matter to June 7, for hearing of the bail application and ordered that the accused be remanded in prison.

NDIC Budgets N258.76bn To Reimburse Depositors

The Tide — Fri, 12 Apr 2019 02:14:09 +0000

Account holders of licensed commercial banks have no cause to panic as the Nigeria Deposit Insurance Corporation (NDIC) has budgeted N258.767 billion in 2019 for the reimbursement of depositors in the unlikely event of closure of such financial institutions.
The Managing Director of the NDIC, Umaru Ibrahim made the disclosure in Abuja when he led his management team to defend the 2019 budget before the House Committee on Insurance and Actuarial Matters.
Giving a breakdown of the funds, the NDIC boss said N109.686 billion was provided for depositors of Deposit Money Banks (DMBs), while N149.081 billion has been set aside for depositors of Primary Mortgage Banks (PMBs) and Micro Finance Banks (MFBs).
He further explained that the estimates were consistent with the Corporation’s mandate of providing a financial guarantee to depositors of failed banks towards promoting public confidence in the banking sector.
This, he added, was critical to the sustenance of the stability of the entire financial system.
In fulfilment of the corporation’s mandate to provide technical assistance to licensed banks, Ibrahim disclosed that the corporation, in collaboration with the Central Bank of Nigeria (CBN) has invested in the acquisition of a new software called the Integrated Regulatory Solution (IRS) for a more robust surveillance and supervision of insured financial institutions in the country.
According to him, the software would enable DMBs to generate real-time online data among themselves, help regulators to access data online from the DMBs.
He also disclosed that the National Association of Microfinance Banks Unified Information Technology Platform (NAMBUIT) was introduced by CBN/NDIC and Association of MFBs to enhance the operational capacity of the MFBs.
The CBN/NDIC are financing the project in the ratio of 60/40 per cent respectively in view of the importance of the project to the growth of the MFB sub-sector.
On NDIC’s mandate of providing financial assistance to eligible licensed and insured banks, Ibrahim disclosed that a total of N140 billion was provided for Deposit Money Banks, while the sum of N300 million was provided for Microfinance and Primary Mortgage Banks.
He urged the banks to take the opportunity to access the funds offered by the corporation whenever they are required.
Responding, the Chairman, House of Representatives Committee on Insurance and Actuarial Matters, Olufemi Fakeye commended the corporation for its pro-activeness in the prevention of systemic crisis in the nation’s banking system.
He added that the various mechanisms adopted by the Corporation since inception to resolve distress in banks had not only prevented the manifestation of the crisis in the system, they also contributed immensely to the high level of public confidence experienced in the financial sector.
He noted that the corporation had carved a niche for itself as the leading deposit insurer in Africa, even as he recalled the role played by the NDIC in the resolution of the defunct Skye Bank and the establishment of Polaris Bank Ltd as a bridge bank and charged NDIC to be more proactive in detecting and addressing distress in banks as a way of sustaining public confidence in the system.

Foundation Empowers 250 Delta Women, Youths

The Tide — Mon, 04 Mar 2019 02:03:34 +0000

No fewer than 250 women and youths from Ethiope East and Okpe Local Government Areas of Delta State have been empowered by the Dafinone Foundation.
The women and youths who were trained in tailoring, catering, hair dressing, welding/fabrication, aluminum work, electrical work and computer application, were given certificates and starter packs to engage in the various trades.
The Chief Executive of the foundation, Chief Ede Dafinone, said at its 9thgraduation ceremony in Sapele, that the empowerment programme was aimed at reducing unemployment in the area.
Dafinone, a chartered accountant, said that the foundation which came into existence in 2006 had so far empowered thousands of youths and 500 women in Sapele, Okpe and Jesse communities and environs.
He said that the foundation started with a microfinance scheme but later realised that many of the beneficiaries could not manage well the credits given to them.
The founder said that the foundation then decided to offer the beneficiaries some skills so that they could be gainfully employed.
He said further that the foundation expanded the scheme to include welding, aluminum work and others to accommodate more people with different interests.
Dafinone urged the beneficiaries to make good use of the skills they acquired to earn their living and also train others in the various trades.
“Our vision is for you to find a better life through the skill empowerment. As you graduate today, use your skill to empower yourself, family and environment,” he said.

Operators Task CBN, NDIC On Ailing Banks

The Tide — Fri, 08 Feb 2019 03:36:37 +0000

Capital market operators have urged the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to map out strategies to manage ailing banks rather than outright liquidation.
They stated this in separate interviews while reacting to the liquidation of Fortis Microfinance Bank Plc.
The operators said that CBN and NDIC should rather manage the affairs of any distressed financial outfit instead of resorting to liquidation in the interest of depositors, shareholders and the economy in general.
NDIC recently announced the official liquidation of Fortis Microfinance Bank and its branches nationwide.
Managing Director, APT Securities and Funds, Malam Garba Kurfi, said that operators expected the apex bank and NDIC to manage the affairs of Fortis Microfinance instead of liquidation.
Kurfi said that management of the bank’s affairs would have been better for the depositors and existing banks that had business relationship with Fortis.
“We expect the CBN and NDIC will rather manage the affairs of the bank before liquidation as that could have been better for the depositor.
“Liquidation will affect the existing banks that have business relationship with Fortis Microfinance Bank which can extend to other banks,” he said.
Kurfi said that appointing a new management and resale of the bank would have been better for entire economy rather than liquidation.
He, however, commended the Nigerian Stock Exchange (NSE) for being proactive in suspending the bank from trading in November due to non compliance with post listing requirements.
National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Mr Boniface Okezie, said that shareholders remained the victims without any compensation.
Okezie said that regulators must device other means of solving the problems in the financial industry instead of aggravating it through liquidation.
He said that regulators should take over the bank through bail out by appointing a new management to oversee its affairs instead of resorting to liquidation.
He said that microfinance banks must be adequately protected at all times by NDIC and CBN, noting that not much had been done.
Publicity Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr Moses Igbrude, said that it was unfortunate that shareholders were subjected to suffering without due compensation.
Igbrude said that uncertainties and losses in the banking sector in the past few years were immeasurable.
“The anxiety and the question in mind of shareholders now is, which bank is next to go down?.
“Nobody knows which bank is stronger and that is what Fortis Microfinance Bank has shown”, he said.
Igbrude called on the shareholders to be cautious and careful when investing in banks stocks to avoid burning their fingers.
He said that government and regulators should bear in mind the effect and reputational risk sudden take over of distressed banks was having on the stock market and the economy.
Our correspondent reports that Fortis Microfinance Bank was licensed by CBN in 2007 and listed on NSE as the first private sector led Microfinance Bank in 2012.
The shares was suspended from trading on the floor of the NSE for failing to adhere to standard corporate governance and extant post-listing requirements that made it mandatory for quoted companies to submit their financial statements within stipulated timelines.
It had also been grappling with protracted governance crisis and internal breakdown of management controls which ultimately led to the resignation of its interim Managing Director, Mrs Bunmi Lawson; now the eventual collapse of the bank.

‘Infrastructure, Major Impediment To Financial Inclusion’

The Tide — Mon, 04 Feb 2019 04:01:46 +0000

A financial expert, Mrs Oghogho Osula has identified lack of adequate infrastructure as major impediment to the 2020 80 per cent financial inclusion target of Nigeria.
Osula, former managing director, Coronation Trustees Ltd. stated this at the inauguration ceremony of the new executive of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos at the weekend.
She said infrastructure challenges such as network failure, data band issues and security fears were problems affecting financial inclusion.
Osula said Nigeria still lacked adequate infrastructure to achieve the level of inclusion desired in the country.
Speaking on the theme: ‘Deepening Financial Inclusion in the Nigerian Capital Market,’ she stressed the need for more financial literacy programmes to bring financial services to the underserved population.
Osula said collaborative efforts of the Securities and Exchange Commission, the Nigerian Stock Exchange, the Central Bank of Nigeria and operators should be deepened to enhance financial inclusion.
On ways to deepen financial inclusion, she said the use of shared agent network facility could be explored to deepen and improve financial inclusion.
Osula added that media campaigns and technology, among others could be used to bring financial services to the undeserved population.
“Nigeria has a large mobile market with about 133 million subscribers and a market penetration of around 75 per cent in 2014, according to the Nigerian Communications Commission.
“This huge number provides an opportunity to deploy easy-to-use technology that can improve access to financial services across Nigeria mobile financial service platform and can be the answer to bridge the gap in financial inclusion.
“There are 35 million Bank Verification Numbers (BVNs) at the moment. Estimated 10 million of this number is adjudged to be financially included and financially served.
“This being that BVN holders are actively engaged in financial transactions through banks, microfinance banks, while the remaining 25 million are generally considered to be financially underserved.
“Also, an estimated seven million financially underserved individuals do not own bank accounts but enjoy limited financial services through informal arrangements such as cooperatives, contributions, among others.
“It follows, therefore, that only about 42 million or 42 per cent of the estimated 100 million adult Nigerians enjoy some form of financial inclusion,” Osula said.
She said the government and stakeholders needed to partner more through policies and enlightenment initiatives in order to meet the 2020 financial inclusion target.

Wike And Rivers Women In 2018

The Tide — Sun, 06 Jan 2019 22:43:48 +0000

Although he enjoyed
the massive support of Rivers women during the 2015 electioneering process, yet it was not quite obvious what the State Governor, Chief Nyesom Wike’s intention for the women would be, given the attitude of previous political leaders towards the women even after using them to achieve their political ambitions.
However, Governor Wike’s choice of a female running mate in the first instance, signalled a ray of hope to women in Rivers State. This was further authenticated by his resolve, on assumption of office, to swear in two female judicial officers, Justice Daisy Okocha and Justice Christiana Nwankwo as the Acting Chief Judge of the State and Acting President of the Customary Court of Appeal, respectively
Nevertheless, his words, “Our blue print recognizes the roles of women and we will concretise that role and ensure that our women continue to grow and grow to prosperity”, still did not mean much to Rivers women. They were no different from the usual words of past leaders and politicians.
Surprisingly, the difference between Governor Wike’s statement to women and those of past leaders of the state, suddenly became glaring as his vision for the women took less than a year to unfold.
Fortunately, women development featured prominently in his priorities. His NEW Vision made obvious provision for empowering Rivers indigenous women as well as women resident in the state through concrete initiative to build strong families and play key roles in developing the state.
No doubt, His Excellency’s resolve to include women in his government is not only an acknowledgement of the feminist strength in governance, it is also a strong faith in the perceived women’s potential to deliver developmental dividends to the society.
Governor Wike is described at different spheres as a women-friendly governor. His commitment to the welfare and empowerment of women was captured in the 2018 budget for which he said “women empowerment is very key to the development of the state, that is why we are investing resources to uplift women”.
To match his words with visible actions, just within the year 2018, Governor Wike provided a business development scheme worth N500million for Rivers women. The fund, which is said to be domiciled at the state’s microfinance bank (RIMA), is managed by the Ministry of Women Affairs. The empowerment scheme, the governor stressed, was strictly to assist the women to develop small-scale businesses.
The Wike administration has continued to empower and work with market women in the state. On Friday, November 18, the Office of the Deputy Governor organised a market outreach programme for the Rivers East senatorial district at the Rumuwoji playground.
The Deputy Governor, Dr Ipalibo Harry Banigo has said that in this phase, traders drawn from markets in the Rivers East Senatorial District would be supported to boost their businesses while traders from the Rivers South East and Rivers West would have their turns soon. Free medical screening and presentation of gifts to over 300 women were highlights of the occasion.
In sustenance of its objective of empowering women in business, Access Bank Plc through its ‘W’ Academy in partnership with the office of the Rivers State Governor’s wife also organised a capacity building workshop for female business owners in the state within the period under review.
The ‘Womenpreneur Business Workshop’ was the second edition of Access Bank’s empowerment program in line with the other unique offerings and initiatives that are deployed to the Bank’s female customers under the ‘W’ initiative.
The objective of the ‘Womenpreneur Business Workshop’ was to provide a discounted and practical capacity building program that will equip female business owners to thrive, especially with the current economic realities in Nigeria. Interestingly, the Governor’s wife, Justice Eberechi Suzzette Nyesom-Wike, sponsored 238 women under the RivEthics Project.
Politically, the gender friendly disposition of the Governor Wike, was further highlighted in the local government elections held in June. He deliberately opened up the political space for women to participate actively and contribute their quota in the development of the state. Thus, in the last local government polls, 23 women emerged as vice chairmen which is unprecedented in our political history.
Wike has actually demonstrated that his administration holds women in high esteem, hence the need to use them as key players in governance. He sees the repositioning of Rivers women in three dimensions; economic, educational and political. One of the strategies he has mapped out for their eventual turnaround includes the construction of a state-of-the-art women development centre. The complex, he explained, is a way to encourage women capacity development and stamp their mark as major contributors to the governance of the state.
Meanwhile, at the dawn of the year 2018, Rivers women had trooped to the Government House in Port Harcourt to declare their support for the governor to continue for a second term in office. In their solidarity message, they declared to follow their endorsement with massive rural and urban mobilisation of all groups to vote overwhelmingly for Governor Wike in 2019.
The women, in their thousands, drawn from the 23 local government areas, marched from Mile One to Government House, celebrating Governor Wike and creating awareness on his achievements.
High point of the occasion was the presentation of gifts by the women to the Rivers State Governor.

Sylvia ThankGod-Amadi

‘NDIC, Monitoring Defunct Skye Bank’s Directors’ Investigation’

The Tide — Wed, 14 Nov 2018 08:24:38 +0000

The Nigeria Deposit Insurance Corporation (NDIC) says it is monitoring investigations of directors and management of the failed Skye Bank Plc being carried out by law enforcement agencies.
The Managing Director and Chief Executive of NDIC, Alhaji Umaru Ibrahim said this in a statement issued by NDIC’s Head of Media and Corporate Services Mohammed Ibrahim last Monday in Abuja.
Ibrahim said the Corporation and the Central Bank of Nigeria (CBN) were monitoring the enforcement agencies to determine their culpability in the failure of the bank.
According to the statement, Ibrahim announced this at the opening of the Corporation’s 2018 Sensitisation seminar for Federal High Court Judges in Abuja.
He said NDIC’s Risk Assessment and Forensic Investigation Reports revealed that the erstwhile management of the failed bank contributed to its failure by engaging in insider abuse, poor corporate governance and banking malpractices.
He said the reports identified malpractices such as fraudulent accounting, manipulation of accounting records to present false profits and ratios, unlawful loan and credit facilities, non-disclosure of directors’ interests and lending beyond the single limit.
Ibrahim said the implementation of the bridge bank resolution option that established Polaris Bank Ltd which assumed the assets and liabilities of the defunct bank resulted in depositors’ unhindered access to their funds.
He said it also led to the continuity of the operations of about 300 branches and the preservation of more than 6,000 jobs.
Ibrahim said the Corporation had commenced payment of insured deposits to depositors of the 153 Microfinance and six Primary Mortgage Banks that their licenses were recently revoked by the CBN.
He said that the Corporation performed this statutory mandate by its appointment as liquidator through a Winding Up Order granted by the Federal High Court.
The NDIC boss described the collaboration between the Corporation and the Judiciary as a valuable engagement toward the development of the financial system and the effective implementation of the Corporation’s mandate.
He said the seminar for Federal High Court Judges with the theme: “Challenges to Deposit Insurance Law and Practice in Nigeria” was specifically designed to address topical issues in bank supervision.
He named some of the issues to include regulatory framework of systematically important banks, robustness of the legal system to facilitate criminal prosecution of bank directors and debt recovery under the Failed Banks Act.
While commending the NDIC for its continued interactions with the Federal High Court, Justice Abdul Kafarati said the impact had been a deeper appreciation of the implications of the mandate and activities of the Corporation.
This, Kafarati, said had led to more proactive and accurate adjudication of cases brought before the courts.

CBN Tasks Media On Depositors’ Education

The Tide — Wed, 14 Nov 2018 08:23:06 +0000

The Central Bank of Nigeria (CBN) has urged media practitioners to collaborate with financial regulators in the country to educate depositors on financial literacy and inclusion.
The Head, Financial Inclusion Secretariat, CBN, Mrs Temitope Akin-Fadeyi said this at a workshop for Business Editors and Finance Correspondents Association of Nigeria (FICAN) on Tuesday in Benin.
The workshop was organised by the Nigeria Deposit Insurance Corporation (NDIC).
Akin-Fadeyi, represented by Mr Joseph Attah, a member of the Financial Inclusion Secretariat, CBN, said educating depositors was a collective responsibility of all.
According to her, there is a growing perception by Nigerians that it is the sole responsibility of the regulators to educate depositors on financial inclusion.
She said it was important for media practitioners to fully understand the concept of financial inclusion.
Akin-Fadeyi, therefore, urged the media to partner with the regulators to properly educate Nigerians to ensure increased participation of financial inclusion in the country.
On provision of income for small business owners, Akin-Fadeyi said the CBN was already addressing the issue.
“Those without income are already benefiting from CBN’s Conditional Cash Transfer scheme.
”We are doing a lot in CBN, we have programmes where unemployed Nigerians doing business can apply for loans.
“We cannot do everything, so all stakeholders are enjoined to collaborate to ensure that the issue of income is tackled”, she said.
On recapitalisation of Microfinance Banks (MFBs) in the country, she said the banks had been given enough time to recapitalise.
The CBN had in a circular on October 22, directed MFBs to recapitalise by April 1, 2020.
MFBs is expected to have a minimum of N200 million capital requirement, states owned MFBs will need one billion naira and National MFBs will require five billion naira.
In his contribution, the Deputy Director, Research Policy and International Relations, NDIC, Mr Kingsley Nwaigwe, said the corporation was doing everything possible to build depositors’ confidence in the country.
“Recently, about 154 MFBs and six financial institutions were closed.
“And within three weeks, NDIC was able to pay depositors of the closed institutions and this is one of the things that can help build confidence of depositors in the country”, he said.
In his remarks, Mr Peter Aghaowa, who represented the Director-General of Pension Commission (PENCOM), Mrs Aisha Dahir-Umar, stressed the need for depositors to have trust in the financial sector.

CBN Tasks Media On Depositors’ Education

The Tide — Wed, 14 Nov 2018 08:21:46 +0000

UI Needs N30bn To Achieve World-Class Standard-VC

The Tide — Mon, 08 Oct 2018 01:02:09 +0000

Vice Chancellor, University of Ibadan, Prof. Idowu Olayinka last Saturday said the university needed additional N30 billion in the next 10 years to achieve world-class standard.
Olayinka disclosed this at a news conference in Ibadan to showcase the University’s 70 years in existence.
“For us to be a world-class university, we need to invest heavily in physical and infrastructural facilities, to address the acute shortage of office space for staff, classrooms and laboratories.”
The VC said that the institution was exploring ways to make itself less dependent on government funding.
“We are adopting a two -pronged approach involving a resource mobilisation plan and prudent management of the available resources.”
According to the VC, elements of these include regular income from commercial activities and increasing the endowment fund, research grants and the strategic funds.
Olayinka said that other means would be to consolidate the businesses established by the university.
Such businesses include the UI Microfinance Bank, UI Ventures, UI Water, Animal Production Venture, Fisheries and Aquaculture, UI Publishing House, UI Endowment Fund and the UI Bookshop.
He said that the university was currently spending N13 Billion yearly.
The VC said departments are also being encouraged to engage in business -oriented consultancies and support collaboration with industry.
Olayinka said till date, the university produced 232,225 graduates in the last 70 years, and that many of the alumni of the institution now held high profile position in various segments of the economy, both locally and internationally.
“As at the end of last session, we had a total of 35,084 students, comprising 14,354 undergraduates, 9,287 distance learning and 11,443 post graduate students.
Outlining the programme of events for the 70th anniversary, Olayinka said the event would end by November 17, being the foundation day ceremony.
Other events will include, lecture series, Research, Developments and innovation fair, Kumar service, 70th convocation Church service and award of first degrees.
The VC said that the university would also recognise six people who distinguished themselves in the society with honorary awards.
They include Mr Bode Akindele, Prof. Bolanle Awe, Prof. Grace Alele Williams, Prof. Akin Maboguje, Dr Funmi Olapade and Prof. Omoniyi Adewoye.

SMEs Owners Decry Poor Returns In Rainy Season

Wed, 12 Sep 2018 00:55:58 +0000

Owners of Small and Medium Enterprises (SMEs) are now divided over the effect of the rainy season on their financial base and progress of their businesses.
In an interview with The Tide, a motor dealer in Port Harcourt, Mr. Chiemela Ohunta said the rains have affected his business negatively as constant rains do not allow smooth running of his business.
Ohunta noted that the loan he collected and injected into his business in February from a microfinance bank has gone down with little or nothing to repay the loans.
He said that shops sometimes rose from morning till night due to constant rain falls, adding that rains damage motor parts but some cars are packed till dry season.
“My capital has gone down, though small money enters my hand. It is difficult to pay my bills this rainy season and this financial problem is not affecting only me,” he said.
Another businessman Mr. Effiong Benson, who is into farming decried the devastating effect of the rain on his investment, adding “I collected N400,000 loan from a microfinance bank to do my farm business.
“I hired a land and used the rest of the fund to cultivate and plan which was doing well before the heavy rains that flooded the whole place, destroying the crops and putting me indebt and confusion,” he said.
He called on well-meaning individuals to come to his aid, stating that finance has been his problem before now, which he thought would have been over with the loan he got from the bank. In a related development, Mrs Rose Ndukwe who sells clothes complained bitterly that the rains have spoilt her business, adding that her profits can hardly cater for her family of five.
Ndukwe said that she is looking for how to increase her financial base and buy more goods, since rains spoilt her good.
A hair dresser, Miss Joy Joseph told The Tide that rain did not have any negative effect on her business, adding that she makes more money because hair styles easily get damaged under the rain.
She noted that her business is giving her money to take care of her needs under the rainy season.

Lilian Peters & Ekeke Favour C

Expert Seeks Review Of Microfinance Banks’ Framework

The Tide — Wed, 29 Aug 2018 02:32:37 +0000

A financial expert, Mr Godfrey Ajayi, says a review of the Central Bank of Nigeria (CBN) microfinance banks’ framework will galvanise and strengthen the sector’s financial operations.
Ajayi, the Chief Executive of G-Consulting International Services, said in Lagos on Monday that areas for review should include capitalisation, management, supervision, customers’ protection and capacity building.
The financial expert said that the current N20 million capital base required to operate a unit microfinance bank was inadequate.
“The state microfinance bank requirement of N100 million minimum paid up capital and national microfinance bank requirement of N2 billion minimum paid up capital are better, ” he said.
Reports said that a unit microfinance bank operation is limited to a particular local government while a state microfinance bank operates within a particular state.
A national microfinance bank operates beyond a state. It can function anywhere in the country.
Ajayi appealed to the apex bank to review the capital base of unit microfinance banks for effective performance since they were closer to the people at the grassroots.
“The banks should be able to equip the more active poor and attract financially excluded citizens to their financial net,” he said.
According to him, merger of unit finance banks, which constitute about 80 per cent of microfinance institutions nationwide, will serve as catalyst for effective service delivery.
“There are few state microfinance banks in the country while national microfinance banks are less than 10 in spite over the presence of 1,000 microfinance banks in the country.
“Once they are merged, the apex body must be ready to license more operators because they constitute of about 80 per cent.
“The apex bank needs to relax the stringent rules attached to bailout funds.
“Some of the banks could not still access the N20 billion Federal Government’s micro small and medium enterprises support fund,” Ajayi said.
On management and supervision, he called for establishment of an independent regulatory body to oversee the activities of microfinance banks.
He said that Other Financial Institutions Supervision Department (OFISD) of CBN saddled with monitoring microfinance banks was already overwhelmed by other duties.
According to him, OFISD is overseeing 23 commercial banks, over 1,000 Microfinance banks and all mortgage banks, among others.
He said that setting up an independent regulator for microfinance banks would improve the banks’ efficiency.

RSG Has Given SMEs N2.2bn In Two Years -RIMA Boss

Mon, 06 Aug 2018 01:53:28 +0000

The Chief Executive Officer and Managing Director (CEO/MD) of Rivers State Microfinance Agency (RIMA), Dr. Ipalibo Sogules says the state government through the agency has given out over 2.2 billion as loans to promote Small and Medium Enterprises (SMEs) in the state.
Sogules in an exclusive interview with The Tide in his office in Port Harcourt, said over N1 billion was given out in 2017, adding that N1.2 billion would have been given out at the end of 2018.
The CEO/MD said that the loans are meant to support the SMEs and promote businesses and employment at the local government Area level.
He said the agency’s activities have improved tremendously in staff strength, adding that there is the need to increase customer base, as over N100 million is given out every week.
The MD noted that RIMA has improved in Information Communication Technology (ICT) system, adding the all the staff have been trained on IT which help workers to monitor transaction online.
“We have trained and retrained our staff to achieve credit documentation. The agency is operating like private organisation that is goal-oriental and is working very well”, he said.
“Governor Nyesom Wike has done well in supporting businesses in the state. Infrastructural development has also helped in promoting transformation, which inturn affects the movement of the goods from one point to the other,” he said.
Sogules reiterated that the present administrator has also taken drastic steps in harmonising taxation, adding that touting has reduced in the system.
“All this is geared towards making Rivers State investment haven,” he concluded.

FG Recommits To MFBs’ Effectiveness

The Tide — Sun, 05 Aug 2018 23:31:09 +0000

The Federal Government last Friday expressed its commitment towards enhancing the effectiveness of Micro Finance Banks (MFBs) in the country.
President Muhammadu Buhari, represented by the Minister of State for Trade and Investment, Mrs Aisha Abubakar, said this at the 2018 Micro Finance Banking Conference/Award Night held in Abuja.
The theme of the conference is: “Financial Inclusion for Micro Small and Medium Enterprises (MSME) Development in Nigeria: Making Microfinance Banking Work.”
Buhari said the government recognised the challenges of the microfinance sector and had come up with policies to ensure the growth of the sector.
“Government is providing an enabling environment through the ease of doing business which underscores the provision of one stop shop for this administration.
“Financial stability of the banking sector is very vital for every economy particularly for Nigeria’s emerging economy; therefore the supervision of MFBs is necessary to build confidence in the sector.
“The CBN is already working on this and stakeholders are urged to cooperate with CBN in this regulatory role.
“It is an established fact that the government alone cannot provide the needed infrastructure for microfinance banking, government however calls for stakeholder collaboration to achieve this,” he said.
Buhari commended the management of the National Association of Micro Finance Banks (NAMB) in its effort to provide funding for people at the grass root.
He said: “There is no gainsaying that MFBs contribution in rural areas will ensure financial inclusion, expand the market, revamp the moribund industries and increase the country’s GDP.
In his remark, the Senate President, Dr Bukola Saraki, pledged the commitment of the National Assembly (NASS) to work with the association to contribute to national development.
Saraki was represented by Sen. Ibrahim Rafiu, Chairman Senate Committee on Banking and Currency.
He said the NASS recently passed several bills targeted at enhancing the effectiveness of MSME to access credit; this will ultimately help members of NAMB to improve their businesses.
Also Governor Rotimi Akeredolu of Ondo State urged political leaders to support MSMEs in their various locations.
“We have put appropriate policies in place in my state, which have continued to yield positive results and I urge other political leaders to do same.
“We hope that in no distant time, MSME will be the engine of growth and financial inclusion in the country.
“I also appeal to stakeholders to create an enabling environment that will promote financial inclusion especially in the area of technology,” Akeredolu said.
Dr Uche Olowu, President, Chartered Institute of Bankers of Nigeria (CIBN), said MFBs had a critical role to play for Nigeria to achieve financial inclusion.
Olowu said the MFBs were better positioned to deepen financial inclusion as they were closer to the grass root, thus, should be given the necessary support to be able to do so.
He advised the MFBs not to adopt the ways of the Deposit Money Banks, saying that if they did, it would not allow them achieve the purpose for which they were set up.

Fintech Hosts IMF Team, Lord Mayor Of London

The Tide — Mon, 09 Jul 2018 02:46:04 +0000

Fintech Association of Nigeria, the umbrella body for the coordination of Fintech activities in Nigeria, has continued to attract attention from the international community as it hosted a team of the International Money Fund, headed by the Senior Resident Representative, Dr. Amine Mati.
The association also co-hosted the UK team, led by the Mayor of the City of London, Rt. Hon. Alderman Charles Bowman, in a separate event.
While welcoming the IMF team to the meeting, Dr Segun Aina, President, FintechNGR, said the diversity of the membership of the association which includes key players in consulting, banking, media, education, investment, IT, law and startups, make it the best fit for opinion on Fintech related matters in the Country. According to him, “ the impacts of the association transcend the nation as it’s opening up cross-border market access and policy regime as it leads to the formation of the Africa Fintech Council”
Dr. Mati, on his part explained the reasons for visiting the association. He told the participant that his team is particularly interested in the state of financial inclusion and Fintech in Nigeria as part of the efforts of the IMF to facilitate financial growth across the board.
“The IMF is opened to collaborate with the association on its initiatives and would be willing to look at the challenges the sector is facing in financial inclusion drive as well as provide help where necessary,” he said.
Presentations were made by three members of the association: Mr. Bayo Adewolu, Partner, PwC on Developments in Financial Access and Constraints to Mobile Money Development in Nigeria; Mrs. Bunmi Lawson, member, FintechNGR GovCo on Development in Microfinance & Update in Financial Inclusion Strategy; and Mr. Isa Alade, General Secretary, FintechNGR GovCo on Doing Business in Nigeria and Investment Promotion Bill.
The meeting went into an interactive session as the investment in infrastructure with a focus on basic end to end technology, the establishment of incentives for companies investing in the rural unbanked areas, collaboration between financial services providers, regulators, telcoms and adequate security being the key take-home of the meeting.
Mr. Olufemi Awoyemi, member, FintechNGR GovCo, while giving the closing remarks said: “Formulation of regulation to drive innovation must be an interplay between the regulators and the key players in the sector to achieve a low level of financial exclusion.”

Enugu Moves To Recover N30bn Unpaid Taxes …Seals Eight Firms

The Tide — Thu, 05 Jul 2018 23:49:04 +0000

The Enugu State Internal Revenue Service (ESIRS) has commenced the recovery of over N30 billion non-remitted taxes by companies, agencies and institutions in the state.
The Chairman of ESIRS, Mr Emeka Odo disclosed this in Enugu last Wednesday after sealing eight offices, which comprised companies, agencies and institutions in the state.
Odo said that the sealed offices were located within Enugu and Nsukka towns in the state.
He said the offices included three hotels, two federal institutions, a bank, a filling station and a telecommunications company.
“This sealing off is the first phase of our move to recover taxes accruing to state government but not remitted by some tax-paying companies, agencies and institutions in the state.
“The sealed offices will not be opened until they pay up their tax debts.
“We have earlier written and dialogued with management of these establishments on the issue but they refused to pay after the grace period given to them.
“We went to court yesterday and obtained ex parte motion to recover the funds and take other necessary measures to recover the debt in accordance with the statutory law establishing the ESIRS.’’
Odo said that the ESIRS would ensure that every tax-paying individual, company, agencies and institutions pay up their taxes to allow the state government to continue in its development and social services drive.
“This internal revenue service will ensure that every tax paying eligible individual, company, agencies and institutions in the state fulfilled its obligation to the government and Enugu State people.
“There will be no hiding place and our team of enforcement officers will surely get to them to collect any debt owed the state government in terms of taxes and other statutory remittances he said.’’
The chairman said that the University of Nigeria, Nsukka (UNN), Microfinance Bank, was among the eight sealed offices.
He expressed regret that UNN allegedly owed over N12 billion tax debts to the state government, claiming it was the highest debt owed the ESIRS.
“We are getting ready to storm UNN and it will be soon, as we have written severally and even met the management but nothing is forthcoming he noted.’’
Odo urged property owners to ensure they paid up their property tax before the expiration of the current three months grace period given to them.
“Once the three months elapse, we start collecting penalty for late payment.
“And for people that will not pay for over a year, we will go to court and get an injunction to seal and take over the property through receivership and other things to recover the debt,’’ he said.

Recapitalisation And Retail Investors

The Tide — Wed, 27 Jun 2018 01:45:56 +0000

The Nigerian capital market traditionally has been known as being driven by Nigerians, as they form the bulk of investors in the market. But the question now is: could the market be said to be driven by Nigerians today?
In the wake of the current recapitalisation of stock broking houses to the tune of N500 million, a cross section of retail investors have began nursing fear that their stock brokers would not meet the new capital base and, as such, do not want to be caught unawares.
The Tide’s findings reveal that the general feeling in this quarter is that retail investors are not wanted in their market, hence there has been a renewed interest in the market by this class of investors, this time around, to sell all that they have in the market and give way for the target foreign investors targeted to project the market to global prominence.
Emerging facts allege that on-going developments in the market points to have targeted this class of investors to force them to conform to specific market direction, failure of which they would have no other alternative than to flee for safety by dumping their shares in the market.
Our reporter learnt that the specific market direction is tied to recapitalisation of stock broking companies and its collective scheme. The retail investors who prior to the pronouncement of recapitalisation of stock broking firms last December have been reluctant to embrace collective investment which may have no option when the deadline for it expired by December 31, 2018.
A survey carried out by The Tide reveal that fund managers, whose stock broking firms have already met the new recapitalisation base of N500 million and mopping of investments for institutional investors and retail investors who are taken care of by grassroots stoke broking companies likely to be unable to meet the order have commenced dumping their shares in the market for fear of uncertainty.
Though, it is being alleged that some investment companies with subsidiary stock brokers have been on the vanguard of creating monopoly in the market by chasing out other ‘margin’ players, this they believe could be achieved by selling the idea of recapitalisation to the securities and exchange commission.
A stockbroker who spoke on condition of anonymity to The Tide said: “the retail side of the stock market has already had so much battering in the past, the retail investors no longer approach the market for purchasing, what they now do is that they are just selling off what they have, and after selling, they don’t come back”.
The broker added that retail investors no longer approach the market for purchasing stocks, they only approach the market to sell off what they have in the market after which they will no longer return to invest in shares.
Dr. Francis Olubike, Managing Director/Chief Executive Officer of Standard Securities Limited, Port Harcourt, told The Tide that recapitalisation has a major role it is playing toward that direction.
How? Most of them are so much in touch with the so-called medium players in the market, most of them are not in touch with the highest flyers supported by financial institutions among others that have even met the N500 million capital bases, and even surpassed it, because they have backings of banks”, he said.
He stressed that in stock trading, there are stock brokers who are in touch with retail investors that are really disenfranchised in the recapitalisation matter.
According to him, now when retail investors hear about N500 million capitalisation, they would become nervous. Some of the stock brokers that buy shares for the Nigerian retail investors may not meet up with N500 million capitalisation. So, what they are doing currently is to sell whatever they have, in order for them not to lose anything at the end of the day when the deadline given by SEC: expires December 31, this year.
Olubike continued that the regulatory directive by SEC has stalled the purchase end of the market, which he described as being comatose because the investors are not encouraged to invest in the market.
Chief Ray Effiong, an investment analyst, told The Tide that the issue of recapitalisation has also continued to weaken the primary end of the market.
According to the expert, the prevailing market trend has continued to impact the market, especially in the direction of fulfilling its obligation as instrument for sourcing cheap funds for corporate organisations.
To this end, he said, while the primary market has remained comatose, the IPO market has also remained in limbo because confidence of the investors in this segment cannot be secured.
As he puts it, “the issuers are not coming up with IPOs because they are not sure of half subscription talkless of full subscription as the case was previously when issuers were assured of one hundred per cent subscription, and at the end, they will record over subscription, some even recorded one hundred per cent over subscription”.
He added: “issuing housing are not eager to issue IPOs anymore because they are not getting underwriters to write-off the offer before it opens. They are not underwriting because they cannot guaranty the offer. Between 2008 and now we cannot count the number of firms that have issued IPOs.
It was further gathered by this weekly that companies are continually starved of funds for expansion and the possible of doing so from the market and issuing rights proved abortive as a result of the challenge for raising Eurobonds as an acceptable rights in the local market that become more difficult.
Professor Kingsley Omokhani, Managing Director of Pendulum Securities Limited, Asaba, Delta State stated in Port Harcourt that the new recapitalisation order would not force retail investors out of the market, but would ensure that they are better placed in more buoyant companies.
He stressed that the recapitalisation order would end up creating mergers and acquisitions in the sector which would further reveal that emerging companies post-capitalisation will have special products to accommodate all classes of investors, including retail investors.
According to him, what is currently going on in the case of recapitalisation does not concern retail investors, but it will boost their investment confidence, hence they would now be dealing with highly capitalised stockbroking companies.
Omokhani further disclosed that when the recapitalisation is concluded, the companies that have emerged post-capitalisation order deadline would have some products designed for retail investors.
“There are unit trust schemes and portfolio investment schemes. Some firms would carve a niche for dealing with retail investors in the new dispensation in Pendulum Securities Limited, we have products designed for retail investors.
“The retail end of market and mutual benefit of the market will be stronger, post-capitalisation and all these are for the hitherto unprotected retail investors. Unit trust investment scheme will be more highlighted” he said.
Dr. Sarah Anikulemi, an economist and Head of Marketing Department at the University of Jos, in her contribution on the recapitalisation told The Tide that even as the recapitalisation hammer slammed against stock brokers expires by the end of this year, targeted to boost market confidence and the case of protecting retail investors in the market need to be given utmost priority by the capital market regulators.
As she puts it: “we have instructed our clients to always have stock broking companies that have solid base. One or two of them may qualify for the new capital base, but that is not enough, the regulatory authorities need to put measure in place to protect all retail investors on the market”.
Lending credence to recapitalisation, a university don and chairman of Rivers State University Microfinance Bank, Nkpolu, Port Harcourt, Prof Adolphus Joseph Toby stressed that he has faith that stockbroking firms would meet the new order of recapitalisation.
He, however, added that if otherwise, he has the option of migrating to a more qualified stockbroking firm.
He said that he is not harbouring any fear on being forced to migrate to collective investment scheme which he has not subscribed to, but will always find a reliable stock broking company to move his stocks to.
Toby, a professor of corporate finance added. “I am dealing with a more reputable stockbroking company, but if it fails to meet with the recapitalisation order, I will then move my stocks to a new stockbroking firm that meets the capital base. I will not embrace collective investment scheme, but go to a stockbroking company that meet the capital requirement”.

Bethel Toby