Bank Loans To Private Sector Drop To N15.3tn

NBS

 

Banks reduced lending to the private sector from N15.6 trillion allocated within the first quarter of 2018 to N15.34 trillion in the second quarter.

The National Bureau of Statistics (NBS) disclosed this in its 2018 Q2 report titled: Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018).

The report also indicated that loans to the power and energy sector dropped to N416.34 billion, while that of the mining and quarry fell to N10.18 billion.

It, however, noted that total lending to the agriculture sector increased to N523.08 billion while the Oil & Gas and Manufacturing sectors got credit allocations of N3.45trn and N2.02trn to record the highest credit allocations within the period under review.

Furthermore, the NBS stated that a total volume of 509,668,433 transactions valued at N32.90 trillion, were recorded in Q2 as data on Electronic Payment Channels in the Nigeria Banking Sector.

Also, it said, Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded, totalling N1,603billion in Q2.

The total number of bank staff increased by 13.67% from 89,608 in Q1 to 101,861.

NDIC To Investigate Banks Over Fraud

NDIC, Customer protection

 

 

The Nigeria Deposit Insurance Corporation (NDIC) is to investigate some banks over fraud related cases in their transactions.

A statement from NDIC’s HEAD, Communications and Public Affairs, Mohammed Ibrahim, said the move was in line with Section 35 and 36 of the NDIC Act No. 16 of 2006 for all Deposit Money Banks (DMBs) to submit monthly information/returns on fraud and forgeries to the Corporation.

“The Nigeria Deposit Insurance Corporation (NDIC) is to investigate some banks for the inadequate rendition of returns to the Corporation,” Ibrahim said on Sunday.

The commission is faulting banks for their failure to deliver returns on instances of fraud, forgeries, and cases involving members of their staff who were either dismissed or had their appointments terminated on grounds of fraudulent activities.

“Section 35 and 36 of the NDIC Act No. 16 of 2006 (as amended) requires all Deposit Money Banks (DMBs) to submit monthly information/returns on fraud and forgeries to the Corporation,” the statement read in part.

Ibrahim explained that NDIC made the decision in the light of the most recent report from its Off-Site Supervision of the DMBs which revealed the number of fraud cases attributed to internal abuse by staff of banks increased from 231 in 2016 to 320 in 2017, or 38.53% above the figure reported for the previous year.

It was observed that the report relied on a total of 286 responses received from 26 banks during the period. Also, there were 22 NIL monthly responses from the banks as at year ended 31st December 2017.

On Internet banking and ATM/Card-related fraud, the agency reported constituted 24,266 resulting in 92.68% of all the reported cases. It, however, regretted the avoidable loss of ₦1.51 billion of losses in the Industry in 2017.

The report also documented other miscellaneous crimes such as fraudulent transfers/withdrawals, cash suppression, unauthorized credits, fraudulent conversion of cheques, diversion of customer deposits, diversion of bank charges, presentation of forged or stolen-cheques among others.

It is expected that banks would adopt internal control measures in the wake of proactive corrective measures taken to ensure their compliance with good corporate governance principles.

CBN Orders Banks With Huge Bad Loans To Stop Paying Dividends

CBN Orders Banks With Huge Bad Loans To Stop Paying Dividends

 

Banks and discount houses with non-performing loans above 10 per cent will no longer be allowed to pay dividends to their shareholders.

The Central Bank of Nigeria gave the directive as part of measures to curb the increase in non-performing loans and to stop further erosion of the capital base of the banks.

The directive comes about a week to the release of the 2017 financial year’s annual reports by commercial banks and discount houses in the country.

Data from the apex bank puts the banking industry’s non-performing loans at 15.18 per cent as at September 2017.

Meanwhile, transactions in the fixed income and currency markets declined to N11.71 trillion in January 2018, from N11.86 trillion in December 2017.

According to data from the FMDQ OTC exchange, the treasury bills market accounts for 39.24 per cent of market turnover as against 35.26 per cent in December.

The foreign exchange market also accounted for 37.50 per cent of the total turnover, while the money market was responsible for 16.9 per cent.

These three segments combined, contributed 93.64 per cent of the total turnover in the fixed income market.

Transactions in the FX market settled at $14.01 billion for the period, showing an increase of $1.15 billion from the amount recorded in December 2017.

FG Gazettes IPOB Ban, To Notify Banks, Embassies, Foreign Missions

A file photo of IPOB supporters agitating for Biafra country

Despite criticisms from different quarters, the Federal Government appears not to be backing down in its decision to proscribe the Indigenous People of Biafra (IPOB).

As part of the requirement to finalise the process, the Federal Government has gazetted the order of the Federal High court in Abuja proscribing and declaring the IPOB as a terrorist organisation.

The gazetting was part of the requirements imposed on the Federal Government by the court to finalise the prescription of the group.

READ ALSO: IPOB Prescription: Shehu Defends FG, Says Group Not Interested In Dialogue

Having gazetted the order, the Federal government is further set to publish it in two national dailies to complete the process.

The Acting Chief Judge of the Federal High Court, Justice Abdu Kafarati, on September 20, issued the proscription order based on an ex parte application by the Attorney General of the Federation and Minister of Justice, Mr Abubakar Malami.

However, IPOB, through its lawyer, Mr Ifeanyi Ejiofor, filed a motion before the same court two days after, seeking the nullification of the said order, citing lack of jurisdiction, among other grounds.

Federal Ministry of Justice is set to notify banks, Nigerian Embassies abroad and foreign missions operating in Nigeria on the move by the government.

Reps Committee Order Banks To Unfreeze Patience Jonathan’s Accounts

Patience Jonathan, Court, EFCC

The House of Representatives Committee on Public Petitions has directed that banks to allow wife of former President of Nigeria, Patience Jonathan to access some of her bank accounts that have been frozen.

This direction was given during the resumed hearing of the House of Representatives committee on public petitions, on Tuesday.

Patience Jonathan’s attorney had submitted a petition to the committee over what they described as the unwarranted and persistent attacks on her by agents of the Economic and Financial Crimes Commission and other government agencies (EFCC).

During the hearing, in which EFCC representatives were absent, the committee also directed the Federal Inland Revenue Service (FIRS) to meet with the petitioner’s counsel to resolve the issues regarding one of the businesses of Patience Jonathan.

Representatives of the FIRS were taken up by the committee on their visit to the petitioner’s business in Bayelsa State for allegedly evading paying tax.

The chairman of the committee, Uzoma Nkem-Abonta sought to get to the heart of the matter by hearing from the petitioner, the banks, and FIRS.

One of the members of the committee, Emeka Obiago, made it clear that the focus of the lawmakers is that people obey the laws of the land.

He said “We will not want to be seen in any way to shield anybody who tries to evade tax. Our position is we must be governed in accordance with the rule of law.”

Nkem-Abonta, therefore, directed that the banks should unfreeze all accounts that they have no pending court order.

“Until EFCC proves otherwise, I’ll ask you to remove the precautionary restriction on the account. Let me tell you, whatever you’ll do, you must follow the law. A bank can’t hold a legal entity to ransom.

“I want to order all other banks that all the accounts that have no specific pending order from the courts, please release them,’’ the committee chairman said.

Court Strikes Out FG’s Suit Against Seven Banks

Alleged N29bn Fraud: Court Admits More Evidence Against Nyako
File photo

The Federal High Court Sitting in Lagos has struck out a suit filed by the Federal Government against seven commercial banks.

Justice Chuka Obiozor struck out the suit this morning and awarded a cost of N200,000 against the Federal Government and in favour of all the affected banks except Skye Bank which was not represented in court.

The Federal Government had sued the banks seeking the remittance of $793.2 million allegedly hidden with them in contravention of the Treasury Single Account policy.

Yesterday, counsel for the Federal Government, Professor Yemi Akinseye-George, told the court that the Attorney-General of the Federation, Mr Abubakar Malami, asked him to withdraw the suit in the larger interest of the public and because of the economic implications.

The counsel had also disclosed that the Federal Government decided to explore an ‘out-of-court settlement’ with the banks.

Even though the banks did not oppose the notice of discontinuance of the suit, through their lawyers, they had insisted that the Government’s allegation against them was false and had caused substantial damage to their reputation.

They had also urged the judge not to merely strike out the suit but to dismiss it and award a cost of between N10-N20m against the Federal Government.

They argued that any case struck out could be re-filed while a case dismissed could no longer be re-filed.

But in his ruling today, Justice Obiozor held that dismissal of an action is one of the gravest actions a plaintiff can face and so the court must be slow to take that option and only exercise such a discretion judiciously.

Having considered the reasons for the withdrawal of the suit, the court held that since the case had yet to proceed to trial, the proper order to make was to strike it out.

In awarding cost, Justice Obiozor held that the banks had placed no evidence before him to support their claim that the actions of the Federal Government had caused damage to their reputation.

He, therefore, used his discretion to award a cost of N200,000 each.

The court also vacated the interim order made on the 20th of July in favour of the Federal Government directing the banks to temporarily remit the funds to the TSA.

Following the July 20 order, most of the affected banks had issued retractions and disclaimers, insisting that they had no illegal funds in their custody.

 

CBN Mandates Banks On PTAs, School Fees

CBN Mandates Banks On PTAs, School FeesThe Central Bank of Nigeria (CBN) has mandated all commercial banks in the country to immediately open a teller point for retail foreign exchange (FX) transactions in all locations.

The directive was contained in a memo issued to the banks by the CBN Director of Financial Markets Department, Dr. Alvan Ikoku.

The directive, according to the apex bank was to further increase FX availability to all end-users and ensure that a fair and verifiable exchange rate operates in the market.

The commercial banks were also mandated to have an electronic display board in all their branches showing rates of all trading currencies, while customers must insist on processing FX transactions based on the displayed rates.

The CBN noted further that henceforth, banks must process and meet the demand for travel allowances (PTA/BTA) by end-users within 24 hours of such application, as long as the end-users meet basic requirements already outlined in earlier directives.

For school fees and medical bills, the banks have 48 hours to meet customers’ demands.

The apex bank said non-compliance by any bank would attract sanctions, which may include but not limited to being barred from all future CBN foreign exchange interventions.

CBN Cannot Sustain The New Foreign Exchange Policy – Muda Yusuf

srThe Director General, Lagos Chamber of Commerce and Industry, Muda Yusuf says the Central Bank of Nigeria (CBN) cannot sustain the new Foreign Exchange Policy to improve the economy.

He noted that the CBN does not have the capacity.

According to him, “we need to create a window for capital competition to come in  to improve the foreign exchange”.

Mr. Yusuf made this known on Channels Television’s breakfast programme, Sunrise Daily.

He however, said “the fundamental issue with the foreign exchange situation in the country is a supply side issue, we have a supply crisis.

“This situation has come about because the CBN is virtually the only supplier in the market meanwhile, the CBN doesn’t have the capacity to support the market, they have always had supplies from autonomous sources.

“So, when you are dealing with this kind of method, you deal with it both on the supply side and on the demand side.

“What we have seen over the years is the concentration on managing demands, there is nothing on the table as we speak.

“To encourage supply, we need supply either from foreign direct investors, foreign portfolio investors or from our exporters”.

He added that the policy is only aggravating the demand.

NLC Withdraws Strike Notice Served On 6 Banks

NLC, BanksThe Nigeria Labour Congress (NLC) has withdrawn the strike notice it served on six commercial banks on June 15 over the mass sacking of workers and redundancy in the banking sector.

The President of the NLC, Mr Ayuba Wabba, made this known on Wednesday during a media briefing in Abuja, Nigeria’s capital city.

He said that it was agreed that all hostilities including the strike notice should be put on hold to await the outcome of a meeting proposed by the Ministry of Labour and Employment.

Mr Wabba explained that the leadership of the NLC had been briefed by its affiliate union, the National Union of Banks, Insurance, and Financial Institutions Employees, on the extent of its engagement with the affected banks on the contentious issues.

He insisted that the banks must follow the labour law when it comes to disengaging the workers.

NDIC, Corps Members Collaborate On Fund Recovery Sensitisation

ndicThe Nigeria Deposit Insurance Corporation (NDIC) says Nigerians  are unaware that they can recover the full sum of their deposits from any bank, in the event that the bank fails.

To create  awareness on the issue, the NDIC is embarking on a sensitisation campaign to the NYSC Camp in Nasarawa State.

The Corporation said it could refund up to 500,000 Naira to depositors affected by failed deposit money banks and non-interest banks.

It further said one of its crucial mandates was to raise public awareness on its role as the sole government agency empowered to insure bank deposits of Nigerians.

The corporation wants the Corp members to take the message to every nook and cranny of the state.

The corp members assured the corporation that they would take the awareness to the public as requested by the NDIC.

Aside from guaranteeing deposits, the Nigeria Deposit Insurance Corporation also supervises banks and helps with distressed resolution and liquidation.

Officials of the corporation encouraged Nigerians to confidently take advantage of the  banking services, knowing that their deposits are protected.

Governor Ayade To Establish Garment Factory, Others

AyadeCross River State Governor, Ben Ayade, has said that plans are already in place by his administration for the establishment of a garment industry, cocoa processing plant, rice mill and modular refinery in the state.

Governor Ayade made this disclosure during a meeting with Heads of Commercial Banks and financial institutions operating in the state, at the Exco Chambers of the Governor’s Office in Calabar, the Cross River State capital.

The Governor also noted that other investments to be established will be in the petroleum sector, pharmaceutical sector, marine transport, poultry and afforestation; all geared towards creating numerous job opportunities for unemployed youths in the state.

Ayade also enjoined the banks’ representatives to have a shift from solely managing the state’s Internally Generated Revenue (IGR) and payment of workers’ salaries to identifying with any of the programmes of his administration and seeing to its actualization.

According to him, he expects banks to send in proposals on how they would key into the vision to ensure that the new town, which the state intends to build, no matter its size, beats other existing towns in the country.

Governor Ayade had earlier promised to create about a thousand jobs for unemployed youths in the state during his first 100 days in office.

NUC Frowns At Non Training Of Graduates By Banks

download (1)The Executive Secretary of the National Universities Commission (NUC), Professor Julius Okojie, has condemned the engagement of graduates in the nation’s banking sector without trainings to improve on their expertise.

Professor Okojie, who appealed to the management of banking institutions to consider adequate capacity building for the graduates, said that such trainings could benefit the employees when they quit working in the banking sector.

On her part, Chairman of the Chartered Institute of Bankers, Mrs Debola Osibogun, promised a total turn around for workers in the banking sector, especially in the area of training and manpower development.