Business

Nigerian Govt. Hails CBN, NDIC, NAICOM, Others on Financial System Stability

Published

2 years ago

September 15, 2022

President Muhammadu Buhari on Tuesday commended the Central Bank of Nigeria (CBN), alongside the Nigeria Deposit Insurance Corporation (NDIC), the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC), including other critical stakeholders for the apex bank’s diligent work aimed at ensuring financial system stability over the years.

Buhari, further assured that his administration would continue to support the entire banking and finance industry in all appropriate ways to ensure it continues to deliver on mandates while creating value innovation for customers.
The president gave the commendation at the opening of the 15th Annual Banking and Finance Conference with the theme: “Repositioning the Financial Services Industry for an Evolving Glocal Context,” held in Abuja.

Buhari, also said the government was committed to securing lives and property within the country and would not relent in ensuring a safe and secure environment for citizens as well as productive activities to thrive, noting that the menace of terrorism and banditry had been plaguing the country over the years.

He said, “Indeed, the fight to rid our country of banditry, kidnapping, and insurgency is being intensified at all fronts.”

Also, on the rising inflation, which had continued to cause increasing hardship for Nigerians, the president assured that his administration had over the years implemented several policies to combat inflation including an increase in Monetary Policy Rates (MPR) as well as a 30 per cent markup on savings rates.

He said these policies were geared towards mopping up excessive liquidity in the economy while encouraging savings and investment, stressing that government would continue to cushion these adverse effects through its social safety net programmes.

However, he said the government would continue to formulate and implement policies that are aimed at promoting self-sustenance in critical areas including energy, agriculture, health, and technologies, adding that the outputs of the conference would be valuable in shaping relevant policy initiatives.

Buhari, who was represented at the ceremony by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, pointed out that the annual conference of the CIBN, among other things, provides a credible annual platform for a holistic review and evaluation of the performance of the sector by industry practitioners and regulators while charting the path for the future.

This, he said, explains why his administration had always ensured that government participation at the conference is at the highest possible level.

Buhari also expressed the need for a Nigeria of the future that harnesses her strengths, competences, and cultural diversity to confront current challenges plaguing the people, ranging from climate change to pandemics and insecurity.

Buhari, specifically noted that the theme of the conference was particularly relevant considering the need to constantly adapt internationally acceptable best practices to improve the efficiency and effectiveness of the sector in playing its primary role of holding financial assets, financial intermediation and capital formation.

He said the expediency of discussions on repositioning the sector within an evolving global context cannot be over-emphasised as it stands to benefit from the experiences of other nations in navigating through emerging issues such as the fall-out from the COVID-19 pandemic and the ongoing Russian-Ukraine war which have global implications on financial service delivery in local economies.

He said under the new regime, the role and significance of the finance industry cannot be overstated in driving economic prosperity by providing opportunities to create SME start-ups, expand existing business interests and create more jobs thereby pushing the local brand overseas to frontier markets.

The president added that repositioning the finance services industry involved valuable innovations to ensure global solutions reach local indigenous customers.

He said the recently executed African Continental Free Trade Agreement (AfCFTA) represented a typical reference point as the deal creates a continent-wide market embracing 55 countries with 1.3 billion people and a combined GDP of $3.4 trillion.

Buhari said the first phase of the regional trade agreement, which took effect in January 2021, would gradually eliminate tariffs on 90 per cent of goods and reduce barriers to trade in services.

He pointed out that the finance sector would serve not just as an intermediary for lenders and borrowers but in creating a new ecosystem consisting of platforms where ordinary Africans can buy and sell their locally made products despite currency disparity as being practiced on the Pan-African Payment and Settlement System (PAPSS), a brainchild of Afrexim Bank.

Buhari, among other things, noted that over the past seven years, his administration had through various initiatives supported the repositioning of the Nigerian economy within an evolving ‘glocal’ context.

He further listed the intervention measures to include support of Nigeria’s creative industry and indigenous Small and Medium-sized businesses as well as the agricultural sector which have enhanced the capacity of indigenous enterprises to compete with their counterparts from other countries., adding that these efforts would be sustained and extended to more sectors of the economy.

He said the resolution of global issues within the local context would continue to give impetus for economic prosperity in local communities, adding that climate change, eroding purchasing power due to inflation and insecurity are currently being tackled at both local and global levels.

However, in his remarks, the President of CIBN, Mr. Ken Opara, said the banking industry was not oblivious of the “brain drain or Japa syndrome” currently affecting the country’s workforce.

As a result, he said the development had necessitated research finding on the topic “The Analysis of Human Capital Attrition in an Evolving ‘GLOCAL’ Context: A Case Study of the Nigerian Banking Industry,” adding that the CIBN would present the outcome of research work during the conference.

Opara said the COVID-19 pandemic had been a wake-up call for the financial services industry, exposing gaps in digital service provision and cost structures.

He said, “COVID-19 proved a powerful catalyst for change. Banking’s digital transformation accelerated beyond everyone’s imagination, as radically new ways of working remotely and serving customers facing dire circumstances were launched at a fast pace. Mobile app transaction processing rocketed.

“Cash and cheque usage dropped dramatically, replaced by high volumes of electronic and card payments. Business lending to keep the economy afloat was off the scale.”

He said as the world continues to evolve, the financial services industry would need to explore innovation and reconfigure its business and operating platforms – in some cases requiring making profound changes to succeed in the future.

However, in his keynote address, the Chairman, Union Bank of Nigeria Plc, Mr. Farouk Gumel, said the banking industry must help support the kind of growth that leads to inclusivity, and accused financial system operators of embracing banking innovation at the detriment of rural communities.

He criticised ongoing conversations by some banks on the need to achieve operational efficiency by shutting down branches.

Gumel argued that rather than close branches, the best approach was to embrace the idea of re-branching.

He told THISDAY that banks don’t really require a big structure but rural branches targeted at the rural communities to drive financial inclusion.

He said, “You have to be next to somebody to convince him to trust you and I think that is how the banking system should look at it.

“Efficiency counts but you have to be inefficient if you are dealing with people in the rural areas.”

He said there has been a disproportionate level of progress in the banking sector without consideration for the rural population who are often neglected.

Specifically, he called for increased credit support for under-served Nigerians to enable them actualise their entrepreneurship aspirations.

Gumel, among other things, also said banking technology should not entirely take the place of human resources in the current model.

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Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

Published

4 weeks ago

October 28, 2024

Matthew Eloyi

Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

Business

Mercedes urges delay of EU tariffs on Chinese electric vehicles

Published

1 month ago

October 21, 2024

Matthew Eloyi

Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

Business

ACCI moves to promote business connections, balance work-life

Published

1 month ago

October 16, 2024

Matthew Eloyi

ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.