PoS transactions hit 117,131 in four months — NIBSS

Nigeria recorded 117,131 transactions on Point of Sales terminals from January to April, a report from the Nigerian Interbank Settlement System has indicated.

The report, obtained by the News Agency of Nigeria on Sunday, showed an increase of 42,817 when compared to the 74,314 transactions that were recorded in the corresponding period of 2018.

The report also showed that 902,978 terminals were deployed in the same period, an indication that about 231,441 terminals had been issued by Nigerian banks in the first four months of the year.

This figure is more than the 671,537 that was recorded in the corresponding period of 2018, according to the report.

In the period under review, 1.09 million PoS terminals were registered, an increase of 306,570 more than the 789,444 PoS registered in the corresponding period of 2018.

According to the report, there is a rise of about N232.86bn from N647.04bn to N879.9bn in the value of transaction carried out on the PoS machines by Nigerians.

Meanwhile, for electronic bills payment, 338,021 transactions worth N167.65bn were carried out from January to April 2018, while 412,348 transactions valued at N189.5bn were carried out in the first four months of the year.

2,122 depositors petition banks, demand N334bn, $420m claims

About 2,122 bank customers lodged complaints against their banks to the Sub–Committee on Ethics and Professionalism of the Chartered Institute of Bankers of Nigeria between 2001 and 2018.

The CIBN disclosed this in its 2018 annual report and accounts which it released on Saturday.

The committee was responsible for resolution of disputes relating to unethical practices between or among banks as well as between banks and their customers.

In the report, the customers demanded claims totalling N344.01bn and $420.06m in the period under review.

The institute said it resolved 1,993 cases and awarded N30.26bn and $18.41m to the petitioners in 2017.

In the report, it stated that 140 cases were outstanding as of the end of 2018.

Part of the CIBN report read, “Since inception in 2001, the sub-committee has received a total number of 2,122 petitions/cases with total claims of N344.01bn and $420.06m in local and foreign currencies respectively.

“1,993 cases were resolved which resulted to N30.26bn and N18.41m awarded/ refunded to petitioners/ customers by banks.”

The institute also said that as of the end of April 2019, it had received 129 new cases with claims amounting to N11.89bn.

It also said that in 2019, it had so far awarded N1.83bn in 138 pending cases.

The President, CIBN, Dr Uche Olowu, said the Nigerian banking industry witnessed several notable developments in the year under review.

“Most importantly was in the area of enhancement and advancement in fintech and digitisation,” he said.

He assured that the institute would continue to guard its financial resources while at the same time, ensuring that the implementation of its vision and goals for the institute were not hampered by financial constraints.

The Registrar, Chief Executive, CIBN, Seye Awojobi, said, the operations of the institute had been in consonance with responsible accounting and consequence management to ensure effectiveness and efficiency of its mandates.

He said that in the year under review, the thorough process had propelled the staff members to be more resourceful and focus- driven to achieve their set targets.

“Furthermore, it is noteworthy to inform you that the current Strategy Plan (approved in 2016) of the institute would run its full course by September 2019 and adequate process has been put in place by the Research, Strategy & Advocacy Committee towards the development of a new and robust strategy plan that would incorporate the expected actions and deliverables in tandem with dynamics of the business climate.”

Assets, contributors rise under CPS

Latest figures obtained from the National Pension Commission revealed that the contributors and assets under the Contributory Pension Scheme have continued to increase, NIKE POPOOLA reports

Total assets under the Contributory Pension Scheme stood at N8.9tn as of the end of February 2019, according to latest figures from the National Pension Commission.

Workers under the scheme stood at 8.5 million in the same period.

The pension industry is a sector specially created to cater to the financial future of workers in their vulnerable age, when they are no longer in paid employment.

It ensures that a retiree continues to receive regular stipends, instead of staying without any salary.

In Nigeria, the CPS was introduced in 2004 by the Pension Reform Act.

Latest figures obtained from PenCom’s 2018 fourth quarter report revealed that the pension industry recorded a 1.63 per cent growth in the scheme membership during the fourth quarter of 2018, from 8.34 million contributors at the end of the third quarter to 8.47 million.

It stated that the growth in the industry membership was driven by the Retirement Savings Account scheme, which had an increase of 138,236 contributors, representing 1.64 per cent.

However, membership of the Closed Pension Fund Administration scheme declined by 71 members (23,332) while the Approved Existing Scheme membership remained unchanged at 40,951.

A breakdown of the RSA registrations indicated a 0.82 per cent (29,455) increase in RSA membership from the public sector during the fourth quarter of 2018 to 3,609,350, which represented 42.92 per cent of the total RSA registrations.

Private sector membership increased by 2.32 per cent (108,781) in the quarter under review, which brought total registrations from the sector to 4,800,834, representing 57.08 per cent of total RSA membership.

PenCom attributed the growth to the increased level of compliance by the private sector as a result of the various steps taken by the commission to improve compliance and coverage, as well as marketing strategies of the Pension Fund Administrators.

The report added that the total monthly pension contribution made by contributors from both the public and private sectors was N5.09tn as of the end of the fourth quarter of 2018.

This showed an increase of N145.41bn, representing 2.94 per cent growth over the total contributions as at the end of the previous quarter.

During the fourth quarter of 2018, the total contributions received from the public sector amounted to N50.03bn (34.41 per cent) while the private sector contributed N5.38bn (65.59 per cent).

A review of the aggregate total contribution showed that N2.56tn or 50.35 per cent of the contribution came from the public sector, while the private sector contributed the remaining 49.65 per cent (N2.53tn).

The aggregate total pension contributions of the private sector increased from N2.43tn as at third quarter of 2018 to N2.53tn as at the end of the reporting period representing a growth of 4.04 per cent.

It added that the aggregate total pension contribution of the public sector increased by 3.21 per cent from N2.51tn to N2.56tn over the same period.

In the report, it stated that many retirees had continued to earn monthly stipends.

The commission approved a total of 4,350 applications for retirement under life annuity during the quarter, bringing the total number of retirees receiving their retirement benefits through the annuity plan to 61,652.

The 4,350 retirees received N8.61bn as lump sum payment and paid premium of N38.91bn to insurance companies and monthly annuity of N260.14m.

This resulted in total lump sum payment of N76.78bn, premium of N328.88bn and monthly annuity payment of N3.26bn as at the end of fourth quarter, 2018..

In the report, the total number of retirees currently receiving their pensions under the programmed withdrawal contracts increased by 4.80 per cent from 191,556 in the previous quarter to 200,747 as at the end of the fourth quarter of 2018.

A sectorial breakdown showed that 65.19 per cent of those that received pension under the PW were from the public sector while retirees from the private sector accounted for the remaining 34.81 per cent.

During the quarter under review, the sum of N26.88bn was paid to 9,191 retirees as lump sum and N1.96bn as monthly programmed withdrawals.

The acting Director-General, PenCom, Aisha Dahir-Umar, said the CPS had been very impactful in Nigeria since the commencement of its implementation in 2004.

She said, “The formation of long-term domestic capital, represented by the over N8.74tn worth of pension assets as at January 2019, belonging to 8.46 million formal sector participants, is slowly but surely changing Nigeria’s financial landscape.

“This, by extension, is also transforming the course and pace of our socio-economic development. For instance, N6.51tn, representing 73 per cent of the total pension assets, is invested in Federal Government securities issued to finance various activities of government.

“Thus, in the area of infrastructure alone, the pension funds invested about N95.31bn in the N200bn Sukuk issued by the Federal Government. Similarly, out of the N10.67bn green bond issued by the Federal Government, pension funds invested N7.19bn.”

The President, Pension Fund Operators Association of Nigeria, Mrs Aderonke Adedeji, said that the micro pension scheme was recently introduced by the Federal Government, and it allowed those in the informal sector to join the CPS.

Before the introduction of the micro pension, she said the informal sector workers did not have the opportunity to have pension accounts.

According to her, there are currently 32 pension operators which comprised of 22 Pension Fund Administrators, six Closed Pension Fund Administrators and four Pension Fund Custodians.

Towards the end of 2018, she said the multi-fund structure was introduced which allowed customers to align their risks profile to their investment portfolio.

She said its investment guidelines had been revised to accommodate the micro pension funds and the non-interest funds, which made the total investment portfolio to rise to six.

According to her, the acceptance level of the CPS had continued to rise among the populace.

Heritage Bank promotes sustainable development

Heritage Bank Plc says it is promoting the implementation of the Central Bank of Nigeria initiative on Nigeria Sustainable Banking Principle to deliver positive development effects to society and business.

In a statement, it said it would also continue to protect the customers, communities and environs where it operated.

The bank said it partnered the promoter of the Redball initiative with the theme, “Going Green,” to canvass for tree planting in order to contain environmental pollution and promote the sustainable development of the nation.

While speaking at the event in Port Harcourt, the Managing Director/Chief Executive Officer of the bank, Ifie Sekibo, said that the bank was at the forefront of implementing the NSBP, and was carrying out banking operational and business activities, with conscious consideration for the environmental and social impacts of those activities.

Sekibo, who was represented by the Directorate Head, South South and South East, Osepiribo Ben-Willie, said trees played a key role in neighbourhood landscapes, a belief that had been widely held for millennia in areas beyond sub-Saharan Africa.

He warned against cutting of trees or plants and burning of vegetation.

Sekibo said people consistently cut down trees to make boats, plywood and all kind of things for comfort and did not think about replenishing them.

He remarked that they were actually exhaustive, they were not inelastic and there was need to take deliberate steps to replenish them.

The Heritage Bank boss said, “We seemed to forget that our lives as Nigerians/Africans started with the land. If we don’t take care of the land, the land will take care of us, the land does not need us, and we need the land to take care of us. Afforestation is one of the ways to take care of the land and we need to talk about carbon credit because we need to find a way to make money.”

Sekibo disclosed that Heritage Bank had been championing the implementation of sustainable banking both in its internal daily operations (in terms of how it managed its physical branches/locations, human capital, costs, opportunities, risks exposures) and its activities relating to external interactions with its clients and the types of projects they fund.

The Convener of Redball and Editor-in-Chief/Chief Operating Officer of Eve-Afrique magazine, Mrs Ivy Davies Etokakpan, commended Heritage Bank for its relentless support to sustainable and greener environment and, to the growth of Rivers State.

FG, states, LGs got N5.5tn in eight months — Finance minister

Between September 2018 and April this year, the three tiers of government shared the sum of N5.5tn as revenue allocation from the federation account.

The amount, distributed by the Federation Account Allocation Committee, was shared from two major revenue components.

They were statutory allocation where the sum of N4.8tn was shared during the eight months period and N784.7bn shared under the Value Added Tax revenue.

The disbursement of the amount was confirmed by the Minister of Finance, Mrs Zainab Ahmed,  in Abuja during an interactive session with journalists.

The federation account is currently being managed on a  legal framework that allows funds to be shared under three major components-statutory allocation, Value Added Tax distribution; and allocation made under the derivation principle.

Under statutory allocation, the Federal Government gets 52.68 per cent of the revenue shared; states, 26.72 per cent; and local governments, 20.60 per cent.

The framework also provides that Value Added Tax revenue be shared thus: FG, 15 per cent; states, 50 per cent; and LGs, 35 per cent.

Similarly, an extra allocation is given to the nine oil producing states based on the 13 per cent derivation  principle

The finance minister did not give a breakdown of the amount disbursed but analysis by our correspondent from the monthly allocation to states showed that the sum of N741.84bn was shared in September last year while October had an allocation of N698.71bn.

For the month of November, the sum of N788.14bn was distributed to the three tiers of government, while N812.76bn, N649.19bn and N610.37bn were distributed in December, January and February respectively.

For the months of March and April this year, further analysis of the allocation showed that the sum of N619.85bn and N617.56bn were shared respectively among the three tiers of government.

The minister said, “The Federal Ministry of Finance has continued to remain responsible in ensuring revenue sharing to the three tiers of government in accordance with the provision of the Revenue Mobilisation Allocation and Fiscal Commission Act.

“A total sum of N4.8tn was distributed to the three tiers of government between September 2018 and April 2019 from the Federation Account.

“Similarly, the sum of N784.7bn realised from VAT for the same period was also shared.”

NNPC removes NPDC boss, 49 others in major shake-up

There has been a massive reorganisation of the top management staff of the Nigerian National Petroleum Corporation, as about 50 senior personnel of the oil firm and its subsidiaries have either been removed or replaced.

It was learnt that the Managing Director of the Nigerian Petroleum Development Company, Yusuf Matashi, was removed and replaced by Usman Yusuf, the Senior Technical Assistant to the Group Managing Director, in the latest reorganisation.

Impeccable sources at the corporation told our correspondent that other subsidiaries and arms of the corporation that were affected include the Nigerian Gas Marketing Company, which is the marketing arm of the Nigerian Gas Company; Kaduna Refining and Petrochemical Company; and the Liquified Natural Gas arm of the group.

“Some persons were promoted and others were removed. The reorganisation affected 50 senior management staff members in all. The Managing Director of NPDC, Yusuf Matashi, was removed and he was replaced by Yusuf Usman, the Senior Technical Assistant to the GMD,” one of the sources stated.

The source added, “There are many others, about 49 of them, but the removal of the NPDC boss is the prominent one in this latest reorganisation exercise.”

Another source stated that the development had led to side talks among workers at the corporation, as some employees of the firm had expressed displeasure with the latest move.

“Aside from the NPDC, the Nigeria Gas Marketing Company in Warri was affected. A lot of persons at the Liquified Natural Gas arm of the corporation in the corporate headquarters were also affected in the reorganisation. The Kaduna Refining and Petrochemical Company was also affected,” the source stated.

The source noted that some persons had argued that the reorganisation was one-sided and did not show fairness to the six geopolitical zones of Nigeria, as a greater number of appointees were from one region.

When contacted on the matter, the Group General Manager, Group Public Affairs Division, NNPC, declined to make any comment.

In 2017, the corporation witnessed a major shake-up which affected 55 top executives of the oil firm.

 

On August 30, 2017, The PUNCH reported that the NNPC’s Group Managing Director, Maikanti Baru, stated then that the appointments would not only help to position the corporation for challenges ahead but would help fill the gaps created by statutory retirement of some officers.

It was observed that Usman, who is now appointed the new boss of the NPDC, was named as the STA to Baru in the 2017 reorganisation exercise at the corporation.

Sources at the oil firm confirmed to our correspondent that details of the reorganisation would be made public in due course.

ECOWAS Single Currency: Task force to give assessment on feasibility of meeting deadline

The Economic Community of West African States, ECOWAS Task Force on single currency would meet in June 2019 to give the assessment on the studies of the currency.

President of ECOWAS Commission Mr. Jean-Claude Brou, said this while presenting the Community Work Programme of the Commission at the ongoing Ordinary Session of the ECOWAS Parliament in Abuja, Nigeria.

Mr. Brou said that stakeholders in the region’s economic and finance sectors, including the central banks and ministers of finance, had been deliberating on the single currency.

“The single currency is a topic that is very important because it completes the free movement of persons for a single market and if there is a single currency, one can carry out trade and there is need for harmonisation.

“Deliberations are being carried out with the central banks and the ministers of finance in the region and some key issues are being discussed.”

“Issues such as the convergence criteria, the best exchange regime to adopt with challenges and costs involved so as to give the best conditions for the community.”

“The studies that are being carried out would be completed by next month so that we can have the proposals and make progress,” Mr Brou said.

The regional commission’s president said that the meeting would determine the possibility of achieving the single currency by 2020 set by the Heads of State.

“It will be on the basis of the results of all the studies on the assessment that is currently being done that we will see where we stand exactly but the objectives have been set by the Heads of State,” Mr. Brou explained.

Convergence Criteria
While presenting the community report to the parliament in November 2018, Mr. Brou had said that many member states had yet to meet the macroeconomic convergence criteria required for a monetary union.

The three primary criteria that are being used are a budget deficit of not more than three per cent; average annual inflation of less than 10 per cent with a long term goal of not more than five per cent by 2019; and gross reserves that can finance at least three months of imports.

Secondary Criteria
The three secondary convergence criteria that have been adopted by ECOWAS are public debt/Gross Domestic Product of not more than 70 per cent; central bank financing of budget deficit should not be more than 10 per cent of previous year’s tax revenue; and nominal exchange rate variation of plus or minus 10 per cent.

The Authority of Heads of State and Government had set aside 2020 for West African countries to achieve the single currency which is aimed at promoting economic integration in the region.

Hajiya Aliyu Mounts Saddle as 20th NACCIMA President

President National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
President National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

Hajiya Aliyu inaugurated 20th NACCIMA president         Hajiya Saratu Iya Aliyu has been inaug urated as the 20th National President of the Nigerian Chambers of Commerce, Industry, Mines and Agriculture ( NACCIMA). She took over from the former President Iyalode Alaba  Lawson, who was the first female to occupy the height. Speaking at the event in Kaduna President Muhammadu  Buhari promised to do all within his power to enable businesses to thrive in the country.            The President said the massive investments in rail, roads and power are aimed to assist the growth of business in the country.             Saratu Aliyu had her University education at the famous Ahmadu Bello University, Zaria, Kaduna state.                She is a seasoned professional ,teacher, trainer, farmer, trader and a host of other fields.       She was the former Chairperson at the coalition of the Northern States Chambers of commerce , the first and the second Deputy President and later President of Kaduna Chamber of Commerce and Industry ( KADCCIMA).   The new NACCIMA boss has attended several leadership courses both in Nigeria and in oversea.            Aliyu has also attended several local and international conferences were she distinguished herself as a business icon.   Aliyu is so passionate about women issues and a leader in the development of women causes,  these could be seen in her various involvement in women related organisations.     Born on September 24th, 1948 in Lagos, she had her educational training in Kaduna State. The new NACCIMA president originated from Borno State and married to Aliyu from Niger State. Her spouse was a former Deputy Inspector General of Police. She is happily married with children.

A former Head of State, Gen Yakubu Gowon, has urged operators in the banking industry to shun unethical practices and build confidence in the sector.

Gowon spoke during the Chartered Institute of Bankers of Nigeria’s extra ordinary investiture event in Lagos on Thursday night.

The former head of state said that the Nigerian banking and finance industry had in recent times been plagued with fraud and unethical practices.

He said, “No day passes without reports of fraud and other unethical practices in the industry. This constitutes a big threat to the values of trust and professionalism which ought to be the basic principles of the banking industry.

“By this investiture programme and its theme, which is ‘Ethical dilemma in financial institutions: The way forward,’ the institute seeks to achieve two mandates at one event, one being the award of fellowship status to the deserving members of the profession and the other being to ensure the furtherance, maintenance and observance of ethical standards and professionalism among practitioners of the banking profession in Nigeria.”

Gowon added, “So, I enjoin you to join hands to wage war against unethical practices in the banking and finance industry today for the future to be bright for generations to come.”

Gowon also congratulated the awardees at the event.

The awardees are the Deputy Governor of Central Bank of Nigeria, Financial Systems Stability Directorate, Mrs Aishah Ahmad; the Deputy Governor, CBN, Corporate Services Directorate, Mr Edward Adamu, the Managing Director/Chief Executive Officer, Zenith Bank Plc, Mr Peter Amangbo; the Chairman, Goldfield Group, Mr Bade Adeshina; the Managing Director/Chief Executive Officer, Development Bank of Nigeria Plc; Mr Tony Okpanachi, and the Managing Director/Chief Executive Officer, Jaiz Bank Plc, Mr Hassan Usman.

The President/Chairman of Council, CIBN, Dr Uche Olowu, said the essence of the extraordinary fellowship was to provide an opportunity for members whose fellowship awards had been approved but could not attend the investiture due to exigency.

“As you may probably be aware, fellowship is the apex membership category of the institute bestowed on members who have distinguished themselves within the banking industry in Nigeria and beyond. I must emphasise that this prestigious and coveted award is a call to higher service not only to the institute but also the banking profession, the industry and the economy at large.

FG to shut down Enugu airport runway

The Federal Government on Friday said it planned to downgrade the Akanu Ibiam International Airport, Enugu or shut it down for runway rehabilitation.

The Minister of State for Aviation, Senator Hadi Sirika, who made this known at the 2019 Stakeholders’ Forum, in Lagos, said the decision was taken to enable the Federal Government to work on the airport runway to avoid any major incident.

He said, “We may downgrade Enugu Airport in terms of its status as an international airport. The runway is terrible. I have been there three times, seen the governor of the state and told them what to do but nothing has happened. There are a market and an abattoir at the side of the runway and these attract birds. Of recent, Air Peace suffered a bird strike and this affected the airline, thank God there was no major incident.

“At the end of the runway, you have the government establishing a free trade zone at the centre. Enugu is to the East what Kaduna is to the North. When the government wanted to expand the runway to 60 metres long and 71 metres wide, there were few houses there and we were promised that they would be demolished and the owners compensated so we can have the improvement but now they have built more houses. Enugu would have to be closed down; that is the honest truth.”

The minister also stated that about N14bn would be spent on the rehabilitation of the Murtala Muhammed International Airport, Lagos.

According to him, the airport terminal was built to handle 200,000 passengers but is currently handling over 8,000,000 passengers.

He explained that Julius Berger had done the estimate of the reconstruction.

The Managing Director, Federal Airports Authority of Nigeria, Mr Saleh Dunoma, said the rehabilitation process might not take long as there were plans to finish the new terminal and move some airline operations there.