Category: Banking/Finance

CBN Naira4Dollar: Nigerians in Diaspora Made N200million from 1 Week Remittance

The Central Bank of Nigeria’s Naira4Dollar scheme may have attracted about $40 million in foreign remittances in one week, according to a reliable source with knowledge of the scheme.

 

 

 

Sources informs that the scheme had performed a lot more than expected as remittances via commercial banks have picked up suggesting Nigerians in the diaspora have embraced it.

 

 

According to the source, the CBN received circa $40 million last week from remittances up from about $6 million before the policy was introduced. At $40 million a week the CBN could be attracting about $160 million a month or $1.9 billion per annum. This will be higher than the estimated $1.1 billion received in 2020 from diaspora remittances but much lower than the $3.2 billion received in 2019.

 

 

The central bank captures remittances in its Balance of Payment report and the Foreign Exchange Flows data. While the BOP includes non-cash items remitted into Nigeria, the Foreign Exchange Flows Data records cash items only.

It was reported recently that commercial banks in Nigeria are automatically opening domiciliary bank accounts for Beneficiaries of diaspora remittances in Nigeria under the CBN’s Naira4Dollar scheme. As the beneficiary receives the inflows, N5 for every dollar remitted is a credit to the naira account of the beneficiary.

The CBN Naira4Dollar scheme appears to be recording success since its introduction three weeks ago. A $40 million a week inflow suggests most of the dollars are either in domiciliar account of customers or withdrawn and exchanged at the black market.

The CBN believes remittances paid in dollars and sold on the streets will improve liquidity in the retail end, thus strengthening the exchange rate.

However, the latest information suggests the exchange rate between the naira and dollar is N486/$1 higher than the N480/$1 exchanged just before the new policy was introduced.

At $40 million the CBN would have incurred a cost of about N200 million.

Heritage Bank joins in World Water Day with installation of borehole

Heritage Bank Plc has joined the rest of the globe to celebrate the World Water Day 2021 with plans to assist a community in dire need of clean water by installing a bore hole.

The theme for this year’s WWD 2021 is “Valuing Water,” which focuses on the importance of freshwater and presses for sustainable management of water resources. According to the United Nations, the day is aimed at raising awareness about 2.2 billion people living without access to safe water resources globally.

“The value of water is about much more than its price.” This day is celebrated keeping in line with Sustainable Development Goal number 6 which is aimed at achieving water and sanitation by all for 2030,” UN stated.

It further explained that global water demand is likely to rise by over 50 per cent by 2040.

To this effect, as part of efforts to implement the Central Bank of Nigeria’s (CBN) sustainable banking principle, Heritage Bank Plc has instituted a Corporate Social Responsibility’s (CSR) campaign project to assist a community in dire need of clean water by installing a bore hole.

This campaign project, according to the bank will be executed in two phases; the first involves nominations call for community that is in dire need of water will be put on its social platforms from 22nd March 2021, which will run for 30days.

The bank in a statement signed by the Divisional Head, Corporate Communications, Fela Ibidapo, disclosed that thorough research will be conducted on communities that put up for nominations and the most in need will be chosen.

In furtherance, the community leaders would be engaged, which will herald commencement of the project and handing over the borehole to the community.

Speaking on WWD 2021, the MD/CEO of the Bank, Ifie Sekibo said the adoption of the campaign project shows how Heritage Bank values water and making clean water accessible to the under-privilege, living in urban slums and rural areas.

According to him, to access safe water resources globally, higher value must be given to protecting the ecosystem in ensuring good quality water supply.

Sekibo, who further canvassed for the implementation of Sustainable Banking Principle, tasked stakeholders to continually promote the need for more productive value of water, which would bring about developmental impact to society, while protecting the communities and environment in which financial institutions and their clients operate.

FIRSTBANK CEO LISTS TECHNOLOGY, CAPACITY AS KEY FOR POST COVID-19 GROWTH By Bolaji Israel

…Thumbs up mobile banking (FirstMobile) and USSD (*894#) platforms

Dr Adesola Adeduntan, Chief Executive Officer, First Bank of Nigeria Limited said technology, innovation and enhanced capabilities have become necessary to achieve significant business growth in the post-COVID-19.

Adeduntan made this remark on Thursday during a Digital Disruption Series webinar organised by the Surrey Business School of the University of Surrey, England.

The webinar was themed: “Digital Disruption: How Can Companies Thrive in Africa Post-COVID-19.”

According to the FirstBank boss, it is about studying the environment and leveraging the digital space to proffer solutions tailored to suit emerging challenges

Adeduntan cited FirstMobile, the Bank’s mobile banking and *894# USSD platforms as some of the digital disruptions that had impacted positively on the financial institution, the banking industry and the financial ecosystem as a whole.

“We have the largest bank agents – close to 90,000 – of them spread across the country, helping to bring in people that were financially excluded into the financial system,” he said.

On barriers to growth in creating innovative and indigenous knowledge, the CEO cited capital constraint, social infrastructure and cultural approach as some of the limiting factors encountered by businesses in Africa.

“In Nigeria, to solve the capital constraint, the Central Bank of Nigeria and the Banker’s Committee contribute certain percentage of our profit to a pool of fund to serve as equity for entrepreneurs,” he said.

According to the FirstBank CEO, absence of social infrastructure in African countries has denied citizens the ability to lead better and quality life, thus leading to the migration of many young and brilliant minds from the continent.

He said the bank evolved a deliberate approach in its employment, remuneration, exciting work roles and talent development to inspire and retain its young workforce.

Dr. Adeduntan added that there were significant opportunities in Africa, with over one billion population, while noting that opportunities were available for young and innovative people willing to work smart and hard.

The FirstBank boss noted that the bank had been in existence for 127 years, and had been strategically positioned for exponential growth through its ability to leverage innovation to reinvent itself.

Also speaking at the event, Prof. Kenneth Amaeshi, Thought Leader, University of Edinburgh, Scotland, said COVID-19 had unravelled the need to realign Africa’s institutions, and convert challenges to opportunities.

Amaeshi said African governments should evolve more favourable policies and incentives that would encourage renewed innovation, increase investment in education, research and development and intellectual property protection.

“As much as we want to celebrate technology development in Africa, we need Africans to participate and contribute to the knowledge going on in the digital space,” he said.

GTBank Releases 2020 Full Year Audited Results……..Reports PBT of ₦238.1 Billion

Guaranty Trust Bank plc has released its Audited Financial Results for the year ended December 31, 2020 to the Nigerian and London Stock Exchanges.

A review of the result shows improved performance across all key financial metrics in the face of the unprecedented challenges brought on by the COVID-19 pandemic, reflecting the quality of past decisions and reaffirming its position as one of the best managed financial institutions in Africa.
The Group reported Profit before tax of ₦238.1billion, representing a growth of 2.8% over ₦231.7billion recorded in the corresponding year ended December 2019. The Group’s Loan book (Net) grew by 10.7% from ₦1.502trillion recorded as at December 2019 to ₦1.663trillion in December 2020, while Customers’ deposits increased by 38.6% from ₦2.533trillion in December 2019 to ₦3.509trillion in December 2020.
Guaranty Trust Bank’s Balance sheet remained well structured, diversified and resilient with Total assets and Shareholders’ Funds closing at ₦4.945trillion and ₦814.4billion respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9%, while Asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.4% (Bank: 5.9%) and 1.2% (Bank: 1.0%) in December 2020 from 6.5% (Bank: 6.2%) and 0.3% (Bank: 0.2%) in December 2019 respectively.
Commenting on the financial results, the Managing Director/CEO of Guaranty Trust Bank plc, Mr. Segun Agbaje, said; “2020 was arguably the most challenging year that the world has faced in decades. In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate.
We were on solid footing going into 2020; the strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”
He further stated that; “Amidst the many challenges that persist, we remain ardent believers in Africa’s growth potential. Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering people and uplifting our communities. With our commitment to deepening customer relationships and intense focus on delivering innovative financial solutions, we enter 2021 well-positioned to lead this new world.”
Guaranty Trust Bank plc continues to post the best metrics in the Nigerian Banking industry in terms of all Financial Ratios i.e. Post-Tax Return on Equity (ROAE) of 26.8%, Post-Tax Return on Assets (ROAA) of 4.6%, Full Impact Capital Adequacy Ratio (CAR) of 21.9% and Cost to Income ratio of 38.2%.
Renowned for its forward-thinking approach to financial services and customer engagement, GTBank was recently ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent survey and ranking of the Top 100 admired brands in Africa. The Bank was also awarded the Best Bank in Nigeria by Euromoney Magazine for a record-extending tenth time and the Euromoney Excellence in Leadership Africa Award for its swift reaction in responding to the Covid-19 crisis and for addressing the impact of the pandemic on its customers and communities.

UBA to Support Businesses on Budgeting and Forecasting, Holds Workshop Today

As part of its continuous effort to catalyse the growth and sustainability of Small and Medium-Scale businesses in Nigeria and Africa, Pan Africa Financial Institution, United Bank for Africa, (UBA) Plc will be hosting its next Business Series on Wednesday, March 17th, 2021.

The UBA Business Series, which is held quarterly, is a capacity building initiative where professional business leaders share insights on best business practices and how entrepreneurs can build a sustainable business empire especially in a challenging business environment in Africa, aggravated by the COVID 19 pandemic.

In this edition, which will be held via Microsoft Teams, UBA will host the founder, Accounting Hub, Chioma Ifeanyi-Eze, a seasoned accountant with years of experience across multinationals including PWC.

Ifeanyi-Eze will be speaking on Budgeting and forecasting for Business Growth and will give tips to business owners and intending start-ups on practical ways to ensure their businesses survive and thrive and essential strategies on how to recover and mitigate losses especially in these difficult operating environments in Africa and beyond

The open event will be held virtually by 2pm WAT on Wednesday, March 17, 2021 and interested participants can register via this link: http://bit.ly/UBASMEWorkshopMarch2021

UBA’s Group Head, Consumer and Retail Banking, Sampson Aneke, who spoke ahead of the event, said that far beyond banking services, UBA is interested in ensuring that customers and entrepreneurs run businesses that can stand the test of time, adding that the Business Series, will assist to arm business leaders with all the knowledge and experience required to take their businesses to the next level.

He said, “Even in this period of the pandemic, it is interesting to note that some businesses are still making it big. How? you will ask, these are some of the questions we will address in our seminar on Wednesday.

“Chioma Ifeanyi Eze, who is experienced in every sense of the word is willing to share insight with others on ways to grow their business and put it on firm footing as we try to move beyond this pandemic. I will advise everyone to tune in, even if you do not have a business, it is an opportunity to learn something new,” Aneke said.

This novel initiative is a quarterly enterprise championed by UBA, and has been instrumental in helping to support and elevate businesses to new highs for many years now.

United Bank for Africa is a leading pan-African financial institution offering banking services to more than twenty million customers globally. With footprint in 20 African countries and presence globally in the United Kingdom, the USA and France, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross border payments and remittances, trade finance and ancillary

FIRSTBANK PROMOTES CROSS BORDER PAYMENTS IN SUB SAHARA AFRICA WITH FIRST GLOBAL TRANSFER

First Bank of Nigeria Limited, Nigeria’s premier and leading financial inclusion services provider, has announced the launch of First Global Transfer (FGT) to promote international transfer of funds across its subsidiaries in sub-Saharan Africa. The Bank’s subsidiaries in Africa include FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal.

The First Global Transfer (FGT) initiative is specifically designed to ensure safe, timely and improved efficiency in the transfer of funds across the network of FirstBank subsidiaries in Africa. The FGT is not restricted to FirstBank and FBNBank Customers alone but it is also open to every individual resident in the country the funds transfer is originating from.

Intending users of the initiative are to visit any of the Bank’s branches in Nigeria or subsidiaries in Africa, which are: FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, or FBNBank Senegal to enjoy the service. For example, with First Global Transfer, individuals and customers in Sierra-Leone can walk into any FBNBank branch to send money to FirstBank customers in Nigeria as well as FBNBank customers in Gambia, Ghana, DR Congo, Senegal or Guinea.

Speaking on the initiative, Dr. Adesola Adeduntan, CEO, FirstBank said “today’s customer is influenced by the technological advancement shaping businesses across various industries and our First Global Transfer (FGT) initiative is one of those advancement created to impact every individual in our host community in Africa, whilst promoting the ease and swift transfer of money from one country to another for business or personal activities.”

“With the launch of African Continental Free Trade Area (AfCFTA) on 1 January 2021, the First Global Transfer (FGT) is indeed very timely as it will play an essential role in stimulating business activities across borders, thereby impacting the growth and development of the continent. I enjoin everyone to visit any one of our branches nearest to you in Nigeria or our subsidiaries in Africa and send money to your loved ones or business partners with FirstBank or FBNBank account(s),” he concluded.

WEMA Bank Hosts Webinar To Mark IWD 2021

Nigeria’s leading innovative bank, Wema Bank Plc., through its female proposition, Sara by Wema, will mark this year’s International Women’s Day (IWD) with a webinar on Friday, March 12 by 10.00 am.

 

 

The 90 minutes’ event themed ‘Challenge Today for an Equal Tomorrow’ will have key industry experts and leading female corporate policy influencers in the Nigerian financial, investment, talent development and management ecosystem as panelists.

 

 

The webinar aims at speaking to women on challenging societal norms to reach their full potential in entrepreneurship, the workplace, or personal lives.

The Executive Director, Business Support, Wema Bank, Folake Sanu will host the webinar, while Team Lead, Business Process Re-Engineering, Wema Bank, Chika Adun, will moderate.

 

 

 

Other panelists include Founder, Green Investment Club and certified financial education instructor, Tomie Balogun; global leadership development expert, Dupe Akinsiun, and Chief Knowledge Officer, Wofin Tech Limited, Omilola Oshikoya.

 

 

 

Commenting on the importance of the webinar, Head, Brands and Marketing Communications, Wema Bank Plc. Funmilayo Falola, reiterated the institution’s belief in female empowerment and equity.

“At Wema Bank, gender sensitivity and diversity are second to none – it is at the heart of our operations,” she said.

“With the 2021 IWD celebration, we are poised to entrench the importance of equity across the board as a sustainable voice for women to rise above every known challenge to the pinnacle of career excellence.

 

 

Our proposition, SARA, is a testimony that affirms Wema Bank’s commitment to towards the development of women and girls says Abiola Nejo, Head, Gender Banking

This year’s webinar is part of a week-long social media and online engagement with Wema Bank’s customers to share contemporary knowledge, deepening technology and financial inclusion for their business growth whilst growing the nation’s GDP.

 

 

 

The bank also plans to use the webinar platform to launch its new gender loan offering for female business owners.

Interested participants can register for the webinar through

https://us02web.zoom.us/webinar/register/WN_HlLY84P7RfeqBZBo8RNg6A

UBA Poised To Change The Face Of E-Banking with New Mobile App

Pan African financial institution, United Bank for Africa (UBA), Plc is set to change the face of digital banking services with its new mobile banking app aimed at delivering first-rate services to customers.

The new UBA mobile banking app, has been armed with benefits and features designed to give its customers increased control and accessibility to carry out transactions with ease.

UBA’s Group Head, Digital Banking, Kayode Ishola, who spoke about the new banking app to members of the press during an international virtual media parley on Monday, explained that apart from being able to decide where they want their cards to operate and block, view, or request new cards straight from the app to suit their specific needs, the app has been tailor-made to give customers what they want, how and in the way they want it.

Reeling off some of the features and benefits of the app, he said a lot of investment in cutting edge technology and attention to details was put into the new UBA mobile app.

 

 

Ishola said, “The new UBA Mobile App is your personal finance manager built with a distinctive user interface that will change the face of banking. With this app, we are reimagining banking as our engagement has moved from being channel-based to being platform-based. The speed of the platform has been made to match the speed of light as we have cut down significantly on the number of processes expected to carry out your transactions.

“Interestingly, we have worked towards creating behavioural insight for our customers and working around this to address the real needs of our customers using the Omni channel platform and running on our open digital platform, which is very interactive and armed with lifestyle services. It is sleek and trendy with seamless user interface” Ishola stated.

 

UBA’s Head, SME Banking, Sampson Aneke, said that apart from the fact that the app has been created with journey that has a high-level of intelligence – as it can work based on frequent transactions, it can also speak to the specific country where it is being used as the new mobile app runs concurrently in the 20 countries of UBA’s operation interacting in the different languages and cultures in line with the specific needs and regulation of the country in focus.

“This all-encompassing platform which boasts of a new user interface because of its sleek, modern nature of delivering seamless experience across several devices; can be used as a budgeting tool, loan application and also allows customers view their expenses according to their various categories such as the amount spent on data within a particular period;” Aneke added.

 

On the security features of the app, UBA’s Group Chief Information Officer, Onyebuchi Akosa, said that security of the app are best in class adding that the new platform, which will revolutionise the way banking services are offered, promises to deliver increased personalized banking via a watertight and highly-effective security system.

“The new app has also been built with the best-in-purchase security features and has been modelled appropriately to ensure that all the features are working properly to secure transactions maximally. It is also important to mention that the bank took into consideration the virtually impaired, and thus has used voice recognition as a channel for transaction which suits both convenience and the visually impaired customers,” he said.

 

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty million customers, across 1,000 business offices and customer touch points, in 20 African countries. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

FIRSTBANK PROMOTES DIASPORA REMITANCES, REWARDS CUSTOMERS WITH EXTRA N5 FOR EVERY DOLLAR RECEIVED

First Bank of Nigeria Limited, Nigeria’s leading financial inclusion services provider is rewarding customers with N5 for every dollar received through foreign remittances. This N5 for a dollar incentive is paid to FirstBank’s customers regardless of their preference to collect the USD as cash across the counter in any of the Bank’s over 750 branches nationwide or as transfer into the customers domiciliary accounts.

 

 

The reward to customers is in line with the Central Bank of Nigeria’s ‘Naira 4 Dollar scheme’, driven to promote diaspora remittances into the country. For example, a customer that receives 10,000 USD, gets N50,000.00 as reward. The scheme runs from Monday, 8 March – Saturday, 8 May 2021.

 

Speaking on the initiative, FirstBank’s CEO, Dr. Adesola Adeduntan said “at FirstBank, we are pleased to participate in the CBN’s ‘Naira 4 Dollar scheme’ as it will contribute to deepening financial inclusion in Nigeria. Indeed, it’s an activity we are pleased to lead, whilst promoting access to funds across the nooks and crannies of the country in almost 127 years of our existence.

 

We are delighted to be a gateway to promoting dollar remittances into the country and we encourage our customers, their loved ones and friends to use our international money transfer services which would enable them to enjoy the rewards of this promo, sustaining the increase in inflows of diaspora remittances into Nigeria consequently help in poverty reduction, income redistribution and enhancement of economic growth” he concluded.

 

FirstBank pioneered international funds transfer and remittances over 25 years ago and has been at the forefront of promoting cross border payments in the country, having started the journey with Western Union Money Transfer. The Bank’s wealth of experience and operation in over 750 locations nationwide gives it the edge in the market.

 

Only recently, the Bank launched the First Global Transfer (FGT) product to promote international transfer of funds across its subsidiaries in sub-Saharan Africa. The Bank’s subsidiaries in Africa include FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal.

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