The Chartered Institute of Bankers of Nigeria (CIBN) has called on banks’ managements to stop setting unreasonable targets for their staff.
The Institute made the call in Abuja on Wednesday while presenting a research report with title ‘The Analysis of Human Capital Attrition in an Evolving Glocal Context: A Case Study of the Nigerian Banking Industry.
’The research was presented at the 15th Annual Banking and Finance Conference of the institute with title ‘Repositioning the Financial Services Industry for an Evolving Glocal Context.
’Dr Grace Makinde, the Coordinator of the research, said undue targets given to bank staff by their managers contributed to human capital attrition in the banking industry.
She said that employees’ attrition impacted negatively on the economic performance of any organisation or industry.
Makinde, a Senior Lecturer at Babcock University, said that work load, job recognition and work environment be given due attention by managers in the industry.
She suggested that regular review of policies and benchmark work pattern to meet international best practices be adopted in the banking sector.
According to her, the banking industry ”was bleeding, people are leaving and it is affecting all of us.
”If we can work on these push factors, things that are pushing people out of the work place then, many workers will prefer to stay.
”They will stay when the environment is conducive and culture acceptable,” she said.
Dr Ken Opara, the of CIBN, said that the recommendations from the research and the event would be disseminated to policy makers and participants.
”As a pivotal sector of the economy, we are not oblivious of the “brain drain or Japa syndrome affecting the workforce in our country.
”This is an annual event of our Institute that offers the banking profession a platform to engage with stakeholders and the economy on developments affecting the industry.
”We are in the digital age where technology has made a significant impact on every industry, including the financial services industry,” he said.
Opara said that technology had transformed financial services with the latest fintech solutions and modern trends.
”As a result, the financial services industry would need to adapt to this much faster pace of change.
”Services, products and technologies that were new and useful yesterday will not necessarily be so soon.
”This year’s edition of the conference aims to consider the forces that could significantly impact the overall landscape of the financial services industry in a rapidly evolving world,” he said.
The News Agency of Nigeria reports that the conference attracted various stakeholders from the financial services industry across the country.
eNaira and global digital currency revolution eNaira and global digital currency revolution By Kadiri Abdulrahman, News Agency of Nigeria When the Central Bank of Nigeria (CBN) introduced its digital currency, the eNaira in October 2021, the idea was to create an alternative to the fast growing cryptocurrencies being patronised by Nigerians.
According to European Central Bank, e-money, broadly speaking, is an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer.
The bank said e-money products can be hardware-based or software-based, depending on the technology used to store the monetary value.
Central banks across the world, including CBN, have the mandate to control the circulation and supply of currencies.
However, the phenomenal rise in acceptance of all forms of digital currencies poses a threat to that authority.
In recent years, bitcoin and other cryptocurrencies have become attractive to young people globally mainly due to their high returns over a short period of investment.
However, experts say cryptocurrencies are susceptible to certain financial vulnerabilities and abuse.
To counter this, the CBN in February 2021 announced a ban on cryprocurrency transaction within the Nigerian banking system.
In their place, the apex bank unveiled plans to float eNaira.
At the unveiling ceremony President Muhammadu Buhari said that the initiative would help increase remittances, foster cross border trade, improve financial inclusion, make monetary policy more effective”, among others.
Mr Godwin Emefiele, the CBN Governor, in a recent media report assured that eNaira will open up a whole new market of digital currency users for financial institutions to increase their customer base and add value to their account owners.
“The framework of eNaira is such that it entrenches many pipelines of collaboration and further strengthens financial institutions core service delivery.
“By its very nature with regards to its mandates, eNaira enhances the structures of these institutions instead of replacing same”, Emefiele said at a recent “eNaira Hackathon” event.
At the event, a collaborative initiative between the CBN and the African Fintec Foundry (AFF), Emefiele announced that the digital currency had recorded 200,000 volumes and four billion Naira value of transactions since its inauguration.
The CBN governor also said that the eNaira had reached 840,000 downloads, with about 270,000 active wallets comprising more than 252,000 consumer wallets and 17,000 merchant wallets.
“ I am pleased to inform you that Nigerians, both banked and unbanked, will be able to open an eNaira wallet and conduct transactions by simply dialling *997 from their phones,” he said on the ease of operating eNaira.
According to Mr kingsley Obiora, Deputy Governor, Economic Policy, CBN, Nigerians should embrace eNaira because of it is convenient to use.
Citing the case of South Korea, he said: “In south Korea, 77 per cent no longer use cash to do payment, while in the Philippines it is 30 per cent.
“In Nigeria, we are also seeing the same decline in the use of cash, the minting of currencies in the CBN has been reducing in the last couple of years”.
An Economist, Dr Tope Fasua, and Chief Executive Officer of Global Analytics Consulting Limited described the idea of eNaira as a welcome development.
Fasua said that the idea of eNaira was commendable, projecting that in the future, digital currencies will be dominant other currencies.
However, Brookings Institution in a report advised that electronic currencies should be approached with caution.
“They could undermine the business models of conventional banks and their role in the financial system, making it hard for central banks—which operate largely through the banking system—to maintain financial stability”, the organisation warns.
Similarly, European Union in a report warns that widespread use of digital currencies would reduce the demand for central bank money and thus reduce the size of the balance sheets of central banks or profits of central banks will shrink, but not disappear.
Against this background, a financial analyst and Senior Lecturer at the Pan Atlantic University, Dr Olalekan Aworinde, said there was the need to further sensitise the public on the risks of electronic currencies.
“I think that the CBN should be aware of the fact that there is the risk of cyber-attacks with the introduction of the eNaira.
“As a result, the CBN needs to properly educate the masses on how to use the eNaira in a way that would not put their safety and the safety of their funds at risk,” he said.
This sentiment is shared by the past President of the Chartered Institute of Bankers of Nigeria (CIBN) Mr Okechukwu Unegbu, who advised the CBN to involve relevant stakeholders to ensure that the financial sector is not negatively affected as a result of the introduction of the eNaira.
The eNaira is another form of cryptocurrency which the CBN has banned, and it seems that the apex bank is trying to imitate what it banned.
“There is the need to do a thorough research and robust stakeholder engagement, with the CIBN, ICAN, and other relevant professional bodies, and also create adequate sensitisation on the eNaira”, he said.
As the CBN continues to make efforts to popularise the eNaira among Nigerians, adequate sensitisation is required to improve the acceptance level of the digital currency locally before it is internationalised.
Some experts suggested that government should show the way by using eNaira to for existing welfare programmes.
Others urged the government to shift social welfare programmes and NYSC payments to eNaira platforms to increase its acceptability among Nigerians.
(NANFeatures) *****If used please credit the author and News Agency of Nigeria
The Chartered Institute of Bankers of Nigeria (CIBN) has signed an agreement with the FinTech Association of Nigeria (Fintech NGR) and FinTech Development and Advocacy Initiative (FSI), to promote professionalism in the financial services industry.
The News Agency of Nigeria reports that the signing of the agreement was witnessed by representatives and members of CIBN, FinTech NGR and FSI, at the Bankers House, Victoria Island, on Thursday in Lagos.
Dr Ken Opara, of CIBN, said the alliance was a unique one in the annals of the Institute.
“First, this is the first time the institute is collaborating with two partners at once for the provision of a certification.
“Secondly, this is the first collaboration agreement to be executed during my tenure.
“Thirdly, this initiative is a further step towards the realisation of the mandate of the institute to promote professionalism, whilst enhancing knowledge and competencies in the financial services ecosystem,” he said.
The Fintech Certification Programme is intended to sharpen the minds and raise awareness of industry players about the importance of leveraging technology for financial inclusion and growth.
Opara said the role of the Institute was to be the bridge that would engender positive handshake among all the players (banks, fintechs, other financial agents) in the financial services industry.
This, he said, would be done through capacity building programmes, training, content development, advocacy and sound corporate governance policies.
The CIBN president also said his administration would be built on six strategic pillars with the acronym FUTURE.
According to him, the first pillar with the alphabet ‘F’ is Financial Innovation and Transformation.
He said, “under this pillar, we plan to among others, institutionalise Fintech Certification in collaboration with other credible bodies to sharpen the minds and awareness of industry players in optimising technology for financial inclusion and growth.
“I am extremely delighted that three months after mounting the saddle of leadership of the Institute, we are taking sure steps towards the achievement of this objective.
“Under this Agreement, the three institutions have come together to award Fintech Certification, which offers an excellent opportunity to bridge the tech talent gap and indeed further drive the implementation of the Competency Framework in the banking and finance industry in Nigeria.
” Opara appreciated the Bankers Committee and the Central Bank of Nigeria for appointing the institute as the Accreditation Agency for the implementation of the Competency Framework.
He said the institute would not take the appointment for granted, expressing its determination to make a success of the assignment, which would lead not only to more knowledgeable professionals but improved service delivery.
Mr Ade Bajomo, President, FinTech NGR, said the partnership was a historic moment for FinTech NGR.
“If you cast your mind back only a few years ago, people were wondering whether FinTechs will take over banks and whether banks will still exist.
“But I think we are getting down to a point where you can see that both FinTechs and banks will coexist, they will co-compete and of course, there will be banks that will be more successful because they’re agile, and there will be FinTechs as well that will be successful because of tapping opportunities that perhaps the banks cannot see.
“But in all of these really, it is essential to develop capacity and capability,” he said.
Bajomo said banking as a profession was well regulated with strong compliance, strong culture of capacity building, knowledge building among others, adding that there was the need to also build capacity within the FinTechs in Nigeria.
“If you look at banking as a profession, it’s well regulated, there’s strong compliance, but there is also a strong culture of capacity building, knowledge building.
“When you look at FinTechs and, indeed, the nature and age of FinTechs in our country, it’s about agility, it’s about innovation; and those things that are lacking in terms of compliance regulations have to form the foundation.
“If we’re going to provide scalable, trustworthy financial services, then we have to build that capacity within the fintech.
“But we also have to build the capacity within banks to be more agile, so that way, it’s a rising tide and our economy will benefit from it, the rest of Africa and the rest of the world will benefit from it,” Bajomo said.
Mrs Aituan Kola-Oladejo, Executive Director, FSI, who described CIBN as a “forward thinking institution,” said the signing of the agreement would sharpen the FinTech industry.
She said, “this agreement will open the gate for more FinTech innovators into the FinTech ecosystem, as what was lacking was trust.
Mrs Kafilat Araoye, Managing Director, Lotus Bank Ltd., has emphasised the needs for banks to continuously engage their employees on career development programmes to reduce the level of resignation among millennials in banks.
Araoye made the call at the 2022 Graduates’ Induction and Prize Awards Day of the Chartered Institute of Bankers of Nigeria (CIBN) on Sunday in Lagos.
She spoke on the topic, “Career Development in a Changing World: Strategies for Financial Services Professionals’’.
According to her, there is a need to address the great resignation witnessed in the banking sector.
“All banks now have post-university, pre-work academies or programmes to prepare elaborately sifted graduate candidates for employability, individual employees can thereafter specialise in any of several possible areas.
“At least 60 per cent of workers in the financial services industry are millennials, so we must consider how to attract, motivate and retain them through career development programmes.
“Employers should consider placing greater emphasis on employee potential than on past performance when administering career development programmes,’’ she said.
She urged financial institutions to invest in enhancing the standard of tertiary education, the main pipeline for future manpower and also deploy career coaches, counsellors and mentors to help young employees find their purpose.
She commended CIBN on its mentorship programme advising that the programme should be enhanced and all interested young bankers who had graduated should be accommodated.
She advised that career progression should be tied to professional CIBN certification, at the industry level, and recertification (backed by a pronouncement) The managing director said that emphasis should shift to the creation of careers around innovation, digital skills and entrepreneurship, to replicate the corporate mindset of FINTECHs in all financial Institutions.
She advised employers to give serious consideration to flexi work, remote work, and outsourcing adding that supposedly scarce skills were available through remote work, only for employers to adapt.
She advised employer’s to lay emphasis on the employee’s productivity and not necessarily on physical presence at work.
For employees travelling out for further studies, she urged employers to put in place a special programme that would re-absorb them after their studies.
“The career development task now requires innovation and a shift in paradigm by all parties, especially the CIBN must strengthen and uphold the Compulsory Continuous Professional Development programme.
“It should institute re-certification programmes to keep bankers current and relevant “It should promote the adoption of the various certifications available in the professional series to promote specialisation,’’ she said.
Araoye, therefore, advised newly qualified bankers to be ethical and people of integrity saying that there was nothing left of a banker who loses his integrity She urged them to be patient as a career was a life-long phenomenon, while advising them never to stop learning and keep up to date with emerging trends She said there were lots of disruptions happening and would happen out there, advising them to remain nimble, noting that the duties of a financial advisor 10 years ago were now remarkably different from what they were today.
Araoye enjoined them to be open to opportunities, move across functions, and be versatile and not to be mono-skilled.
Earlier, Dr Ken Opara, of CIBN, said that 1,857 graduates were inducted and 1099 Associates through the Regular Examination route.
Opara said others included 47 Associates through the CBMBA route, 21 Associates via the route and 690 Microfinance Certified Bankers.
He urged the inductees who successfully completed the Banking Professional Examinations and Certification Programmes of the Institute, to stay connected to the institute.
“I encourage all our Inductees to stay connected to the institute, identify with a branch of the institute in your domain, so you can take maximum advantage of the various innovative initiatives from the Institute towards your personal and career development.
“As I conclude my remarks, may I challenge all our Inductees not to rest on your oars, the world is yours to take, go for it, reach for your peak and be whatever you want to be.
Remember “while you cannot direct the wind, you can adjust the sail to get to your destination,’’ he said.
Some financial experts have advised the Central Bank of Nigeria (CBN) to leverage technologies and innovations by the BRICS countries to strengthen the naira.
The experts gave the advice at the maiden edition of the Annual Banking and Technology Forum, organised by the Centre for Financial Studies of the Chartered Institute of Bankers of Nigeria (CIBN) on Thursday in Lagos.
The News Agency of Nigeria reports that the hybrid meeting had, “Leveraging on Technology to Gain a Competitive Edge” as its theme.
Mr Adjiedj Bakas, an economist, specifically urged the CBN to base the naira on gold to allow it compete with the US dollar in value.
According to him, if the CBN wants the naira to be fairly strong and stable, it should fund it on gold, oil and gas and other commodities.
“The BRICS countries – Brazil, Russia, India, China, and South Africa – these five powerful nations, strong, big economies, are coming with a lot of initiatives, which might be beneficial to Nigeria.
“They are coming up with a new global reserve currency based on gold, oil and gas and other commodities, and that is going to compete with the US dollar,” said Bakas.
He said the BRICS had also developed an alternative to the Society for Worldwide Interbank Financial Telecommunications (SWIFT) payment system, also in use in Holland and Nigeria.
“So, they come up with an alternative to SWIFT, a competent alternative to the dollar.
“And this new global reserve currency is founded on gold, and commodities.
“So, my advice would be for the Nigerian Central Bank to base the naira upon gold; you have to buy lots of gold, and we have tonnes of gold.
“But also have to base it on all the oil and gas reserves of Nigeria, and then the naira will be worth much more,” Bakas said.
The expert also urged the banks to utilise both SWIFT and the new payment platform introduced by the BRICS, which is based on Alipay and WeChat. “It is connected with facial recognition, artificial intelligence and security; you can follow the money and the traces everywhere,” he said.
He urged banks to offer young people a good future by moving along with these technological trends that have boosted the the world’s Gross Domestic Product.
“Step in, dive into in this technological revolution because technology is going to change blue collar workers and devices are going to take over a lot of our financial administration.
“So, as a bank, you should be fast, provide fast services, especially to the millennials; and also leverage the digital naira because they all love the Central Bank’s digital currency,” he said.
The Director, Information Technology Department, CBN, Mrs Rakiya Mohammed, said the apex bank had been proactive by creating enabling environments for the banking industry to thrive.
She said the monetary authority came up with guidelines, frameworks, and innovative products to stimulate creativity in the banking sector without stifling the healthy competition among participants in the industry.
“If we have learnt anything in the CBN, it is the fact that technology will not wait for regulation, so we decided to be as agile as possible.
“We have tried to be proactive by creating an enabling environment via guidelines, frameworks, and innovative products to stimulate creativity in the banking sector without stifling the healthy competition among participants in the industry.
“In 2021, when the CBN announced its intention to roll out the first central bank digital currency in Africa and one of the first in the world, some people were skeptical as to our capacity to accomplish what other central banks were still reluctant to do.
“But we were convinced it was the way to go because the technology trends were clear to us.
It is either you embrace disruption, or you become obsolete.
“Despite the naysayers, the eNaira was successfully launched and has been gaining momentum in adoption both locally and internationally with close to a million wallet downloads across individuals and merchants,” she said.
She narrated how the monetary authority recently stumbled on a twitter post where someone said the large population of unbanked Nigerian international students in the North Cyprus city of Lefkosa were using the eNaira to facilitate payments for goods and services.
Mohammed, who was represented by Mr Afolabi Adeleye, said, “These digital natives are not waiting.
“At the CBN we are beginning to have conversations around monetary policy in the metaverse, open banking, digital identities, among others.
“Leveraging the gains in adoption of the eNaira, we recently concluded our first hackathon focused on expanding its use in driving financial inclusion and cross border remittances.
“Embracing technology as a business enabler to drive competitive advantage is no longer optional.
It is a matter of corporate survival going into the future.
” Dr Ken Opara, of CIBN, represented by the first council Vice-President, Prof. Pius Olarenwaju, said, “This event provides another opportunity for us to offer value to our stakeholders as they try to navigate the financial technology and digital finance world.
“Indeed, this event could not have come at a better time as the ways in which we conduct banking has changed dramatically since technology entered the fray.
“Banks are now focused on elevated levels of personalisation and tailoring solutions to meet customers’ needs which have been enabled by the fast-tracking of digital transformation.
The Chartered Institute of Bankers of Nigeria (CIBN) said it would hold its annual conference to share ideas on how to address changing trends in the industry.
The of CIBN, Dr Ken Opara, made the announcement at a media parley on Friday in Lagos.
He said that the conference to hold Sept. 13 to Sept. 14, would be hybrid, taking place at the Transcorp Hilton Hotel, Abuja and through Zoom Teleconferencing, with dignitaries from around the world in attendance.
The News Agency of Nigeria reports that the theme of the conference will be: “Repositioning the Financial Services Industry for an Evolving Glocal Context”.
“The banking industry has continued to evolve; technological innovation is the thing in the industry.
“The financial system is the only industry today that you can see the kind of innovation that is going on.
It is one of the few industry in the world to have an online real-time payment services as much as possible.
“But we think that the industry is dynamic, changes continue to come up globally.
“You can see what is happening in the supply chain, you can also see what is happening in the Russian- Ukraine space as much as possible.
“So, the idea is basically to have this conference that will provide a platform to share ideas on how to address changing trends in the industry and how things are coming up.
“Also, how do we build capacity, how do we energise our people, how do we ensure that the new generation of people continue to be relevant in the industry,” Opara said.
The event would be organised through a Consultative Committee, chaired by the Managing Executive Officer, Sterling Bank Plc, Mr Abubakar Suleiman.
President Muhammadu Buhari, Prof.Yemi Osinbajo, Governor Babajide Sanwo-Olu, Mrs Zainab Ahmed, the Minister of Finance, among other dignitaries are expected at the conference.
The Central Bank of Nigeria Governor, Godwin Emefiele, would be the Chief Host of the Conference while Opara would be the host.
The Association of Corporate Affairs Managers of Banks (ACAMB) has stressed the need for active and synergistic relationship between the banking and private sector for economic growth and development.
ACAMB said this in a communique issued at the end of the first national stakeholders conference between the banking industry and the Organised Private Sector (OPS).
The communique issued in Lagos on Thursday was jointly signed by Mr Rasheed Bolarinwa, the President, ACAMB for the promoters and Dr Seye Awojobi, the Executive Officer Chartered Institute of Bankers of Nigeria (CIBN) for partners.
It stated that stakeholders collectively agreed on the importance of effective synergy and good working relationship between the banking industry and the OPS given the critical roles of the two sectors in overall national economic development.
The conference agreed to work with all stakeholders, going forward, to create a more effective financing structure that would ensure increased accessibility to funding into the real sector.
The communique said that a consultative committee of experts and stakeholders drawn from across the sectors and relevant agencies and institutions would be constituted for continuing and enduring dialogue between the banking sector and the OPS.
The statement said that the committee would enhance funding and monitoring of the impact on the real sector.
It added that ACAMB and the CIBN would work together on thr joint action-body.
It urged the OPS to take advantage of specialised development finance institutions created by government with active funding from the CBN to access affordable funding.
It also said that the CBN was opened to suggestions and feedback on its programmes and banking operations from all stakeholders.
It added that the apex bank was ever willing to further collaborate in addressing the issue of effective funding of the OPS.
The communique advised the banking sector and the OPS to put national interest uppermost in their business relationships and avoid deliberate acts of sabotage in the guise of transactions.
It noted that there was a need for fiscal policy measures to complement current funding initiatives by the banking industry in support of the real sector.
“The CBN should increase foreign exchange allocation to the real sector by restoring the priority window and dedicated access for manufacturers while members of the OPS should repatriate foreign exchange to enable the apex bank sustain forex management.
“In order to foster greater understanding and knowledge of operations of each sub-sector of the OPS, Deposit Money Banks (DMBs) should develop in-house expertise through dedicated desks and requisite professionals of key segments of the OPS.
“ACAMB and CIBN should institutionalise the conference initiative, and ensure that subsequent editions are all inclusive of critical players in the Nigerian economy,” it said.
The Manufacturers Association of Nigeria (MAN) on Wednesday urged commercial banks and the Organised Private Sector (OPS) to join hands to grow the economy.
Mr Mansur Ahmed, President of MAN, gave the advice at the first National Stakeholders Conference organised by the Association of Corporate Affairs Managers of Banks (ACAMB) in partnership with the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
The News Agency of Nigeria reports that the conference supported by Access Bank, Ecobank, FirstBank and Zenith Bank had: “Promoting Synergy Between the Banking Industry and the Organised Private Sector,’’ as the theme.
Ahmed said that the performance and development of both sectors were expedient for the sustainability of the economy; hence, the need for both sectors to work together to reduce poverty, attract investment and boost economic growth.
“The traditional industry-bank lending relationship is no longer supporting the growth of the industry, the bank and the economy, as a whole.
“ Industry activities have massively declined showing rising number of moribund industries across the country and the increasing capital flight.
“ Based on this information, it is important that the commercial banks and the industry should come together to chart new ways of supporting each other to the benefit of all.
“ There is no doubt that the industry needs the bank to increase investment and production while the bank needs the industry for interest payment incomes and equity subscription,’’ he said.
He, therefore, recommended that the commercial bank should develop corporate patriotism to strengthen the willingness to lend at the interest rate that supports both the industry and the banking sector for the sake of the economy.
He stressed the need to prioritise attention to industry foreign exchange requests, particularly in this period of acute shortage.
Ahmed represented by Mr Ambrose Oruche, Director, Corporate Services of MAN, also urged the banks to ensure that government or international development funds were well accessed without undue difficult conditionality.
He recommended the creation of a process that would support equipment acquisition in the industry and creation of funds to support industry-bank joint venture for easy financing of specific industry business.
He also suggested the creation of a unit for business support and capacity development for the industry as well as a trade support unit.
Mr Ide Udeagbala, President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), represented by Mr Ayo Osinloye, urged stakeholders to provide answers to the difficult challenges being faced by the private sector.
“They face weak infrastructure, especially in terms of power, transportation, and workspace.
They lack a collective voice and have relatively weak influence of policy formulation.
They have poor access to vital resources, especially finance,” Udeagbala said.
Also speaking, Mr Eboagwu Ezulu, Deputy Director, Financial System Stability Directorate of the Central Bank of Nigeria (CBN), advised the OPS to approach the development financing institutions for financial assistance.
“I am aware that the Development Bank of Nigeria was established in collaboration with the CBN to provide funding as well as the Bank of Industry established to support the manufacturing sector.
“Have we the manufacturing sector approached those entities to utilise the funds available rather than asking the commercial banks?
“Banks are supposed to approach the CBN on behalf of their customers to solve these problems; the commercial banks lend for credit purpose, they have the primary responsibility to protect their depositors,’’ Ezulu said Dr Ken Opara, the CIBN President, noted that the organised private sectors were the real drivers of real sector growth and economic advancement through industrialisation, job creation, provision of goods and services and poverty alleviation.
“Thus a well-functioning financial system and a rigorous private sector are important drivers of national growth in terms of Gross Domestic Product, employment generation, economic stability and poverty reduction.
“However, I must admit that there are still a lot of untapped opportunity between these two critical sectors some of which are attributable to lack of proper handshake between the bodies.
“Given the interdependence of both sector, it has become imperative for both to work mutually for the growth of the nation’s economy,’’ Opara said.
Earlier, Mr Rasheed Bolarinwa, President ACAMB, said that the outlook of the conference was essentially to develop a workable roadmap for the two sectors to synergise for the benefit of the national economy.
“Finance, the essence of banking is the driving force for the private sector.
Capital, is probably the primary factor of production.
“On the other side, the private sector, as the end users of banking services and the largest sector of the economy, is also conversely the driver of a sustainable and viral banking sector.
“So, I will say there is a symbiotic relationship between the two sectors, banking is important to the private sector, just as the private sector is important to the banks.
That explains why this conference is taking place.
“So, it is safe to conclude that the more active and synergistic the relationship between banking and private sector, the more we are collectively able to develop and grow the national economy for sustainable Nigeria,’’ he said.
B.Adedipe Associates Ltd. (BAA Consult) has reviewed downward its growth forecast for the Nigerian economy in 2022 to 3.27 per cent from its earlier projection of 3.74 per cent announced in January.Dr ‘Biodun Adedipe, founder and Chief Consultant BAA Consult, announced the new projection at the roundtable session on the Mid-Year review of Economic Outlook for 2022.The event was organised by the Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with BAA Consult, on Tuesday in Lagos.“So for us in BAA Consult, we have dampen our expectation when we started the outlook at the beginning of the year.“We projected between 3.74 per cent growth, at that time, both the Internal Monetary Fund (IMF) and the World Bank had 1.5 per cent by April.IMF increases its own from 1.5 to 3.4 per cent.“But as at today based on the first half year, what we see as the likely outcome of our GDP growth this year is 3.27 per cent; no longer 3.74 per cent because of what has happened (insecurity).“So, we must therefore, take concrete actions with respect to insecurity which is the measure hobbler of economic growth as of Nigeria today.“And of course, our policies with export promotion, fiscal discipline must be structurally addressed, the issue of fuel subsidy and the obvious corruption in that as well,’’ Adedipe said.He added that the volume of refined petroleum Nigeria consume and the amount paid on subsidy, if compared together, would tell that something was missing somewhere.He said, “Of course I’m not in government, so I don’t have access to all the data.But for us as analysts, we interpret what we see and within the limit of what we see.It is clear that talking of fuel subsidy, the trillions of Naira in Nigeria today, there must be some fraud somewhere .“But we must develop the courage to address it; if we do that, then we’ve started the process of getting the economy in the direction it should go’’.He said that tremendous energy in Nigerians and our corporate entities would make the economy work, `only if we get the right signals from the policy authority’.Dr Michael Adebiyi, Director, Research Department, Central Bank of Nigeria (CBN) said, “against the backdrop of the prevailing headwinds to the positive outlook of the economy, the future looks optimistic.According to Adebiyi, this is based on the various efforts of the CBN at repositioning the financial and real sectors of the economy for sustainable development.“However, more still needs to be done, particularly in the agricultural sector and Information Communication Technology,’’ he said.Adebiyi, represented by Mr Adeniyi Adenuga, Assistant Director, CBN, therefore called on the fiscal authorities to support the intervention efforts of the apex bank.This, he added, can be achiebed by providing competitive tax incentives for the importation of large-scale and high-impact technology as well as innovation.The director noted that this would help to enhance agricultural yield and efficiency in the entire value chain.He also said that efforts at addressing the persisting insecurity challenges, should be accelerated to help address food-supply disruptions, thereby mitigating the rising food inflationary pressures in the short-term.Adebiyi expressed optimism that the apex bank would sustain its current credit support facilities to the real sector to boost agricultural output, for improved value chain and export value.This, he said, would restore relative stability in the foreign exchange market.He urged banks to sustain the 100-for-100 Policy for Production and Productivity (PPP) and the Naira-4-dollar scheme and enhance the Foreign Exchange position in the Investors and Exporters window.He suggested that could be attained by encouraging the participation of top 100 non-oil exporters in the RT200 FX programme.According to him, these would help in stabilising the exchange rate and boost reserves accretion in the short-to-medium term.He called on stakeholders to come up with useful recommendations that would improve and boost the growth of the Nigerian economy and policy options that could be adopted to tame inflation in the economy.Earlier, Dr Ken Opara, President of CIBN, said that the event, a brainchild of the CIBN Research Committee, was designed to evaluate the performance of the Nigerian economy in the prior half of the year, while providing an outlook for the second half of the year.“More specifically, the event would assess the trends of macroeconomic indicators in the first six months of 2022 as well as the performance of key sectors of the economy.“The maiden edition was successfully held on August 13, 2021 with participants across the globe.“This second edition of the Mid-Year Economic Review and Outlook is intended to be a follow up on the National Economic Outlook event usually held at the beginning of each year whereby actual of economic indicators are compared with predictions asserted at the beginning of the year.“Ultimately, it offers yet another prospect to deliver value to our stakeholders while they navigate the rudiments of a relatively demanding year,’’ Opara said.NewsSourceCredit: NAN
A financial expert, Mrs Luz Maria Salamina, on Thursday advised banks and other financial players to embrace the new opportunities represented in embedded credit to drive financial inclusion in Nigeria.
Salamina, who is a Lead Financial Sector Specialist, World Bank Group and Secretariat of the International Committee on Credit Reporting, gave the advice at a stakeholder’s conference in Lagos.
The conference was organised by the Chartered Institute of Bankers of Nigeria (CIBN) in collaboration with Credit Bureau Association of Nigeria (CBAN).
The News Agency of Nigeria reports that the conference had as its theme,“Enhancing Financial Inclusion in Nigeria: Changing the Narrative.”
NAN reports that embedded credit is the seamless integration of lending-as-a-feature into digital platforms.
In embedded credit, credit products are integrated in the non-financial companies businesses.
For example, retailers or marketplace allow the buyers to defer payments at the point of sale without having to go to a bank or to a lending institution to apply for a loan.
“In Nigeria, embedded credit has supplied already an estimated N278 billion or $689 million as of 2021 and it is estimated that the demand for embedded credit in Nigeria will be N900 billion ($2.2 billion).
“You can see what the most popular embedded credit issued already have offered Nigeria –the Buy now Pay later which is the most popular one, Merchant Cash Advances, Vehicle Finance, Trade Finance, Inventory Finance and BNPL,’’she said.
The financial expert said that some embedded credit providers appeared to be driving financial inclusion by employing alternative data and alternative scoring models to target thin to no file customers.
She also said that there were some proof already that the embedded credit contributed to financial inclusion like providing micro loans through its mobile app platform to farmers among other things, and mainly to women.
However, Salamina said, “there is still not enough evidence or enough data to measure the impact, growth and sustainability, but, these are good signs that something good is happening for financial inclusion.”
Also speaking, the Chairman of CIBAN, Dr Jameelah Sharrief-Ayedun, said that Nigeria was still far from financial inclusion target of 80 per cent, though there had been some proof in the number of people opening account.
“The virtual gathering today has demonstrated our vision of ensuring that financial inclusion is promoted in Nigeria which will subsequently stimulate a stronger economy for all stakeholders.
“Nigeria has seen a proof in the number of people opening account, people taking out loans from one and even several financial institutions and the influx of Fintech apps. More than ever before, we are witnessing a level of progress being made in the financial sector.
“However, we are still far from Nigeria’s financial inclusion target of 80 per cent; in fact 36 per cent of Nigerians adult are still not financially included.
“You can segments that any way you want by sex, by age, region, any part of the pyramid, they are not even on the radar.
“This demographic barely has traceable identities, not to mention having a footprint in the financial sector. This makes it very difficult for them to get access to credit which is hearkened to a distant dream from being able to accumulate wealth.
“So clearly it is time to change the narrative,’’ Sharrief-Ayedun, also the Managing Director, Credit Registry said.
Earlier,the CIBN Registrar, Oluseye Awojobi, represented by Mr Babatunde Apena, Director, E- Learning and Development, said that the theme of the conference was aimed at evoking an in-depth discussion on impact of access to Micro,Small and Medium Enterprises(MSMEs).
He said that the subject matter was also aimed at exploring strategic measures that could improve business financing through credit reporting, adding that the surge on financial inclusion had been an age long challenge with distinctive implication for economic development.
“ Individuals without access to basic bank facilities are left rightly to save, manage risk, take an adventure into business and also invest among other things.
“Likewise businesses without access to useful and affordable financial product are less likely to expand their operations, employ more labour and generate more revenue.
“Indeed the role of financial inclusion as a means of spurring MSME growth cannot be over emphasised,’’ Awojobi said. (