Monthly Archives: February 2016

CBN moves to strengthen DFIs, launches final operating guidelines

Emefiele 1

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, on Tuesday reiterated the bank’s commitment towards making the Development Finance Institutions (DFIs) in the country more pro-active and better equipped to support the present administration’s economic growth agenda.
He said there was need for a paradigm shift in the funding model for DFIs which had largely performed below standard over time, if they must live up to their mandate of supporting key sectors of the economy amid the current fiscal challenge occasioned by falling price of oil.
Current DFIs include the Bank of Agriculture (BOA) Bank of Industry (BOI), Federal Mortgage Bank of Nigeria (FMBN), Nigeria Export-Import Bank (NEXIM) and the Infrastructure Bank.
Emefiele, particularly expressed dissatisfaction that out of a total credit of N14.7 trillion granted to the economy as at June 30, 2015, the share of DFIs stood at only N760.8 billion or 52 per cent of the entire sum, stressing that DFIs commitment must increase significantly in order to make the needed impact on targeted sectors.
Speaking in Abuja at the opening of the maiden edition of the bi-annual Development Finance Institutions (DFIs) stakeholders’ forum and the launch of the Regulatory and Supervisory Guidelines for Development Finance Institutions in Nigeria, the CBN governor, who was represented by CBN Deputy Governor, Financial System Stability, Mr. Joseph Nnanna, further argued that the current practice whereby government sources had accounted for major long term funds for DFIs was no longer sustainable.
Although the new regulatory guidelines further restricted the DFIs from incursion into the capital market, Emefiele, however, hoped that with time, the institutions would be capable of accessing the capital market for long term funds to finance critical sectors.
He said DFIs needed to operate under a new philosophy underpinned by commercial orientation to guarantee their financial viability as catalysts and agents of economic change.
Nevertheless, he said DFIs must tread carefully to balance and reconcile the contradiction of pursuing the double bottom line of profit and development.
He said the new guidelines have become necessary to address some of the numerous challenges which had constrained their ability to effectively deliver on their mandates.
According to him, these include high levels of non performing loans due to ineffective credit appraisal, analysis and recovery efforts; corporate governance issues; weak risk management; under-capitalization and political interference among others.
He said recent on-site examinations by the apex bank had continued to reveal weaknesses and deterioration by DFIs in critical performance indicators, a situation made worse by the lack of effective board oversight.
Emefiele noted that the regulatory and supervisory guidelines for FDIs which was issued last year, would provide a level playing field for participants in the subsector.
A key provision of the guideline is the introduction of licensing requirement for all DFIs operating in the country in line with international best practice.
Among other things, the guidelines restricted DFIs investments in forex, capital market, pension funds and spelt out sanctions for poor corporate governance.

 

 

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Fidelity Bank generates N300bn in IGR for governments

Nnamdi-Okonkwo-Fidelity

Fidelity Bank Plc said it recorded cumulative collections of over N300 billion in internally generated revenue (IGR) for all the three tiers of government over a period of 10 years.

The Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mr. Nnamdi Okonkwo, stated this in a speech he presented at the inaugural edition of the Anambra State IGR Summit held in Awka recently.

According to the Fidelity Bank boss, the bank attained this feat by simply driving efficiency in the revenue collection process, adding that the lender had been positioned to play dominant roles in Nigeria’s Electronic Payments and Services Market.

“We pioneered informal sector IGR collections with our successful deployment of the point of sale (PoS) Terminal Tax Collections in Abia, Imo and Sokoto States,” Okonkwo stated.

This model, he explained, has also been requested for and adopted by other state governments.

“As a bank, we deployed Automated Electronic Motor Vehicle License to Sokoto, Anambra, Abia and Kano States. We also successfully deployed the first electronic collection solutions for Ondo State (IGR), Anambra and Abia State Land Registry Automation Processes,” he added.

Reflecting on the present challenge faced by the country, Okonkwo stressed
the need for all tiers of government to seek alternative sources of revenue generation to meet financial obligations and live up to the expectations of the citizenry.

 

“We are eagerly looking forward to building a veritable partnership with the Anambra State government to aid its collection of such revenues and help improve its IGR. As a bank, we want the Anambra State government to live up to the expectations of its citizenry,” he added.

In his opening remarks, Anambra State Governor, Chief Willie Obiano, said the state had set a monthly revenue target of N2.2 billion for the state in 2016.
Pointedly, he expressed confidence in the ability of Fidelity Bank to support the state in its quest to improve its IGR.

Alluding to plans by his administration to deploy specially modified PoS devices across the state, Obiano vowed to attain the revenue target without increasing taxes and promised to sanitise the revenue collection process by weeding out fraudsters who pose as collection agents to fleece tax payers.

“This year, we intend to move our IGR from N1.4 billion where it is currently to about N2.2 billion monthly. We will do this without increasing tax. We will not increase tax but we are going to enhance our method of collection and block the leakages. Most of our taxes have been going into private pockets. This time, I will clean up the system,” Obiano said.

Providing insight into the impact of crude oil slump on the revenue accruable to states from the federal government, the Anambra State governor said; “If I was receiving N100 from the federal government, I now receive N27.”

 

[ThisDay]

NSE National Council Renews CEO’s Contract for a 2nd Five-year Term

Oscar-Onyema-120x134
The Nigerian Stock Exchange (“The Exchange” or “NSE”)  announced that its National Council has approved the renewal of contract of employment for Mr. Oscar N. Onyema, OON for another term of five years as Chief Executive Officer of The Exchange effective immediately. Mr. Onyema has served as the CEO of the Exchange since April 2011 and his initial five years employment contract expires on March 31, 2016.
Commenting on the renewal, President, National Council of NSE, Mr Aigboje Aig-Imokhuede, CON said “Mr. Onyema’s tenure as CEO of the NSE is marked by outstanding achievements. The Council is confident that he can continue The Exchange’s trajectory of transformation, innovation and marketplace recognition by implementing its business strategies which he has been instrumental in developing. The leadership qualities that he has demonstrated in his first term as CEO, in the face of such intense and challenging operating environment, have been exemplary. The Council believes that his vision and passion will ensure the Exchange remains a force to be reckoned with in Africa and beyond”.
Speaking on his contract renewal, Mr. Onyema said “I am honoured to remain with The Nigerian Stock Exchange and to continue to lead our dedicated staff as we strive to achieve the Exchange’s vision. I am grateful to the Council for the opportunity to continue such an important work. While there is still much to be accomplished, the support shown by the capital market community has been inspirational, and I look forward to working with the entire eco-system to meet our objectives.”
On assumption of the role of CEO in April 2011, Mr. Onyema developed the strategic plan to transform the Exchange into a globally competitive brand by stabilizing and professionalizing the Exchange. Mr. Onyema led the execution of the Exchange’s transformation strategy which resulted in over 365% increase in surplus, and 40% increase in NSE Group balance sheet size for the period. He has transitioned this strategy into a five year growth plan, 2015 to 2019 which will see the Exchange increase the number of new listings across five (5) asset classes; increase order flow in the five (5) asset classes; and operate a fair and orderly market based on just and equitable principles.
In recognition of his contributions to Nigeria’s economic development and transformation of Africa’s capital markets he was elected President of African Securities Exchanges Association (ASEA) in November 2014, demonstrating recognition and acceptance within the African region;and Chairman of West African Capital Markets Integration Council (WACMIC) for 2013 -2015, demonstrating sub regional pull and influence.​
 
More so, Mr. Onyema has represented the NSE on several boards and Government bodies including PENCOM, FMDQ OTC Plc, Central Securities Clearing System Plc (CSCS), Nigerian Capital Market Master Plan Implementation Council (CAMMIC), World Economic Forum (WEF) Global Agenda Council on Future of Financing and Capital, amongst others. ​

CBN to Unveil Scheme to Support One Million Young Graduates in 2016

CBN HQ_16

 

The Central Bank of Nigeria (CBN) has said it is contemplating to unveil a programme through which it would support young graduates that are operators of micro, small and medium scale enterprises (MSMEs) at concessionary pricing in 2016.
This is just as the Minister of Finance, Mrs. Kemi Adeosun, said the federal government would soon go to the debt market to raise fund in order to finance its capital expenditure.
Also, Governor of Lagos State, Mr. Akinwunmi Ambode, said the state would soon create an Employment Trust Fund, through which its youths and entrepreneurs, particularly in the social enterprise sector, would be supported with start-up funds.
He said the government would commit N25 billion in the next three years to the fund, at three per cent interest rate.
CBN Governor, Mr. Godwin Ifeanyi Emefiele, who disclosed in a speech he presented in Lagos, at the opening ceremony of the seventh annual Bankers’ Committee retreat titled: ‘Creating an Enabling Environment for SMEs,’ yesterday, said the initiative would target one million young graduates that are entrepreneurs.
The CBN governor who said the modality for the programme would be unveiled in the next few weeks, stressed the need to tackle youth unemployment.
According to Emefiele, the country needed to get more people engaged positive.
He also called for the support of commercial banks, other financial institutions in order to make the programme successful.
He also clarified that the programme would be completely different from the N220 billion MSMEs development fund that had been launched by the central bank.
The CBN governor explained: “I am saying if you (the banks) refuse to support, your money that we would have released through the cash reserve requirements (CRR), we will take money and lend it through any channel that will give these young graduates jobs. We all need to think together and agree because there is no need to release the money to you (the banks) and all you do with the money is buy treasury bills. That cannot continue! We need to agitate our minds; we need to think about the best ways to diversify this economy away from oil.
“We need to get more and more people to be employed and we would need the support of the banks to begin to see how we can lower our risk acceptance criteria to give support to our young graduates. These are young people, let us not assume that they will take a loan and not pay. We need to develop a scheme that will work where they take a loan and they pay.”
He pointed out that the drop in commodity prices was a major thing that had affected the Nigerian economy, with a significant drop in revenue and serious pressure on the nation’s external reserves. What that does, according to Emefiele, was that as a nation, all stakeholders need come together “and see what we can do to shield ourselves.
“So, we need to do whatever we can to protect the economy,” he added.
The Ministers of Power, Housing and Works; Finance, Planning, Solid Minerals, Agriculture would all be at the meeting to discuss with the bankers on how to lift the economy.
The CBN governor said the nation had entered a phase where it must prioritise MSMEs to growth the economy.
Furthermore, Emefiele said: “I must say that the Nigerian banking sector has not played active part in supporting the SMEs, but this is not without reasons. We had issues in the past where people take loans and don’t pay. SMEs are seen as drivers of growth in any economy.

Nigeria has 37 million MSMEs. The CBN has a N220 billion MSMEs facility. We have used various approaches to stimulate the lending of SMEs through that fund and I must confess that we are not doing enough on that because only less than half of that fund has been disbursed today. There is a reason for that.”
Continuing, Adeosun, who noted that the country’s debt-to-GDP ratio was still low, which gives its some space to run a deficit budget, pointed out that there was need for “some fiscal house-keeping” in the country.
“We need to borrow in order to stimulate the economy. But the significant challenge will have to do with recurrent expenditure. If you look at recurrent it is still high. So, if we continue in that trajectory every penny we borrow will go to recurrent. So a lot of initiatives are all about how we would contain recurrent.
“So, we know where we are going and it is very important to inform you that we are going to borrow and you (the bank CEOs) are the people we are going to get money from. So, I need to let you know that we would be raising money, but we want to make sure that such borrowings go into capital expenditure that would stimulate the economy.
“Never mind, I do believe that Nigeria can overcome its challenges. I am not here to paint a rosy picture, but I believe it is going to be tough and we need to take tough decisions. But I also believe we have the resilience and space to do that,” the finance minister explained.
Speaking further, Governor Ambode, urged the banks to do much more than they are currently doing in terms of giving special attention to the capital requirement of SMEs.
“The Lagos State government is mindful of these challenges and we are taking steps to support young entrepreneurs to create wealth and generate employment. We would soon complete the legislative process of inaugurating our Employment Trust Fund. This is going to be more like an intervention fund for which we believe the interest we are going to charge will not be more than three per cent.
“This is to checkmate the negative effect of the growing youth population in Lagos. We have over 21 million people in Lagos and the population is still rising and two-third of the people that live in Lagos are below the age of 35. The economic indicators for a monolithic economy such as ours appear unpredictable. For us as a government, we see it as a defining moment for diversification and innovation,” the governor added.

(THISDAY)

Central Bank of Nigeria Communiqué No. 105 of the Monetary Policy Committee Meeting of Monday and Tuesday, January 2 5 and 26, 2016

The Committee’s Decisions
The Committee, in consideration of the headwinds in the domestic economy and the uncertainties in the global environment decided by a unanimous vote to retain
the Monetary Policy Rate (MPR), Cash Reserve Requirement (CRR), Liquidity Ratio (LR) and
the asymmetric corridor of +2/-7
around the MPR. In summary, the MPC voted to retain:
(i) the CRR at 20.0 per cent;
(ii) MPR at 11.0 per cent;
(iii) Liquidity Ratio at 30 per cent;
(iv)The asymmetric corridor at +200 basis points and -700 basis points.
Thank you for listening.
Godwin I. Emefiele
Governor, Central Bank of Nigeria
26th January 2016

Advance Your Career in Investment and Securities with a CIS Professional Qualification

CIS

 

 

 

 

CIS PROFESSIONAL QUALIFICATION SCHEME

 

Who are Stockbrokers?

Stockbrokers are professionals recognised as securities dealers on the floor of the Stock Exchange.  They deal in the Stock market by buying and selling stocks, shares, and other securities for clients.  They also provide securities issuance services, investment advice, portfolio management and securities analysis.

 

What is the ‘ACS’ Qualification?

ACS (Associate Chartered Stockbroker) is the only qualification which focuses on stockbroking, securities and investment profession in Nigeria.  The qualification has global recognition and thus serves as your gateway to international securities and investment careers.

 

BENEFITS OF JOINING THE CIS.

On completion, you will be a Chartered Stockbroker (ACS)

Find more diverse job opportunities open to you in the financial services industry, in business, in public service or as a self-employed.

Be well remunerated as a securities trader, fund manager, pension fund manager or investment analyst in stockbroking houses, banks, issuing houses, large investment companies, pension fund administrators, insurance companies, universities/research organisations, government, debt management office, etc.

Possess the practical skills that can make you a leader in your field.

Progress to the final examination level of CIIA, an international passport to working in the international financial centres of the world.

 

STUDENT REGISTRATION

To qualify for student registration, you must have a minimum of a university first degree or an HND in any discipline.

If you have a professional business qualification approved by the CIS Council for student registration, you will be able to study for ACS qualification with or without a first degree or HND.  Such qualifications include ACA – ICAN, ICAEW, ICAS; ACCA – UK; ACMA – UK; ACIB – Nigeria, UK, Canada; ACII; ACIS; ACIA.  If your professional qualification is not listed, you may contact the Institute for guidance.

To sit for the Institute’s professional examinations, an applicant must be registered as a student with the Institute.

Candidates taking the March examinations must register as students not later than November 30th of the preceeding year and those for September examinations not later than May 31st in the same year.

 

STRUCTURE OF THE ACS EXAMINATION

There are two levels to the CIS qualification with two exam sittings per year in the months of March and September.

In order to become an ACS holder you must complete Level I and Level II of the ACS examination. In addition to which you must have at least three years of relevant experience, one of which must be post-qualification.

 

There are four examination papers in each level with each paper comprising three (3) subjects

 

Paper   Subjects
1 Financial Accounting and Financial Statement Analysis

Economics and Financial Markets

Quantitative Analysis and Statistics

2 Corporate Finance

Equity Valuation and Analysis

Fixed Income Valuation and Analysis

3 Derivative Valuation and Analysis

Portfolio Management

Commodity Trading and Futures

4 Ethics and Professional Standards

Law relating to Securities and Investments

Regulations of Securities and Corporate Finance.

 

 

Level 1 Exam

Time  –  3 hours

Level 2 Exam

Time  –  3 hours

 

100 multiple choice questions

Multiple choice questions,
Short and Long Essay questions,

Calculations and Case Study.

Focus

Candidates willl learn the basic knowledge and understanding of the 12 subjects

Focus

The emphasis is on indepth knowledge and practical application of the 12 subjects.

 

 

 

For further information contact:

 

The Registrar & Chief Executive
CHARTERED INSTITUTE OF STOCKBROKERS
10th floor, CSS Bookshop House, 50/52 Broad Street, Lagos.
Tel: +234 01-2802180 – 5,  +234 -01-7615880-1, +234-01-2120430-1
Tel: +234 01-2802186

E-mail: info@cisnigeria.com
Website: http://www.cisnigeria.com

 

BOOST YOUR FINANCES TODAY AND RAISE AS MUCH CAPITAL AS YOU NEED FOR YOUR START UP OR GROWING BUSINESS WITH JUST N5500 INITIAL CAPITAL.

dbs

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FG seeks $3.5bn emergency loans from World Bank, AfDB

Kemi-Adeosun

The Federal Government is seeking from the World Bank and the African Development Bank the sum of $3.5bn (N697bn) in emergency loans to fill a growing gap in its budget in the latest sign of the economic damage being wrought on oil-rich nations by tumbling crude prices.

The $2.5bn (N498bn) loan from the World Bank and a parallel $1bn (N199bn) loan from the AfDB, which will enjoy below-market rates, must still be approved by both banks’ boards, the Financial Times reported on Sunday.

Under World Bank rules, its loan will be subject to an IMF endorsement of the government’s economic policies and bank officials said they would have to be confident that the Nigerian government was undertaking significant structural reforms.

Both loans will carry far fewer conditions than one from the IMF, which does not believe that Nigeria needs a fully-fledged international bailout at this point.

The loan request from the eight-month-old government of President Muhammadu Buhari is intended to help fund a N2.9tn ($15bn) state deficit, which has been deepened by a hefty increase in public spending as the country attempts to stimulate a slowing economy.

It came as concerns grow over the impact of low oil prices on petroleum exporting economies in the developing world.

Nigeria’s economy has been hit hard by the fall in crude prices — oil revenues are expected to fall from 70 per cent of income to just a third this year.

 

The Minister of Finance, Mrs. Kemi Adeosun, had recently said Nigeria was planning its first return to the bond markets since 2013.

But Nigeria’s likely borrowing costs have been rising alongside its budget deficit. A projected deficit of N2.1tn ($11bn), or 2.2 per cent of gross domestic product, had already risen to N2.9tn ($15bn), or three per cent, as a result of the recent turmoil in oil markets.

Officials from the IMF and the World Bank are heading to Azerbaijan to discuss a possible $4bn emergency loan package

“I think we all agree that Nigeria is facing significant external and fiscal accounts challenges from the sharp fall in oil prices, as of course are all oil exporters,” the IMF’s representative in Nigeria, Gene Leon, told the FT.

But he added that Nigeria was not in immediate need of an IMF programme. “We are not in that space at all,” he added.

An IMF mission that visited the country in January as part of a regular review estimated that Nigeria’s economy grew at 2.8 to 2.9 per cent in 2015 and predicted it would register 3.25 per cent growth this year, down from an average 6.8 per cent in the decade to 2014, Leon said.

The country’s financial buffers are also eroding. The Central Bank of Nigeria’s foreign exchange reserves have nearly halved to $28.2bn from a peak of almost $50bn just a few years ago. A rainy-day fund that had $22bn in it at the time of the 2008-09 global financial crisis now has a balance of $2.3bn.

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