The Managing Director, Ecobank Nigeria, Patrick Akinwuntan has reiterated that the future of Nigerian banking would continue to be shaped by innovations and technology disruptions, stressing that only financial institutions that are amenable to such transformation will remain relevant in the sector. According to Akinwuntan, there was no way banks can remain competitive and relevant without embarking on digital transformation. He noted that banking has come to represent ‘what you do’ without necessarily referring to a particular location.

In his words “there is massive disruptions in the banking space and this is good of the sector. Take a second look at the evolution in the use of cards in ATM and PoS today and its interoperability, USSD, agency banking, blockchain, crypto currency and others. The sector is being democratized for full participation. What about the mobile phone which was essentially for receiving calls but today every Nigeria can make transaction on their phones using the mobile app, or the USSD string. The whole idea is bringing financial services to every household so that we can all participate effectively in the growth of the largest economy in Africa.”

Akinwuntan who was speaking on “Innovations and disruptions: How Fintechs are defining our future at the 13^th annual banking and finance conference of the Chartered Institute of Bankers of Nigeria (CIBN) pointed out that Fintechs are making impacts in the financial services.

Also speaking, Ade Bajomo, Executive Director, Information & Operations, Access Bank, said the emergence of Fintechs startups is threatening to displace incumbents with innovative solutions, noting that digital transformation was no longer optional as companies can no longer stay relevant and compete with others than going through digital transformation process.

He observed that the journey from the industrial age into the information age, more specifically the birth of internet, has unlocked unprecedented disruption of business models.

Further Bajomo said “Digital disruption will hit every industry; it is what you make of it that counts. Fintechs are instrumental to closing the financial inclusion gap. Regulation is key to building the desired Fintech ecosystem. Cyber security will be one of the top risks facing financial institutions, upskilling and reskilling is key. Any bank that doesn’t have an online platform will struggle to survive the pandemic. “

The attention of the management of Stanbic IBTC Bank PLC has been drawn to news currently circulating in the media, about the alleged arraignment of staff of the Bank on charges bordering on the theft of customers deposits.

The Bank would like to clarify that the defendant, a 22-year-old Tope Olajide IS NOT, and was at no point in time an employee of Stanbic IBTC Bank PLC.

The alleged culprit was apprehended around 7:30 am, on Thursday, 27 August 2020, by security operatives after he was exposed by CCTV footage using ATM cards he had allegedly stolen and converted, to make withdrawals from the accounts tied to the stolen ATMs.

The CCTV footage also showed the alleged culprit pretending to assist customers at ATMs whilst also attempting to fraudulently dispossess the customers of their ATMs.

He was subsequently arraigned before an Ikeja Magistrate Court on Monday, 14 September, for stealing the debit cards of two customers and using them to unlawfully withdraw the sum of N427,000. 

The Bank would also like to implore members of the public to be security conscious when conducting transactions at ATMs. Customers are advised to report any suspicious actions around them to security operatives who are usually stationed around the Bank’s ATMs, when carrying out transactions at any of our ATM locations.

As an organisation, we hold dear the values of integrity, and we will continue to prioritise the safety of our customers effectively.

Mr. Godwin Emefiele

Governor

Central Bank of Nigeria (CBN)

The raging feud between the Central Bank of Nigeria (CBN) and the Nigerian Economic Summit Group (NESG) is sure to generate negative impact on the Nigerian economy.

An Executive Director in one of the first-tier banks told Business Journal on the condition of anonymity that he was shocked to see two sister bodies that should complement each other to grow the economy fighting dirty in the public domain.

The banker said: “Ordinarily, both the CBN and NESG should be working together in terms of idea generation and implementation to tackle various issues in the nation’s socio-economic space. The NESG could serve as a think-tank to offer advisory notes to the apex bank for the good of the nation. It is therefore quite unfortunate to see them quarrelling like babies in public. I foresee negative impact of this rather curious feud for the economy considering their roles in our environment.”

Just last week, the NESG released a Report detailing its position on various policy measures taken so far by the CBN, a decision which prompted a damning response from the apex bank.

To worsen the situation, three bank chiefs on the Board of the NESG namely Mr. Adesola Adeduntan of First Bank of Nigeria Limited, Mr. Kennedy Uzoka of UBA Plc and Mr. Abubakar Suleiman of Sterling Bank Plc resigned from the Board of NESG in protest over the Group’s criticism of CBN policies.

Mr. Patrick Akinwuntan

Managing Director/CEO

Ecobank Nigeria

Chairman of the Chartered Institute of Bankers (CIBN) Consultative Committee organizing the13^th Annual Bankers Conference and Managing Director, Ecobank Nigeria, Mr. Patrick Akinwuntan has said banks in Nigeria are leveraging Digital technology to drive customer satisfaction, especially in response to the demands of COVID-19.

According to Mr. Akinwuntan, the evolution of digital banking is visible in the use of Automated Teller Machines (ATM), Point of Sales Services (PoS), Mobile banking services, Unstructured Supplementary Service Data (USSD) amongst several others.

He said bank customers in Nigeria now have the ability to open bank accounts remotely and this was made possible by the forward thinking of the Central Bank of Nigeria (CBN) that established the tier 1, 2 and 3 accounts, to enable first level account opening by customers via their phones or through the internet.

The “tier 1 account, he noted is a basic account that operates like a wallet and can be opened straight from the mobile phone. With Ecobank for instance, you can just dial *326# to open an account. He stated that as you climb up the value chain, the account can then be upgraded to either tier 2 or 3, which would require a Bank Verification Number (BVN).

The BVN is a biometric registration of customers in the financial system which allows a customer to have a single identity within the financial system. Its introduction is intended to tackle cybercrime and ATM fraud. This according to the bank Managing Director is a revolutionary step credited to the banking industry.

Akinwuntan was speaking during an interview session on Arise TV to sensitize the public on the annual Banking and Finance Conference slated for the 15^th  and 16^th of September, 2020. The conference themed; “Facilitating a Sustainable Future: The Role of Banking and Finance” will bring together prominent bankers; major economic players; captains of industry; regulators; policy makers; members of the academic community and other stakeholders in the banking and finance industry.

Mr. Akinwuntan, also noted that Nigerian banks are determined to take financial services to every household so that everyone can participate effectively in the growth of the largest economy in Africa. In his words “the thinking amongst the larger populace pre-COVID-19 was that one must go to the physical bank branches to transact. Today the case is different with the introduction of Agency Banking. Agency banking refers to our branchless banking model that allows us , the traditional banks to extend our network of branches and services in a cost-efficient manner through authorized agents. This is part of our distribution strategy to take banking service to the doorstep of the customer. We are extending our banking services to consumers’ neighborhood to offer even greater convenience and accessible financial services in a cost effective and secure manner through the use of technology. Agency location can be a beverage location, a supermarket, barber shop, tailors shop, a nearby vendor etc. This is the product of forward thinking of both the regulators, the telecoms and the participants that have embraced this.”

He maintained that “this is the major reason for the banking and finance conference coming up on the 15^th and 16^th of September, 2020, where we will be talking about facilitating a sustainable future and the role of banking and finance. It is a forum that provides the platform for all the stakeholders, be it the policy makers, the analysts, the participants, business men and women, millennials and the banks to come together to deliberate on how best to leverage the platform, policies and trust that exist in our country, leveraging digital and to take the country into its rightful place in the committee of nations.”

The President and Chairman of Council of the CIBN, Mr. Bayo Olugbemi in a previous media interview had said the Institute for the first time is adopting a hybrid approach to the conference which will take place simultaneously at the Transcorp Hilton Hotel, Abuja and the Bankers’ House, Adeola Hopewell Street, Lagos and through Zoom teleconferencing.

He emphasized that “in line with the theme, participants will evaluate the role of the Banking and Finance Industry in engendering an inclusive sustainable growth as well as offering a direction on how to reposition the Industry for relevance in the new world order, by leveraging on digitalization to boost Nigeria’s economy.

Mr. Wale Oyedeji

The Board of Directors of Stanbic IBTC Bank PLC (“the Bank”) is pleased to announce the appointment of Mr. Wale Oyedeji as an Independent Non-Executive Director with effect from 08 September 2020, following the receipt of all required regulatory approvals.

Oyedeji holds a Bachelor of Science in Agricultural Economics from the University of Ibadan and a Master of Science in Financial Economics from the University of London. He is also a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and an associate of the Chartered Institute of Taxation.

Oyedeji has over 25 years of banking experience across Corporate Banking, Treasury, and Commercial Banking. He served as Managing Director of Guaranty Trust Bank UK between 2008 and 2011. He was appointed to the Board of Guaranty Trust Bank PLC in October 2011, where he served as Executive Director for the Corporate Bank Group and contributed immensely to the growth of their business until his retirement in August 2018. Prior to joining GTBank in 1994, he worked with Ernst & Young, Lagos, for two years. He is an alumnus of the Advanced Management Program of Harvard Business School.

Speaking on this appointment, Mr. Wole Adeniyi, Chief Executive of the Bank stated that “the Board is pleased to welcome Mr. Wale Oyedeji to the Board of the Bank and will undoubtedly benefit immensely from his wealth of experience.”

Stakeholders in the Nigerian Education sector have advocated more private sector investment, tax concession, import duty waivers for educational equipment and special intervention funds to revamp the sector in the face of the negative impact of the COVID-19 pandemic.

The stakeholders comprising public and private sector participants who spoke during the Ecobank Digital Series titled “Education in Nigeria – The role of private investment” noted that education is a critical sector that contributes to human capital development and sustainable future for the country and must therefore not be overlooked.

They called on the private sector to invest more in education  in the form of corporate social responsibility (CSR), scholarships, provision of palliatives, support to reconstruction and rehabilitations of schools across the country.

Key participants at the event included the Honourable Minister of Education, Mallam Adamu Adamu, represented by the Assistant Director & Head, PPP/NGOs, Elizabeth Afape; The Honourable commissioner of Education, Lagos State, Mrs. Folasade Adefisayo; The Honourable commissioner of Education, Katsina State, Prof. Badamasi Lawal Charanchi; The Deputy Executive Secretary, National Universities Commission (NUC), Dr. Suleiman Ramon-Yusuf; Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf and Keynote speaker and Pro-Chancellor Achievers University, Dr. Olabode Ayorinde, and also the National President, Association for Formidable Educational Development (AFED), Mr. Orji Kanu Emmanuel amongst others.

In his presentation, Professor Olabode Ayorinde, stressed the need for government at all levels to place high priority on the education sector when providing intervention funds, urging commercial banks to also lend more to this sector at low interest rate.

According to him, “The private sector has played a significant role in education development. However, funding has been a major issue. A critical analysis shows inadequate infrastructure, lack of equipment and teaching aids, high teacher to student ratio, all of which requires a loan facility to solve. Regrettably, we see the government and its agencies providing intervention funds to the aviation sector, agriculture, creative sector without considering the education sector.”

On his part, Dr. Suleiman Ramon-Yusuf, of the NUC, attributed the poor  state of the nation’s economy to the inability of the private sector in making the right impact on the education sector, noting that endowments, scholarships and bursaries would create access for schools to admit more students.

He disclosed that the NUC will continue to provide an enabling environment for education and learning to thrive in the country, urging the private sector to invest more in human capital development, while limiting undue interference from the investors.

Also on the Ecobank Digital series platform, Dr. Muda Yusuf of the LCCI, called for government’s intervention in the education sector, especially at the foundation level, maintaining that it was not easy to sustain the education sector with loans from the commercial banks because of high interest rates.

He canvassed for tax concession for private investments in education, adding that “Licensing for private universities should be made easy to enable inclusiveness and a model that will include scholarships and bursary should be enacted.”

In her contribution, Mrs. Folashade Adefisayo, Commissioner for Education, Lagos State, said there are more private schools in the state than public schools and most of them may not survive the grueling effects of the Covid-19 pandemic.

According to her, “Land and access is the main hinderance to building of more schools in Lagos State. Currently, the government is working on synergy between the public and private sectors, reviewing and optimizing the school curriculum, improving the quality of primary education, investing in teaching aids for schools and much more.”

Towing the same line, Prof. Badamasi Lawal, Commissioner for Education, Katsina State, posited that “Initiatives for teachers development, public and private sector partnership, better and favorable legislation, corporate social responsibility like scholarship, bursary and tax concession would go a long way in providing the enabling environment for education sector to thrive in the country.

Segment Head, Public Sector, Ecobank Nigeria, Mrs. Annabel Ikuenobe, stated the readiness of the bank to keep supporting the growth of the education sector in the country. She enumerated the bank’s several products and initiatives available for Ecobank customers.

According to her, one of our products to serve the education sector is the “Ecobank School Bundle. The bundle comprises of a current account, which runs at a zero maintenance fee. We also have in place digital banking services, which include PoS, corporate card and Omnilite for easy disbursement of funds; E-billspay, to support collections and administration of the school portal, which promotes remote learning for students, receipt generation and the school’s communication management. Loans are also available for Ecobank customers.”

Welcoming guests earlier to the Ecobank Digital Series, Carol Oyedeji, Executive Director, Commercial Bank noted that private sector participation in the education sector cannot be overemphasized. She stated that education ensures a brighter future for our generation. She enjoined all stakeholders to proffer ways forward for the sector.

She noted that the Ecobank Digital Series is a virtual programme organised by Ecobank to educate and enlighten the public on crucial issues of public interest, especially as it relates to their financial freedom.

The National Bureau of Statistics (NBS) says a total volume of 2,160,436,659 transactions valued at N263.78 trillion were recorded in Q2 2020 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.

Online Transfer transactions dominated the volume of transactions recorded. 1,317,621,686 volume of Online Transfer transactions valued at N72.25 trillion were recorded in Q2 2020.

In terms of credit to private sector, the total value of credit allocated by the bank stood at N18.82 trillion as at Q2 2020. Oil & Gas and Manufacturing sectors got credit allocation of N3.62 trillion and N3.07 trillion to record the highest credit allocation as at the period under review.

As at Q2 2020, the total number of bank staff decreased by -2.55% QoQ; from 96,975 in Q1 2020 to 94,498.

Data source: National Bureau of Statistics

The Debt Management Office (DMO) has released information on the Public Debt Stock as at June 30, 2020. The data shows that in Naira Terms, the Total Public Debt Stock which comprises the Debt Stock of the Federal Government, the 36 State Governments and the Federal Capital Territory stood at N31.009 Trillion or USD85.897 Billion.

The corresponding figures for March 31, 2020 were N28.628 Trillion or USD79.303 Billion. The increase in the Debt Stock by N2.381 Trillion or USD6.593 Billion was accounted for by the USD3.36 Billion Budget Support Loan from the International Monetary Fund, New Domestic Borrowing to finance the Revised 2020 Appropriation Act including the issuance of the N162.557 Billion Sukuk, and Promissory Notes issued to settle Claims of Exporters.

The DMO expects the Public Debt Stock to grow as the balance of the New Domestic Borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget.

It will be recalled that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on Government’s Revenues and increased expenditure needs on health and economic stimulus amongst others.

Additional Promissory Notes are expected to be issued in the course of the year, this, and new borrowings by State Governments are also expected to increase the Public Debt Stock.

Mr. Godwin Emefiele

Governor

Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) has forcefully disagreed with the Nigerian Economic Summit Group (NESG) over the Group’s allegation of transparency gaps in forex allocation and management by the apex bank.

A statement by Mr. Isaac Okorafor, Director, Corporate Communications at the CBN read in part:

“The attention of the Central Bank of Nigeria (CBN), has been drawn to a recent press release titled “Matters of Urgent Attention” by the Nigerian Economic Summit Group (NESG), which calls into question some of the measures taken by the CBN to support the stability of our financial system and enable faster recovery of our economy, following the negative impact of the COVID-19 pandemic on Nigeria.

With respect to foreign exchange, the CBN operates two windows: wholesale and retail. In the wholesale window, banks are allocated FOREX weekly, which is meant to be allocated to their customers at their discretion, reflecting customer size and distributive efficiency, for final sale to parents paying school fees, patients settling medical bills abroad, SME traders importing small-scale inputs and raw materials, and general travelers for business and personal trips.

The CBN also allocates a certain amount of FX to licensed BDCs per week, who resell to small-scale users. In both categories, the CBN does not know the final buyers of this FX. In the retail window, banks submit a detailed list of applicants who are then allocated foreign exchange based on availability. Given that these submissions are first scrutinized by the banks and are accompanied by the provision of significant documentation, we do not understand the extra transparency being called for by the NESG.

Although the NESG, under its current leadership, has fallen short of its own standards and become a shadow of its old self, we believe there are better ways to resuscitate the Group’s brand other than through cheap popularity and tarnished attention using ambushed press statements made up of contrived allegations. Given that the NESG should know better, we believe that these allegations are reflective of sinister motives and malicious intent.”