Banking and Finance

FirstBank, CDB Seal $100m SME Facility Deal

First Bank of Nigeria Limited has signed a $100 million facility agreement with the China Development Bank (CDB), a leading bank in the Peoples’ Republic of China.

The facility was part of the bank's effort to boost lending to small and medium scale enterprises in the country to stimulate the economy.

The Group Managing Director/Chief Executive Officer, First Bank Nigeria, Bisi Onasanya, is a member of the federal government’s delegation to China. The delegation also includes four state governors and 10 ministers.

Biometric Authentication of ATMs, PoS to Commence in 2015

The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, has declared that the biometric authentication of Point of Sales (PoS) terminals and Automated Teller Machines (ATMs) will commence in 2015.

He said the move was aimed at addressing concerns over the safety of customers’ funds and also to avoid losses through compromise of Personal Identification Number (PIN).Statistics show that this effort has reduced the fraud incidences by 90%. Many customers are now embracing these electronic (ATM and PoS) channels in their transactions.

CBN to Review Agent Banking Rules

The Central Bank of Nigeria (CBN) has said it will be reviewing the Agent Banking Guidelines it issued some months back.

The CBN Governor, Sanusi Lamido Sanusi, at the launch of the Geospatial mapping of Financial Institutions in Nigeria in conjuction with the Bill and Melinda Gates Foundation, said it is important to review the guidelines because of initial challenges the banking practice is facing.

NSE Charges New Brokers to Be Worthy Ambassadors

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, has admonished newly-inducted stockbrokers to stand against sharp practices in the market, having being qualified as chartered stockbrokers by the Chartered Institute of Stockbrokers (CIS) and as dealing clerks by the NSE.

Speaking at the induction ceremony for the newly-qualified stockbrokers, Mr. Onyema said, “Today marks a call to stand tall in integrity, to be impeccable in character, to be professional in service and to be high in ethics and standards.

Nigerian Banks Emerge in Top 1000 Global Ranking

Thirteen Nigerian banks emerged in this year’s edition of the “Top 1000 World Banks’ Ranking,” by the Bankers magazine, owned by the Financial Times Group, London.

Zenith Bank Plc, First Bank Nigeria and Guaranty Trust Bank Plc (GTB), in that order, were the top three Nigerian banks in the ranking.

Others were Access Bank, United Bank for Africa (UBA), Ecobank Nigeria, Fidelity Bank, First City Monument Bank, Skye Bank, Diamond Bank, Stanbic IBTC, Union Bank and Standard Chartered Bank, in that order.

Committee Proposes Prudential Guidelines for Banks

Global financial authorities are considering a review of prudential guidelines for banks in relation to their equity investments in funds.

The Basel Committee on Banking Supervision, a body of global financial authorities, at the weekend published a set of proposals that would revise the prudential treatment of banks’ equity investments in funds.

The revised guideline is expected to address the issue of underlying risk and leverage as well as align banks’ investments in the context of the globally accepted risk-based capital framework.

Private Sector: Banks’ Lending Up by 0.5%

Net loans from the banking system to the private sector increased in May by just 0.5% month-on-month and 7.0% year-on-year, a report by FBN Capital has shown.

The private sector in this case is defined as the domestic economy other than the Federal Government of Nigeria (FGN), and thus includes the state governments, whose borrowings amounted to ₦691 billion ($4.3 billion) at end-April this year.

Analysts at FBN Capital, according to the report, noted that the total for the private sector in May was ₦15.5 trillion ($96.8 billion).

CIS Deregisters Erring Stockbrokers

The Chartered Institute of Stockbrokers (CIS) has deregistered two of its members and suspended one for unprofessional conduct.

The CIS, which is the professional body for stockbrokers in the country, in a statement on Friday, named the affected stockbrokers as Mr. Peter Ola and Mr. Kingsley Nnaji, while the third member, Mr. Akinwale Olagundoye, was suspended from trading in the capital market for six months.

Access Bank Appoints Wigwe as CEO Designate

The Board of Directors of Access Bank Plc has appointed Herbert Wigwe to succeed Aigboje Aig-Imoukhuede as Group Managing Director/Chief Executive Officer which will be confirmed at the end of 2013.

Mr. Aig-Imoukhuede, 46, will be leaving the group after 11 and a half years of outstanding performance. Mr. Wigwe, currently Group Deputy Managing Director, having received the necessary regulatory approvals, has been appointed CEO designate and will succeed Mr. Aig-Imoukhuede at the end of 2013.

Nigeria’s $1b Eurobonds Oversubscribed

Renewed confidence in the Nigerian economy was again demonstrated yesterday by the international investor community, as the country’s  second Eurobond was oversubscribed, raising a total of $1 billion, which government  plans to use to finance its power transmission projects.

Nigeria’s total debt stood at 17% of Gross Domestic Product as at March 2013, according to data from the Debt Management Office. This comprises of ₦6.5 trillion in domestic debt (excluding AMCON bonds), and $6.67 billion in foreign dollar debt.