The Central Bank of Nigeria (CBN) recently announced its plan to embark on ‘Project Cure’, aimed at restructuring the nation’s currency. Under the proposed currency structure, the lower bank notes of ₦5, ₦10 and ₦20 will be coined, while the existing denomination of ₦50, ₦100, ₦200, ₦500 and ₦1,000 will be redesigned with new security features. A new high currency denomination, the ₦5,000 note, will also be introduced.
The tax system in any country is a major link between the private and the public sector in growing and shaping the economy of that nation. Taxation can be used to control the direction of a country’s economic strategy.
For example, in 2011, when the government of China wanted more activities in its capital market, it reduced the taxes and other transaction charges. This led to increase in the volume and value of trades in the capital market, and it opened the doors for more foreign investors since it was relatively cheaper to do business in the China Capital Market.
(Photo: L-R: Trade Finance Manager, Mantrac Group, Ms. Neimat El Magraby; Head, Global Markets, Stanbic IBTC Bank, Mr. Sola Adegbesan and Managing Director, Mantrac Nigeria, Mr. Edmund Martin Lawson at a press conference to mark the formal launch of the collaboration between Stanbic IBTC Bank and CAT Financial Services on Tuesday, February 5, 2013.)
Caterpillar Financial Services Limited and Stanbic IBTC Bank officially launched their collaboration agreement in Lagos recently.
The Small and Medium Enterprises (SMEs) are believed to be the engine room for the development of any economy because they form the bulk of business activities in a growing economy. However, lack of adequate credit for SMEs, traceable to high lending rate or the reluctance of banks to extend credit to them, has been identified as the major challenge hindering growth in the sector.
There are many causalities of increasing failures of going concern in Nigeria. The factors mostly canvassed are infrastructural shortcoming, institutional and structural challenges. The recent survey we conducted revealed that while the harsh operating conditions in the country may be a factor to untimely death of many businesses, one major bane of indigenous businesses and indeed some foreign ones is the absence of “Best Practice Corporate Governance.”
Corporate governance Lapses
Eighty percent of registered businesses in Lagos, Nigeria, as at 2011, were not in existence 20years ago, this is according to officials of the Corporate Affairs Commissions (CAC). It therefore implies that in spite of the harsh operating environment, more people are still seeking investment opportunities in the country, especially in Lagos, the nation’s commercial capital and home to over 20million inhabitants.
Just like the emergence of “good to great” companies described by Jim Collins, approximately two decades ago, two home bred bankers in an attempt to realize their dream of pioneering a reference African bank with global edge; embarked on a journey that led to the birth of Guaranty Trust Bank (GTBank).
When a bank changes its name, it takes a while for the customers to get used to it. Those banking with Intercontinental Bank got the information about the change of status on the banks’ Automated Teller Machines (ATMs) that ‘their’ bank, Intercontinental Bank, is glad to be a subsidiary of Access Bank plc.
They have absolutely no say in the matter, regardless of how much was in their account or how long they have been customers of the bank.