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CBN Should Create Incentives for People to go Cashless – Agboola

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Bolade Agboola is an executive director at CashCraft Asset Management Limited. He is an Associate of the Chartered Institute of Bankers and Chartered Institute of Stockbrokers. He is a registered Issuing House Operator and has worked for about 20 years in various banks before joining CashcraftAsset Management Limited.He spoke to funmi ilesanmi on issues bothering on the capital market and other economic issues. Confidence of Nigerians in the Stock Market Confidence in the stock market has to be built over a period of time because a lot of people lost money and a lot of people came in and the economy went down. It will take quite a while for full confidence in the stock market to be restored and that confidence will be restored when we start to see the full corporate result and also when the bank that were recently merged start coming out with their results. What they took from those banks are the good while the bad is with the Amcon. The good aspect of the bank is now with them so those are the things that will drive the market and I believe that before the end of the year we will see a lot of improvement. That confidence also, has to do with the way debt issues with Amcon is resolved. Those are some of the things that will determine how early the confidence can be resolved. I think this will be a positive turn around this year in the market. The signs from the global economy especially US and China are not discouraging and we also believe that this year too, the Euro zone crisis would also be resolved. Those are the positive result we are expecting and of course what is still dampening Nigeria’s outlook is the local problem-the terrorist issue; which I also believed would be resolved before the end of the year. Role of Euro Crisis in Fall of Nigeria Capital Market Yes, the Euro crisis has a role to play in this because when you look at it from the background that 70 per cent of the stock market is owned by foreign investors so whatever happens globally will also have an impact on the market in terms of new investments coming in because what drives the market is the investments so the capacity of fresh investments coming from Europe will be limited because of the crisis. Divestment of Insurance Companies The divestment of banks from insurance companies is part of the pursuit of the CBN towards monoline specialized banking. What we are having generally is a type of management buy-out. Officially, these banks are not supposed to have shares in those companies but what they are doing is to empower their management to buy the companies. It would not really have any effects, it is just unfortunate that the line of banking we have chosen does not allow the kind of thinking that follows successful universal banks like Germany and the rest where banks can invest in industries, invest in non-core businesses like insurance. I think it is one of our reactions to the regulatory failures that led to the financial crisis but time would tell whether it is a good decision or bad decision because the school of thought in allowing banks to do all those things is that for certain times in Nigeria the banking industry was able to attract a lot of professionals and coupled with their money through these they encouraged to invest equities in companies but unfortunately, because of regulatory failures and economic crises that came up in 2008, we have now decided to adopt that train. I believe that universal banking is still being done in most part of the world and we have chosen to do specialized banking but time will tell whether we have taken a good decision. I am circumspect about it because I know Nigeria banks are operating international banking outside the shores of Nigeria. I also know that International banks have branches in Nigeria are also operating some elements of universal banking, so how we are going to resolve that in the future, I do not know; but I believe that it is one of those decisions that is neither here nor there. Directive that Registrars Stop Handling Shares of their Parent Companies I do not know how we are going to handle it. Two of the most effective registrars in this country in terms of performance and everything are owned by two of the leading banks, GT Registrars and FirstBank Registrars. In terms of any rating in the market they come first and second whether they are handling shares of their own banks or shares of other banks. It is also due to regulatory failure during the boom era that we are now saying they should not handle shares of their parent companies because for every activity of the registrar, they are supposed to have a timeline which regulators can check and there are rules and all the rest. It is like we do not even trust our capacity to run those institutions because if you say now that those registrars should be sold off which is the decision the CBN has taken, I do not know whether it will also have the capacity to mitigate the disaster we have in 2008, it is debatable. Unauthorized Sale of Shares by Stock Brokers The brokers do make mistakes. I mean you are punching your computer, these are things that would be intentional, which is conversion where the proceed is taken away but definitely these could be operational errors. It is good to be able to distinguish between these and shareholders have different types of arrangements with their brokers. Some of them pledge it as collateral and then when you want to realize it, they will run to the exchange, run to CSS and say they sold my shares illegally. I think the stock exchange is taking adequate measures to combat that and some of the things that has been used to combat that is the fact that almost all investors are on trade alert and whatever they do can easily be determined, so the investor can be aware. If he did not authorize it, he has three days to say I did not authorize it. I believe that as everybody embraces e-banking and all other e-services, all of that complaints would be resolved. Definitely, we will continue to have issues of unauthorized sales due to operational errors and due to some other factors. ICT in Stock Broking Business We cannot do our business without ICT. You will find that during the Fuel Subsidy crisis most people were able to trade from their homes, so that is how far we have gone and there is still a lot to be done in terms of payments. Today you can be in Maiduguri and instruct your broker to buy stock for you, credit your account with any bank, anywhere you are across the country and the stock will be bought and your proceeds can be credited to your account. So you do not need to physically go to your broker to transact any buy or sell transactions and that shows what ICT has done in facilitating that. I believe that as the national ICT platform improves, all these things will improve. ICT has actually helped the business tremendously. CBN’s Cashless Policy The cashless policy is a desirable policy and I will say that virtually all the banks started around 1997, 1998 with the use of Visa and Valucard and I think we have come a long way. It is a desirable policy but the only thing some of us do not agree with is the limit because if I can take $5,000 in Nigeria and then enter Britain or any country and I can carry $5,000 as my BTA, I see no reason why we should limit the maximum you can take from the bank to N150,000 which is less than $1,000. Knowing that there are still a lot of challenges outside Lagos; if I want to have a ceremony in my village and I know I can go there with the intent that I can take some money, if that is the period armed robbers visit the village like they did in Ogun state and the banks were shut down for one week, how do I go about it when I need to buy cow and other things? To me, we need to do it right to help the banking system. We need to create incentives for people to do their transactions via ATMs, PoS but allowing banks to make money out of necessity is what I do not like or creating a situation where it becomes fraudulent by issuing several N149,000 cheques and walking to the banks everyday. To me that is an area I think the CBN should look into. We do not need to put penalties on it but we can create sufficient incentives for people not to take cash. Tackling Fraud in e-Payment Services I think with the technology adopted, incidences of fraud will be limited. I believe that it is a real challenge because electronic fraud is something that should be worked on. I believe the banks have done a lot in curtailing and making the system full proof through the operation know your customer (KYC), identity cards and the rest. I believe that we will get used to it. Attaining Single Digit Inflation Rate Inflation in Nigeria and other emerging countries is determined by so many factors. It will be very difficult to bring down inflation one of the reasons being pressure on the foreign exchange and the fact that fuel prices are adjusted in arrears. One of the things the removal of subsidy would have done was to first of all create a pipe in inflation and because things are changing daily based on the movement of exchange rates based on price of crude oil in the international market, then it would have been moderated. We have had this devaluation and price of petroleum products induced exchange rates. Of course we have not seen the government doing a lot of borrowing and then a lot of money coming into the system through the way the federation account is handled. Really, it is going to bring inflationary rate to a single digit. It is desirable, we can plan but because of the structure of our economy, it will still take us a while to attain single digit inflationary rate.


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d.light Provides 10,000 Solar Home Systems to Refugees

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d.light, the global provider of transformational household products and affordable finance for low-income households, is providing 10,000 subsidized solar home systems to refugees who have fled conflict in South Sudan and the Democratic Republic of Congo and who are now living in refugee camps in Northern and Western Uganda.

The 10,000 units are part of a wider initiative to supply 23,000 solar home systems to Ugandan refugee communities.

The project is being funded by a USD$3.4M grant from Private Sector Foundation Uganda (PSFU), a body made up of business associations, companies and public sector agencies in Uganda: and Energising Development (EnDev), an international programme by the German, Dutch, Norwegian and Swiss governments to provide access to affordable, reliable, sustainable energy for delivering social, economic, and environmental change.

The project began in April and is scheduled to run for 12 months. Funds from the grant are subject to results based financing (RBF) and d.light will only receive funding for solar home systems that have been installed.

Each solar home system from d.light features three high-efficiency LED lights, an FM radio with MP3 playback, mobile phone charging capability, and a portable solar flashlight.

Commenting on the news, d.light’s Managing Director for Uganda Douglas Gavala said, “With this grant, we can expand the important work we’re doing to improve living conditions for underserved refugee communities from South Sudan, the DRC and elsewhere who are living in refugee camps in Uganda.

“A solar home system significantly improves the quality of life and wellbeing of a household – whether it’s providing entertainment or letting a family stay up to date on local and global news on the radio or enabling children to continue reading and studying after dark.

“As well as benefits at home, d.light products also bolster household income in Uganda’s refugee settlements by extending working hours for tradespeople and small businesses, and providing an income for residents who work as d.light salespeople in the settlements.

“By providing high-quality solar products at an affordable price, we are improving the quality of life for displaced people while simultaneously encouraging economic activity at a grassroots level.”

 


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DG NITDA Reiterates Needs for Safe and Inclusive Digital Environment

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To forge strategic partnerships and collaboration for the advancement of Nigeria’s digital transformation Agenda, the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa has reiterated the need for a safe and inclusive online environment responsible for human and Artificial Intelligence (AI) practices in country.

Inuwa made the statement while playing host to a team from TikTok who visited Agency’s Corporate Headquarters in Abuja to seek alliance towards bolstering the country, which aligns with President Bola Ahmed Tinubu priority area of strengthening national security for peace and prosperity.

The DG stated that content moderation strategies will help in addressing online problems like hate speech, misinformation, and cyberbullying in relation to the protection of minors across the country.

“With the Code of practice for Interactive Computer Service Platforms/Internet Intermediaries in place, this has helped in ensuring digital safety in accordance with global best practice and content moderation to enhance security”, he said.

He further noted that “no organisation or institution can operate in silos, we need each other for the actualisation of our goals and objectives towards services delivery and for the advancement of the Nation.”

Highlighting some critical areas, Inuwa stated that leveraging on the platform will advance the country through Digital Literacy 4 All (DL4ALL), Capacity Building, knowledge sharing, trainings, and curbing misinformation, digital safety with the aim of creating a safer cyber space and empowering online environment for Nigerian users.

He added that the platform allows for creative expression through filters, stickers, and editing tools, entertainment and comedy are dominant themes, and informational videos on various topics are gaining traction which has become a launchpad for influencers and trends that can go viral.

Inuwa also explained that NITDA’s Strategic Roadmap and Action Plan 2.0 (SRAP 2024-2027) is structured around eight pillars which include; Fostering Digital Literacy and Cultivating Talents, Building a Robust Technology Research Ecosystem, Strengthening Policy Implementation and Legal Frameworks, Promoting Inclusive Access to Digital Infrastructure and Services, Enhancing Cybersecurity and Digital Trust, Nurturing an Innovative and Entrepreneurial Ecosystem, Forging Strategic Partnerships and Collaborations, and Cultivating a Vibrant organisational Culture with an Agile Workforce.

In her earlier remarks, the Head of Government Regulation and Public Policy TikTok Nigeria and West Africa, Mrs Tokunbo Ibrahim has revealed that NITDA is one of its biggest and critical stakeholders in Nigeria that has an outstanding strides and performance in advancing the digital economy sector.

Ibrahim commended NITDA for its various initiatives, programmes, and policies set in place and aligns with that of TikTok, providing the opportunity were Nigerians use the platform to market, sell and export their products and services as well as talents to the outside world and make a living out of it.
She pointed out that there are projects and programmes that TikTok platform has forge ties of collaboration with, like the Africa creator hub where they do campaigns for tech creator, support, empower, and educate them on how to create contents and explore other sections of the platform, changing their narrative and adding values to what they are doing.

Ibrahim also added that TikTok platform considers online safety as one of its critical areas to secure the cyber space by providing an avenue for users to thrive and be productive in their various activities.

TikTok is currently running African mall to push the narrative of Africa to the world and creators are being equipped with information that they can create contents for products and services in Nigeria, thus can be exported to other countries of the world attracting investments


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Dr. Adesina, AfDB Group President Calls for Media Transformation to Uplift Africa’s Global Narrative

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Dr Akinwumi Adesina, the President of the African Development Bank Group, delivered an impassioned plea for more balanced media coverage of Africa and its development, noting it was critical for changing false narratives.

Adesina said this on Thursday in a keynote speech to the All Africa’s Media summit in Nairobi, attended by nearly 300 participants from across the continent. He praised the crucial role the media plays in strengthening democracy and advancing inclusivity.

The Bank Group president said there were many positive developments in Africa yet the continent continues to suffer misrepresentations which undermine its economic progress and investment potential.

“Despite the significant progress within our continent, the prevailing media narrative often focuses on negative stereotypes, overlooking the substantial advancements and resilience Africa demonstrates,” he added.

Adesina said there was plenty of positive news to report about and highlighted the continent’s economic resilience regional and amid global challenges. He said that in 2023, Africa’s growth rate surpassed the global average, with 11 African nations ranked among the world’s fastest-growing economies.

Adesina referenced a 2021 Africa No Filter Report, which revealed significant adherence to outdated and negative clichés in media reports about Africa. “It’s time for change,” he declared. “We must reshape the narrative about Africa to reflect its true spirit and potential.”

He emphasised the critical nature of information and its ability to have a profound negative impact on development and investor perceptions even though an in-depth investigation by Moody’s Analytics had shown the continent was much less of a risk than many other continents.

“We must promote a balanced view that highlights both the challenges and the many successes of Africa. It’s about changing perceptions and showcasing Africa as a continent rich with opportunity and innovation.”

The Bank Group President also spoke about the challenges and transformations within the media sector, highlighting the impact of digital technology.

“The media landscape has dramatically shifted with the rise of the internet and mobile technology, leading to a proliferation of digital platforms,” Adesina declared.

“While this has democratised information, it has also complicated issues, the distinction between fact and fiction can become blurred.”

To counter unfair and unbalanced narratives, Adesina urged the creation of a powerful, globally respected African media and proposed strategic collaborations among regional financial institutions to support this cause, emphasising the need for media to act as a catalyst for development.

“We need to celebrate and promote the continent’s successes, turning the tide against the longstanding stereotypes that have clouded the global view of Africa… What you call yourself, is the name others will subscribe to you.”

“For as long as we continually denigrate ourselves and play into the hands of those who control the narrative about Africa, we will be stuck with a label that does not belong to us,” he concluded.

He highlighted the African Development Bank’s own successes which included maintaining a AAA credit rating and launching groundbreaking financial initiatives that have earned it respect as an innovative and successful multilateral development bank.

“We have proven that Africa can lead with innovation and strength in the global financial landscape,” the President remarked. “Yet, these achievements receive minimal attention compared to the persistent focus on Africa’s challenges.”

Adesina added that just one month ago, the Bank launched a landmark $750 million hybrid capital instrument, again with a Triple A rating, which was oversubscribed eight times. He described this as a huge “testament to the confidence and trust in Africa’s burgeoning financial capabilities.”

He pledged that the African Development Bank remained committed to supporting initiatives that would help the media present a more balanced and progressive portrayal of Africa and support its economic development.

In a discussion with Julie Gichuru of the Mastercard Foundation after his address, Adesina said Africa was blessed with energy sources, but millions remained without electricity. “This must change,” he said.

“We cannot industrialise in the dark, we cannot develop in the dark. Our children cannot be competitive in a world of darkness,” he concluded.


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