E-Financial
Cashlite Programme’ll Lead to Cheaper Lending –Sanusi
Lamido Sanusi Lamido, Central Bank of Nigeria (CBN) governor has expressed confidence that Nigeria’s move towards a cashless society, together with other developments already under way in the banking sector, such as the outsourcing of cash management and transit, shared data centres, should lead to cheaper lending.
Sanusi made this known in an interview with Oxford Business Group, a global publishing, research and consultancy firm.
He added that the ‘Cashlite’ programme, which forms a key component in Nigeria’s efforts to reduce the volume of cash in circulation, was scheduled to be rolled out across the country at the beginning of 2013 following its introduction this year in the capital city.
“The roll-out over 2012 has been focused on Lagos as, given its proximity to the landing points of fibre-optic cables, it is ideally positioned for technological adoption,” he said. “Instant electronic transfers have been enabled, interconnectivity between ATMs is ensured and mobile banking licences have been issued.”
The CBN governor said “Aside from the immediate financial gains this entails, human capital is being made available for revenue-generating services, such as debt recovery and client acquisition. We estimate that a successful implementation of these measures will reduce the cost of lending by at least 30%.”
Sanusi was confident that steps taken to recapitalise Nigerian banks and put their balance sheets in order meant they were now well placed to play their part in boosting lending.
“The question now lies with the counterparties. Vital elements, like infrastructure, energy and agricultural transformation are what will bring about bankable companies and projects. The ball now lies in the government’s court.”
Going forward, Sanusi said Nigeria must focus on rebuilding its reserves and stabilising the exchange rate to protect against further fall-out from global economic uncertainty.
He explained that a drive to replenish the country’s excess crude account, which remains depleted following the 2009 drop in oil prices, would require political will and maintained that the country’s economic development would benefit from greater private sector involvement.
“The global economic outlook is still uncertain, and it is vital that we resume our savings so that we are prepared for the worst in case the situation deteriorates,” he said.
“Doing so will depend on an agreement among all political stakeholders involved. Structural adjustment is also of key concern. We need to get to a point where we have an infrastructure whereby the balance sheet of the government is not the major driver of investment.”
E-Financial
Banks Lose N10Bn to Cyber Fraud in 2023’
Stakeholders in the banking and financial ecosystem, yesterday, decried the surge in cyber fraud as Deposit Money Banks (DMBs) lost N10 billion in the second quarter of 2023, representing almost 300 per cent year-on-year compared to the previous year.
At a Mastercard forum convened to tackle fraud and cybersecurity threats in the financial sector, Kari Tukur, vice president, Customer Solutions Centre, East and West Africa at Mastercard, said despite the massive awareness and innovations aimed at combating cybersecurity, the amount lost last year by DBMs was “staggering”.
She said, “With Nigeria’s rapidly growing economic expansion, we are starting to see an increase in the adoption of digital financial services, and the financial landscape is also evolving at an astronomical speed.
“What was staggering for me was in spite of the huge investment around innovation, funding in the cyber space, DBMs lost almost N10bn in Q2 last year, and that was almost 300 per cent growth year-on-year when compared to the previous year.”
She noted that there was the need for collaboration among stakeholders “to combat this rising sophistication of cyber security threat.”
Tukur further stated that Mastercard was deeply committed to cyber security and fraud prevention within the payment industry, disclosing that the company invested $250m “to assist small businesses in addressing their cyber security needs.”
She disclosed that Mastercard payment portals incorporated multiple layers of security such as tokenisation technology, encryption and biometrical to stay ahead of cyber attackers.
She added that, “The sector continues to struggle with the aforementioned challenges, necessitating vigilance, proactive action and comprehensive security strategy, and Mastercard remains committed to providing safe, secure and seamless payment services and experiences for our partners and customers in Nigeria and beyond.”
Celestina Appeal, chairman, Committee of e-Business Industry Heads (CeBIH), stated that the total loss to the banking industry in the last couple of years totalled hundreds of billions of naira while Nigeria’s Consumer Awareness and Financial Enlightenment Initiative had projected a $6trn loss by 2030 to cybercrime within and outside Nigeria.
Represented by Mr Temitope Onibaniyi, secretary of the committee, she stated that the committee was ever-willing to collaborate with industry stakeholders to fight against the perpetrators who “constantly rob banks and other stakeholders in the payments industry of their hard-earned money.”
She said the need for collaboration could not be overemphasised as no individual organisation was immune to cyber security attacks.
E-Financial
Tinubu Rejigs SEC Board, Makes New Appointments
President Bola Tinubu has approved the appointment of some Nigerian professionals to the Board of the Securities and Exchange Commission (SEC).
This is contained in a statement issued by Ajuri Ngelale, special adviser to the President on Media and Publicity.
Tinubu appointed Mr. Mairiga Aliyu Katuka as the Chairman of the board of SEC, while Mr. Emomotimi Agama has been appointed as the Director-General of the board.
The president also appointed Frana Chukwuogor as Executive Commissioner (Legal and Enforcement) of the board.
Tinubu further appointed Mr. Bola Ajomale as the Executive Commissioner (Operations) of the board, while Mrs. Samiya Hassan Usman is the Executive Commissioner (Corporate Services) of the board.
Also appointed into the board are Mr. Lekan Belo as Non-Executive Commissioner and Mr. Kasimu Garba Kurfi as Non-Executive Commissioner.
According to Ngelale, the president anticipated that “all members of the Board of this critical commission will bring to bear their wealth of experience and competence in advancing the commission’s core mandate of developing and regulating a capital market that is dynamic, fair, transparent, and efficient, to bolster investor confidence and contribute immeasurably to the nation’s economic development.”
E-Financial
Ecobank Repays $500m Eurobond
Ecobank has announced the successful repayment of its $500 million five-year Eurobond issued in 2019. According to a statement filed on the Nigerian Exchange Limited (NGX), the Eurobond garnered considerable interest from a diverse range of global investors, including long-term development partners such as FMO and Proparco, who served as anchor investors.
Commenting on this achievement, Ecobank Group Financial Officer, Ayo Adepoju, said: “The bond was listed on the main market of the London Stock Exchange with a coupon rate of 9.5 per cent. The principal and interest repayment, totalling $524 million, was distributed to bondholders through the transaction agent on the bond maturity date of April 18, 2024.
“This inaugural bond we are retiring today was critical in introducing our firm to a wider array of global investors and contributed to the increased visibility of our brand in the capital markets.”
Against the backdrop of challenges posed by the global operating environment, including disruptions in the world supply chain and financial markets, Adepoju highlighted the Group’s resilience. He cited strong liquidity, a robust balance sheet, and a solid leadership team as key factors enabling Ecobank’s success.
He added that the successful repayment of the Eurobond underscores Ecobank’s commitment to financial stability and investor confidence, positioning the firm for continued growth and success in the global market.
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