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CBN to Contribute N50Bn to AMCON Sinking Fund

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Jones Onyereri, chairman, House of Representatives Committee on Banking and Currency,  said the Central Bank of Nigeria (CBN) would contribute N50 billion to the Assets Management Corporation (AMCON) sinking fund.

Onyereri (PDP-Imo) made the announcement at a one-day public hearing on a bill to amend the AMCON Act 2010 organised by the committee in Abuja on Monday.

The fund is a safety net for AMCON to ensure it meets its obligations arising from debt securities issued by it.

It also insulates the tax payer from obligations occasioned by financial mismanagement by the banks.

He said that commercial banks in the country would be mandated to contribute an amount equivalent to 50 basis points of their total assets to the fund.

“The key component of the amendment bill relates to setting up of a sinking fund or Resolution Cost Fund.

“It basically obligates a bank to contribute annually an amount equivalent to 50 basis points of its total assets to the fund and CBN is to contribute N50 billion to the fund,’’ he said.

According to him, the amendment is aimed at strengthening AMCON as an institution to be able to carry out its functions.

The legislator said the bill would remove contradictions relating to the purchase agreements between AMCON and financial institutions.

“What this bill, therefore, seeks to do is to codify the obligations of both the CBN and the banks and to give the previous agreement between parties the force of law,’’ he said.

He said the committee would continue to work with regulatory authorities and banks to find ways of reducing the high interest rates in the country.

Onyereri said that about N600 billion recovered from bad debts had restructured a lot of non-performing loans.

Alhaji Aminu Tambuwal, speaker, House of Representatives who declared the hearing opened, said AMCON was created to protect the public from shocks in the banking system.

Represented by Rep. Garba Datti (APC-Kaduna), the Deputy Minority Whip, Tambuwal said it was house duty to protect the welfare of the people from the major brunt of financial institutions.

“This public hearing is, therefore, part of a carefully laid down strategy by the 7th Assembly to ensure that the nation’s financial sector is given the needed impetus to function properly,” he said.

Mr Mustapha Chikeobi,  managing director of AMCON, who supported the bill, said that the amendment was to ensure that the corporation worked effectively.

Chikeobi urged other stakeholders to view the amendment from a positive perspective, adding that it was not aimed at empowering AMCON.

Other stakeholders in attendance include, NDIC, Guarantee Trust Bank, Mainstreet bank, Skye bank, Keystone bank, Stanbic bank and financial experts.


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FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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Stanbic IBTC, Standard Bank, Listed Among Top African Corporate Brands

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Stanbic IBTC Holdings PLC and its parent company, Standard Bank, have emerged amongst the top winners of the 2020 Tech Times’ Africa LinkedIn Corporate Brand Awards.

The Stanbic IBTC Group emerged the second position in the category, with total votes of 3,515, out of 24 firms nominated for the award. Standard Bank placed the fourth 2,494 votes.

Nominations for this award opened to the public on July 1, 2020 and closed on July 14.

Shortlisted nominees were announced on August 24 while voting commenced immediately and voting ended on September 8, 2020.

The Corporate Brand Awards was instituted by Tech Times’ Africa, an online platform for leading technology, innovation, and startup stories.

Expressing his delight on the awards, Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings PLC, said that both Stanbic IBTC Holdings PLC and Standard Bank had been deliberate and consistent in making a remarkable impact in Africa’s financial sector.

“Our sincere appreciation goes to the organisers of the Africa Corporate Brands Awards and to every member of the public who voted. This is a reflection of the high level of trust and confidence that the public has reposed on us,” he added.

Dr Sogunle further said that Stanbic IBTC Holdings PLC would remain relentless in portraying the organisation as one of the most influential corporate brands in Africa.

He stated: “Stanbic IBTC Holdings PLC and Standard Bank have relentlessly contributed to driving the growth and development of the African financial ecosystem. These awards affirm our efforts, and we are encouraged to raise the bar continually.”

The Africa Corporate Brand Award is designed to identify and recognise outstanding companies. It also projects their achievements and impacts on African society and the world at large.


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