E-Financial
CIBN Chief Tasks Banks on Strengthening Cybersecurity
Chartered Institute of Bankers of Nigeria (CIBN) has urged banks to strengthen their cybersecurity architecture to protect themselves against attacks by fraudsters.
Mr. Bayo Olugbemi, president/chairman of Council of the Institute made the call while delivering his remarks at the 2020 CIBN Fellowship Investiture in Lagos.
The CIBN at its investiture formally conferred its honorary fellowship awards on 19 distinguished bankers in recognition of their contributions to the banking industry and the economy; 77 Associates as Elected Fellows while 105 Senior Management Staff of banks and the academia became Honorary Senior Members of the Institute at the event themed, ‘Financial Services in a post-COVID 19 Environment: Strategic Imperative’.
Others who were conferred with the same award were Dr Adewunmi Adesina, President, African Development Bank; the Governor, Bank of Sierra Leone, Professor Kelfala M. Kallon; the President, West African Bankers Association and President Liberia Bankers Association, Mr.John Davies III; the GMD/CEO, Stanbic IBTC Holdings Dr. Demola Sogunle, HCIB; the MD/CEO, Zenith Bank Plc, Mr. Ebenezer Onyeagwu, HCIB, the MD/CEO, WEMA Bank Plc, Mr. Ademola Adebise, HCIB, the MD/CEO, Sterling Bank Plc, Mr. Abubakar Suleiman, HCIB; the MD/CEO, Providus Bank Plc, Mr. Walter Akpani, HCIB, the MD/CEO, Standard Chartered Bank Limited; Mr. Lamin Manjang, HCIB, the MD/CEO, Federal Mortgage Bank of Nigeria, Mr Arc Ahmed Musa Dangiwa, HCIB, the Board Member, Lead Capital Group of Companies, Prince Bimbo Olashore, the Board Member, Oodua Investment Company Limited, Otunba Bimbo Ashiru, Former DMD Diamond Bank, Mrs Caroline Anyanwu, and Former Executive Director, Fidelity Bank, Mrs Ugochukwu Chijioke, top the honours list of eminent bankers who will be formally conferred with the prestigious Fellowship of the Institute.
Mr. Olugbemi told over six hundred participants who attended the event physically and through different digital conferencing platforms that Nigeria had been bedevilled by a myriad of challenges this year ranging from a drop in oil price, COVID-19 pandemic, the recent #EndSARS protests and the attendant pocket of unrests across the country to a recession.
The pace of these disruptive activities and their attendant effects on the financial service system has been intense.
He argued that the banking industry had remained resilient providing succour to businesses and millions of individuals across the country.
Olugbemi said that banks should also continue to reinforce their risk management frameworks in line with the government’s policies and urged banks to consider conducting more market research on how customer needs might change in the Post-COVID era. This would inform product development and process improvements
Mr. Kunle Elebute, Senior Partner, KPMG Nigeria & Chairman, KPMG Africa, while speaking on the “New Realities in the Post-COVID World: Strategic Imperatives”, told bankers that global CEOs were beginning to acknowledge that the new wave of technological advancement comes with risks that cannot be ignored.
The KPMG boss said that the effects of COVID-19 will drive new ways of working, new performance metrics and new ways of connecting with and managing employees, well beyond the “work from home” dimension.
Board and executive management are also increasingly aware that while they might not be the expert in the subject of cyber risk, they will be held accountable if there is a cyber-attack that disrupts business performance, he said.
As a result of the pandemic and working in the remote environment, Elebute suggested that new productivity metrics need to be developed, but without being perceived as intrusive and maintaining a strong culture is as important as ever but much harder, he said
In his contribution, Mr. Ernest Ebi, former Deputy Governor, Central Bank of Nigeria and Chairman of the event maintained that the banking industry must realize its role in the economic recovery process, as banks and other financial institutions play a significant role in shaping the recovery by supporting households and businesses to rebuild their financial security and business health.
To continue to fill the enormous credit gap and offer customers greater access to needed financial services, Mr. Ebi charged bankers to look beyond the immediate threat of the coronavirus pandemic and refocus on understanding their customers’ ‘new normal’ needs. He said banks, therefore, need to adopt new operating models that support rapid and stronger recovery, as well as ensure efficiency and resilience.
“I am honoured like other honourees to be conferred with this fellowship, the responsibility is for us to conduct ourselves both in our personal and professional life (locally and globally) to these high standards, to be role models and mentors to other professionals in the banking industry and also to support the Institute in its broad activities in terms of building the capacity of bankers and their professionalism”, Adesina, President, AfDB said.
Mr. Adegboyega Oyetola, Governor, Osun State was the special Guest of Honour while Dr. Ken Opara, 1st Vice President, CIBN, Prof. Deji Olanrewaju, 2nd Vice President, CIBN, Mr. Dele Alabi, National Treasurer, CIBN, Prof Segun Ajibola, Past President, CIBN; Dr. Uche Olowu, Past President, CIBN, Mr. Seinde Fadeni, Chairman, NAHCO; and other captains of industries were Honourary Guests at the event.
Renaissance Capital Africa (Rencap) has named Zenith Bank Plc its top conviction pick among Nigerian banks, ahead of GTCO and AccessCorp, in a fresh research report highlighting the lender’s robust balance sheet and dividend potential despite sector headwinds.
Zenith Bank
The comprehensive review of the Nigerian banking industry notes that Zenith’s current market valuation lags its improving fundamentals, even as the NGX Banking Index posts strong gains recently.
Rencap upgraded Zenith from HOLD to BUY, lifting its target price by 96 per cent based on a lower risk-free rate from falling government bond yields, refined beta estimates, and expectations of cleaner assets post-forybearance resolutions.
Balance Sheet Strength Drives Outlook
Analysts project challenges to earnings growth from anticipated Central Bank of Nigeria (CBN) rate cuts but foresee higher dividend payouts from resolved forbearance and single obligor loan (SOL) exposures alongside rising cash profits.
“Although we expect banks to face challenges in growing earnings… the balance sheet clean-up… will support higher dividend payouts relative to prior years,” the report states, ranking Zenith first, followed by GTCO and AccessCorp.
Key positives include loan write-offs that bolstered asset quality, enabling sustainable growth amid financial system reforms.
Dividend Recovery in Focus
Sector profitability from 2023-2024 was inflated by unrealised foreign exchange gains, which regulations barred from cash dividends, capping payouts despite headline profits.
Zenith historically led payout ratios in 2021-2022 via strong cash generation and capital discipline; Rencap expects a rebound as pressures ease, attracting income-focused investors.
Tier-1 Leadership Reinforced
Zenith Bank recently topped Nigeria’s tier-1 capital rankings for the 16th straight year, per The Banker magazine (Financial Times), affirming its resilience and positioning for long-term value creation.
CBN
- Access Bank Plc
- Fidelity Bank Plc
- First Bank of Nigeria Ltd
- Guaranty Trust Bank (GTBank)
- United Bank for Africa (UBA)
- Zenith Bank Plc
- FCMB (First City Monument Bank) – currently pushing to raise additional capital to secure its international licence.
- Wema Bank
- Standard Chartered Bank (Nigeria)
- Citibank Nigeria
- Stanbic IBTC Bank
- Sterling Bank
- Globus Bank
- Premium Trust Bank
The Securities and Exchange Commission (SEC) has revised the minimum capital applicable to all categories of regulated capital market entities after 10 years.
The minimum capital review, according to the SEC, is informed by the need to strengthen market resilience, enhance investor protection, align capital adequacy with the evolving risk profile of market activities, and ensure that regulated entities possess sufficient financial capacity to discharge their obligations in a sustainable manner.
“The revised Minimum Capital framework seeks to: enhance the financial soundness and operational resilience of market operators; align capital requirements with the scope, complexity, and risk exposure of regulated activities; promote market stability and systemic risk mitigation; and support innovation and orderly development of new market segments, including digital assets and commodities markets,” SEC said in a January 16 circular to market operators.
The SEC circular was sent to all entities regulated by the Commission, including but not limited to core and non-core capital market operators; market infrastructure institutions; capital market consultants; financial technology (FinTech) operators; Virtual Asset Service Providers (VASPs); and Commodity market intermediaries.
All affected entities are required to comply with the revised Minimum Capital Requirements on or before June 30, 2027, the circular said.
“Entities that fail to meet the prescribed requirements within the stipulated timeline shall be subject to appropriate regulatory sanctions, including suspension or withdrawal of registration, as may be determined by the Commission,” SEC said.
Tier-1 Portfolio Managers (Full Scope) involved in the management of Collective Investment Schemes (CIS) and Alternative Investment Funds (Private Equity, Venture Capital, Infrastructure Funds etc) above N20 billion Net Asset Value (NAV), or discretionary and Non-Discretionary Private Portfolio Management Services above N20 billion Assets under Management (AuM), or exposure to foreign instruments up to 40 percent of the NAV are now required to have a minimum capital of N5 billion as against N150 million.
“Any Fund and Portfolio Manager with NAV/AuM of more than N100billion should have a minimum of 10 percent of the NAV/AuM as capital,” SEC added.
For the Tier-2 fund/portfolio managers (Limited Scope) who are in the business of management of Collective Investment Schemes with limited pooled fund creation of not more than 10 times the required capital (N20 billion) on Net Asset Value (NAV), or discretionary and non-discretionary private portfolio management services of not more than N20 billion, or those exposure to foreign instruments of not more than 20 percent of the NAV, now require N2 billion as minimum capital as against low of N150 million.
Likewise, broker-dealers whose services include: client execution, proprietary trading, margin/securities lending and advisory services no longer require N300 million minimum capital to operate but N2 billion.
The SEC said the minimum capital review from 2015 low is in line with its mandate under the Investments and Securities Act 2025 to regulate and develop the Nigerian capital market.
Also, Tier 1 issuing houses who do non-interest finance services, advisory & arrangement services but no underwriting now require N2 billion as against N200 million; while Tier 2 –issuing houses with underwriting and offers a ‘one-stop-shop’ for issuers, provides underwriting services, and renders advisory and product development services require N7 billion minimum capital for this business as against N200 million.
Also, the minimum capital requirement for brokers (client execution only) has been jacked up from N200 million to N600 million, while that of dealers (proprietary trading only) has been moved from N100 million to N1 billion.
Broker-Dealers’ (client execution, proprietary trading, margin/securities lending and advisory services) has been raised from N300 million to N2 billion, while Sub-Brokers’ (Digital) from N10million to N100million; Sub-Broker (Corporate) has been increased from N10million to N50 million. Also, sub-brokers’ (Individual) now need N10 million minimum capital for the business as against N2 million while inter-dealer brokers require N2 billion as against N50 million.
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