E-Financial
Financial Inclusion: FirstBank Offers Single Digit Lending Rate to SMEs
First Bank of Nigeria Plc has extended single digit loans to entrepreneurs in partnership with the Nigeria Association of Small Scale Industrialists (NASSI).
The bank has since signed a Memorandum of Understanding (MoU) with NASSI to ensure hitch-free implementation of the initiative that is geared towards promoting the growth and development of the sector.
Bisi Onasanya, FirstBank’s Group managing director/CEO said the initiative is in line with the bank’s strategic focus on financial inclusion as it would address the challenges of credit delivery to the unbanked market’s segment through mobilised funds that will avail credit facilities to registered NASSI members at concessionary rate.
He said: “The loans are only available to members of NASSI nationwide to facilitate the success of their businesses and eventual growth into large corporate organizations.”
In addition to warehousing and disbursing mobilised deposits, Onasanya said the bank would support the group through business advisory services, capacity building and development of relevant IT infrastructure, as well as the issuance of bio-metric identity card to all members.
Identifying access to finance as the biggest challenge facing SMEs, he urged operators of small business under the aegis of NASSI to take advantage of the facilities and ensure compliance with repayment terms to ensure the success of the initiative and collaboration between the bank and NASSI.
“Every default in repayment is a disincentive to lending to another person, that’s why all borrowers must ensure that they repay the loans promptly,” he added.
Dr. Olusegun Aganga, minister of Trade and Investment commended FirstBank for the initiative, adding that the development resonates with the commitment of the Federal Government to bolster economic growth and development through support for small businesses.
“FirstBank’s partnership with NASSI represents a solid foundation for supporting the success of SMEs in Nigeria and this is one of core pursuits of the administration of President Goodluck Jonathan,” he said.
Chuku Wachukwu NASSI president said the organization was grateful to FirstBank for providing a platform for its members to access loans at a single digit rate.
“This indicates the bank’s commitment to the nation’s economic development and I want to assure all stakeholders that NASSI members will take full advantage of this platform while the organisation’s leadership will ensure that there will be no defaulters in the scheme,” he said.
E-Financial
Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme
“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.
MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.
Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.
The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.
The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.
E-Financial
CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering
Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.
The inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.
In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN, disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.
“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.
The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.
However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.
Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.
Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.
E-Financial
CBN Urges Banks to Expedite Action on Recapitalisation
Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.
Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.
The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.
Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.
“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”
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