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Nigerians Save for their Future, MasterCard Survey Reveals

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Results of the latest MasterCard Worldwide Survey on Consumer Purchasing Priorities – Money Management has revealed that Nigerians continue to understand the importance of saving their money, with 95% of respondents committing to increasing their savings in the following six months.
 
Compared to the previous year’s results, this latest finding represents an 8% increase on the 87% of respondents who had similarly committed to increasing their savings in 2011.
 
Now in its second year in Nigeria, the MasterCard Worldwide Survey on Consumer Purchasing Priorities – Money Management includes a series of questions that investigates respondents’ financial planning over the course of the following six months and seeks to determine levels of basic money management skills in terms of budgeting and savings.
 
The most recent survey was conducted between 24 April and 10 June 2012, and involved 11,376 respondents aged 18 to 64 across 25 markets spanning the Asia Pacific, Middle East and Africa regions. On the African continent, the survey was conducted in Egypt, Kenya, Morocco, Nigeria and South Africa
 
When respondents were questioned about their primary reason for wanting to increase their rate of saving over the subsequent six months, 84% indicated that they were wary of the impact that global economic events may have on the Nigerian market and they felt they needed to prepare for unforeseen emergency expenditure.
 
The survey established that a significant 95% of respondents believed that they should regularly save a portion of their monthly income. The allocation of their total salaries that they intended to save in the following six months was diverse, with 26% saving one tenth or less, half of all respondents saving between 11-30%, and 11% saving more than one third of their salaries.
 
“It is clear that Nigerians understand the importance of setting a portion of their monthly income aside,” said Omokehinde Ojomuyide, country manager, West Africa, MasterCard Worldwide. “In fact, it is one of the most important and necessary actions that any Nigerian can take to ensure their financial security.”

The Central Bank of Nigeria (CBN) has emphasized this with its National Financial Inclusion Strategy, through which it aims to achieve a total number of 63 million users of banks’ savings account products by 2020, from the 21 million accounts that were active last year.

Ojomuyide adds that investments, retirement planning, and buying or upgrading a property, were the most popular reasons for saving, with a large percentage of Nigerians saving for more than one purpose.

Reinforcing the positive results around savings were the facts that 94% of respondents believed it was never too early to have a financial plan and 81% agreed financial planning was not just for the rich.

However, the survey revealed that while large numbers of Nigerians understand the importance of planning and saving for their retirement years, and are setting money aside for that purpose, only 37% of respondents have calculated the total amount that they would need to retire to maintain their lifestyle when the time comes for them to stop working.

“Many people think that saving for retirement is something that can be postponed for action later in life,” says Ojomuyide. “However, one of the first steps to take towards financial independence is making adequate preparations for when a person is no longer working, whether this retirement is by choice or from ill health – and the advice of a qualified and experienced financial planner will help Nigerians take the necessary steps to provide for their future.”

The survey also indicated that Nigerians manage their money carefully and effectively. Ninety-four percent believe that they have the ability and understanding to budget their day-day finances, 78% track their spending on a weekly basis and 83% regularly monitor the progress of their investments.

“Even though the survey shows that Nigerians lag with planning for their retirement, it reveals that they understand the importance of budgeting and saving, and more importantly, they are taking steps to include these activities in their daily lives,” Ojomuyide says. “It is this awareness of personal finances, and the knowledge of how to manage money, that will help Nigerians embrace the CBN’s National Financial Inclusion Strategy and its Cashless Policy.”

“Understanding the importance of managing money beyond immediate daily needs is the first step towards owning a bank account, which then opens up the benefits of broader financial inclusion,” she says. “This in turn makes the appeal of a cashless economy even more clear, as the dangers and inconvenience of cash are eliminated, and electronic payments are increasingly embraced.

 “MasterCard is working closely with Government, financial institutions and merchants to make the CBN’s goals for a financially secure Nigeria reality, by making it easy, safer and more convenient for Nigerians of all income groups to put their savings to good use,” she concluded


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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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