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Nigeria’s Retail Sector has Bright Future, Says Oduoza

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Phillips Oduoza, group managing director, United Bank for Africa (UBA) Plc, has said that Nigeria ’s retail sector holds huge potential for growth.

Oduoza said this in a keynote address at the 2014 ‘Retail Leaders Conference held at the Sheraton Hotel, Lagos

The UBA boss, represented by Ilesanmi Owoeye, bank’s director of Consumer Banking,  listed several factors driving the growth of Nigeria ’s retail industry.

These factors include; the ongoing reforms in key sectors of the Nigerian economy aimed at bridging infrastructural gap, reducing unemployment levels, improving literacy level and improving access to funding by SMEs, which will significantly impact the level of disposable income and effective demand in the near future, affording the sector unprecedented growth opportunity.

He also identified increasing technology penetration in Nigeria as another factor driving the growth of the retail sector as this is giving retailers access to valuable market information about purchasing trends as well as segment preferences, making it increasingly easy to adapt sales and marketing approaches and improve consumer experiences. Another factor is the increasing penetration of the informal sector by retailers.

“Without doubt, the continuous rise in mobile technology will be pivotal to the next stage of the retail market development, fuelling its integration with the global retail trade economy and significantly increasing its ease of doing business. This prospect is already becoming evident in the rising trend of online retailers that are increasingly gaining traction and matching the emerging sophistication of Nigerian consumers’ changing demand and payment patterns.” Oduoza said.

He called on banks to adopt on more collaborative financing mechanisms to enable retailers develop their capacities, expand operations and adopt innovative practice production standards to reduce operating cost and optimize value.

He said innovative partnerships among retail financial service providers will increase focus on the funding of retail-based infrastructure development and product distribution projects.

His words: “In an environment of collaborative partnerships, banks will partner retailers in promoting the acceptance and mobility of innovative payment platforms. For example, cheaper mobile-based point-of-sales will replace the expensive terminals currently in use, and we will see mobile-to-mobile funds transfer added to the bouquet of payment platforms,” he stated.

“UBA recognizes the growth potential of the Nigerian economy and the retail sector in particular, so we have and will continue to intensify our support for the sector through provision of innovative payment, cash management solutions and appropriate funding options along the entire value chain.”

He disclosed that the banking sector is collaborating with the Central Bank of Nigeria to deploy an industry-wide biometric system, which will significantly improve consumers’ access to both secured and unsecured financing, thereby increasing the retail market potential.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“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.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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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.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

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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