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UBA to Invest $2.2m on Nigerian Infrastructural Projects- Oduoza

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United Bank for Africa (UBA) is looking to invest around 2.2 million dollars into the Nigerian infrastructure projects after concerns about the spread of Ebola halted the bank’s plans for regional expansion.

Phillips Oduoza, CEO United Bank for Africa, stated this while speaking with Bloomberg Tv Africa at the World Economic Forum in Davos-Klosters, Switzerland.

Oduoza, said, in Nigeria for instance, UBA is significantly involved in the financing of the power assets during the prioritization of the power assets.

He said, “We are also involved in the infrastructure of our roads as well. We are involved in power across other African countries and for us it is where to go to. And, I believe that the democracy has come to stay in Africa so we have a lot of confidence. Again, we did not stop expansion due to Ebola.

“We are present currently in 19 African countries and these are the most strategic markets, probably with the exception of Angola and South Africa, which we are going to take on in the next phase of expansion. For us, Ebola, I think the worst is over because all the countries are beginning to show very positive signs of recovery so we don’t have any issues with that. We are currently at a consolidation phase of our banking activities.

Asked about the bank’s experience since the outbreak of Ebola in part of West Africa, he said that neither of subsidiaries nor offices was closed. 

The UBA Boss told Bloomberg Tv Africa that “No subsidiaries and no office were closed and for us, our objective across Africa is to partner with the various African governments in the economic development of the various countries and so when the Ebola outbreak came into existence in these three countries, we stayed and supported the country. It is quite amazing that as we speak right now, no single staff of UBA was actually affected.

“We started with sensitization, we looked at various points of contact and we tried to minimize contacts. We got gloves for our people, we got facemasks and we got sanitizers and we embarked on enlightenment campaign with our customers. So far I think the worst is over.

Sharing his view on the weakness in the Naira and the drop in the oil price going to impact expansion plans (by the bank) and others going forward, he said, “Well, that is a concern for everybody, the reason being that Nigeria is dependent on oil. Whenever the oil price goes down, you find out the revenues coming to the government also goes down and you find that by extension other businesses. But I do not think it is bad where we are right now”.

“The reason being that Nigeria still has as much as about thirty five billion dollars in reserves and this can be used to actually protect the Naira, as we see it. We also do not think that the oil price is going to move down significantly from where it is right now. Secondly, we do not see this situation as one that is going to last for a very, very long time because we have seen it happen in the past, in 2008 we saw that and then it came to pass. I think it is a cycle that we go through once in a while but we are adequately protected. The risks are good. There is no problem, especially if we have financed the upstream oil and gas. What it will entail is elongating the tenure of the loans and the payment period and I don’t see any NPL (Non performing loans) arising from this”.

Asked if the Bank will pull back from investing in oil and gas sector due to the pressure on the market, Oduoza said, “The investment in the oil and gas, especially upstream sector is a long-term investment and is one for which the cash flow is over a very long period of time.

“We will actually continue to finance oil and gas because we believe that the situation we have right now is a temporary one it’s not going to last for a very, very long period of time we have seen it happen before it is cyclical in nature and we are going to recover very soon”.


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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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E-Financial

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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