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CBN Stops Banks From Sacking Workers

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CBN
  • CBN Stops Banks From Sacking Workers

Bank workers will no longer nurse the fear of losing their jobs.

The Bankers Committee yesterday halted retrenchment by banks.

Central Bank of Nigeria (CBN) Director, Banking Supervision, Tokunbo Martins, told reporters after the Lagos meeting, that bank workers who had been living in fears over the possibility of losing their jobs should be assured that their jobs are no longer under threat.

She said: “One of the things we discussed was about the impending retrenchment in the banking industry. So, we understand that many bank workers are expressing fears about possible retrenchment in the industry. We discussed and the banks are now committed to not retrenching their staff (workers) going forward. So, whatever rumours are flying around about that mass retrenchment is happening or not happening, that is not true”.

Martins also assured the banking public that Nigeria’s financial sector is safe and sound. Although she admitted that Nigeria’s banks are facing economic challenges, she said the lenders “have strong capital buffers to weather the crisis.”

She also dismissed the report published by the Arqaam Capital insisting that some Nigerian banks are in crisis.

Martins said: “Yes there was discussion around the stability of the banking sector. But even without the discussion, as Director Banking Supervision of the Central Bank of Nigeria, I can tell you that the report is false. The banks are adequately capitalized, so the report is not true. That does not mean that the banking sector is not feeling the economic headwinds. The headwinds are also in every other jurisdictions. It is not strange. So, non-performing loans at 11.7 per cent is not what we should focus on”.

She assured that the banks have the capacity to absorb whatever losses that may arise from the level of non-performing loans in the industry. “But the fact is do the banks have the capacity to absorb any further loses that would arise? The answer is that they do. They have very strong capital buffers. Another thing that is important is does the banks have the capacity to generate huge income to absorb those loses,” she said.

“The underlying assets of the banks are still there, and they are good. So, I think you should totally dispel or ignore that type of story. It should be expected to have non-performing loans (NPLs). It is not the reason why any jurisdiction should be demonized. There are other jurisdictions that have NPLs as high as 15 per cent, 35 per cent and so on,” she said.

On the state of the foreign exchange market, Martins said bank customers that exceed $50,000 annual spend on Automated Teller Machines (ATMs) cards used abroad will be barred from the forex market.

She said: “In CBN’s move to manage demand for forex, there was a rule that was put in place that people are not allowed to withdraw more than $50,000 annually on their naira debit cards. For a while, the policy has been abused by bank customers, and the CBN had not taken any step to that effect. We have decided to take the steps now to enforce the rule. So, we want members of the public to remember that that rule is in place. All your accounts are linked to a particular BVN. Now, that BVN only allows you to withdraw only $50,000 per annum. If people continue to breach that rule, they will lose access to forex market,” she said.

The Committee also discussed the need to boost flow of forex to manufacturing sector, which employs millions of Nigerians. It said the approach would boost the production capacity of the manufacturing sector.

The need to improve the financial literacy among the youths as this year’s World Savings Day Celebration approaches was also discussed.

The committee also hammered on the need to promote Small and Medium Enterprises (SMEs), general commerce, general commerce, manufacturing, micro-finance bank and other banking-related products so as to create awareness as our nation gets older and stronger in banking services.

“We were also reminded of the roles and responsibility of banks to help grow the economy especially the manufacturing sector. As bank CEOs, we agreed to ensure that the economy grows. We also looked at how the country can leverage on the opportunity in the pension industry,” she said.

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Dennis Olisa Invests N53.6 Million in Zenith Bank

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Executive Director of Zenith Bank Plc Buys 2 Million Shares of Zenith Bank at N53.6 Million

Executive Director of Zenith Bank Plc, Dennis Olisa, has invested a combined N53.58 million in shares of Zenith Bank.

The leading financial institution stated in a disclosure statement filed with the Nigerian Stock Exchange (NSE) on Monday.

Olisa carried out the purchase in two different transactions on February 24, 2021 at the Nigerian Stock Exchange in Lagos, Nigeria.

He purchased 1 million units of Zenith Bank at N26.60 each and another 1 million shares at N26.50 per share.

On aggregate, Olisa purchased 2 million shares of Zenith Bank at N26.79 per share or N53.58 million. See the details below.

Dennis Olisa was appointed as Zenith Bank’s executive director three years ago.

Prior to his appointment, Mr. Olisa was the Chief Inspector at Zenith Bank Plc and served as its Director from March 3, 2017 until March 16, 2017.

He also served as General Manager and Heads of the Energy Oil & Gas Group at Zenith Bank Plc and served as its Deputy General Manager. He served as Head of Internal Control & Audit Group at Zenith Bank Plc

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Finance

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

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Godwin Emefile

Emefiele Pledges Accommodative Monetary Policy to Boost Economic Growth

The Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged to adopt accommodative monetary policy stance in 2021 in order to support economic growth in the country.

Emefiele, said this on Friday, while speaking at a CBN/Bankers’ Committee’s initiative for economic growth, which is a one-day special summit on the economy by bank chief executive officers.

The theme of the summit is: “How to Overcome the Pitfalls of Recession.”

Nigeria’s economy recently came out of recession, according to the Gross Domestic Product report for fourth quarter 2020 released by the National Bureau of Statistics.

Owing to the slump GDP growth of 0.11 per cent that lifted the economy out of recession, Emefiele said it was imperative that, “we do all we can in 2021 and beyond to ensure that we build on the positive momentum and strengthen our efforts at stimulating growth.”

He expressed optimism that with the discovery and deployment of vaccines worldwide, 2021 would be a year of massive global recovery and Nigeria must not be left out.

“The banks CEOs are here, whether by moral suasion or by force, they will have to participate in this journey. In order to drive and sustain this recovery therefore, we need to sustain the accommodative fiscal and monetary policy measures aimed at improving access to finance for households and businesses.

“Secondly, we must prevent a resurgence in Covid-19 related cases. Thirdly, we must ensure that a significant number of our population is significantly vaccinated and also improve foreign exchange inflows into our country,” he added.

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Banking Sector

CIT Microfinance Bank Disburses Over N16bn Loans

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CIT Microfinance Bank Disburses Over N16bn Loans

CIT Microfinance Bank Limited says it has disbursed about N16bn loans since it commenced operations as part of its contributions to the financial sector and empowerment of businesses.

The Managing Director of the microfinance bank, Mr Kingsley Eremionkhale, disclosed this during the company’s 10th anniversary in Lagos recently.

He reiterated that the bank was committed to supporting the growth of small and medium-scale enterprises in the country.

“Since inception, we have disbursed loans worth about N16bn. Our operation is not just about profit-making, but we have impacted many lives, empowered many businesses, and done a lot in terms of our core mandate as a microfinance bank.”

While appreciating its customers who had been loyal to it for years, he said it was concerned about their business success.

The managing director said, “We are part of our customers’ businesses. We provide services beyond lending and savings products and we also give financial advisory services.”

He appreciated the customers who had stayed with the financial institution for many years.

The managing director noted that the MfB is a state-licensed bank operating in Lagos, and a subsidiary of Capitalfield Investment Group.

He also attributed the success of the MfB to the board of directors which it said had been supportive, the management team and its workforce in the past 10 years.

While saying that the bank could lay claims to exponential growth, he said the public should expect more from it.

He also said that it was driving its operations through its digital offerings and our e-channels, to improve its services to our customers.

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