Finance

CBN Releases $300m to Foreign Airlines

Published

8 years ago

November 3, 2016

CBN Releases $300m to Foreign Airlines

To cushion the effect of the cash squeeze affecting foreign airlines flying into Nigeria, the Central Bank of Nigeria (CBN) has released $300 million out of the $600 million airlines fund stuck in the country.

Some of the airlines have either stopped coming into Nigeria or are threatening to stop because of the inability to remit their money out of the country.

Minister of State (Aviation) Hadi Sirika, who broke the news to the airlines after the Federal Executive Council (FEC) meeting in Abuja, said the balance would soon be released.

Sirika said: “Government through the CBN has made available $300 million out of the $600 million of the airlines’ funds stuck in Nigeria to pay the airlines to demonstrate its commitment to the sector.

“And with devaluation, $600 million could be $1 billion. With government intervention they have been given $300 million and gradually we will clear everything and once that happens, they (airlines threatening to quit) are not going anywhere.”

On the airlines’ threat to leave Nigeria, he said: “I think it is a response to how the industry is doing globally, especially Nigeria with recession, our inability to get the airlines to repatriate their currency that they earn through sales of tickets.

“They find it very difficult to operate and do business. Their inability to get Jet A1 at some point, and for other operational reasons; I did say that these are commercial decisions that the airlines will take but with the way the routes are and with what we have been doing to correct these things that any airline will pull out.

“A 100 per cent of foreign exchange being required by local airlines is being provided now. Aviation is dollar denominated, you buy aircraft in dollar, you service in dollar, you train your crew in dollar; you do everything in dollar. And we simply do not have the dollar to pay these airlines. But now as we are talking

“Nigeria has a population of 177 million serving west and central Africa, 600 million people market, double that of United States, half of India, equal to Europe; so this is a very important market and they know and they will stay here. I believe we are also offering them incentives.”

The government, he said, has been talking to airlines, such as Egypt Air, British Airways, Turkish Air, which fly in Nigeria with undesirable aircraft while they put better aircraft on other routes

“However, some of them are constrained by some of the infrastructure we have in place. For example, Emirate will love to bring the kind of aircraft they fly around the world but the apron in Abuja is not supporting that service. That is why the aircraft they take to Lagos is different from the one they take to Abuja.

“That inadequacy is also being addressed and once that is done, we will have befitting aircraft coming. This has always been a challenge.

“But the most important incentive is that between now and Wednesday we will appoint transaction adviser for the national carrier. Once that is in place, Nigerians will have options, there will be competition, good aircraft and this will bring the price down.” Sirika, a pilot, said.

The minister also announced that yesterday’s Federal Executive Council (FEC) meeting approved additional N1.57 billion for the rehabilitation and refurbishment of the Port Harcourt airport.

According to him, FEC approved the rehabilitation cost of the international wing of the airport from N777,726,669.30 to N1,684,520,310.58 for the original contractor Messes Entaba.

The second project, he said, is the refurbishment of the airport terminal building phase II domestic wing from N746,830,782.12 to N1,411,662,855.67

“So, very soon we will complete that very important airport, especially the arrival hall. Port Harcourt airport has been tagged the worst airport in the world but by the grace of God and the wisdom of council, it will be completed,” he added.

Sirika also said FEC approved the ratification of climate change Paris agreement and bilateral agreement against double taxation with Kenya.

He said there would be improved security and more parking spaces at the Nnamdi Azikiwe International Airport, Abuja after it is concessioned.

Sirika said: “Once the airport is concessioned, all these will take place. Just be patient in the next 24 to 36 months, most of these things will be in place

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

Zenith Bank Enhances E-Channel Services for Customers

Published

2 days ago

October 4, 2024

Samed Olukoya

Zenith Bank, one of Nigeria’s leading financial institutions, has restored improved services across its electronic transaction channels, ensuring customers have seamless access to banking services.

In a statement released on Thursday via its X handle, the bank confirmed that customers can now conveniently conduct transactions across various platforms following a recent upgrade. These enhancements follow temporary glitches caused by routine IT maintenance aimed at optimizing service delivery.

Zenith Bank reiterated its commitment to providing improved services and highlighted the various channels available for customer transactions, including:

– Zenith Bank Debit, Credit, and Prepaid Cards
– Automated Teller Machines (ATMs)
– Point of Sale (POS) Terminals
– Zenith Bank Mobile App
– Internet Banking Platform
– Zenith Agents nationwide for agent banking

Customers are also encouraged to visit any of the bank’s branches across the country for in-person transactions.

Zenith Bank reassured further improvements in service delivery following the IT infrastructure upgrade. Customers with bulk payments and salary requests are encouraged to present payment mandates at any Zenith Bank branch nationwide for expedited processing.

Zenith Bank remains dedicated to enhancing customer experience and ensuring reliable banking services across all platforms.

Banking Sector

Nigerian Banks Face Soaring Wage Bills Amid Rising Inflation

Published

2 days ago

October 4, 2024

Ugwoke Ogbodo

Many Nigerian commercial banks have been spending more on hiring staff, fresh data has revealed.

Following worsening inflation in the country, some banks have to pay more for their newly hired workers, thus doubling the banks’ wages and salaries in just over a year and putting pressure on their operating costs.

The data showed that wages and salaries incurred by 10 banking groups in the first half of 2024 (H1 2024) stood at N615.8 billion, representing a 96 percent growth from the N314.4 billion incurred in H1 2023.

The banking groups are Access Holdings, UBA, FBN Holdings (First Bank), GTCO (GT Bank), Zenith Bank, Stanbic IBTC Holdings (Stanbic), Wema Bank, FCMB Group, Sterling Holding Company (Sterling), and Jaiz Bank.

It showed that Access Holdings incurred the highest wage bill among the banks, with N151.5 billion, up by 145 percent from the N61.9 billion reported in H1 2023 while First Bank’s personnel expenses for H1 2024 hit N134.2 billion, marking a 110 percent year-on-year increase from the N63.9 billion personnel expenses incurred in H1 2023.

For UBA, its wage bill grew by 92 percent year-on-year to N126.6 billion during the six months, up from N65.9 billion as of H1 2023. Also, Zenith Bank’s wage bill soared by 64 percent year-on-year to N63.5 billion, from N38.6 billion in H1 2023. Stanbic incurred wage expenses of N40.6 billion during the six-month period, up from N28.2 billion in H1 2023.

GT Bank’s wage bill almost doubled, increasing by 98 percent year-on-year to N39.3 billion, up from N19.9 billion in H1 2023. FCMB Group’s wage bill grew by 74 percent to N26.6 billion in H1 2024, up from N15.2 billion reported in the corresponding period of 2023.

In the same vein, Wema Bank’s wage also went up by 77 percent to N15.6 billion, from N8.8 billion in H1 2023. Sterling Bank’s wage bill also jumped by 41 percent year-on-year to N12.5 billion, from N8.9 billion as of H1 2023.

Jaiz Bank’s wage bill went up by 78 percent to N5.5 billion, from N3.1 billion in H1 2023.

The data showed that for some of these banks, the increase in employees also contributed to their rising wage bills, though, marginally.

For example, Zenith Bank increased its employee count by 511 to 8,146 between H1 2023 and H1 2024. UBA’s employee count between H1 2023 and H1 2024 increased marginally by 3 percent or 338, from 9,751 to 10,089.

While some companies downsize their staff strength, due to the harsh economy in the nation, the few available workers have been overloaded with work.

With inflationary pressures hitting hard on individuals and businesses, companies have been forced to substantially increase the wages for the few available staff.

For banks, apart from their staff wages, they have also had to incur increased outsourcing costs. Outsourcing costs relate to expenses incurred when a bank hires third-party contract staff.

GT Bank’s outsourcing costs increased by 69 percent year-on-year to N14.5 billion during the half-year, in contrast with N8.6 billion in H1 2023. First Bank’s outsourcing costs jumped by almost 300 percent year-on-year during the half-year to N16.4 billion, from N4.3 billion in H1 2023. Wema Bank also saw a dramatic increase in its outsourcing costs, posting N8.85 billion for the category in H1 2024, representing a 272 percent year-on-year growth from N2.38 billion as of H1 2023.

The jump in labour costs for banks has positioned some of them as the top-paying employers in the country. For instance, in H1 2024, Stanbic IBTC Holdings posted a wage per employee of N2.11 million per month. Zenith Bank had a wage per employee of about N650,000 per month, a stark comparison with UBA’s N2.09 million per month. However, UBA’s foreign operations employ about 4,150 staff members.

Banking Sector

Zenith Bank Apologizes for Service Disruption, Assures Customers of Improved Operations

Published

3 days ago

October 3, 2024

Bassey Marshall

Zenith Bank Plc has tendered an apology to its customers for the poor services experienced on its banking platforms.

Investors King reported that the service disruption which lasted for days left customers frustrated.

Despite the notice from the bank notifying its customers that it would perform maintenance from September 29 to October 1, many customers took to social media to register their disappointment with the bank.

Also, on Monday, September 30, angry customers converged at Zenith Bank, Ijaiye Ojokoro branch in Lagos, demanding access to their money.

A customer, Segun, who said that his main goal was to transfer his funds to another bank after being unable to access his money through any means revealed that for two days, he had tried to withdraw or transfer money through the bank’s mobile app, but nothing worked.

“My family nearly went hungry yesterday because of this issue,” he said, adding that his ATM card wasn’t working either.

However, on Thursday, Zenith Bank issued an apology via its official X handle to its customers.

The bank revealed that it had completed its maintenance upgrade and apologized for the inconvenience caused during the process.

Zenith Bank disclosed that the upgrade was aimed at improving the bank’s quality of service to its customers, emphasizing that customers can now perform transactions conveniently on all its banking channels, including mobile app, internet banking platform, debit card, agent banking, and branches nationwide.

The statement read, “Dear Valued Customer,

We sincerely apologise for the service disruptions you experienced recently on our banking channels. This was due to an information Technology upgrade aimed at improving the quality of service we provide.

We have made significant progress with the upgrade and you can now perform transactions conveniently with the following Zenith bank Channels:

Your Zenith Bank Debit Card
The Zenith Bank Mobile App
The Zenith bank Internet Banking Platform
Zenith Agents nationwide (Agent Banking)