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Banks Battling to Meet IFRS 9 Deadline, Says CBN



  • Banks Battling to Meet IFRS 9 Deadline, Says CBN

With less than six months to the implementation of the International Financial Reporting Standards 9 (IFRS-9) deadline, many banks are yet to meet up with the deadline given by the Central Bank of Nigeria (CBN) to move to the new financial reporting regime with effect from 1, January, 2018.

The Director, Banking Supervision, CBN, AlhajiAhmad Abdullahi disclosed this at a business breakfast roundtable in Lagos recently that was organised by the Risk Management Association of Nigeria in conjunction with PAL Pensions, and OlisaAgbakoba Legal (OAL).

According to him, the new reporting standards would help improve banking processes and policies.

He also noted that there was a cut-off date and every stakeholder in the sector was expected to meet up with that date and adopt IFRS-9 as reporting template.

Abudullahi, who was represented at the event by the Project Manager, IFRS Implementation, Banking Supervision Department, CBN, Mr. ChibuikeNwaegerue, said that there was no going back on the deadline because it has been fixed and cannot be shifted.

He stressed that IFRS-9 implementation would require massive investments on consultancy, systems development and trainings.

He explained that one of the key features of IFRS-9 was that coverage had been extended to financial assets measured at amortised cost or reported at ‘fair value through other comprehensive income’ (today’s available-for-sale assets), loan commitments and financial guarantee contracts.

Abudallahi further stated that IFRS-9 requires extensive new qualitative and quantitative disclosures about credit risk management policies, expected credit losses, loan write-offs, and changes in credit risk of the loan portfolio and other financial instruments subject to impairment approach.

He added: “Given the short period, there is need for all stakeholders to come together. This forum has provided the opportunity for the CBN to put all implementation issues for stakeholders to be aware and also created the platform for engagement on how we resolve the issues.

“IFRS-9 requires entities to report ECL in three stages, as deterioration in credit quality takes place after the initial recognition of the loan.

“The Expected Credit Losses (ECL) approach provides incentives for banks to follow sound risk management practices. Delays in identifying, measuring and recognising increases in credit risk can aggravate and prolong bank problems.

“Inadequate impairment policies hampers credit risk management as it leads to delayed recognition and measurement of increases in credit risk, with sudden impact on capital adequacy, when the risk crystallises.”

The CBN had issued an initial guidance note to all the financial institutions on the implementation of IFRS-9.

The guidance note communicated supervisory expectations for the implementation of the new standard, especially in areas where banks are expected to exercise considerable judgment, or elect to use simplifications and other practical expedients permitted under the standard.

The note had also specified information to be submitted to the CBN not later than April 30, 2017 on IFRS 9 implementation projects.

It had also required banks to submit monthly status updates on the implementation projects starting from May 2017.

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


Transcorp Hotels Expand into Marketplace, Launches Aura to Connect People, Hoteliers, Others



Transcorp hotel

Transcorp Hotels Plc, on Thursday, announced it has launched a new digital platform, Aura, through which people can book accommodation, restaurants and experiences.

Aura, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.

It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc. Dupe Olusola said.

For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.

The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.

Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”

To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.

Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.


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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director




Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations




FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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