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Together CBN, AMCON Spend N3.83 Trillion on Struggling Banks

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AMCON
  • Together CBN, AMCON Spend N3.83 Trillion on Struggling Banks

The Central Bank of Nigeria (CBN) and the Asset Management Corporation of Nigeria (AMCON) have so far spent N3.83 trillion on struggling banks since 2009, according to report.

The bailout, which started in 2009 when the CBN first injected N620 billion into ten struggling banks to prevent the banking sector from collapsing, has taken a new turn as it failed to revive the affected banks.

In August 2011, the CBN was forced to revoke the licence of Bank PHB, Afribank, and Spring bank and created bridge banks to take over their assets and liabilities. While AMCON funded the bridge banks with N679 billion.

This was after AMCON had purchased about 14,000 loans estimated at N3.3 trillion for N1.7 trillion in 2010, stated Ahmed Kuru, AMCON’s Managing Director.

According to Kuru, the firm also provided financial accommodation of N2.2 trillion, however, only 300 customers that constituted 5 percent of the 14,000 loans were responsible for over 70 percent of the total value of loans that were purchased.

Despite 5 percent of customers responsible for majority of the loans that went bad as at 2017, AMCON only recovered N716.1 billion from obligors, cash and assets accounted for 45 percent and 55 percent respectively.

Left with huge debt with no end in sight, AMCON approached the Federal High Court on September 22, 2018 for assistance in recovering N5.4 trillion non-performing loans, a day after the CBN revoked SKYE Bank licence and created another bridge bank, Polaris Bank.

Again, the new bridge bank, Polaris Bank, will once again be funded N786 billion by AMCON after assuming assets and liabilities of Skye bank, which according to Godwin Emiefele, CBN’s Governor, has a negative book value of about N800 billion due to high non-performing loans. Meaning for the new Polaris Bank to thrive it needs all the help it can get it.

AMCON total investment on distressed banks now stood at N3.16 trillion –N679 billion spent on three bridge banks, N1.75 trillion used in acquiring debt of financial institutions and the N786 billion to be injected into the new Polaris bank.

However, experts have accused the CBN and FG of encouraging the financial misconduct going on in the banking sector as many bank executives and directors were allowed to go scot free without prosecution despite the size of the funds.

John Darlington, former Bond Bank managing director, urges shareholders to sue executives, managing directors, and non-exexcutives who ran down their banks. According to Darlington, past CEOs, like Skye’s CEO, should ‘face the law’ for running down banks.

“They looted the patrimony of a whole lot of shareholders and destroyed otherwise what was meant to be a solid bank,” he stated.

“I believe shareholders must now come together under an umbrella and go after the management and the board that looted and destroyed their common patrimony. Let us test it in court and see if they can get justice against those who looted the assets of the bank and destroyed their investments.”

Abiola Babajide, Associate Professor Department of Finance, Covenant University, said: “Bailouts incite bad behaviour in the banking industry as this bailout isn’t really changing anything fundamentally as another bank can still fail tomorrow. The root of the problem is still not being tackled. We need to address the ethical issues in the bank; corporate governance right now is very bad in the country.”

Babajide, who agreed that the bailouts have helped protect depositors’ funds and create stability in the banking sector, said without profitability it will be at the expense of the taxpayers.

Still, he thinks for the sake of stability in the sector it is imperative.

“In the real sense, not all of the money that the regulators have invested in these banks have been fully recouped so it is not profitable for the CBN to continues bailouts but for the sake of stability in the industry it is important they do,” he concluded.

A depositor with one of the affected banks, Ishioma Ogbekene, a freight forwarder, said: “Banks have risk managers, there are limits to the amount that can be lent and loans are usually secured with collateral, so why will a bank collapse?”

“But because bank chairmen, CEOs and board members take huge loans that are not backed by collateral and eventually failed to repay, collapses those banks. Forcing the government to use taxpayers’ money to stabilise the sector and protect jobs.”

“CBN is not effective in her oversight function,” said Ezekiel Enejeta, the Founder of Financial Watch Nigeria. “Executives of collapsed banks were supposed to be investigated and jailed if found guilty to restore some sanity back to the system.”

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.

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“In Less Than 24 Hours 2.3 Million Nigerians Registered to Receive COVID-19 Vaccination”- NPHCDA

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COVID-19 Vaccine

Over 2 Million Nigerians Have Self-registered for COVID-19 Vaccine on The NPHCDA Online Portal

On Wednesday, Nigeria’s primary healthcare agency boss, Faisal Shuaib, said that over 2 million Nigerians have registered to receive the Astrazeneca COVID-19 vaccine.

He said, “In less than 24 hours, 2.3 million Nigerians have registered to take the vaccines and the numbers keep increasing,”

According to the National Primary Health Care Development Agency (NPHCDA) tweet on Monday, a healthcare worker, Osindeinde Ademilayo Abodede, was the first person to register for the vaccine. Her appointment has been scheduled for March 12 in Abuja.

The self-registration online portal was launched a day before the first batch of COVID-19 vaccines arrived in the country.

The agency said Healthcare workers will be given priority in the administration of the COVID-19 vaccine.

NPHCDA also stated that high priority will be given to “frontline workers” such as members of the military, police, Nigerians who are working at border posts, oil and gas workers, and “strategic leaders.”

Faisal Shuaib said, “As the vaccines arrive in batches due to limited supply we will inform Nigerians about who and where to receive the vaccine,”

“States without a functional airport will have their vaccines transported by road using vans with fitted cold cabins, from the nearest airport,” he added.

Boss Mustapha, Nigeria’s secretary-general urged traditional rulers, religious leaders, civil society groups, and the media to spread the message that vaccinations were needed. “This is a fight for everyone.” He said.

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How to Self-register For COVID-19 Vaccine in Nigeria

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COVID-19 Vaccine Self-registration Process in Nigeria

Following the delivery of the 3.92 Million AstraZeneca vaccine to Nigeria on the 2nd of March, Nigeria’s Primary Health Care Development Agency (NPHCDA) has launched an online self-registration portal for COVID-19 vaccine registration.

How to register

Nigerians who want to self-register for the AstraZeneca vaccine can visit the NPHCDA’s portal for registration.

What do you need to fill the form?

To fill the vaccination form, you need your basic information: full name, contact phone number, email address, date of birth, sex, a form of ID, a residential address including states, LGA of residence, and ward of residence.

You are also required to select your preferred vaccination site from the listed available vaccination site in your area and upload a photograph. The form asks if you work in the health sector and if you have any medical conditions or a history of allergies.

Finally, you are required to type in a code and this completes your registration process.

You should receive a message that your registration has been completed. You will also be issued a vaccination ID. The message goes thus:

“Registration Completed! Your Vaccination ID is: XXXX

Your data is successfully received.

Thank you for taking the time to fill the form, you will receive an SMS and email shortly containing your Vaccination No. and other instructions.”

Who is eligible to receive the vaccination?

Healthcare workers top the list of people who will receive the vaccine first. Away from them, the NPHCDA said it will prioritize “frontline workers – the military, police, oil and gas workers, customs workers, and strategic leaders.”

Under the COVID-19 Vaccine Global Access (COVAX) scheme,  Nigeria will be the third African country to receive a vaccine, after Ghana and Ivory Coast.

It is reported that the vaccine will be administered without charges and the country is expected to receive a total of 16million free doses from COVAX in the coming months.

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Savvy Publishes Its First Impact Report Since Launch

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Savvy Has Released its First Impact Report 

The non-profit organization, Savvy, has today, published its first impact report since its launch. On February 24, 2021, it published a post on Facebook and other social media platforms that read: Feb. 4, made it 6 months since we launched the Savvy Fellowship program, and it seems like yesterday. How time flies.
On a mission to train at least 10,000 passionate individuals to build successful impact-driven businesses, the organization has decided to measure and publish its progress for the last 6 months, to see whether or not it’s making an impact or falling behind. From August 4, 2020, to February 4, 2021, Savvy received 39,958 applications from individuals interested in the Savvy program. It accepted 3,298 of them, which is an 8.25% acceptance rate. 1,121 being female, and 2,177 being male.
These 3,298 participants (often referred to as Savvy Fellows) come from 122 countries. 2,181 of the Fellows have completed the Savvy program—generating 1,278 business ideas and kickstarting 587 businesses during and after the program. In the nearest future, Savvy plans to get more mentors for the Savvy program, train 7,000 more individuals through the program, and provide Internet allowance for some of the Fellows who need it to participate in the program.
Due to the COVID-19 pandemic, many have lost their jobs and are now living in an uncertain world. I and 131 entrepreneurs from 36 countries came together to start Savvy, a global Fellowship program equipping these recently unemployed individuals with the necessary knowledge and skill that they need to start their own impact-driven business and succeed as entrepreneurs,” says Chidi Nwaogu, Head of Fellowship Program at Savvy.
For 12 weeks, no matter what stage their venture is, the Savvy program helps selected Fellows answer all the relevant questions that they need to kickstart their amazing impact venture, gain early traction, achieve product-market fit, scale into new markets, create jobs, and improve the economy of their nations.

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