- CBN Predicts 9 Percent Inflation By 2020
The Central Bank of Nigeria (CBN) has predicted that for the rest of 2019 and towards mid-2020, the nation’s inflation rate would fall to 9 percent or less.
The apex bank Governor, Godwin Emefiele stated this during a presentation at the second Nigeria-Canada Investment Summit, on Monday, in Abuja.
“Though we do not expect a single-digit outcome by end-2019, due to inherent inertia, it would traverse towards the bank’s 6 – 9 percent tolerance range by 2020,” he said.
The National Bureau of Statistics (NBS) had reported that the Consumer Price Index (CPI), which measures the inflation rate, increased from 11.02 percent year-on-year in August to 11.24 percent in September.
This can, however, be attributed to the border that has been shut by the Federal Government.
Speaking on the border closure, he stressed the need to support the banning of importation before it wrecks the nation’s economy, saying “if we do not kill unnecessary imports, imports will kill us all.”
Emefiele explained that the much-needed jobs in the country are exported, due to excessive imports. He pointed out that “without jobs, we promote crime, kidnapping and terrorism.”
He further said that the apex bank would continue to work closely with the fiscal authorities to target double-digit growth by the next five years.
“The CBN under my watch will use monetary policy to rebalance our imports, promote job creation and lay a solid foundation for double-digit growth in Nigeria,” he assured.
Emefiele added that the restriction of access to forex supply on 43 items that could be produced locally, has supported the improved productivity of the manufacturing sector, as the CBN Purchasing Managers’ Index remained in positive territory for 31 months.
The apex bank governor noted that: “We have been able to keep real GDP growth positive and have avoided a double-dip recession in contrast to some other emerging markets economies.
He added: “Monetary policy will remain proactive, appropriate and research-driven with robust forward guidance elements. The bank will continue to creatively accommodate the needs of the various end-users, particularly, manufacturers and other priority stakeholders in support of the macroeconomic objectives of creating employment, making the economy competitive and promoting growth.
“Development finance initiatives designed to raise domestic production, stimulate non-oil export and increase foreign exchange earnings will also continue.
“Most importantly, we will continue to compel banks to undertake their statutory licensed roles of financial intermediation. In this regard, the recently announced policy to raise the domestic loan-deposit ratio from 57 percent to 60 percent by end-September and to 65 percent by end-December 2019 would be sustained, intensified and resolutely implemented.
“This we believe will help to support greater growth and improved investment into the Nigerian economy.”
Fidelity Bank Promotes 745 Staff Members
Seeking to increase staff morale while empowering them to work more efficiently, Fidelity Bank has announced the promotion of 745 employees following the performance review of two financial years – 2019 and 2020.
A total of 461 staff members benefited from the FY 2019 promotion exercise, while 284 staff members benefited from the FY 2020 exercise. The beneficiaries cut across the senior, middle, and junior management cadre of the bank, and the promotion was based on merit, using a transparent and robust performance management system in line with global best practices.
Speaking about this, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc said “I am very delighted to announce the promotions for 2019 and 2020 financial years. Releasing the list for 2 financial years’ promotion at the same time is something we are very proud of. We strongly believe that the continuous growth of our bank over the years has been largely attributed to the commendable efforts and unrelenting sacrifices of our employees. Promotion is one of the many ways we express our gratitude. We are thankful to be home to many amazing talents that continue to drive our value and most importantly, serve our stakeholders to the highest standards.”
Speaking further, she said. “Since I was appointed the MD/CEO of our great bank in January 2021, I have been committed to a 7-point agenda to move our bank further, out of which workforce transformation is a key category. Staff performance and reward are critical to us, and as an organisation, we will continue to make available adequate resources to deepen the skills and entrench a culture of high performance amongst employees. I wish to appreciate all members of the Fidelity Bank family for their commitment and drive and unrelenting sacrifices towards delivering our objectives. As we move forward in our quest to becoming a leading tier-one bank, I encourage all elevated staff to see their promotion as a call to rededicate themselves to excellence.”
Fidelity Bank has continued to empower its employees with invaluable resources capable of putting them at the forefront of innovative transformation. In March 2021, the bank announced two capacity-building projects – One Culture Project and Project Alpha – that were targeted at transforming the workplace for its staff. In particular, Project Alpha was created to help Fidelity Bank develop a robust and holistic learning and development framework for all staff while One Culture Project was formed to reinforce the behaviour and value systems that will help the bank, as well as staff, achieve set goals.
Nigeria’s Central Bank To Launch Digital Currency On Oct 1
The Central Bank of Nigeria (CBN) has said that it will launch its much-awaited digital currency on October 1, to mark Nigeria’s independent anniversary.
CBN Director of IT Department, Rakiya Mohammed, revealed this at a private webinar, explaining that the banking sector regulator had been conducting research towards the launch of digital currencies since 2017.
She added that the central bank may conduct a proof of concept before the end of the year. The move to adopt the digital currency was first mulled by the CBN Governor, Godwin Emefiele, during the Monetary Policy Committee (MPC) in May.
He had said a digital currency will soon become a reality in the country, adding that the central bank had already set up its committee which was working on the concept.
The CBN governor had further restated the determination of the apex bank to drive the e-Naira project during the recent 306th Banker’s Committee meeting, pointing out that the process was ongoing.
Mohammed was quoted by Nairametrics to have highlighted the benefits of the digital currency, saying it would enhance macroeconomic management, boost economic growth, facilitate cross-border trade, boost financial inclusion and monetary policy effectiveness.
Mohammed said the digital payment instrument would further improve payment efficiency, revenue tax collection, remittance improvement, and targeted social intervention.
She added that the innovation would also benefit the fintech ecosystem by enhancing operational efficiency, opportunities for fintech start-ups in building services and products as well as financial inclusion that will contribute to economic growth, and the creation of a new system complimenting the traditional payment system.
Mohammed had last month said the proposed digital would be launched before December. According to her, every Nigerian would have access to digital currency.
She had while briefing journalists at the end of a Bankers’ Committee meeting said: “Let me state categorically that cryptocurrency such as Bitcoin and the rest of them are not under the control of the central bank; they are purely private decisions that individuals make and are not part of this arrangement.
“We have spent over two years studying this concept of central bank’s digital currency and we have identified the risks. And it is one of the reasons why I said we are setting up a central governance structure that would involve all industry stakeholders to access all the risks as we continue on this journey.
“Very soon we would make an announcement on the date for the launch and by the end of the year, we should have the digital currency.”
According to her, about 80 percent of central banks across the world are presently exploring the possibility of issuing the central bank’s digital currency, saying that Nigeria cannot be left behind.
Mohammed had added: “You are aware that we have two forms of fiat money: The notes and the coins. So, the central bank’s digital currency is the third form of fiat money. So, this digital money is going to complement the cash and note that we have.
“The central bank digital currency will just be as good as you having cash in your pocket. So, if you are having the currency in your pocket, you are as good as having cash on your phone.
“Now, why did we need to go into this? There are different cases that the central bank is looking at.
UK Financial Reporting Council Sanctions KPMG On Quality Of Banking Audits
The United Kingdom Financial Reporting Council (FRC) has sanctioned one of the biggest audit firms, KPMG LLP over the quality of its banking audits which U.K.’s industry regulator said it was “unacceptable” that for the third year running the accounting firm’s work wasn’t up to scratch.
The FRC in its annual report released on Friday examined the U.K.’s seven biggest auditing firms, which include Ernst & Young and Deloitte, said almost 30 percent of all bookkeeping was below par in the year to the end of March.
“Overall Inspection results at KPMG did not improve and it is unacceptable that, for the third year running, the FRC found improvements were required to KPMG’s audits of banks and similar entities.
“Given the systemic importance of banks to the UK economy, the FRC will be closely monitoring KPMG’s actions to ensure findings are addressed in a timely manner.
“KPMG has agreed on additional improvement activities to be delivered this year over and above its existing audit quality improvement plan,
“In response to our findings this year, the firm’s senior leadership has committed to making further changes necessary to improve audit quality in time for 2021 year-end audits.
“We will monitor these closely to assess on a timely basis the extent to which they address our findings,” the report released on Friday stated.
The FRC said that “We will also continue to focus our inspections on KPMG banking audits.”
The regulator said central to achieving consistent audit quality is a healthy culture within the audit practice that encourages challenge and professional skepticism, as it set out in its letter to Heads of Audit
in December 2020.
“We have a major project underway to examine audit culture, including an international conference held in June this year on the subject.
“Operational separation of audit practices from the rest of the firm should help the largest firms to focus on developing an appropriate audit culture,” the FRC stated.
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