Political Parties Says No to Withdrawal Limits, Insists it Will Hurt Election Funding
All the major political parties vying for Nigeria’s presidential position have said the new withdrawal limits introduced by the Central Bank of Nigeria (CBN) would hurt campaign funding for the 2023 general elections.
This was coming a week after Godwin Emefiele, the CBN governor, announced that cash withdrawal at all financial channels has been capped at N20,000 per day and N100,000 per week for individuals while corporate organisations withdrawals were limited to N100,000 a day and N500,000 a week.
The CBN boss had explained that the policy was instituted to ensure more currency remains within the banking system, instead of having the majority of funds outside the system.
He puts the total amount of funds outside the banking system at N2.7 trillion out of the N3.2 trillion currency in circulation.
However, despite the reason for introducing a cashless policy, political parties have said it will strangulate the political process.
Chief Dele Momodu, the Director, Strategic Communications, National Election Management Committee of the PDP Presidential Campaign Council, who commented on the policy during an interview with one of the leading media houses in Nigeria, said “if enforced, the policy will strangulate the political process, not the PDP alone.”
He said, “In 2014/2015, I am sure if (President) Buhari had no access to funding, he would never have been the President of Nigeria. There are people who are making contributions to the political parties and some parties have set up structures to receive support from people. How then will they be able to access the fund if they are saying you cannot withdraw more than N100, 000 a week?’’ he asked
“I read somewhere that the CBN said the policy would not be rigid but why make the policy in the first place if it is not going to be rigid?” he queried.
Accordingly, the National Chairman of the Africa Democratic Congress, Chief Ralph Nwosu, noted that paying the party’s agents in rural areas might be a challenge during the general elections.
He added, ‘’How do you expect the ADC candidate to have the cash to do the things he wants to do and how do you think that this is the best time for such an undertaking?
‘’We have almost 200,000 agents that we must pay and 80 per cent of them live in rural areas. Is it that N2,000 or N5,000 that you pay them that you would transfer to each of them? How many of them have such a facility? So it’s completely inconsiderate of them.”
CBN Denies Banks Upgrade of Operations Till License Approval
Following the increase in requests seeking operational upgrades for financial institutions, the Central Bank of Nigeria (CBN) has warned against taking such action until their licences are approved.
The CBN informed banks and other financial institutions who have requested for conversion of licenses to refrain from enlarging or reducing their present banking networks while their requests are still pending, Investors King reports.
This was contained in CBN’s circular ‘FPR/DIR/PUB/CIR/001/072’ to banks and other financial institutions in the country dated March 28, 2023.
The circular was titled– “Regulatory guidelines for change of operational licence for banks and other financial institutions in Nigeria” signed by the Director, Financial Policy and Regulation Department, Chibuzor Efobi.
The apex bank barred financial institutions from launching new services or banking activity until otherwise approved and included in the company’s terms.
According to CBN, the regulatory guideline became imperative as more banks and other financial institutions submitted requests for upgrade or conversion to other licence regimes.
The laid down guidelines will properly guide and give explanations to eligible financial institutions on the system’s requirements.
The circular reads partly, “Under these guidelines, the following prohibitions/restrictions shall apply to eligible banks and OFIs applying for conversion or re-categorisation. The bank or OFI shall not, pending when the application is determined expand or reduce its current banking network;
“Roll-out new products and services; carry out any new strategic banking activity but the settlement of rights and obligations shall continue until extinguished in accordance with existing terms and conditions;
“Take any business decision after the conversion process has commenced, except in line with the bank’s conversion strategy submitted to the CBN; Engage in any banking activity specific to the proposed new licence; any other requirement that may be prescribed from time to time by the CBN.”
Zenith Bank Caps The Year 2022 With Impressive 24% Growth in Gross Earnings
Zenith Bank Plc has announced its audited results for the year ending December 31, 2022, achieving an impressive double-digit growth of 24% in gross earnings from NGN765.6 billion reported in the previous year to NGN945.5 billion in 2022. This is despite the persistent challenging macroeconomic environment and headwinds.
According to the audited financial results for the 2022 financial year presented to the Nigerian Exchange (NGX), the double-digit growth in gross earnings was driven by a 26% year-on-year (YoY) growth in interest income from NGN427.6 billion to N540.2 billion and a 23% year-on-year (YoY) growth in non-interest income from NGN309 billion to NGN381 billion. Profit before tax also grew by 2% from NGN280.4 billion to NGN284.7 billion in the current year. The increase in profit before tax was due to the significant growth in all the income lines.
Impairments grew by 107% from NGN59.9 billion to NGN124.2 billion, while interest expense grew 63% YoY from N106.8 billion to N173.5 billion, respectively. The impairment growth, which also resulted in an increase in the cost of risk (from 1.9% in 2021 to 3.3% in the current year), was due to the impact of Ghana’s sovereign debt restructuring programme. The growth in interest expense increased the cost of funds from 1.5% in 2021 to 1.9% in 2022 due to hikes in interest rates globally.
Customer deposits increased by 39%, growing from NGN6.47 trillion in the previous year to NGN8.98 trillion in the current year. The growth in customer deposits came from all products and deposit segments (corporate and retail), thus consolidating the bank’s market leadership and indicating customers’ trust.
The continued elevated yield environment positively impacted the bank’s Net-Interest-Margin (NIM), which grew from 6.7% to 7.2% due to an effective repricing of interest-bearing assets. Operating expenses grew by 17% YoY, but growth remains below the inflation rate. Total assets increased by 30%, growing from NGN9.45 trillion in 2021 to NGN12.29 trillion, mainly driven by growth in customer deposits. With the steady and continued recovery in economic activities, the Group prudently grew its gross loans by 20%, from NGN3.5 trillion in 2021 to NGN4.1 trillion in 2022, which increased the Non-Performing Loan (NPL) ratio modestly from 4.2% to 4.3% YoY. The capital adequacy ratio decreased from 21% to 19%, while the liquidity ratio improved from 71.2% to 75%. Both prudential ratios are well above regulatory thresholds.
In 2023, the Group intends to expand its frontiers as it also reorganises into a holding company structure, adding new verticals to its businesses and growing in all its chosen markets, both locally and internationally.
As a testament to its commitment to shareholders, the bank has announced a proposed final dividend payout of N2.90 per share, bringing the total dividend to N3.20 per share.
In recognition of its track record of excellent performances, Zenith Bank was recognised as the Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and 2022; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best in Corporate Governance’ Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank,
Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards. Also, the bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, and Retail Bank of the year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. Similarly, Zenith Bank was named as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Most Innovative Bank of the Year 2019 by Tribune Newspaper, Bank of the Year 2020 by Independent Newspaper, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, and Most Responsible Organisation in Africa 2021 by SERAS Awards.
Demola Sogunle Increases Stake in Stanbic IBTC
Dr. Demola Sogunle, the Chief Executive Officer of Stanbic IBTC Holdings Plc has expanded his stake in the bank by 1,521,117 shares.
This was made known in a statement signed by Chidi Okezie, Company Secretary, Stanbic IBTC and made available to investing public.
The bank chief acquired the shares between 21 March and 24 March 2023 at N37.05 a unit. Meaning, he paid a total sum of N56.357 million for the acquisition.
Sogunle held 3.41 million indirect shares before acquiring more shares in Stanbic IBTC as of December 31, 2022. In 2021, he held 2.41 million indirect shares, which he increased to 3.41 million last year.
Sogunle remained the second-largest shareholder in Stanbic IBTC after Ifeoma Esiri, who holds 40.38 million direct shares and 3.11 million indirect shares valued at N1.63 billion as of December 2022.
During the financial period of 2022, Stanbic IBTC reported a gross turnover of N287.53 million, surpassing the N206.64 million generated in the previous year. The financial institution also recorded growth in its net interest income, which increased to N113.11 billion in 2022 from N75.37 billion in 2021.
In addition, Stanbic IBTC closed the year with N80.81 billion in net profit, an improvement on the N56.96 billion profit after tax earned in the corresponding period of 2021.
Binance on Chain Balance Stands at $64B Despite Investigation by U.S. Regulators
Huawei Records Decline in Profits For 2022 as US Sanctions, China’s Pandemic Impacts Earnings
Osinbajo Lauds China on Loans Offered to Africans, Repayment System
News4 weeks ago
Npower Pays November, December Stipends; Gives Update on Next Step
Finance2 weeks ago
Npower Release Update on Failed Payment, Send Validation Link to Affected Beneficiaries
Cryptocurrency4 weeks ago
90 Million People Use Cryptocurrency in Nigeria – Report
Technology4 weeks ago
Africa Emerges as The Worst Performing Region in Internet Value
Fintech4 weeks ago
Nigerians Turn to Digital Banks as Traditional Banking Apps Face Challenges
Billionaire Watch3 weeks ago
Aliko Dangote, Johann Rupert Sit Atop Africa’s Forbes Richest Persons List in 2023
Government4 weeks ago
INEC Considers Postponement of Governorship and State Assembly Elections Amidst Legal Battles
Government4 weeks ago
FG Estimates N869bn For 2023 Census, Seeks Financial Aid