Banking Sector

CBN Governor Hails IFRS Adoption as Catalyst for Nigerian Financial Sector Growth

Published

1 month ago

August 16, 2024

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has lauded the adoption of the International Financial Reporting Standards (IFRS) as a pivotal factor in the growth and expansion of Nigeria’s banking and financial sector.

Speaking at the Regulatory Roundtable on the Implementation of ISSB’s Sustainability Standards in Abuja, Cardoso emphasized that the integration of these global standards has significantly enhanced the credibility, transparency, and competitiveness of Nigerian banks on the international stage.

The event, organized by the Financial Reporting Council (FRC) of Nigeria, brought together key stakeholders to discuss the impact of IFRS on the nation’s financial reporting and the future of sustainability standards in the country.

In his address, Cardoso highlighted the tangible benefits that the IFRS framework has brought to the Nigerian financial system, particularly in terms of growth, both domestically and globally.

“The adoption of IFRS has been a game-changer for our financial sector,” Cardoso stated. “It has not only improved the quality and comparability of financial statements but has also opened up new avenues for foreign investments and credit facilities, thereby strengthening the overall health of our banking system.”

According to the CBN Governor, Nigerian banks have leveraged the transparency and consistency offered by IFRS to expand their operations beyond national borders.

Today, over 55 subsidiaries, three branches, and four representative offices of Nigerian banks are operational across 30 countries, underscoring the global reach of Nigeria’s financial institutions.

Cardoso noted that the IFRS framework has enabled Nigerian companies to produce globally competitive financial statements, a factor that has been instrumental in attracting foreign investments into the economy.

He expressed optimism that the forthcoming implementation of the IFRS S1 and IFRS S2 standards in Nigeria would further enhance the country’s financial reporting landscape.

The IFRS S1 and IFRS S2 standards, which focus on sustainability-related financial disclosures and climate-related disclosures, respectively, are expected to play a crucial role in ensuring that Nigerian entities adequately disclose information about their environmental and social impacts.

Cardoso affirmed that the CBN is committed to ensuring that these standards are successfully implemented, thereby reinforcing the integrity and sustainability of the financial system.

“The CBN has been at the forefront of promoting transparency and accountability in financial reporting,” Cardoso said. “By adopting and implementing these new sustainability standards, we are not only safeguarding our financial system but also contributing to a more sustainable and responsible business environment in Nigeria.”

He also pointed out that sustainability reporting has become an integral part of financial disclosures in the banking sector, with banks required to report on their environmental and social impacts.

The CBN, in collaboration with the Bankers’ Committee, has emphasized the importance of sustainable banking practices, which have positively influenced how Nigerian banks conduct their operations both locally and internationally.

Cardoso acknowledged the challenges associated with implementing new standards, particularly those related to climate-sensitive disclosures.

However, he expressed confidence that with the right technical expertise, data, and resources, Nigerian entities would successfully navigate these challenges and set a benchmark for other countries in the region.

The CBN Governor’s remarks were echoed by the Executive Secretary and Chief Executive of the FRC, Dr. Rabiu Olowo, who commended Nigeria’s leadership in adopting the ISSB standards.

He emphasized the need for collaboration among regulators and stakeholders to ensure the successful implementation of these standards, which he described as critical to enhancing transparency, consistency, and informed decision-making in the country’s financial reporting practices.

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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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Appointments

Keystone Bank Receives New Board Chairman, Directors From CBN

Published

12 hours ago

September 18, 2024

Bassey Marshall

It is the dawn of a new era for Keystone Bank, a top player in the Nigerian banking sector.

As part of a broader strategy to ensure sustained growth for Keystone Bank, the Central Bank of Nigeria (CBN) has approved a new chairman and board of directors for the financial institution.

The new board consists of a new board chairman, five non-executive directors, and two new directors, all carefully selected to take the bank to new heights.

The apex bank confirmed the latest development via a statement on Wednesday.

Steering the ship of leadership is Lady Ada Chukwudozie, as the new board chairman.

Lady Ada Chukwudozie, brings with her a truckload of experience.

A prominent figure in Nigeria’s corporate sector, Ada has nearly three decades of experience in business strategy, management, and administration.

Her expertise cuts across multiple industries, including De-Endy Industrial Company Limited, Dozzy Group, the Manufacturers Association of Nigeria, and Vogue Afrique Magazine.

Indeed, to whom much is given, much is expected.

With her extensive background and experience, Ada will now shoulder the responsibility of guiding the bank toward achieving its long-term goals.

The good news is that she is not alone. Joining her on the board are five non-executive directors, each bringing their unique skills to the table.

The five non-executive directors are Abdul-Rahman Esene, Mrs. Fola Akande, Akintola Ayodeji Olusoji, Obijiaku Samuel, and Senator Farouk Bello.

Together, they will play a critical role in shaping the future of the bank.

Furthermore, two new executive directors, Ladi Oluwole and Abubakar Usman Bello were also confirmed by the CBN.

Meanwhile, Keystone Bank’s Managing Director and CEO, Hassan Imam, bragged about his confidence in the new team.

To him, he was certain they would drive the bank’s growth and ensure reliable service for customers.

Imam noted that their wealth of experience would play a crucial role in the bank’s continued repositioning and growth.

His words: “We are pleased to welcome the new chairman, non-executive directors, and executive directors to the board of Keystone Bank.

We are confident that their extensive experience will be invaluable as we continue to reposition the bank to seize emerging economic opportunities while maintaining strong corporate governance and providing our customers with a secure and reliable banking experience,” Imam concluded.

Recall that in January, the CBN dissolved the board and management of Union Bank, Keystone Bank, and Polaris Bank.

Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

1 week ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

1 week ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.