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Banks’ Staff Decreased by 2.81% in Q3, 2019

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  • Banks’ Staff Decreased by 2.81% in Q3, 2019

The total number of banks’ staff has started decreasing following the number of changes made by the Central Bank of Nigeria to cap banks’ appetite for investment in the fixed income market and compel them to increase credit provision to the private sector through the 65 percent loan-to-deposit ratio directive.

The total number of staff in the banking sector declined by 2.81 percent or 2,929 to 101,435 in the third quarter, down from 104,364 recorded in the second quarter of the year, the National Bureau of Statistics (NBS) reported.

On a yearly basis, the total staff in the sector declined by 1.35 percent from 102,821 in the corresponding period of 2018 to 101,435 in the third quarter of 2019.

A further breakdown of the report shows the total number of executive staff in the banking sector declined by 12.68 percent from 213 in the third quarter of 2018 to 186 in the third quarter of 2019.

Similarly, the number of senior staff within the bank system decreased by 0.33 percent from 17,729 to 17,671 while junior staff grew by 0.01 percent point from 40,395 to 40,398 in the third quarter. Suggesting that banks are likely cutting executive and senior staff due to cost to focus on junior staff.

The total number of contract staff, usually without pension or any retirement benefits, declined by 2.93 percent from 44,484 in the third quarter of 2018 to 43,180 in the third quarter of 2019.

Deposit Money Banks continue to take advantage of the high unemployment rate in the country by maintaining high number of staff without any form of benefit despite declaring billions in profit every quarter.

The President of the United Labour Congress, Joseph Ajaero, had said employers in sectors without a strong union are taking contract staff without pension protection.

He said, “those jobs did not have any form of protection and it was more prevalent in sectors without strong unions that would challenge the system.”

This, according to him, is one of the reasons a lot of people retirees do not have the required amount of 550,000 in their Retirement Savings Accounts (RSAs).

“The commission granted approval for the payment of the entire RSA balances of the categories of retirees whose RSA balances were N550,000 or below and considered insufficient to procure a programmed withdrawal or annuity of a reasonable amount over an expected lifespan,” stated PenCom.

PenCom said it has paid N27.09 billion since inception to retirees since inception.

“Consequently, 109,284 retirees received en-bloc payments totalling N27.09bn from inception to the end of the second quarter of 2019.”

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 long experience in the global financial market.

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Access Bank in Talks to Acquire Cavmont Bank

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Access Bank to Acquire Cavmont Bank in Zambia

Access Bank Plc on Wednesday announced that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited (Access Bank Zambia) is in talks to acquire Cavmont Bank Limited, a subsidiary of Cavmont Capital.

According to the statement signed by Mr. Sunday Ekwochi, Company Secretary, Access Bank and released on the Nigerian Stock Exchange website on Wednesday, the ongoing discussions is to acquire 100 percent of Cavmont Capital’s interest in Cavmont Bank.

However, the lender said “there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.

“The completion of a transaction would be subject to formal regulatory approvals. Access Bank will be updating the market as appropriate and in accordance with its disclosure obligations.”

The lender, therefore, advised shareholders to exercise caution when dealing in Access Bank’s securities.

Investors King Ltd note: This announcement further threw more lights on the recent purchases of Access Bank’s shares by Herbert Wigwe, the Chief Executive Officer and Managing Director, Access Bank.

The CEO/MD purchased 7.532 million of Access Bank‘s shares in the last one month.

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Mohammed Umar is the New Acting Chairman of EFCC

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Buhari Appoints Mohammed Umar as EFCC Acting Chairman

President Muhammadu Buhari has appointed, Mohammed Umar, the director of operations at the Economic and Financial Crimes Commission (EFCC), as the new Acting Chairman of the agency, according to the NAN.

A top official of the commission confirmed to NAN that Umar has taken charge of the agency following the suspension of Ibrahim Magu, the former acting Chairman.

Ibrahim Magu was suspended by the President on Tuesday following series of allegations bordering on frauds, financial misappropriations and abuse of power.

 

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CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira

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CBN Injects $11.5bn Into the Economy in the First Quarter

The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.

According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.

A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.

The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.

Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.

But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.

Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”

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