gabicon:
when we have institutions being run on the pillar of corruption the present predicament is its result. PMB has reduced the rate at which politicians steal money, the banks have been dependent for long on these illegal monies, once they don't come difficulty begins, all men are guarding their bounty jealousy, sexy marketer not working again . this is a classic case of systematic corruption fighting back, our banks need to go back to professionalism. PMB needs to step up his game by initiating a sound economic revival policy, I pray God gives him wisdom.

gabicon:
when we have institutions being run on the pillar of corruption the present predicament is its result. PMB has reduced the rate at which politicians steal money, the banks have been dependent for long on these illegal monies, once they don't come difficulty begins, all men are guarding their bounty jealousy, sexy marketer not working again . this is a classic case of systematic corruption fighting back, our banks need to go back to professionalism. PMB needs to step up his game by initiating a sound economic revival policy, I pray God gives him wisdom.

ubaobi:


I tire onto... Job losses have been occurring on a large scale in other sectors since the third quarter of last year. It's not just banks, the Nigerian economy is sitting on a time bomb.

kayfra:


We fail to acknowledge the extent to which corruption actually runs our economy.

gabicon:
when we have institutions being run on the pillar of corruption the present predicament is its result. PMB has reduced the rate at which politicians steal money, the banks have been dependent for long on these illegal monies, once they don't come difficulty begins, all men are guarding their bounty jealousy, sexy marketer not working again . this is a classic case of systematic corruption fighting back, our banks need to go back to professionalism. PMB needs to step up his game by initiating a sound economic revival policy, I pray God gives him wisdom.

Emekamex:
Massive corruption in the banking sector has made our banks lazy and lose the primary focus of banking which is intense marketing and proper investments. It is time for our banks to restrategize and return to main focus of banking.

onatisi:
The president is deaf
The president is an illiterate
The president is over 74 years old
The president is sick

What the hell were Nigerians thinking when they voted buhari into power and expected him to change an economy in this modern time
They just gave buhari access to presidential medical facilities for the next 4 years.

Emekamex:
Massive corruption in the banking sector has made our banks lazy and lose the primary focus of banking which is intense marketing and proper investments. It is time for our banks to restrategize and return to main focus of banking.

deenee:
People still fail to understand that PMB is not the reason for the recession that we are facing.

The trade deficit is as a result of several factors namely we are basically an import crazy nation of people who import every thing that we consume even basic essentials. Secondly the revenue from oil that would have created a buffer for the deficit is also seriously under threat from volatile oil prices and the evasive militants in the Niger Delta region.

The implementation of TSA is a one of the great things to happen to the banking industry as now banks will no longer depend on government funds but rather be compelled to lend to the real sector. Also TSA has helped reduced corruption in some ministries and govt agencies. Before TSA some govt agencies had over 300 accounts in various banks and could not even keep track of thier money trail hence making very easy for funds to be siphoned.

Until we begin to reduce our dependence on import for basic consumables such as rice and even toothpick, diversify from over reliance on oil revenue and increase local production we will always continue to be in this problem.

Instead of coming here to blame PMB why not contribute our own quota. For me I consciously patronize made in Nigeria products now even for basic essentials that I use at home that way I am also helping some struggling business stay afloat.

I mean why should I go an buy a imported nivea body Cream for men when I can use pears baby lotion made in Nigeria? After all na lotion. Infact pears even has a better scent sef.

We need to drive the change we all want in our little space for things to really CHANGE in this country.

Taxation is also an area why people need to change. How many small and even big business pay correct taxes to the govt. The UK depends soley on tax as a source of revenue.

I think I an starting to deviate from the topic. My empathy for those who has lost their jobs and God bless Nigeria.

Deepfreezer:
The Economy is rapidly nose diving. News making the rounds this morning is that Buhari will extend the 10days holiday /treatment. There is something they are not telling us.

waice6571:


I admire few people on this land! glad to tell you are one of the chosen few.
Soon you'll be invited for an award nite cum dinner.

cheers.....

plaetton:


Corruption, though an aberration, has always been with us. Though it primarily responsible for our perennial underdevelopement, it is not the current driver for our economic Flatline.

It is the sheer ignorance, reckless bravado and incompetence of our new sheriff that puts us in this very hopeless economic situation.

The TSA implementation will go down in history as the single most stuuuupid policy ever implementated in the entire world.

Jacko01:
Firstbank una no fit sack me
No try am
Il just carry my talent to diamond bank along with my clientele base hehe

obi58:


Master simple question....if you starve banks of float from idle funds now moved to TSA. Where do they now get the needed liquidity to lend to the real sector

onatisi:
The president is deaf
The president is an illiterate
The president is over 74 years old
The president is sick

What the hell were Nigerians thinking when they voted buhari into power and expected him to change an economy in this modern time
They just gave buhari access to presidential medical facilities for the next 4 years.

plaetton:


Corruption, though an aberration, has always been with us. Though it primarily responsible for our perennial underdevelopement, it is not the current driver for our economic Flatline.

It is the sheer ignorance, reckless bravado and incompetence of our new sheriff that puts us in this very hopeless economic situation.

The TSA implementation will go down in history as the single most stuuuupid policy ever implementated in the entire world.

deenee:


Banks should not have depended on public sector funds in the first place. Tell me which bank abroad depends on public sector funds for liquidity. The government only steps in through their regulatory agencies as a last resort and usually if there is a crisis. Prior to the implementation of TSA, banks were awash with public sector funds and govt would be borrowing from banks at double digit interest rate. This is one of the reasons why most bank before now felt very comfortable lending to states and MDAs instead of the real sector.

And just to correct a misconception, Pls, find out how much was moved from to TSA as a percentage of deposit base of banks in the industry and you will see that TSA implementation is not the reason for massive redundancies in the banking industry. In fact the trio of FBN Zenith and GTB alone had total asset base of about 11 trillion and just about 3 trillion was moved to TSA.

The basic truth is that most banks are running an unsustainable business model and are exposed to the oil and gas sector and unfortunately that sector is not doing very well at the moment. In banking there is what is known as mismatch of funds. Banks have short term deposit liabilities and have created long risk asset from such deposits and unfortunately the risk assets are not paying back as expected. FBN alone in 2015 wrote off over N120b non-performing loans due to exposures to oil and gas deals. The irony is that more will still come as most banks have basically restructured now to avoid capital provisioning for these sticky loans. FBN has decided to provision now because of their huge balance sheet hence they can absorb the systemic shock

The way forward for banks is to take financial inclusion seriously and make banking products and services accessible to everybody as it obtains in developed nations. Right now it’s is still relatively hard for a common man on the street to work into a bank and open an account. Retail banking is the way to go now in banking, currently there are about 45% of the Nigerian populace still unbanked (i.e people that don’t have any bank account) and over 75% are underbanked (i.e people that don’t make maximum use of banking products and services). Potentially this amount to about 3.5trillion naira outside the banking system.

I recall some time last year a friend came in from abroad for the yuletide season and needed to change about 5k USD and I took him to a Mallam somewhere in Victoria Island. The mallam simply made a few calls and in 5mins some came to us with about 1.5m. Just out of curiosity I asked why he didn’t take us to the bank to consummate the transaction and the mallam boastfully said that even if we want to change N200m naira he can raise the cash in 30mins without stepping into a bank. Now amplify this to other sectors to include market women, traders, other BDC operators and more that don’t use banking services and you will agree with me that there is a huge untapped potential in this space. Simply relying on public sector deposits to fund bank liquidity is a huge NO NO and because of concentration risk.


I await the day a Nigerian citizen will be able to walk into a Nigerian bank with no connection in high places, no “man know man” mentality and just a brilliant business idea documented in a business plan and have the highest assurances of securing a loan from the bank to fund the implementation of such idea.
Nigeria is a funny country. All of a sudden the country is slipping into recession just because there is a clamor for things to be done the right way
God bless Nigeria!

plaetton:
Thanks to Buhari' s much trumpeted TSA implementation.

https://www.nairaland.com/3130801/tsa-how-buhari-nuked-nigerian

jpphilips:



Only criminals wouldn't want TSA implementation

obi58:


Master simple question....if you starve banks of float from idle funds now moved to TSA. Where do they now get the needed liquidity to lend to the real sector

jpphilips:


So you advise public sector funds that banks never lent to a single entrepreneur but investing in zero risk Treasury bills? how is that wisdom? because of Govt funds in the banks, they will never give good rates for fixed deposits, awoof money was the problem and incompetence, now it is time to use intelligence and strategies and they are blaming their workers for incompetence?
How did they get the workers in the first place? Has any staff ever developed a big business from scratch if not through paddy paddy man know man?
When was the last time you received a savings account interest in Nigeria, ie if they don't collect it back from unsolicited alerts and what have you. Those were the things that encouraged customers to bank and maintain Idle funds, it got to a time where Nigerians refused to keep money in the banks, is that how to live? how can a business grow that way?
If you keep money in your bank account and travel for five years, you return to nothing, nothing added but so much lost, how can that insane strategy fetch you idle funds?

To answer your question, Nigerian banks have no strategy to attract idle funds, you can not offer your customer a 4.5% P.A fixed deposit rate when TB is 12% P.A, only an insane man will oblige you.
You can not charge idle funds and expect the owner not to take it, I abandoned my Intercontinental account when they transited to Acces bank, I think about 5yrs ago with a 25k balance, never went there again till date.
Last week someone called me from the bank, I have even forgotten about the account that I should re activate it after being dormant for a while, I simply told the person that if the interest on the 25k has appreciated by 2%, i will be encouraged, guess how much was the balance, -6,853naira.

I just smiled and asked for the statement as a condition for re activating the account and it is going to be free, she agreed and sent it to my email, guess what, the charges were outrageous, a savings account was charged for monthly statements even when the account was dormant, sms alert monthly twice, ATM renewal charges for a dormant account and a host of rubbish, how do you expect to attract idle funds with such strategy.

According to the news we just read, FBN is writing off over 120b naira in bad loans, that was almost their annual profit for last year, tell me, which company in the world throws away their annual profit and retains the same management?
I may have mixed it up but I can tell you from experience that an average Nigerian bank have no strategy for attracting idle funds,

Lastly, while the Govt funds was there, why have they not been able to raise their own funds? How can a bank be relying solely on govt funds are you kidding me, how do companies survive? how do we meet our clientele obligations and stay afloat?
How many companies have access to govt funds is it because they are banks? Are you saying that if my company has access to such funds I won't double my capacity over time?