₦airaland Forum

Kimoni:
Why? Pls explain the bolded

Bubewilson:
Hmmmm so I have read it all up to this point and really it's discouraging even though no better option exists now and considering the fact that the banking sector is one of the highest employers of Labour outside the civil service currently.

But please ex-bankers and bankers is there no body or organization that can stand up on behalf of bankers to address these anomalies bankers are passing through in this country as you have rightly lamented, and pls the hardship currently doled out to bankers here, is it commensurate to what obtains to bankers in other countries?

Delafruita:
what is this one saying?law isn't about common sense,its about the spirits and letters of the constitution.saraki's lawyers erred ab ibitio by going to the high court to seek an injunction against a tribunal of coordinate jurisdiction .next they erred by failing to produce their client in court leaving the justice to issue a warrant for his arrest.I don't see how the tribunal has erred but since you do,please educate us

MKO4ever:
And out of the N5m you will now use N2m for rent?
My father told me never to spend more than 10% of my income on rent

Bevista:
The policy will no doubt have unintended consequences. However, thats the nature of most fiscal & monetary policies.

The banks have depended so much on public sector funds at the expense of the real sector.

Hehehehe1:
wats d impact,?

Unsad:
This wouldn't be good

Deposit money banks in the country may soon face liquidity challenges in their operations, as the federal government’s Treasury Single Account (TSA) implementation take full force, Daily Trust on Sunday can reveal.
This is even as financial experts have predicted that the implementation of the TSA may lead to mass sack in the banking sector.
President Muhammadu Buhari gave the order for the immediate commencement of the policy early this month. The directive was backed by a circular from the Head of the Civil Service of the Federation (HoS), Barrister Danladi Kifasi, which provided the details of the account, domiciled at the Central Bank of Nigeria (CBN).
The circular also listed the Ministries, Departments and Agencies (MDAs) that are affected by the directive and ordered them to follow the implementation strategy, including paying their revenues into the TSA, except union dues.
Many bankers and economic analysts believe that the policy will not go down well with the banks because majority of them rely on the public sector funds for their daily transactions.
For instance, the about N3 trillion public sector funds in the system will now leave the banking system to CBN. This, experts, highlighted will surely create liquidity issues in the banks.
Before now, the banks mostly depend on the public sector fund. The last Monetary Policy Committee pegged the Cash Reserve Ratio (CRR) of public funds at 31 percent.
Dr Kelekume Ikechukwu, an economist with Pan Atlantic University, Lagos said the implication for the commercial banks would be grave.

“Most commercial banks will go down. The ones that will survive are those whose businesses are not based on government funds,” he said, adding, “It is huge, the ones that will be affected are definitely going to downsize.”
Kelekume cautioned that the banks can no longer seat back and continue to do business the way they were used to. Noting that they need to begin to look at untapped sectors of the economy, the development economist said: “Because these banks have been getting easy money, they are not lending to the sectors they are supposed to lend to.”
Some bankers told Daily Trust on Sunday that the TSA was going to push up the cost of borrowing due to shortage of fund in the system, translating to lower investments in other sectors of the economy.
Andrew Ayabam, of First City Monument Bank (FCMB) and one time chairman of Benue State Internal Revenue Service (BIRS), said the policy has its good and bad sides. It’s good, according to him, because it will make the banks sit up and chase local businesses that will grow their earnings and impact positively on the economy.
He also noted that the policy is bad because it would affect the business relationships between states and government agencies.

“Some took loans, thus servicing these loans when the accounts are off may be difficult as the banks may not have access to the funds. Some of the banks usually make deductions at source but that won’t happen again and those agencies may not willingly service the debts. But for now, it’s unclear how the CBN would manage these relationships,” he said.

Mr Manz Denga, a former Managing Director of Transnational Corporation (Transcorp) and former regional managing director of UBA, East Africa, explained that the background of TSA was the total abuse of the funds for personal gains by banks and government officials.

MR Denga, who is currently the chairman of AfriBusiness ExpertEase (AfBEE) in Johannesburg, South Africa, added that there would be illiquidity in the system that would increase the cost of funds and lending rate. Interbank rates that have been up to 50 percent in the last few days may hit the roof, as obligors borrowing rates would also triple, according to him.
“The central bank needs to put aside bailout plans for the vulnerable banks, including direct market intervention. Traditionally, pooling is used to get higher returns on interest rates, reduce borrowing costs, and build confidence in lenders.” he said.

He suggested that to overcome this, the CBN should consider using the advised account only as a control account, while it opens subsidiary accounts for all individual MDAs, both for performance review and funds administration
He said, “A good move but needs careful implementation, to avoid systemic backlash or collapse. This, especially with the open wound of refusing dollar cash deposits.
“TSA at CBN is not a good business decision, as it shaves off potential income on the line of RFI or Reserve for International Interest. For instance, if a state has 100m with a bank for a year, it earns interest as negotiated, in addition to being entitled to return of the principal, as well as collateralizing the deposit to borrow a billion or more, he explained .

“I will say that if 30 states including Lagos do a TSA at CBN, banks would collapse, again, with the dollar cash deposits ban. Lastly, on the question of blocking leakages, the ultimate silver bullet is in the operatives. My over two decades experience here and abroad tells me that once collusion enters the room, the best of plugs give way.”

Moses Azege, a ‘former banker and Economic analyst’ said if CBN holds the account then that will amount to the same impact as if the CRR for Public sector deposit is 100%. “Also, the banks balance sheet will shrinks in line with liability outflows to CBN and the corresponding credit asset constriction,” he said, adding, “However, if a single commercial warehouses government funds, your guess is as good as mine on how it will unfairly benefit vis-a-viz other commercial banks.

Dindondin:
There new method of depositing cash in Banks is either the use of ATM.
I witnessed this last week Friday at a GTBank and the practice has not stopped.
But I don't think other banks have started this.

How it works:
* You can use it to deposit N10,000 and below. The denominations must be in N500 or N1,000.

* To deposit, you have to type the banks general pin of 0000 and press the action. eg: deposit. Then you ll type the account number to deposit the cash, the phone number of the depositor. The machine will open its deposit hole and instruct you to place in your cash and you ll type the amount you are sending.

* It will notify you by showing you the full names and account number of the recipient which you ll v to confirm with the yes or no buttons.

* After this, the machine will credit the account of the receiver.

Note:
You must arrange your cash in a straight way so that it can enter the machine. Failure to do this will result in cash ejection. During this process, your cash may get rough or torn.
Last Bullet
The process is fast but can be risky because aside the security camera that records when someone was depositing, no one else is there to witness the day the machine malfunctions. Also, it may be risky to use it at odd hours like early in the morning, late at night or during quiet times like environmental sanitation day or curfew times.

Nigeria’s total debt stock now stands at N12.12tn ($63.81bn), the Debt Management Office has said.

Statistics obtained from the organisation on Sunday showed that the domestic debt stock of the Federal Government as of June 30 stood at N8.39tn or $42.63bn.

The domestic debts of the 36 states of the federation and the Federal Capital Territory Administration, on the other hand, stood at N1.69tn ($10.86bn) at the end of June.

On the external sector, the country’s debt stock was put at $10.32bn (N2.03tn) at the end of June.

The DMO gave a hint that the actual domestic debt of the states could be higher because the figure only reflected the position of the indebtedness of the states as of December 31, 2013.

It added that the compilation of the 2014 debt stock for the states and the FCT was in progress.

In the first quarter of the year, the country’s total debt stock stood at N12.06tn. This shows a marginal increase of 0.5 per cent or an addition of N60bn within the period of three months.

As of March 31, the domestic debt of the Federal Government stood at N8.51tn. This shows a decline of N120bn or 1.41 per cent.

There was no difference in the domestic debts of the states and the FCT as the DMO has been working with the figures of December 2013.

The external debt of the country stood at $9.46bn as of March 31. This means that the external debt increased by $860m or 9.09 per cent within the period of three months.

A year ago (that is, June 30, 2014), the country’s total debt stock stood at N10.43tn. This means that within a 12-mong period, the country’s debt stock had increased by 16.2 per cent, adding N1.69tn.

Similarly, the country’s external debt stood at $9.38bn as of June 30, 2014. This means that within the period of one year, the nation’s external debt rose by $940m. This shows an increase of 10.02 per cent.

On the domestic scene, the Federal Government’s domestic debt stood at N7.42tn as of June 30, 2014. This means that within the one year period, the domestic debt of the Federal Government rose by N970bn or 13.07 per cent.

By instrument, the Federal Government Bonds accounted for N5,300,418,821,000 or 63.13 per cent of its domestic debt.

The Nigerian Treasury Bills accounted for N2, 824,952,245,000 or 33.64 per cent of the Federal Government’s total domestic bill, while Treasury Bond accounted for N271,220,500,000 or 3.23 per cent of the Federal Government’s domestic bill.

In the external sector, multilateral donors accounted for 70.11 per cent of the country’s external debt, while bilateral sources accounted for 15.35 per cent. Commercial debts accounted for 14.54 per cent of the nation’s external debt.

Given the nation’s dwindling resources as a result of falling oil prices, there is an indication that borrowing will continue to play a major role in the funding of both the federal and state governments.

During his recent visit to the United States, President Muhammadu Buhari sealed a $2.1bn funding from the World Bank for the rebuilding of the North-East region devastated by Boko Haram insurgents.

As the DMO continues to borrow for the government on monthly basis through the instrument of the FGN Bonds, experts have advised the government not to borrow to pay salaries or any other recurrent expenses.

Following protests by Nigerians living in the United Kingdom (UK) over the £30 Bank Verification Number (BVN) registration fee, the Nigerian Inter Bank Settlement System (NIBSS) have explained that the amount which roughly adds up to about N11,000 is the cost of the service rendered.

According to the managing director and chief executive of the NIBSS, Mr Ade Shonubi, the company had contracted the gathering of data for the BVN to the company which processes Nigerian Visa applications and passport renewal outside the country, Online Integrated Services (OIS).

He explained that the law in some countries which prevents the data of their nationals from being captured and stored outside their borders makes it hard to gather the necessary data for the BVN.

“Even Nigerian banks in the UK are not allowed to share the data of their customers with their parent banks that are here. It is part of the data privacy rules and laws that they have. So just setting up a desk in any country can get you locked up. So the first thing we considered was what can be done legally and by whom. We did some research to find out who supports the Nigerian embassy in gathering data for visa applications and passport renewal application because by law they are covered and allowed to gather data. It is only under that premise that we can then get them to help us with the BVN and that is how OIS came into being,” he said.

Shonubi noted that the £30 cost, which would be the base cost across the countries, is the cost of service paid to OIS. He explained that “they are not using the same network that they use to capture visa request; they had to set up a separate and secure one for us. They are the ones incurring this cost; there is nothing that comes to us in terms of money. We just told them to recover their cost and they have agreed to go to countries where we don’t even have Nigerian banks.”

OIS is currently situated in eight locations: London, Leicester, Dubai, Beijing, Shanghai, New Delhi, Washington and Guangzhou, according to information on its website. Although the deadline for the BVN registration had been moved to October 31, 2015, by the CBN to allow Nigerians in diaspora register, Shonubi said the NIBSS contract with OIS extends till the end of the year.

He, however, noted that Nigerian banks’ customers who wish to register with OIS will have to book an appointment with the company to do so and explained that this has become necessary after the London Metropolitan Police intervened to restore public peace which was disrupted by customers at the OIS office. A look at the appointment dates on the website of OIS revealed that all the weekends from August till October have already been booked and the only dates available are during the week. He also said that two banks, Diamond Bank and Ecobank, have been given the go ahead to set up desks at their affiliate banks outside the country to gather data. Shonubi noted that Ecobank will be gathering data in the West African region while Diamond Bank will collate data from its affiliates.

Some Nigerian banks’ customers, sad over their plight, had earlier stormed the Nigeria High Commission in London to protest against the directive of the apex bank while some others took to the social media to vent their anger.

Denn:
The moment a bank expects young grads to get in funds at any cost, integrity and professionalism is sacrificed.

The most promoted bankers are not the best bankers....they are people who can meet set targets.

Overtime, we get people who can just bring in deposits or roll over term loans in higher positions. The real professionals are frustrated out.

Banking is more than just getting in deposits or booking loans.

That is why we have a lot of bad loans in the system. The real intelligent bankers have been frustrated out. Cowboys now reign supreme.

I look at some products developed by banks and can only laugh. Where is the innovation?

I attend MPRs and listen to the jumbles being read by the unit heads. Deposits....deposits....deposits....

Some jackal will even abuse parents of low deposit scavengers.

A paradigm shift is required. Focus should be on profit via professional service and not on vacuuming all the deposits in the country just to play at the interbank market.

What is zenith bank doing to help the SMEs for example. How many dark skinned girls do you see in Zenith Bank? Is banking excellence dependent on your skin colour and skirt lenght? Must I look sexy to be a banker ?

What is diamond bank doing to reduce the enormous visa credit card bad debts booked from relentless 'marketing'. Did they not learn from ecobank's mistake using the same template?

Why is Stanbic focused on temporary makeshift branches with very few relationship officers? Relationship is key and should constitute the main workforce....not expatriates in the head office.

Why should a banker earn 25k monthly. Should he even be a temporary staff? A bank thrives on fiduciary relationships. At least your worker must trust that he will have his job permanently. Else, he uses your internet access to search for job. DSA my foot

The whole cauldron of ineffective 'marketing' must be thrown away and new processes must be adopted.

matilda02:
Please i really wan't know those companies that take their workers abroad for training...(no insults please)...thanks

Monogamy:
Leader of the Bring Back Our Girls group and former minister of education, Mrs. Oby Ezekwesili, has said that President Goodluck Jonathan does not deserve the hero tittle for accepting defeat in the just concluded presidential poll.

DAILY POST reports Jonathan, before the INEC chairman could announce the final result of last Saturday’s presidential election, had called General Buhari to congratulate him for winning the election.

Following his decision, many Nigerians have been praising the president for saving the entire nation from disaster.

However, Ezekwesili says if only Nigerians knew the extent of damage President Jonathan has done to Nigeria, they won’t hero worship him.

She took to her Twitter page on Thursday, to air her views on the recently held presidential election.

She tweeted: “When a review of President Jonathan’s administration is done, we’ll realize how much damage sycophancy did to governance. Example? Chibok Girls,” she wrote.

“A leader must be without an inordinate desire to be serenaded with ‘good news’ or their team will never let them know the true state of affairs.

“An environment that rewards sycophancy encourages team to withhold accurate ‘bad’ news (problems) from the leader while serving up ‘good news’.

” When a leader makes hero worshiping costly to those who engage in it, he/she deprives the ‘sellers’ market to set the ‘Mediocrity Benchmark.’

“A critical success factor in governance is for the leader to both in word and deed convey a culture that abhors sycophancy. No hero worshiping.”

Source: http://dailypost.ng/2015/04/03/jonathan-is-not-a-hero-oby-ezekwesili/

Dragonking:
http://www.elombah.com/index.php/entertainment-news/31215-breaking-senate-president-david-mark-loses-senate-seat

cc: lalasticalala , mynd44, ishilove, seun