Anago55:
. Isn't it obvious to you that we have been relegated again?

We have been stepped aside again and you think all is well?

If PDP or APC fails to field Igbo candidate come 2023, I will eventually give up in the country

SE is stronger in PDP, they should hold PDP to ransom to field candidate from the region. You cannot write SSCE and expect GCE result.

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High traffic, high page ranks, potentials for very good income. Potentially comparable to americanbanker.com, asianbanker.com and more.

Contact: 234-8066065464 or nigerianbanker01@gmail.com

Central Bank of Nigeria (CBN) on Monday announced a number of policy measures to ameliorate the effect of Covid-19 on the Nigerian Economy. In a circular directed to banks and the general public, the CBN slash interest rates on its various intervention programmes worth about N3 trillion to five per cent from current nine per cent per annum for next 1-year, effective March 1, 2020.

The CBN also announced a further moratorium of one year on all principal
repayments, effective March 1, 2020, on all CBN intervention facilities.

“This means that any intervention loan currently under moratorium is
hereby granted an additional period of one year. Accordingly,
participating financial institutions are hereby directed to provide new
amortization schedules for all beneficiaries.”

Source: https://www.nigerianbanker.com/covid-19-cbn-announces-policy-measures-to-cushion-effect-on-economy/

The CBN also establish a N50 billion targeted credit facility through the
NIRSAL Microfinance Bank for households and small- and medium-sized enterprises (SMEs) that have been particularly hard hit by Covid-19, including but not limited to hoteliers, airline service providers, healthcare merchants, and so on.

Added to the its intervention programmes is also the credit support for the
Healthcare Industry in order to meet potential increase in demand for
healthcare services and products. ”CBN bank opened for its intervention
facilities, loans to pharmaceutical companies intending to expand/open their
drug manufacturing plants in Nigeria, as well as to hospital and healthcare
practitioners who intend to expand/build the health facilities to first-class centers. This is in addition to growing the size of existing interventions to the
agricultural and manufacturing sectors in Nigeria,”.

In what it called Regulatory Forbearance, the Apex Bank also granted “all
Deposit Money Banks leave to consider temporary and time-limited restructuring of the tenor and loan terms for businesses and households most affected by the outbreak of Covid-19 particularly oil & gas, agriculture, and
manufacturing. CBN would work closely with DMBs to ensure that the use of
this forbearance is targeted, transparent and temporary, whilst maintaining
individual DMB’s financial strength and overall financial stability of the
system.”

And in view of the success of the lending to deposit ratio (LDR) policy in growing credit to the economy and reducing interest rates, CBN announced that it would further support industry funding levels to maintain DMBs’ capacity to direct credit to individuals, households, and businesses.

The Apex Bank also announced that it “will also consider additional
incentives to encourage the extension of longer-tenured credit facilities, while
encouraging Deposit Money Banks to continue to build capital buffers in order to improve the resilience of the sector.

“The bank stands ready to provide liquidity backstops as and when
required in view of its role as Banker to the Federal Government and lender of
last resort. The CBN will continue to monitor development and will issue further updates as may be appropriate.

This can only happen when and where you don't have to work hard for your daily bread. In Nigeria, when hunger wipes your bom bom, you will remove the diapers and go look for your daily bread. Iranu jati jati

The Central Bank of Nigeria (CBN) has just released its quarterly Consumer Expectation Survey Report for the Q4 2019. The report shows that consumers are generally optimistic about the outlook of the Nigerian Economy in the first quarter and the whole of the year 2020.

The Q4 2019 report which is the last of the CBN quarterly Consumer Expectation Survey Report for the year 2019 reveals a high level of optimism by consumers about the Nigerian Economy. Majority of the consumers, drawn from over 2,000 households across the country and with reponse rate of 99.9% believed that: The next 12 months would not be an ideal time to purchase big-ticket items like motor vehicles and house; Most also expected the Naira to remain stable, inflation rate to rise, and borrowing rate to fall in 2020.

Respondents also believes that the major drivers of the expected rise in prices (Inflation rate) are food & other household needs, savings, purchase of appliances/consumer durables, education and purchase of houses, and purchase of car/motor vehicle.

The positive consumer outlooks for the year 2020 according to the respondents could be attributed to the expected increase in net household income (new salary increase) and its consequent of increased savings or increased prospensity to consume with its anticipated effect on economic improvement in 2020.

The respondents are however not very optimistic about the unemployment rate as they expects the number of unemployed Nigerians to rise in the next 12 months indicating increase in failing businesses and little or no new businesses coming up.

The CBN Q4 2019 Consumer Expectations Survey (CES) was conducted during the period November 18-27, 2019, covering a sample size of 2,070 households drawn from 207 Enumeration Areas (EAs) across the country, with a response rate of 99.9 per cent.

Respondents’ distribution by educational attainment showed that 8.6 per cent had university education, 10.7 per cent had higher non-university education, while 26.9 per cent had senior secondary school education. Respondents with junior secondary and primary school education accounted for 4.9 and 19.7 per cent, respectively, while those with no formal education accounted for the balance of 29.3 per cent.
Source: www.nigerianbanker.com

The governor of Central Bank of Nigeria (CBN) Godwin Emefiele has stated that discouraging continuous importation of milk and dairy products could reduce persistent clashes between farmers and herdsmen and help to reduce about $1.5 billion spent annually on importation of milk.

Emefiele stated this at a media briefing on the outcome of the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday. According to him, milk, that can be produced locally have been imported into the country for over 60 years with enormous amount of foreign exchange .In his words:

“We believe milk is one of the products that can be produced in Nigeria today. I have asked questions at different forums that we have seen the importation of milk into Nigeria before many of us were born over 60 years ago"

“West African Milk and Friesland Milk have been importing milk into Nigeria for over 60 years. Today, milk imports stand at between $1.2b and $1.5b annually. That is a very high import product, given that it’s a product that we are convinced can be produced here".

The CBN governor believes it does not take much to produce milk than to station the cows in a settlement rather than moving them about, provide them with plenty of water and grass and they will produce plenty of milk.
“What really does it take to produce milk? Get cow and give them plenty of water to drink and let them eat a lot of grass and then position them in a place that they don’t roam about. Such cows get fat and we take milk out of them".

He employs the milk companies in Nigeria and their management to assist the government by supporting the policy. Adding that producing milk locally would held in reducing the persistent clashes between farmers and herdsmen.
Source: www.nigerianbanker.com

All Banking complaints against Financial institutions regulated by the Central Bank Of Nigeria (CBN) must be lodged through the appropriate channels otherwise your complaint may not get the required attention.

Cases of unauthorized debits, ATM dispense errors, Failed PoS transactions, Unauthorized transactions, Interest earned on Savings account but not paid, Interest overcharge, Unjustifiable deductions from your account and others, must first be reported to your Bank for resolution.

Commercial Banks, Primary Mortgage Institutions (PMIs), Discount Houses and Micro Finance Banks (MFBs) regulated by CBN must resolve your banking complaints within two weeks of complain.

Only when your Bank is unable to unresolved your complaint within 2 weeks that you may seek redress from CBN. This is as recommended by the CBN’s Consumer Protection Department .

Complaints of all types as long as it is against a Financial Institution under CBN supervision must be directed to the Consumer Protection Department of CBN. And can only be done as last resort only if your Financial Institution failed to resolve your complaints after 2 weeks of complain.

Consumer Protection Department contact details
Via e-mail: Send your email to cpd@cbn.gov.ng

Via a letter: Direct your letter to The Director, Consumer Protection Department, Central Business District, Abuja. Your letter can be submitted at the CBN head office, Abuja or at any Central Bank of Nigeria branch offices nationwide.

You are to ensure that your complaint (Letter or email) is unambiguous, clear and concise. It is important that your letter contains the following details:

Your contact details (Name, Phone Number, Contact and e-mail address).
Your Banking details, only your account number/s and account name/s (You are not to disclose your BVN, ATM, Mobile Banking and Online Banking details).
Financial Institution details.
History and Date of the transaction/s in dispute
Claim/s details including amount (if any). You are to attach relevant documents to support your claim/s.
Evidence that shows that you have lodged the complaint at your bank earlier.
You can also click the link below to have access to the CBN portal where you can lodge your complaints quickly if you want to avoid writing and sending emails.

https://www.cbn.gov.ng/Contacts/Complaints

Source: www.nigerianbanker.com

*People who seek control at all costs, by whatever means, never minding the injury to democratic norms* it is disrespectful to Nigerians for the same man that forged the standing rules of the Senate to become the SP to be saying this.

*I thank the thousands who monitored the situation on radio, television and social media, voicing their outrage at the siege, thereby sending a clear message to those that hatched the plot that the Nigerian public would not buy this act of gangsterism using instruments of state such as the DSS.* mission accomplished the government has been portrayed as not democratic.


“ *I thank the Acting President, Prof. Yemi Osinbajo, for his handling of the situation we were all confronted with yesterday. His decisive action went a long way towards restoring confidence.* again, VP was not the target.

Fantastic post. Visit www.nigerianbanker.com and get the latest banking news and valuable information about Banking, Finance and the Economy

The real sector is the most influencer of economic growth and stability. They propel the engine of growth by providing employment and ensuring funds gets into the hands of the lower income earners that needs it for survival.

With a buoyant real Sector, manufactured produce and services that are necessities of life gets more patronage. More employment is generated in other to get more of such good and services produced. This cycle creates more jobs and has helped moved a good number of the population from lower to middle class in most economies.

Countries that has moved from underdevelopment to developing and subsequently emerged economic giants were able to achieve this status as a result of deliberate implementation of policies that helped propel the growth of the real sector.

Earlier in the week, Mr. Godwin Emefiele, the CBN Governor, while fielding questions from journalists after the Monetary Policy Committee (MPC)meeting announced that the Apex bank is ready to penalize banks and other financial institutions that are unwilling to lend money to operators in sectors of the economy that produce goods and provide services.

Mr. Emefiele also disclosed that financial institutions, which lend money to the real sector, will be rewarded.

He further said that the CBN was in the process of reaching decisions that will determine the level of reserves each bank holds. He explained that banks that reserve their liquidity and resort to trading in government securities or lend money to foreign exchange traders instead of the real sector would be penalized.

This approach by the Apex bank if implemented is commendable as it will force deposit money banks and other financial institutions to focus on its traditional role of intermediation between the supply and the deficit in the society.

As laudable as the intention is, it must be explained that the real sector of Nigerian economy has more militating obstacles than funding, funding is perhaps at the bottom of the issues bedeviling the growth of real sector in the country.

How can real sector growth be achieved without adequate public power supply? The alternative to public power supply is beyond the reach of entrepreneurs who has cheaper imported alternative to compete with. Manufacturers in well powered economies and with single digit loans will continue to target the Nigerian market and edge local producers out until public power is available and stable.

The growth of real sector may also continue to be challenged without the adequate fiscal protection from cheaper imported substitutes. A serious economy that wants the growth of its real sector must match CBN’s prohibition of 41 items from its FX windows with the right legislative laws that will ensure goods with local substitutes are not allowed to be imported. This will empower local producer with the market incentive to produce at all cost.

Self provision of Infrastructure such as roads, water, security are also major adverse militating issues the real sectors in Nigeria is grasping with.

Provision of funding to the real sector in the country may continue to be a challenge for commercial banks and other financial institutions until the aforementioned obstacles are tackled. Banks will continue to be very cautious and not endanger their depositors fund to the real sector because the drivers of the economy does not have the political will to do what serious economic drivers did to achieve greatness.

Financial institutions will continue to cherry pick strong, viable and entrenched real sector businesses to fund at the expense of start-ups and innovators until there is deliberate political will and the right fiscal structure is put in place to aid real sector businesses.


Source: http://www.nigerianbanker.com/2018/05/27/real-sector-loans-before-cbns-carrot-and-stick

silverdam:
How far bro, why aren't you replying your whatsapp?

Not seen your chart

The CBN during the week blamed commercial banks in the country for sabotaging its efforts in replacing mutilated notes with new ones.

The CBN Acting Director Of Communication, Mr. Isaac Okorafor made the allegation on Thursday in an interview in Lagos and while reacting to lamentations from Nigerians on the high level of mutilated notes in the country.

Mr. Okorafor mentioned that CBN is aware of the problem and has been taken steps to ensure new notes are available in circulation. According to him, “one of the step the CBN has taken in mopping the mutilated notes in the country was reducing the amount it charged banks for replacing the dirty notes for new ones from N12,000 to N1,000 per box.

The charge reduction which affected only the 10, 20 and 50 Naira notes was for a 3 months period and it ended on March 28, it was later reviewed to N2,000 after the 3 months window closed.

According to Mr. Okorafor CBN has resort to adoption another option of withdrawing the mutilated note by approaching market traders and encouraging them to change genuine note to new ones and that this will not attract any cost to the traders.

He however hinted that the serial numbers of the new notes exchanged with the trader will be used to trace any member of the public who hoard and sell the new notes.”

In as much as it can be argued that commercial banks is buoyant enough to be able to pay the cost for sorting and replacing old notes. Banks are private businesses that will resist any attempt to increase their cost lines except if it is compulsory and may lead to sanctions if not obeyed.

CBN’s option of approaching traders in markets and exchanging their old notes to new ones may not be a desirable option as traders are also in the business of taking advantage of business opportunities. CBN May be planning to open another business ventures for these traders unknowingly as monitoring serial numbers of new notes in circulation may be a bit challenging in a sub organized environment like Nigeria.

To really get the mutilated notes out of circulation, the Apex bank should make it compulsory for commercial banks to send in the bad note through its oversight functions and charge them for the cost while also sanctioning defaulting banks.

In the alternative, if the Apex bank can afford to change the mutilated notes for new ones free for trader, the Apex bank should take the issue of withdrawing the bad notes as a social responsibility and change the notes for free for commercial banks.

The CBN should by all means get the bad notes out of circulation and help halt the continuous national embarrassment the mutilated notes are.


Source:: http://www.nigerianbanker.com/2018/05/13/why-banks-may-continue-to-sabotage-efforts-on-new-notes

A good number of bank customers are of a misconstrued notion about the message their bank statement will send to a lender or other institutions requiring same. Most believes a fat bank account may put them at an advantage when statements are presented to organization requiring same. Other believes huge balances in the account over a period is an indication of a business account that is well operated.

Still there are some bank customers with the conception that the money deposited in your account should be your savings after you must have taken care of your business expenses and made payment to your supplier/s from cash sales.

Business bank account shows that you have a business banking relationship and you can approach your bank as a business and not as an individual. This article will focus on business accounts (current or checking account) and the messages the characteristics of your account send to interested parties when they look at it. But before we discuss what your bank account says about the kind of business you do, here are 2 definitions of bank account.

The Wikipedia defines a bank account as “A bank account is a financial account maintained by a bank for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution.”

The Financial Dictionary defines a bank statement as “An agreement between a bank and a person or institution, whereby the bank agrees to hold money and/or other assets on behalf of the other party. What the holder may do with those assets depends upon the nature of the account. In a checking account or a savings account, the bank holds money and pays the client a certain percentage in interest. This payment gives the bank the right to lend the money to other clients or invest it within the confines of law and banking regulations. However, the client has the right to withdraw the total amount of money on demand.”

Here are what your business bank account says about your business

• A business bank account shows you are in business.

When you operate a business bank account opened in your business name or registered company, it shows that you are not just as a trader but a business man or woman. Using a personal account for business may not be a bad idea if you are a starter in business or a petty trader but if you are planning to be big and want records of your business growth with you bank, you should register a business and open a business bank account. You should also ensure all your business proceed passes through your business bank account.

It is only with a business bank account that you can approach your bank as a business for finance and other business banking products, otherwise you will be seen as a salary earner or a petty trader.

•A very busy bank account.

A business bank account with regular inflows and outflows and little or no balance in the account shows that you are stretching your cash flow and you may need to inject more fund into your business to take full advantage of your immediate market.

This can only be true if you are not cleaning out your bank account for reasons other than that of your business. If you clean out your account for savings, capital projects, stocking of raw materials more than what is needed for a production cycle or for other lifestyle financing other than your business, then this assumption may not be true for your business.

•Huge balances in your business bank account.

Large amount of money in your business account with regular and daily inflow and outflow shows that you have a business that is very profitable, you are taking full advantage of your market and may need to expand.

Large balance in business account with no regular transactions may indicate a business that is waiting to take advantage of opportunities or no longer in business if it is not a new business venture.

•Occasional large lodgment and large outflow

This may be an indication of a company in real estate or businesses other than fast moving consumer goods. It may also be an indication that that bank account is not your major bank account and that you warehouse money in the account for some reasons and use the fund when needed.

•Regular tranches inflow and large outflow

This is an indication that you are either a manufacturer or trader in Fast Moving Consumer Goods (FMCG). Where your customers or distributors pay regularly into your account and you pay your manufacturer for stock replacement or for purchase of raw material as the case may be.

This is also applicable to the account of a trader who has regular inflow or cash deposit and large outflow to replace stocks.

•Occasional/ Regular Large inflow and tranches outflow

This may indicate a service business or contractors of government or other organizations. Large inflow are after for contract executed or mobilization for contract awarded while tranches outflow May indicates payment inputs and wages for workers. For service companies, large inflow may indicate payment for service rendered and tranches outflow may indicate payment to workers and others engaged in the process of excusing the contract or services.


Source: http://www.nigerianbanker.com/2018/05/01/what-your-bank-statement-says-about-your-business

Government in a bid to regulate the affairs of the economy would always use MPR as one of its instruments; which is an interest rate at which CBN lends to commercial banks and other clients.

MPR which is currently at 14%, is the rate at which banks gets loanable funds from CBN, thus interest rate at which bank lends to customers will mirror MPR.

Below is a guide to what your bank should charge on your banking transactions.


1. Interest on Naira Loans

This is negotiable and should reflect risk based pricing model (The higher the risk inherent in the loan the higher the interest rate). Customers must however be notified of a change in interest rate 10 business day before it is implemented.

Mortgage – Maximum of MPR plus 5%, that is 19% (Negotiable)
Term Loan – Negotiable, it should reflect risk based pricing model
Authorized Overdraft – Negotiable, it should reflect risk based pricing model
Unauthorized Overdraft – Not permissible, except as a result of facility repayment. Penal rate of 1% flat per month is charged on unpaid amount in addition to interest on loan.
Drawing Against Uncleared Effect – Negotiable, it should reflect risk based pricing model.
Equipment Leasing – Negotiable, it should reflect risk based pricing model.
Discountable Instrument (Usuance, Bills, Banker Acceptance, Commercial Papers, Promisory Notes etc) – Negotiable



2. Foreign Currency Loan – Interest rates and fees on Foreign currency loan is negotiable.



3. Lending Fees – Maximum of 2% is allowed

Management Fee – maximum of 1% (one off)
Commitment Fee – maximum of 1% (one off)
Facility Extension Fee – maximum of 1% (one off)
Restructuring Fee – maximum of 0.5% of total restructured amount.


4. Charges on Consortium Lending

Agency Fee – Negotiable
Management Fee – Maximum of 1% (one off)
Commitment/Non drawing Fee – Negotiable, subject to maximum of 0.5% of undisbursed amount (one off).
Commission on Underwriting – Negotiable.


5. Commission on Bond Guarantee and Indemnity

Bid Bond/ Tender and Bid Security – Maximum of 1% of bond value (one off)
Performance Bond/
Advance Payment Guarantee – Maximum of 1% of Bond or guarantee value ( chargeable on date of contingent liability).
Bank Guarantee – Maximum of 1% of bond value (one off).
Other Bonds, Guarantee and Indemnity – Maximum of 1% of bond value (one off)



Source: http://www.nigerianbanker.com/2017/08/22/this-is-what-your-bank-should-charge-you-a-guide-to-bank-charges

Africa currently has 23 billionaires compared to 21 billionaires a year ago according to Forbes magazine published in February 2018. The current billionaires are worth $75.4billion in February 2018, $5.4 billion more when compared to January 2018.

Here is the list and what they are worth

Aliko Dangote; Nigerian; aged 60; worth $12.2b

Nicky Oppenheimer; South African, aged 72; worth $7.7b

Johann Rupert; South African; aged 67; worth $7.2b

Nassef Sawiris; Egyptian; aged 56; worth $6.8b

Mike Adenuga; Nigerian; aged 64; worth $5.3b

Naguib Sawiris; Egyptian; aged 63; worth $4b

Issad Rebrab; Algerian; aged 74; worth $4b

Koos Bekker; South African; aged 65; worth $2.8b

Isabel Dos Santos; Angolan; aged 44; worth $2.7b

Mohamed Mansour; Egyptian; aged 69; worth $2.7b

Patrice Motsepe; South African; aged 55; worth $2.4b

Aziz Akhannouch; Moroccan, aged 57; worth $2.2b

Yaseen Monsour; Egyptian; aged 56; worth $1.9b

Strive Masiyiwa; Zimbabwean; aged 56; worth $1.7b

Folorunsho Alakija, Nigerian; aged 67; worth $1.7b

Othman Benjelloun; Moroccan; aged 85; worth $1.6b

Mohammed Dewji; Tanzanian; aged 42; worth $1.5b

Youssef Monsour; Egyptian; aged 72; worth $1.4b

Michiel Le Roux; South African; aged 68; worth $1.2b

Stephen Saad; South African; aged 53; worth $1.2b

Desmond Sacco; South African; aged 75; worth $1.1b

Christoffel Wiese; South African; aged 76; worth $1.1b

Onsi Sawiris; Egyptian; aged 88; worth $1.1b

There are 8 South Africans on the list with a combined worth of $23.5billion

6 Egyptians are on the list with a combined worth of $17.9billion, the Egyptians on the list appeared to have come from 2 families, the Monsour and the Sawiris families. These 2 families have 3 of their siblings each on the list.

Nigeria has 3 billionaires on the list with a combined worth of $19.2billion

2 of the billionaires are Moroccans, they are together worth $3.8billion.

Algeria, Angola, Zimbabwe and Tanzania has 1 representatives each on the list with Tanzania and Angola having the youngest billionaires on the continent.

An analysis of the list revealed that 48% of these billionaire actually founded the companies that made them billionaires: Aliko Dangote, Africa’s richest man, Mike Adenuga and Folorunsho Alakija. All 3 Nigerian billionaires are founders of their companies. Koos Bekker, Patrice Motsepe, Mitchell Le Roux, Stephen Saad and Christopher Wiese all of South Africa are also founder of their companies. Issad Debra of Algeria, Strive Masiyiwa of Zimbabwe and Onsi Sawiris of Egypt also founded their companies. Onsi Sawiris of Egypt has 2 sons on the list, he founded the companies that made his sons billionaires.

These self made billionaires are worth $34.7 billion about 40% of the total worth of current African Forbes billionaires.

The 2 billionaire below 50years of age: Isabel Dos Santos of Angola and Muhammad Dewji of Tanzania inherited their wealth with Isabel being the eldest daughter of her county’s former president.

Isabel Dis Santos and Folorunsho Alakija are the only 2 women on the list.

Aliko Dangote of Nigeria and Africa’s richest man is currently worth about 16% Of the total worth of Forbes African billionaires and has been on top of the list for the part 7 years.

Source: www.nigerianbanker.com

In January 2016, the CBN reviewed the Revised Guide to Bank Charges (RGBC) which came into effect in April 2013.
Under the revised RGBC a phased elimination of Commission On Turnover (COT) was to bring COT to zero in January 2016 after it was reduced to 3 per mille in April 2013, 2 per mille in January 2014, 1 per mille in January 2015 and COT was to eventually come to 0 per mille in January 2016.

The revised RGBC gave rise to a negotiable current Account Maintenance Fee also known as Account Maintenance Charges (AMC) of 1 per mille in January 2016.

1 per mille refers to 0.1 per cent of the value of the AMC eligible transaction done on your bank account.

Here are 6 facts about AMC you should know

1. Not On Credit Transactions

AMC is calculated on the total amount of debit transaction or withdrawals on your account at a given interval. What this mean is that your account should not be charged AMC if there are no withdrawal either electronically via instant transfer, online or physical withdrawal with your cheques in the banking hall. If you continue to build your account balance with making withdrawals your account will not be charged AMC.

2. It is negotiable

AMC is negotiable, you can approach your bank to negotiate how much you want to pay for maintaining your account with the bank. While some bank will tie you to a covenant other may not. Bank A may tell you to maintain a certain monthly debit turnover to enjoy lower than 1 per mille AMC while other may not.

3. It is not charged on savings account

AMC is charged only on current account, it is not charged on savings account. Although the nomenclature of a saving account requires that you build up money in the account over a period of time and make withdrawal less frequently than on a current account. Some bank customers uses their saving account like current account. The bank is obliged to not charge your savings account with AMC. The only penalty for such customers is to loose interest accruals to their saving account for more than required frequency in withdrawals.

4. It is charged monthly

Most banks charge you once in a month for AMC. The total amount of debit transactions in your account within a month is charged at the end of the month. Although some banks will charge you immediately you perform transactions that are eligible for AMC. Monthly debit of total debit transaction is common among banks in Nigeria.

5. It is charged only on customer induced transaction

Customer induced transactions are transactions that are directly requested by the bank customer on his account. Such transactions as cash withdrawals, bank transfers, direct debit orders, airtime purchases, bills payment are all eligible for AMC while transactions like loan repayment are not eligible for AMC

6. Vat is paid on AMC

Value Added Tax of 10% of the amount charged to your account as AMC is also debited to your account and paid to federal government as VAT on AMC. This mean if you make cumulative amount of N10,000,000 in eligible AMC transactions in your account in a month. A total of N10,000 is debited to your account as AMC and an additional N1,000 is also debuted to your account and paid to federal government as VAT.

Source: www.nigerianbanker.com

A foreign currency account or domiciliary account refers to an array of accounts dominated in foreign currency other that the currency of the home country where the bank operates. In the case of Nigerian such accounts includes Dollar Account(USD), Pound Sterling Account (GBP), Japanese Yen (JPY) and all other account that are not Naira denominated.

Here are 5 reasons why you need a Foreign Currency Account (Domiciliary Account).

1.Store of value

One most important reasons why Nigerians maintain domiciliary accounts is to be able to edge against the depreciating Naira. The value of Foreign currencies especially Dollars has doubled in the last 3 years, thus making whoever must have stored his money in USD 3 times richer that people that has maintained their money in Naira.

2.Payment of foreign services and professional bodies

One of the options available for local customers to make payment for foreign services such as mortgage, health bills and foreign professional membership is to maintain and fund their domiciliary account. It is from the account they can make direct transfers to the account of the foreign service providers and pay for professional membership. This helps to aid customer to business relationship and avoids long procession procedures that may be associated with sourcing for forex from CBN through form A processing .

3.Payment of Foreign business partners.

As an alternative from sourcing forex from CBN to pay for imported good and services, some businesses maintains and fund their domiciliary account to be able to make such payment directly from their accounts. There are however regulatory limits to the frequencies and the amount that can be transferred to business partners abroad if the funds in the domiciliary account is linked to cash lodgment instead of foreign inflows.

4.Receipt of Foreign inflows

As an alternative to allowing your bank to change your foreign currency inflow to Naira and credit your Naira account with the value. You can Maintain a Foreign Currency Account and ask your Foreign business partner to transfer the money directly to your domiciliary account from where you can withdraw the much you need and sell to a Bureau de change operator at a rate probably higher that the bank rate.

5.Investment in mutual funds

A few of Nigerian banks allow their customers to invest in mutual funds dominated in foreign currency, especially USD. Maintenance of a domiciliary account from where the investable funds is drawn is a prerequisite to being part of the mutual investment.

Source. www.nigerianbanker.com

Long Term Loans are loans for financing projects and equipments or other investments that requires long term payback periods. Most companies capital projects and equipment purchase including personal home loans for individuals cannot be financed from the customer’s immediate cash flow or salaries but from projected cash flow thus the need for long term loans from banks.

Payment of long term loan can be in installments of monthly, quarterly, half yearly or annually or as may be structured to ally with business cash flow. Examples of long term loans includes Commercial Mortgage; Equipment Lease Finance; Project Finance; Operational Vehicle; Asset Finance and lots more.

Banks provides about 70 percent of the cost while the customer is expected to provide the balance of 30 percent. This and other conditions may however vary from one bank to another.

Long Term Loans For Individuals

1. Personal Loan

Personal loan is the most common type of consumer loan. It is designed for people in paid employment/self employed with proven ability to pay and to assist them meet personal finance needs. Amount eligible to largely depend on salary or amount earned on regular basis.

2. Home Loans

Home Loan A loan arrangement where an individual secures a facility with the bank to either buy a property or build one. Some banks offers joint mortgage where spouses can combine their income to finance and jointly repay their mortgage.

The other variant of Home Loan is called, Home Equity Refinance. This is an arrangement where an individual secures a facility with the bank to take advantage of investment opportunity or for other purpose and uses a property he already owns as collateral for the loan.This arrangement does not require equity contribution. The banks only provides a percentage of the value of the property to the customer as loan.

3. Home Equipment Finance

Home Equipment lease or assets finance allow an individual acquire home equipment and pay bank from his salary or cash flow from business over a period of 1 to 3 years or as structured by the bank. Like other consumer loans, amount eligible to largely depend on the customer’s ability to pay.

4. Auto Loan

Auto Loans is one of the common type of consumer loans. It is designed for people in paid employment and businesses with proven ability to pay and or good cash flow to assist them acquire new cars or vehicles of their choice for personal use. Amount eligible for largely depends on ability to pay.

Long Term Loans for Businesses

1. Commercial Mortgage

This is a finance option for companies to buy or build property/ies either for its use or commercial purpose. Organization that requires to relocate its office, buy or build for commercial purpose can key into this finance option. Repayment can be spread for between 1 to 5 years depending on the companies cash flow and the bank’s policies.

2. Equipment Lease Finance

Organizations that requires funding for its machineries and equipment has this option to key into. Just like other long term finance, the tenure may be longer than 1 year and may not be more that 5years depending on your bank’s policies and peocedures

3. Project Finance

Project Finance Facility Like Contract Finance Facility but will longer repayment period. Construction companies and commercial builders are those that takes advantage of this finance options. This finance option often time comes with moratorium to allow construction to be completed if repayment source is from the project to be financed.

4. Operational Vehicle Finance

Companies willing to acquire motor vehicle for its operational use can key into this product. The product also includes buying cars and other vehicles for official use of the top executives of the company. Repayment are spread over period of time that may not exceed 3 years depending on the policies of your bank.

5. Asset/Office Equipment Finance

This product was developed to assist businesses with the required funding for office equipment like furnitures, computers and other office equipping need. It allows the customer to free it cash flow for other immediate cash needs while spreading repayment on the assets acquired over periods of between 1 to 3 years.


It is important to note that facility name; amount eligible to, tenure and other lending conditions may vary from one bank to another.

Source. www.nigerianbanker.com

Thanks

This will help

http://www.nigerianbanker.com/2017/05/06/here-are-6-period-when-you-should-invest-in-bank-fixed-deposit

And this

http://www.nigerianbanker.com/2016/10/02/explaining-treasury-bills-as-cbn-set-to-raise-129-65billion-in-tb-this-week

Good

questechie:
Try to identify the SEO issue with your site, as sharing post on social media or messaging platform is not a penalization issue. If you notice any reduction in organic traffic, then troubleshoot to find out the exact cause.

Thanks

I recently discovered that I have been making a whole lots of SEO mistakes on my blog. Especially WhatsApp share and same topics for different posts. I no longer appear on google search like I use to. I am considering registering a new domain. Please advise
nigerianbanker.com

JeffreyJamez:
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I think my blog may have been banned by google. What should I do? I am thinking of registering a new domain. Please advice

JeffreyJamez:
Nigerian bloggers always looking for short cut to everything. The people that are earning $500 a day on Adsense you think it started overnight? .. Concentrate more on building your blog as a BRAND. Work on your contents and SEO skills. This will take years to achieve but at the end you will be smiling. Looking for short cut will only get you banned by Google.

I think my blog may have been banned by google. What should I do?. I am thinking of registering a new domain name and now follow all the rules. Please advise.

What is the millage?

A call to bar in Kenya with CJ in the middle. What is wrong with us as a country?

May God return them to their parent in peace