₦airaland Forum

May God return them to their parent in peace

Read bank notices and updates.

Your bank occasionally send messages to your email. Some of those messages contains information about banking products and services. Endeavor to read such messages in other to keep yourself updated about your bank’s products and services most of which may be of immense benefits to you. Your monthly bank statement is also sent to you via email, open them and keep yourself abreast with what is going on in your account.



Never issue a dud cheque.

It is important to ensure your account is funded before you issues a cheque. Never issue your cheque in anticipation of cash lodgment you are not sure of. It is better you delay or postdate your cheque to be sure there is enough funds in your account to accommodate the payment than to issue your cheque when you know you don’t have funds in your account. Dud or bounced cheque is a criminal offense that comes with legal implication apart from reputation damage it may cause you or your business.


Update your personal details when it has changed.

One of your responsibilities as a bank customer is to update your record when it has changed; your marital status, address, work details, business details, phone numbers and email address including your name must be updated once it is changed.



Keep your account balance within limit.
It is important for you to keep your account within the limit set by the bank. A non borrowing customers should not allow his or her account to go into debit and a borrowing customers should keep their within approved limit. Drawing below limit will attract more bank charges to you account apart from the damage it may cause to your credit history.




Sign up for online transactions.

Banking has gone digital. It is not necessary for you to visit your bank for almost all your banking transactions. With your online banking you can do almost all you may need to visit your bank for. Sign up for one and do your transfer to any bank customer in Nigeria and even abroad from your domiciliary account, pay utility bills including your cable subscriptions, buy airtime for yourself and other and lots more.



Use other alternatives channels.

There are several other banking channels available to you as a bank customer: Point Of Sales Terminals (POS), Mobile Banking, USSD Banking. All these channels functions as much as if not better than being physically present in the banking hall to transact your banking business. As a bank customer you may not need to visit your bank branch in years or even know your bank relationship officer to continue to use your bank account.

Source : www.nigerianbanker.com

What is Interest Rate?

“Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include, cash, consumer goods, large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset’s use. In the case of a large asset, like a vehicle or building, the interest rate is sometimes known as the “lease rate”. When the borrower is a low-risk party, they will usually be charged a low interest rate; if the borrower is considered high risk, the interest rate that they are charged will be higher.” Investopedia

The Wikipedia defines interest rate as “The amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.”

“It is defined as the proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. It is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account.”
Interest rate is the rate of interest payable on amount borrowed. It is the cost of fund to the borrower and the rent the borrower pays to the lender for the use of lender’s funds.

It is however very important for the borrower to know and understand the interest partner on his loan and agree with the lender on a suitable interest pattern before he signs the offer. Another important part of the loan agreement the borrower must understand and agree to before executing the offer is the repayment pattern. The parter can be monthly, quarterly, biannually, annually or as agreed base on the borrowers cash flow and repayment ability.

Here are the two major methods of calculating interest on loans. The straight line method and the reducing or declining balance method.

The Straight Line Method requires that the borrower pays and equal amount on interest at intervals over the life of the loan. This type of loan does not have a typical amortization schedule as can be manually calculated. All you need is the principal and the interest rate on the loan. The principal is divided over the repayment period and thus the interest and an equal amount is paid at agreed interval throughout the loan tenor.
For example, a loan of N10,000,000 payable monthly over a 3 years period at an interest rate of 15 percent per annum.

15% of 10,000,000 will amount to 1,500,000 interest payable on the loan per annum together with principal. Thus the lender will pay principal of (10,000,000/36) = 277.777.78 monthly and interest of (1,500,000/12) = 125,000 monthly.

The monthly amount payable on the loan is (277,777.78+125,000) = 402,777.78.

The amount payable of the same loan quarterly is 1,208,333.34 being (833,333.34+375,000) and biannually 2,416,666.68 and 4,833,333.36 annually at 15% interest rate for straight line method.

The Reducing Or Declining Balance Method calculates interest based on the outstanding principal to be paid on the loan. Monthly repayment is calculated in such a way that the interest on the loan is higher at the initial repayment period and reduces gradually base on the outstanding principal while loan principal repayment is lower at the initial repayment period and increases gradually to arrive at an equal repayment amount (EMI) at regular intervals often monthly.
The EMI is calculated using this formula EMI = i*P / [1- (1+i)^-n]

Where, P = loan amount (principal)

r = rate of interest per year/per month

n = term of the loan in periods

l = length of a period (Fraction of a year, i.e., 1/12 = 1 month, 1/52 = Week;If Interest calculation period is Daily then 7/365 = Week)

i = Interest rate per period (r*l)

Note: Interest = Principal balance*i

Using the same example above: A loan of N10,000,000 payable monthly over a 3 years period at an interest rate of 15 percent per annum.

P=10,000,000

r = 15/100,

l = 1/12,

n = 36,

i = 15/100 * 1/12 = 0.0125

EMI = 0.0125 * 10,000,000 / [1-(1+0.0125)^-36]

EMI = 346,653.29 monthly, quarterly = 1,039,959.87, biannually = 2,079,919.74, annually 4,159,839.48

It is important to note that most Commercial Banks in Nigerian adopts the Declining Balance Method for loan repayment while most Micro Finance Bank used the Straight Line Method of calculating interest on loan repayment.

source: www.nigerianbanker.com

When John Maynard Keynes – the founder of economics thoughts postulated that the easiest economic problem to solve is unemployment I guess he never imagined a country like Nigeria will exist. Keynes never imagined an economy so blessed with resources (human and material) will be so porous to other economies to import almost every consumable item you can think of.

His idea of solving unemployment problem is to divide all the unemployed members of the population into 2 groups. One group will be asked to dig big holes and get paid for it and the other group will be asked to fill up the holes and also get paid for it. By the time this process is repeated over and over again unemployment will disappear.
This is so because he assumed that the new purchasing powers of the unemployed that are involved in digging and filling of the holes will increase effective demand in the country and consequently, the manufacturers will have to produce more to satisfy the new demands. The need to increase production will make manufacturers to employ more labor which will be supplied from the unemployed population. The process will continue to shrink up the unemployed labor and unemployment will eventually disappear.

The federal government recently commenced the implementation of its Social Investment Programs (SIP) by
1. Paying N5,000 monthly stipends to the poorest and most vulnerable in the country through the Conditional Cash Transfer (CCT) of the government’s. This policy will ensure one million Nigerians would receive monthly stipends of N5,000 as a form of social safety net.
2. Paying N30,000 monthly to 500,000 unemployed graduates under the N-power volunteer Corp program after engaging them as either farm extension workers, assistant teachers in schools or community health aids.
3. The government also commenced the Government Economic Empowerment Program (GEEP) where soft loans ranging from N10,000 to N100,000 will be provided for artisans, trades and market women.
4. There is also the National Home-grown School Feeding program designed to feed 5.5 million school children for 200 school days in a year. The program have started only in 3 state.
These programs are laudable and akin to the unemployment solution postulated by Keynes several decades ago. But they may not have the desired effect that John Maynard Keynes opined that his unemployment solution will have until the issue of power supply is fixed and the government finds the courage to discourage the importation of product that have local substitutes.
Until these two economic issues are addressed, the over N20billion stable allowances will only continue to create jobs in countries where goods are manufactured for Nigerian markets.

Source: www.nigerianbanker.com

Individuals who fall between the working class and the upper class within a societal hierarchy. In Western cultures, persons in the middle class tend to have a higher proportion of college degrees than those in the working class, have more income available for consumption and may own property. Those in the middle class often are employed as professionals, managers and civil servants. Investopedia

To provide an understanding of the meaning of middle class and the categories of individuals that belongs to this socio-economic class, here are ways to determine the middle class.

Education
Your level of education determines where you belong in the social class. While a first degree or a higher diploma certificate may help you get ahead and earn you a good income, professional certifications and/or second degree will move you up the income ladder. For you to fit into the middle class bracket of the society, you must be educated.

Housing
Home ownership is an important criteria for the categorization of the middle class. While it is recognized the home differs in types and categories and relative to income. A home in a densely populated and local environment may not be compared with a home in the highbrow in price and convenience. The income experts generally believes that a member middle class must own a home of at least a 3 bedroom apartment built on a one and half plot of land to provide enough space for gardens and children to play.

Job
A good job with health and retirement benefits is another important criteria for categorization of the middle class income earner. Most employers in Nigeria has however jettisoned the retirement benefit owing to the Pension Fund Scheme of the federal government. This notwithstanding, You will be recognized as a member of the middle class if you have a good job with reasonable income with provisions for health benefits or you and your family and adequate benefit for you at retirement.

Retirement Savings
Retirement savings is another important criteria for being a member of the middle class. It is expected that you have money saved for retirement before you can be classified as a part of the middle class. The Pension Scheme of the government has significantly taken care of this. The amount saved is however a major consideration. The income experts believes that you should have enough savings that will guarantee to take care of your monthly expenses for a period of at least 25 years after retirement.

Vacation
Fully paid annual vacation is another important consideration for a middle class. It is expected that a member of the middle class should earn enough income to be able to go on paid vacation with his family at least once a year. Where to go for vacation will vary from one individual to another depending on income. Vacation to locations within Nigeria may be a good consideration for some especially with the currently economic circumstance in the country, while some will prefers places outside of Nigeria. Annual vacation is a must for consideration as a middle class.

Automobile Ownership
Automobile Ownership is another important consideration for a middle class. Availability of cheap and convenient means of transportation not withstanding it is expected that an income earners should earn enough income to own automobiles either on lease or fully paid for. Some income experts are of the opinion that a middle class family should own 3 cars at the least. One for the husband, another for the wife and a third for the family. His ability to change any of the cars at will is an important determinant for this class. Type of automobile and whether new or used cars not withstanding but it is generally believes that the cars must be functional and serviceable.

Savings for children education
A middle class income family must have enough saved for the education of their children. The type of school may however vary from one family to another. While some will be able to afford expensive private schools some will only be able to afford government schools. A middle income family should be able to provide funding for all the children up to the university level.

You may want to check out out other articles on “how to build your savings” and “here are 8 ways to retire well” for some enlightenment on budget and savings.
Source: www.nigerianbanker.com

What is Inheritance?
is the practice of passing on property, titles, debts, rights, and obligations upon the death of an individual. The rules of inheritance differ between societies and have changed over time. Wikipedia

The act of inheriting property, the reception of genetic qualities by transmission from parent to offspring, the acquisition of a possession, condition, or trait from past generations. Merriam Webster Dictionary

inheritance it the acquisition of property/s or estate by will or succession upon the death of the owner. Wealth analyst and experts are of the opinion that leaving inheritance may do more harm than good to your kids.

So these are myths about inheritance that will make you not want to leave your kids with much of it. Especially those in the I-don’t-want-my-children-to-experience-the-economic-hardship-I-experienced-while-I-was-growing-up group.

1. When you give kids a lot of money, you take away their willingness to work hard.
Wealth that is inherited and not earned through hard work may take away the mental and physical bites for success in an individual. “You’ll hardly ever find a superachiever anywhere who isn’t motivated at least partially by a sense of insecurity.”-Ted Turner
Insecurity is one of the major factor why people’s will to succeed grows. A rich kid does not have fear of insecurity, he has been provided with all the comfort he needs and desires through inheritance. He may remains layback and comfortable and refused to see or acknowledge opportunities for prosperity around him.

2. Inheritance may lead to extravagance and careless spendings.
We have all heard horror stories about the kids who blew their inheritance buying choice cars, going on fancy vacations and engaging in misguided investments. Most inherited wealth are spent extravagantly because they are never a consequent of hard work and careful planning. Kids besuited with wealth spend such wealth extravagantly.” The child that was not built (trained) will end up selling the house/s that was built” Yoruba Proverb.
70% of wealthy families lose their wealth by the second generation, and a stunning 90% by the third, according to wealth expert.

3. Inheritance can make your kids subject to bad influence.
Inheritance can leave your children more subject to bad influencers who are looking to get their hands on some of the money. Your kid’s wealth can be a subject of attraction to influencers who may also take advantageous their ignorance to sell bad ideas to then. They are most likely to clog around your kids a lot for the main purpose of getting a share of the wealth. They introducing ideas that may end up corrupting the manners and characters of your children
We have heard of parent who left fortunes in billions for their heirs. But through a combination of bad decisions, bad luck, and alcohol dependency, the next generation squandered that money.

4. Kids don’t get a feel for who they are when they have inherited much wealth.
“One of the greatest voyage in life is that of self discovery” Anonymous. Kids that have been besuited with so much wealth hardly have the need to find their abilities and make success of it. That is perhaps the reason why you hardly find children with rich background in major sporting competitions wining medals and making success of their God given talents. they are neither in the movie industry nor making giant strides in inventions and businesses.
“Less than 10 percent of wealthy Americans inherited any of their money, and it’s less and less every single year” Brian Tracy
Forbes says that 30 percent of the Forbes 400 members inherited their wealth and the remaining 70 percent are entirely “self-made.”

5. Inheritance can rob your kids of self-fulfillment.
Self fulfillment is defined by dictionary.com as the act or fact of fulfilling one’s ambitions, desires, etc., through one’s own efforts.
Self fulfillment comes from success attained from once efforts. A kid that has been given much wealth may not feel a sense of self fulfillment as the financial abundance he is experiencing is not as a result of his direct effort. Such kid grew up not fulfilled in life.

On the other hand, inheriting money can help children further their education, get their home and provide for their own families.
These are a few steps that can help keep things from going awry.
1. Give them some money while you are still alive and watch what they do with it . Do they or not learnt from their mistakes with the money?. This will help you consider whether your kids are matured enough to handle an inheritance.
2. You can put the inheritance in Trust. Such Trust can specify that the money should be used for education or health or even maintenance. Expert however recommend that the terms of such Trust should not be too strict not allow for flexibilities to allow your children not to grow their life.
Experts are also of the believe that patents with younger or less mature kids should also take their children’s age into account, for example, by creating a trust that staggers the ages at which children receive the money, You could dictate that the child gets payments at ages 25, 35 and 45, rather than all at once. Others optioned that you could appoint a trustee to keep an eye on things until the children reach a certain age.
3. You also need to consider whether your child have addiction or psychological problems that would impair his/her ability to deal with the money before handing over inheritance to him/her..

And finally, According to experts.” it’s better to give them a little when you are living, and less when you die”.
Source: www.nigerianbanker.com

One of the biggest challenge for borrowers is understanding what credit structure his business requires from the bank, they are often confused about whether what they require is a Term Loan or an Overdraft. To some, once they need bank funding for their business what they need is Overdraft while for some it’s a Term Loan.
I have also come across bank credits badly structured either as Term Loan or Overdraft. This article looks at the meaning of Overdraft, when you need them and why it is the best for your business at a period of time.

What is an Overdraft?
An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be “overdrawn”. If there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft limit, then interest is normally charged at the agreed rate. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply.- Wikipedia

An Overdraft, sometimes refer to as Working Capital Finance, Stock Replacement Facility or Key Distributorship Finance or in some cases salary advance allows you to draw your account beyond what you have in your bank balance, in other words it allows your account goes below zero. It allows you to use the bank’s fund and return it all at a specified period of time often time within a month, 45days or 60days depending on your business or personal financial needs.

Overdraft is revolving, which means you can also take it after you have returned the money and use it again. The tenure is often within 1 year and the limit (Sanction Limit) the bank has given you can be renewed, enhanced to a higher limit or even reduced if you have not utilized the limit effectively at the time it expired.

Overdraft is structured in such a way that interest is charged only on the bank funds that have been used. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply. Administrative charges are however taken upfront before the approved limit is set on you account.

Why Overdraft?
You need overdraft if you are a trader, you Imports and distributes imported product, you are a distributor to a local or foreign producer of consumer goods. An overdraft is meant to enhance your working capital or cash flow. It is suppose to be allow you stock goods and sell within days and bring the money back into your account and use again to stock goods. Overdraft can also be used to fund payment of workers salaries pending when you will have your sales proceeds credited into your account.

Overdraft is not a credit availed to buy property, equipment or machines or “marry a new wife” it ls not to be used to fund capital expenditures. It is strictly to be used to fund daily cash flow short gaps.

When do you need an overdraft?
1. You need an overdraft when you have need to stock goods in anticipation of a favorable increase in sales price in the nearest future or in a period of anticipating an unfavorable increase in cost price in a short period.
2. You need overdraft in period on inflation/recession when the cost of your sales has gone up and your current working capital cannot adequately fund your stock level.
3. You need overdraft in the period of expansion. The period when you have identified new market/s for your business and you need to increase your stocks to meet up with the new demands.
4. When you are starting a new business/production line and you have invested in plant and machinery and you have need a facility to fund the purchase of raw materials and pay workers.
5. When sales proceeds and purchases result in a flow of money in and out many times during a month. You need an overdraft due to the timing mismatch.

Overdraft Facility have however been subject to abuse by customers who most times draw from the overdraft limit to invest in capital projects. This automatically make the overdraft sticky with the accounts remaining in debit for a long time.

Most banks has however been able to change the structure of Overdraft and have different variants proposed to customers, some of the new variants includes: Stock Replacement Facilities (SRF), Import Finance Facility (IFF), Key Distributor Finance (KDF) and more. The essence of these change is to be able to monitor the utilization of the limit availed to customers.
Source: www.nigerianbanker.com

In the effort of the Apex bank to diversify the Nigerian economy away from oil and to hasten the growth of non oil export sector. The CBN launched the N500 billion Non oil Export Stimulation Facility (ESF) in June 2016.

Parties to the fund
Central Bank of Nigerian (CBN): The investor, invested N500 billion in a debenture issued by NEXIM for the purpose of funding non oil export; it determines the lending limit and applicable rates;. It also reviews the operating guideline as may be deemed fit.
Nigerian Export and Import Bank (NEXIM): The managing agent of the fund, in charge of day to day management and administration of the fund and renders periodic returns to CBN
Participating Financial Institutions (PFI): Deposit Money Bank and Development Finance Institution in charge of liaising directly with interested customers and reviewing and appraising applicants eligibility who then forwards eligible application to NEXIM for disbursement

The aim of the fund is to
1. To provide concessionary finance to non oil exporters
2. To provide long term fund at single digit interest rates to non oil exporters.
3. To aid non oil export productivity and create more jobs
4. Expand the diversification of Nigerian economy in the non-oil export sector.
5. Boost contribution of non-oil exports for sustainable economic development.
6. Increasing Foreign Exchange earnings.
7. Broading the scope of export financing instrument

Eligible Transactions
Only an export oriented company registered in Nigeria with verifiable export off take contract agreement with an importer oversea will be eligible. The company must have satisfactory credit report. An AMCOM debtor may also be eligible only with special clearance of the CBN.
1. Exporter of goods wholly or partly processed or manufactured in Nigeria
2. Exporter of commodities and services, which are permissible and excluded under the export prohibition list.
3. Importer of plant and machinery, spare parts and packaging materials required for export oriented production that cannot be produced locally
4. Exporter of value chain support services such as transportation, warehousing and quality and quality assurance infrastructure.
5. Resuscitation, expansion, modernization and technology upgrade of non oil export industry
6. Stock facility/ Working capital

Categories of Finance Under ESF
1. Short term finance. This is expected to provide funding for working capital and stocking requirement of non oil exporter. It is structured to take care of Trade export Financing.And Pre and Post shipment funding gaps.
Tenor: It has a maximum tenor of one year and can be rolled over twice subject to CBN approval.
Interest Rate: 7.5% all inclusive with roll over fee of 0.25%.
The facility is expected to be cleaned up every 90days.
2. Medium To Long Term finance. The facility is expected to take care of export oriented projects funding such as Expansion of export –oriented facilities and Financing businesses along the export value-chain.
Tenor: It is tenured for a maximum tenor of 10 years with 2year moratorium inclusive
Interest Rate: 9% all inclusive. Interest charges during moratorium period can be funded separately along side project funding or capitalized
Repayment of principal and interest after the moratorium period will be quarterly

Loan limit
The Facility will not exceed 70% of the total cost of the project or transaction subject to a maximum of five billion (N5b) Naira.

Required Documentation
The following are the basic documents required to access the fund :
• Written request from the customer to a participating financial institution (PFI) seeking funding under the ESF.
• Completed Application Form.
• Certified true copies of Business registration documents.
• Feasibility Study/Business Plan of the project.
• Relevant Permits/Licenses/Approvals (where applicable).
• Verifiable Export Orders / Contracts or Agreement & Arrangements / Commitments.
• Environmental Impact Assessment (EIA) Report (where applicable).
• And all other document as may be requested by the PFI

Application and approval process.
• Exporter wishing to access ESF applies to the bank by executing the application form, complying with its terms and conditions.
• The PFI reviews application to assess eligibility under ESF and viability for the applicants project/business..
• The PFI submits ESF loan application on behalf of eligible export oriented enterprise to NEXIM.
• NEXIM reviews and submits the appraised ESF application to CBN for reviews and approval/decline.
• CBN notifies NEXIM of its approval / decline.
• NEXIM advises approval/rejection of application to PFI.
• Upon approval by CBN, NEXIM advises PFI and the fund is made available to PFI under advice to NEXIM.
• The loan is then disbursed customer within 3 working days of receipt of funds from CBN.
• Repayment from customer (principal and interest) is remitted to CBN on quarterly basis along with appropriate returns/reports.

You may wish to contact us via email: info@nigerianbanker.com or bestedgeconcept@gmail.com for more details
Source: www.nigerianbanker.com

With an adult population of 84.7million in Nigeria, of which only 30% of them are banked, and with more than 88.3 million mobile phone subscriptions as at December 2010, there is great potential for agent banking and other remote access financial service that will increase financial inclusion. In addition to this, increasing financial inclusion is high on the agenda of the regulator being the CBN (CBN, 2012). There is therefore, great potential for agent banking in Nigeria to increase access to finance.

As a continuation of our explanations of the strategies being adopted by CBN to increase financial inclusiveness of adult Nigerians and increase the number of Nigerians included in formal financial service to 80% and 70% respectively by 2020. We will be looking at the business opportunity in Agency banking sometimes referred to as Agent Banking or Home banking.

Investopedia, defined Agent banking as the process whereby a bank acts in some capacity on behalf of another bank.

The Apex bank defines Agent bank as the provision of financial service to customers by a 3rd party (Agent) on behalf of a licensed deposit Financial Institution (FI) and/or Mobile Money Operators (MMO). An agent is an entity that is engaged by a financial institution to provide specific financial services on its behalf using the agent’s premises.

The CBN has categorized agents into 3 simple categories
1. Super Agent – one who has other agent in a location directly under him.
2. A Sub Agent – an agent that is registered under a Super Agent.
3. Sole Agent – a stand alone agent

An agent bank relies on technology such as Card reading Point Of Sales (POS) terminals for real time transaction processing.

Functions of an Agent Bank.
1. Collect cash deposit from customers of both their principal FI and other banks
2. Pay cash on behalf of customers of their principal FI and other banks.
3. Make cash transfers to customers of their FI and other banks
4. Make cash transfer from customers of their principal FI and other banks.
5. Make bill payments and purchase airtime on behalf customers of their principal FI and other banks.
6. Act as correspondence and pick up point for customers of their principal FI.

There are existing bank customers in remote areas who already use banking services and those that are yet to use any form of formal banking services (unbanked). The agency banking strategy is meant to bring banking close to them through the use of agents to provide branchless bank services in their neighborhood thereby reducing travel time and expenses

The agents are under the direct supervision of the FIs that appoints them. The FIs has the power to set limits on their transactions, approve all allowable charges for them and also delist them when they are seen to be involved in illicit activities. The banks are also obliged to deploy appropriate technologies for the agent use.

Other role of the Financial Institutions includes:
1. Ensure that agent location is viable and profitable.
2. Provision of adequate Liquidity and Security Risk Management.
3. Adequate branding and awareness creation to ensure the agent success.
4. Provide effective planning and communication.
5. Provide life and property insurance for Agent.
6. Develop innovative products that will drive the adoption and sustainability of agency banking.
7. Provide competitive pricing mechanism.

Information Required by Financial Institutions for Agent Structure:
1. Name of Agent
2. Location of activity
3. Terms of engagement with Financial Institutions. Itemizing activities the agent is currently engaged in and all proposed responsibilities.
4. Signed declaration by agent.
5. Banks are expected to carry out due diligent on prospective agent

Agent Eligibility:
1. Must have been in commercial activities for at least 12 months and must be a going concern.
2. The prospective agent must be a registered entity, public entity or a trust
3. A non profit making establishment cannot be engaged in agency banking
4. An organization subject to regulation under any law will need the approval of the regulatory authority to engage in agency banking.
5. A business entity that has been classified as a non performing borrower by any financial institution in the last 12 months cannot be engaged in agency banking.
6. The prospective agent is to provide appropriate infrastructure and human resources to provide the service required.
7. The prospective agent should not have any record of criminal activities.

Some banks are already adopting agency banking as a channel for conducting financial transactions to attract existing customers as well as acquire new customers in semi urban/rural areas where banking activities are not available. Other reasons banks are adopting Agent Banking strategy includes:
1. Reduction in the cost of ATM services to their customer. Remote on Us (RoU) ATM cost has been a major concern for most old generation banks especially one that pioneered ATM service in Nigeria. The bank spent over #4billion in 2014 in settling other banks on who’s ATMs their customers cards are used. The figure reduced to #3billion in 2015 as a result of CBN policies.
2. Support for CBN financial inclusion strategy
3. Substitute for loss making branches or low profitability locations or support for virgin and unbanked locations.

Bank targets for agency banking are businesses that physical cash handling is already part of their business, these type of business can easily accommodate Agent Banking within their existing space as no additional equipment is required. Some level of literacy is also expected from the would be Agent. Targeted businesses are, but not limited to:
1. Supermarkets
2. Retails outlets
3. Distributors of mobile network operators products
4. Petrol filling stations that has a supermarket or sales room
5. Dealers in FMCG
6. Other high traffic business locations like markets and motor parks

Indications For Viability/Profitability Of An Agent – Questions
Where is the agent located? What is the physical address and structure? What is the demographic profile of the population within the area? What social & economic facilities do they have in the area? What is the spread of banking services within the area? How secure is the retail outlet? How long has the existing or potential agent been operational in that location?

Others are:
What types of retail outlets operate in the area? What types of outlets provide best fit? What are the hours and days of operations? What kinds of transactions are conducted and how frequently? What is the daily total revenue of the retail outlet?
Size: How many employees? What is the role of each employee?.
Source: www.nigerianbanker.com

bestedgeconcept@gmail.com

When I wake up every morning i check the forbe list and my name is not there. I go to work.

1. Save more. Adopt the principle of savings first before spending. This is a great way to creat wealth. Agree with your bank to deduct a certain amount from your earnings and put it in an account that you do not have any withdrawal instrument for (ATM card, Cheque book or withdrawal booklet).
2. Build up an emergency savings fund. You want to be sure to have money set aside for a rainy-day. funds that you can get to immediately, without paying a penalty. Your bank savings account or money market investment can come in handy here. Try to build up an emergency savings fund that can take care of at least your three months expenses..
3. Spend less. it’s hard yes, but it’s one of the best approach to helping you budget better during recession. Most people love buying things and find it difficult to break habits, like weekly restaurant spendings or shopping spree at supermarkets. There are many other ways you can trim your spending. Not sure how? Write down everything you spend each day, for a week. Then total up the categories (food, clothes, entertainment, transportation, etc.) and see how you can squeeze 5 or 10 percent out of those totals.
4. Pay down debt. In a recession, you really need to make every kobo work for you. And using your hard-earned cash to pay 26 percent interest on loans is not wise. So the more you can reduce your debt now, the better shape you will be if the tough time lingers Whenever possible, try to pay off your debt in full each month. Certainly, work hard to pay more than the rentals..
5. Polish your résumé. Hard economic times mean more layoffs. So update your résumé now, to be sure it’s current in case you need to apply for a new job. Try to contain the résumé to one page and avoid making it flashy or frilly. You want your work experience to stand out, not the document describing it.
6. Take on side business. During recession you need to be sure to increase your economic power as much as you can. Look around you there must be something someone or many people needs that you can help them get and they will be greatfull to pay a premium on it. Arrange lunch for your colleagues to be delivered in the office and let the catering service give you yours for free.
“Help as many people get what they want and you will get all you want” Zig Zigla
7. Sort your need from wants. Many people are victims of not understanding this simple economic classification. Needs are what you need to survive while wants are simply what you desire. In the period of recession you will have to do away with desires and face your needs only. Stop ice cream or soft drink after lunch, buying every Aso Ebi on display. Expensive club outings on Fridays. You can have your life back after recession is over.
8. Defer large purchase. Cut buying in bulk to last for several months, prices of goods are always high during recession and recession does not last forever. Reduce the full bag of rice to half or even quarter, buy 2 tins of beverage instead of 12 that will last for several months. Delay or postpone the annual vacation till when things improve. Refurbish your old car instead of buying a new one,
Source: www.nigerianbanker.com

As a new or existing borrower in a bank you need to understand the differences between the type types of loans before you approach your bank for a facility. There are 2 common types of loans: the secured and the unsecured loan.

Here are what you need to know about them

A secured loan is a loan in which the borrower pledges some asset like a car, home or other valuable property including cash as collateral for the loan. It then becomes a secured debt owed to the bank or creditor who gives the loan. The debt is thus secured against the collateral in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally loaned to the borrower including interest that has accrued on the loan. Example of secured loans includes Mortgage, Home Equity Finance, Asset finance, Auto loan, term loan, secured overdraft, cash backed facility,

unsecured loan on the other hand refers to any loans that is not secured or collateralized by a lien on specific assets of the borrower in the case of failure to meet the terms for repayment. Example of unsecured loans include Personal Loans, Student Loans, Travel loans, salary overdraft, payment against uncleared effects, stock replacement facility, LPO Finance, Invoice Discounting Facility, Import Finance Facility, margin Loans and so on

Loan Purpose
Most secured loans are borrowed to finance long term projects and comfortable living: Mortgage, Auto Loan, Project Finance, Asset Finance, Term Loan and so on. While unsecured loans are generally borrowed to take care of business opportunities that have short gestation or pay back period

Borrowing Limit
The borrowing limits for secured loans are usually higher than those for unsecured loans because of the presence of collateral. Banks are more comfortable with secured loans because of the presence of collateral. The limit varies from one bank to another with most banks putting a cap to the maximum a prospective borrower can access. For instance a young borrower will be able to access higher limit than an agile borrower.

Tenure
The tenure for secured loans are longer than unsecured loans. Mortgage can be paid over 20 years depending on the policy of your banks, age of the applicant and repayment source. Unsecured loan generally has shorter tenure some short circle transaction like LPO and IDF are for as short as 90days and 180 days maximum. Personal loan can be for a maximum tenure of 60 months in some cases.

Interest Rates
Rates on secured floats are generally lower than unsecured loans. This is so because the bank faces a higher risk lending to a customer that has not provided any security and thus charge higher to mitigate the risk.

Approval Process
The approval process for an unsecured loan is usually quicker than for a secured loan because there is less paperwork.

Know Before You Borrow
Both secured and unsecured loans can differ a good deal from one bank to the next, so it’s important that you have a clear understanding of how your loan will work, what you’ll have to pay each month and over the life of the loan, information you are providing for the lender matters a great deal here. It will help the bank decides how to structure your loan for easy repayment.. Ask your bank to provide an explanation of all the details plainly. Before you make your borrowing decision, make sure you can afford to pay back your loan in a timely matter without straining your budget.
Source. www.nigerianbanker.com

Jum ah Kareem my brethren

tabontabon:
What Procedures/processes Do You Utilise For Seed Treatment?


Did You Plant In Nursery First Or Planted Directly On Field?


How Many Plots/acre Did YouPlant.

OP please respond to this and the financial projection if possible.

tabontabon:
What Procedures/processes Do You Utilise For Seed Treatment?


Did You Plant In Nursery First Or Planted Directly On Field?


How Many Plots/acre Did YouPlant.

OP please respond to this and the financial projection if possible.

The concept of MLM also call direct marketing or referral marketing cannot be harram if it involves products. This is the way it works:
Product from factory/manufacturers
| |
Advertisement
| |
Wholesalers
| |
Retailers
| |
Consumers
It is a known fact that over 60% of the cost of any item is in the distribution and adverts. Thus companies that adopt MLM marketing model pays between 40 to 60 % of the cost of their products to consumers/ marketers who refer others to patronise their products. They don't do adverts and they sell directly to consumers.
If you want to engage in MLM look for a company that has varieties of home consumables and not just one or two products. They are easier to market

Who on earth will trust this man. The same man that says business class in different from first class in an airplane

Hmmm please get NAFDAC certificate before you eat that thing.

searching4loove:
[b] THESE ARE THE KIND OF INFRASTRUCTURAL DEVELOPMENTS THE IGBOS OUGHT TO DEMAND FROM THEIR GOVERNORS NOT BIAFRA. INSTEAD OF THE IGBOS TO STOP HATING OTHER TRIBES AND WORK TOGETHER WITH THE REST OF THE COUNTRY SO THEY CAN PRODUCE THE NEXT PRESIDENT, THEY ARE SCREAMING BIAFRA AS IF THE SOUTHEAST WILL TURN TO LONDON OR DUBAI OVERNIGHT IF BIAFRA IS DECLARED. THEY KEEP MISCALCULATING POLITICALLY AND RESORT TO HATE AND BILE TO VENT THEIR FRUSTRATIONS WHEN THINGS DONT GO THEIR WAY. NNAMDI KANU WAS TOO COMFORTABLE IN LONDON AND I'M SURE AFTER LOOSING HIS FREEDOM HE WOULD WISH HE COULD TURN BACK THE HANDS OF TIME. HE BRAINWASHED MANY IGBOS AND IT'S OBVIOUS THE GUY IS FIGHTING PROXY WARS ON BEHALF OF THE PDP. WITH THE RECENT DEVELOPMENTS IN THE EAST, NO ONE WILL EVER VOTE FOR A TRIBE AGITATING FOR SECESSION AS PRESIDENT HEREBY MAKING THE PRESIDENCY KEEP ROTATING BETWEEN WE THE YORUBAS AND HAUSA-FULANIS. ROCHAS WARNED THEM NOT TO PUT THEIR EGGS IN ONE BASKET BUT THEY WOULDN'T LISTEN. I PITY THE IGBOS INDEED [/b]

Bitter pills for them

Na now he remember to visit the place? few days to election?. this man is so childish and the advisers so senseless.

25 years to build? 25 years to build?

AIT PROPAGANDA!!!!! THE VIGILANTE DID AND NOT THE ARMY

[i][/i]Happy New Year to all Muslim Faithfuls. [i][/i]Happy New Year to all Muslim Faithfuls. [i][/i]Happy New Year to all Muslim Faithfuls. [i][/i]Happy New Year to all Muslim Faithfuls.

I will not be surprised if it was eventually discovered that GEJ is indirectly/directly responsible for BH continuous exploits

And another committee to look at the report of the commitee when they are done. Yeye commitee government

61% of hypocrites and praise singers

danot1030: ur ignorance speaks so loud, it is the FG that prosecute, the court only judge when the FG brings them to the court. D question is were they ever taking to court for prosecution by ur pay master and why were they never prosecuted if not that he himself is corrupt and he shield his boys.

And that he only relieved them because of the public outcry. We are wiser now. "I HAD NO SHOES" don expire te te

IT IS CALLED STEALING NOT CORRUPTION. HIGHLY INCOMPETENCE FELLOW. GEJ TILL 2015

I wish her the best. This I wish for my children o Allah

Again reactive measures. This government is never proactive