Failed Banks: Low Response To Insured Deposit Collection Worries NDIC

Economic Confidential
-
0

The Nigeria Deposit Insurance Corporation (NDIC) has lamented the low level of turn out by depositors of failed banks to collect their insured deposits.

NDIC Executive Director,  Operations Prince Aghatise Erediauwa, who revealed this yesterday, however attributed the situation to the low awareness level about the NDIC and its activities, in the country.

Speaking during the 2013 workshop for finance correspondents in Uyo, Erediauwa said that public awareness was one of  NDIC’s biggest challenges.

“The major responsibility of NDIC is to ensure that depositors are promptly paid.  But for you to be paid you have to come forward. Many of the depositors do not turn up to collect their insured deposits and the money that is set aside remains there in the account at the CBN.”

“In spite of the substantial budget that is allocated for public awareness, the level of awareness about NDIC and its activities is still less than satisfactory.

We spend a lot of money advertising in the media, yet the response is still low.

According to him, unless the corporation is able to increase the percentage of insured deposits paid out to failed banks’ customers, it cannot be deemed to have performed well.

“We gauge our success as a deposit insurer on what percentage of the amount set aside has been paid out. But if people do not come out to collect their money no matter how well we perform on other functions of the corporation, we still cannot say we have performed well.”

Erediauwa said that these and other challenges informed the decision of the NDIC to rebrand. “Looking at all these challenges we felt that the role  of the NDIC has evolved over time and to bring it in line with our functions it would be necessary to rebrand the NDIC, he said.

Recall that the NDIC said it has paid a total of N6.82 billion to 528,212 insured depositors of closed banks as at June 20, 2013, compared to the N6.68 billion paid to 527,942 insured depositors of closed banks as atDecember 31, 2011.

This means that in 18 months, the corporation paid only N140 million as insured deposits to 270 depositors.

Erediauwa said the NDIC re-branding initiative is part of its strategic re-engineering to review the process, procedures and systems of the corporation in order to effectively discharge its mandate.

NSE ANTHONY-UKO

Source:Leadership Online

Zenith Named Bank of the Year 2013

,
-
0
Zenith Named Bank of the Year 2013

The Banker magazine, a publication of Financial Times of London, has named Zenith Bank Plc, the “Bank of the Year Nigeria 2013” at an award ceremony held at the Intercontinental Park Lane Hotel, London.

The award ceremony, which was attended by leading personalities and institutions in business and finance from around the world, celebrates the achievements of the world’s leading financial institutions.

Nominees for the award were judged by their ability to deliver shareholder returns and gain strategic advantage in terms of market visibility and positioning.

The award was also indicative of the level of trust and confidence on the brand and is a testament to the strong management, sound business model and prudent risk approach of Zenith Bank.

According to The Banker magazine, Zenith Bank was selected based on the overall performance of the institution and the opinion of leading financial analysts from the world’s financial markets.

Receiving the award on behalf of the bank, the bank’s Group Managing Director, Mr. Godwin Emefiele, dedicated the award to his bank’s customers while commending management and staff for working excellently to build Zenith into a respectable global brand.

He said: “The bank’s competitive advantage as a financial powerhouse for value creation in Nigeria and the several achievements and successes of the brand are a result of a strategic combination of people talent, proprietary knowledge, strong brand equity, leadership, integrity and relationship management.”
Earlier in the year, Zenith Bank was named Nigeria’s largest financial institution by The Banker Magazine. In its 2013 rating of the world’s Top 1,000 banks, magazine listed the bank as Africa’s 6th largest by Tier 1 capital having grown its Tier I capital to $2.969 billion within 12 months.

Zenith Bank has continually evolved through innovation, dynamism, insight and leadership and has ultimately become a brand respected globally for its tremendous success in the deployment of cutting-edge technology, niche marketing, competitive advantage, provisioning and unwavering commitment to providing best-in-class service to its customers.

An eloquent attestation of Zenith Bank’s best-in-class customer-centric service delivery was made by KPMG in its 2013 Banking Industry Customer Satisfaction Survey (BICSS).

Zenith Bank Nigeria was ranked the best Customer-Focused bank in both the retail and corporate banking categories on the basis of a Customer Satisfaction Index (CSI) which took into account key factors like, Convenience, Product/Service Offering, Transaction Methods and Systems, Pricing and Customer Care.

The survey covered more than 14,000 retail customers, 3,000 SMEs and 400 corporate/commercial organisations across Nigeria.

The bank maintains a sound corporate governance culture in line with global best practices. The bank’s core values include service excellence, investment in human capital development, superior asset quality and strong credit culture.

It also prides itself as having good and sustainable earnings, strong capital base, unrivalled professionalism and community development. This reflects in the bank’s consistent impressive growth pattern and performance, which have earned Zenith Bank excellent ratings from local and international agencies.

My successor, by CBN boss Sanusi

,
-
0
My successor, by CBN boss Sanusi

Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi spoke at the weekend of the qualities expected of his successor.

Sanusi, due to step down as CBN boss in June, said whoever will be picked by President Goodluck Jonathan to take over at the apex bank must be able to develop the market.

“Central banking has changed. I think the market has developed. To be honest, if any Central Bank Governor misbehaves, the market punishes the economy immediately. So, the market is a major factor. Even as a governor, by the time your capital market crashes, and your currency goes down, you will know that it is either you restore stability, or you are out of the job. That’s important,” he said.

Sanusi, who has said he would not seek reappointment at the expiration of his five-year tenure, spoke at the weekend during the Women in Successful Careers (WISCAR) fifth anniversary in Lagos.

He said: “Now, tomorrow (yesterday), it will be six months to the end of my tenure. Probably a bit early to be talking about the next Central Bank governor, but I do hope that about two-three months before then, there should be some announcements; I suppose. Central bank governors don’t make comments on who they think the person should be. It is not my business to do that. It’s the President’s decision.”

He said although names of his likely successors were already in public view, new candidates might emerge before the announcement.

Analysts have tipped some of the CBN deputy governors among Sanusi’s likely successor. Deputy Governor, Operations, Tunde Lemo; Deputy Governor, Economic Policy, Sarah Alade; and Deputy Governor, Financial System Stability, Kingsley Moghalu have been mentioned. Also linked with the job are: Managing Director, Asset Management Corporation of Nigeria (AMCON), Mustafa Chike-Obi; Managing Director, First Bank of Nigeria, Bisi Onasanya and Managing Director, Access Bank, Aigboje Aig-Imoukuede.

Sanusi said it would be good for his successor to be named on time. “If I have anything to say, I would want to encourage that we announce two to three months before the end of my tenure so that everybody knows who that person is and what his views are,” he said.

On the economy, Sanusi spoke of the need to invest in areas that promote growth, adding that progress is being made in the power sector reforms.

“If you want to invest in the economy, then you need to invest in areas that create growth. And there are a lot of things to look out for. First, where is the government budget and where are we spending money? Nigerians have to decide whether to invest short term or long term. We want to enjoy cheap petrol, but the money subsidising petrol is the money that could go into education. It could go into infrastructure. It could go into power. It’s a choice,” he said.

Sanusi said low interest rate alone cannot foster growth, unless it is accompanied by structural reforms. “And even if you have very low interest rate, that will not create growth and services without structural reforms. I always tell people, I am only the governor of the Central Bank; I am not the Minister of Agriculture or Minister of Education. I am not the Minister of Finance. I am not the Minister of Industry. We have to continue to improve services across the entire value-chain for growth to happen,” he said.

DMO puts Nigeria’s debt at $8.2trn

, ,
-
0
DMO puts Nigeria’s debt at $8.2trn

The Debt Management Office, DMO, has put Nigeria’s debt as at September this year at $8.2 trillion which he said is 22 per cent of the total Gross Domestic Product, GDP.

The Director General of the office, Dr. Abraham Nwankwo, who made this disclosure, maintained that the level of the debt is sustainable.

He stressed the need for the government at all levels to encourage private sector borrowing for the development of some key sectors of the nation’s economy.

Nwankwo also called for cooperation from all stakeholders to ensure sustainability of the public debt profile of the country.

Speaking at a three day retreat organised by the House of Representatives Committee on Aids, Loans and Debt Management  at Ada, OsunState, weekend, Dr. Nwankwo said the  increase in private sector borrowing and decrease in government borrowing are the panacea to the challenges of keeping the nation’s debt within sustainable level.

He said: “When private sector operators have more funds to run their businesses, jobs will be created and goods hitherto imported, will then be produced locally, saving the nation of foreign exchange.”

– See more at: https://www.vanguardngr.com/2013/12/dmo-puts-nigerias-debt-8-2trn/#sthash.u2GJTBO2.dpuf

Elumelu: Natural Resources Can Drive Africa’s Industrial Revolution

,
-
0
Elumelu: Natural Resources Can Drive Africa’s Industrial Revolution

The Chairman of Heirs Holdings, Mr. Tony Elumelu and the Executive Secretary of the United Nations Economic Commission for Africa (UNECA), Carlos Lopes, have argued that  responsible resource-based industrialisation could influence Africa’s economic growth.

Elumelu and Lopes made this assertion in an article published in the latest edition of the Economic Report on Africa (ERA 2013).

According to them, the idea that abundant natural resources could be the driver for industrial revolution across the continent was growing. Elumelu and Lopes expressed believe that such transformation was both imperative and possible. They however said it required courage, vision and a new mindset from the continent’s business and political leaders to overcome the challenges that continue to hold back the building of a successful and dynamic industrial base in the continent.

Elumelu and Lopes  noted that while policy makers in the continent must ensure they build more enabling business environments, the private sector must also take the lead in ensuring that Africa’s abundant natural resources are developed in a way that spreads prosperity throughout the continent.
The report also outlined how Africa’s future would be determined by the design and implementation of policies that should promote commodity-based industrialisation.

It also noted that a supportive policy and investment framework would attract long-term investors, adding that it was essential to build local capacity and develop skills.

“In this way, local economies will be able to grow and diversify, jobs will be created and inequality will be reduced. However, private-sector business leaders must also do more to tackle poverty and drive social progress by ensuring that long-term value addition – as well as short-term gain – is built into their business model,” it added.

Africapitalism, an economic philosophy developed by Elumelu, promotes a private-sector led approach to development, and provides a framework for effective collaboration between the public and private sectors and the development community

1...5,1715,1725,173...5,381Page 5,172 of 5,381