THE NATION WEDNESDAY, NOVEMBER 7, 2012
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MONEY
Voter Cards: CBN wants depositors to report defaulting banks
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EPOSITORS who were denied the opportunity of using their voter cards for identification in banks should forward their complaints to the Central Bank of Nigeria (CBN), its Director of Corporate Communication, Mr Ugochukwu Okoroafor has said. CBN had last month directed banks to accept voter cards duly signed and approved by the National Independent Electoral Commission (INEC) for transactions as part of its Know Your Customer (KYC) programme to promote financial inclusion in the country. Ugochukwu said though the apex bank has not received any complaints, depositors should report erring banks to the CBN. He said the three levels of Know Your Customer initiative was introduced to enable people with different means of identifications access the banking services. He said: “Though we are yet to hear that banks do not accept voter cards for identification, if there are depositors facing this problem, they should let the CBN know.
Stories by Akinola Ajibade
Based on CBN’s study, 65 per cent of people are out of the financial system, representing over 90million of the 160 million Nigerian population. We want to ensure that 32.5 per cent of this figure is brought into the financial community before 2020. We would like to see a situation whereby Nigerians that have been excluded from financial activities, mostly women, embrace banking transactions. If identification is the major problem in the industry, we should do something about it to encourage more participation in the industry.” According to him, lack of proper means of identification is one of the major problems affecting operations in the industry, adding that the inability of many people to have driving licence, international passports, among other major means of identification, resulted in the introduction of voter cards for banking transactions. “What we are trying to do by the three levels of KYC initiative as
stated in the policy guidelines, is to ensure that banks know their customers in details. Through this, banks would take lesser risks, guarantee the safety of funds, make more money and help in stabilising the system. It is not everybody that has the same level of identification. ‘’So, when there are multiple and varying means of identifications in the banking system, the more people come into the industry, the better for the growth of the industry and the economy in particular,” he added. The Association of Chief Compliance Officers of Banks in Nigeria (ACCOBIN) said the acceptability of voter cards for identification in banks is a welcome development. The association said banks would not leave any stone unturned to carry out a through customer due diligence. The association at a forum in Lagos said the approval of voter cards for transactions will give as many customers as possible an opportunity to have an interface with the banks.
UBA chief seeks support for cash-less banking THE Chief Executive Officer, United Bank for Africa (UBA), Philips Oduoza has advised the bank’s customers to embrace cashless banking initiative of the Central Bank of Nigeria (CBN), saying it is convenient, safe and secure. Speaking at a Customers’ Forum of the bank in Lagos to announce its banking products and services, he said the initiative was meant to ease the financial transactions needs of its customers. The Managing Director said the forum became necessary in order for the bank to know its numerous customers and hear from them directly where they have challenges or how they want to be served better. He introduced the numerous new banking products to the customers. They include Cashless UBA, UBAlerts, U-Mobile, U-Direct, Point of Sale (PoS) as well as UBA ATM. “You can become cashless simply by picking up debit cards or prepaid cards, activating and doing transactions via U-Mobile and U-Direct and making payments on the Web and PoS,” he said. According to him, the products will enable customers to keep track of their transactions as instant alerts are sent by SMS and e-Mail using UBAlerts. He said the UBA Cards (Debit and Prepaid cards) are the keys to go cashless. “They enable you to manage your account without visiting a branch. The debit cards include the ‘Pay-as- U- go Verve card, Mastercard, Visa single card and Visa Dual Currency (DCDC),”he said.
Why FirstBank branches were shut THE management of FirstBank has regretted the closure of some of the bank’s branches in Edo State. In a statement, the bank said the closure was informed by its insistence on obeying the rule of law and not for tax-related issues, as allged. FirstBank’s spokesperson, Mrs. Folake Ani-Mumuney, said the bank remains an institution that has held the finest tradition of good corporate citizenship since its inception in 1894. “The issue on ground is clearly not related to tax payment as the bank is up to date in terms of fulfilling all its tax obligations in Edo State as well as other states of the Federation. The bank’s stand of not contravening an order from a court of concurrent jurisdiction on the status of a PHCN account domiciled in FirstBank is at the heart of the issue and it is unfortunate that our customers are being denied access to the Bank in an issue where the Bank is merely a third party.” Ani-Mumuney added the bank was served an order by a Benin High Court at the instance of Edo State Board of Internal Revenue because of a customer’s account which had been frozen in compliance with an earlier injunction of a Lagos High Court.
NIBBS, banks partner on frauds eradication THE Managing Director, Nigerian Inter-Bank Settlement System (NIBBS), Mr Ade Osinubi, has said the body and the banks are working together to curtail frauds in the industry. Osinubi, during a forum in Lagos, said there is security of networks used by NIBBS and the banks. He said fraud has to do with customers complaining either about their accounts being debited in error or not seeing money credited. He said: “From the customer initiating the transaction, if the bank is not secure, somebody else can initiate the transaction, but we may not know. What we get is the payment instruction from the bank and we act on it. However, I know that between us and the banks, the network is secure. We have done a review and we are constantly improving and putting new devices into making sure we are secure. A lot of the interactions with the banks require them to use tokens to ensure there is security between us. “
‘Banking needs review’ •From left: Counsellor, Bolivarian Republic of Venezuela, Antonio Garcia; Osun State Deputy Governor, Mrs. Titi Laoye Tomori, Ambassador, Bolivarian Republic of Venezuela, Enrique Fernando Arrundell and Special Adviser to the Osun State Governor on Federal Matters, Ms Idiat Babalola, during a courtesy visit to the Deputy Governor in her office in Osogbo.
Ex-bankers protest non-payment of entitlements
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ORKERS who lost their jobs to the 2005 banking consolidation have protested against the non-payment of their entitlements, seven years after. They are allegedly being owed N8billion as entitlements. Also, the workers have appealed to the Senate President David Mark to invite the Central Bank of Nigeria(CBN) and the Nigerian Deposit Insurance Corporation of Nigeria(NDIC) to resolve the issue. The workers, who staged the protests under the aegis of the ExStaff of Non-Consolidated Banks of Nigeria (AESNBN), were drawn from All States Bank Plc; Hallmark Bank Plc; Liberty Merchant Bank Plc; Lead Merchant Bank Plc; City Express Bank Plc; Assurance Bank Plc andTrade Bank Plc, among others. Speaking during the rally, the association Chairman, Mr Magnus Maduka, said the development has put the affected workers in a dire situation. He said the affected staff were 14,000, adding that some have died when struggling to get their benefits.
He said the former CBN Governor, Prof Charles Soludo, reneged on his promise to pay the workers of the banks that failed to consolidate their terminal benefits in line with the policies of their employers. Maduka, who was the former Deputy General Manager, Head of Operations, Hallmark Bank Plc, said members have made several moves to get their gratuities and severance packages without success. He said: “Initially, we had thought the CBN will live up to its billing by honouring its promise within 90days, but later referred us to NDIC. This made us to conclude that something is amiss. On the other hand, NDIC, in order to keep us off its back, classified our entitlements as “Other Creditors,” meaning that they may never pay us in our lifetime. It is quite unfortunate that NDIC which had earlier agreed in our meeting with them and in a letter dated June 20, 2008 to pay us would make a Uturn within a short time of one year.” (565).
Similarly, a former staff member of All States Bank Plc, Mr Charles Elelegwu, said NDIC and CBN have paid workers of the Lead Merchant Bank and City Express Bank, and must accord the same privileges to them. “The NDIC, through its existing legal framework of winding up banks, has set aside a maximum of N200, 000 for depositors of the failed banks irrespective of the balance in their accounts. We are, therefore, asking that the same principle be applied to the settlement of the staff entitlements,” he added. Sources close to the management of CBN said the apex bank would look into the matter to ascertain the level of genuiness of the complaints of the aggrieved staff. The sources said the winding up of banks, valuation of their assets, payments of the affected depositors/staff, among other issues, are sensitive, and need to be handled with cautions. “We would look into the issue and see what really happened, the sources added.
THE former Director-General of the Securities and Exchange Commission (SEC), Mr Wole Adetunji, has advised the Federal Government to re-regulate the banking industry. He urged the government to set up a high-powered committee that would take a look at the financial system to come out with a code that will enhance the efficiency of the system as we have in Britain where there is a financial services regulatory authority. While speaking during the Pearl Award in Lagos, said the industry is over-regulated as evident by some actions of the CBN. Adetunji said: ’’The Nigerian financial system needs an overhaul. It needs to be looked into because the Central Bank of Nigeria (CBN) does not have the capacity and resources to handle effectively the responsibility it has assigned itself under the dispensation. He wondered how Nigeria would still be operating the Companies and Allied Matters Act (CAMA) of 1990, when Britain from whom she copied the law has reviewed and updated hers over the years. He also lamented the high rate of mortality in the industrial sector due to the inability of the banks to feed manufacturers with credit. ‘’I believe the banking industry is over regulated and that is not how it is done elsewhere. We need an independent body to regulate the banks while the Central Bank will concentrate on monetary policy, inflation targeting and exchange rate stability,’’ he added.
World Bank seeks private sector-led growth A WORLD Bank report said an active private sector is critical to creating jobs for the population. The bank has also outlined how jobs that do the most for development can spur a virtuous cycle. The report, contained in the World Development Report 2013, explained that poverty falls as people work their way out of hardship and as jobs empower women to invest more in their children. “Efficiency increases as workers get better at what they do, as more productive jobs appear, and as less productive ones disappear. Societies flourish as jobs foster diversity and provide alternatives to conflict,” the bank said in an emailed report. World Bank Group President Jim Yong Kim said a good job can change a person’s life, and the right jobs can transform entire societies, adding that governments need to move jobsto center stage to promote prosperity and fight poverty. “It’s critical that governments work well with private sector, which accounts for 90 per cent of all jobs. Therefore, we need to find the best ways to help small firms and farms grow.