THE NATION MONDAY, JUNE 24, 2013
35
MONEY MARKET REPORT
CBN’s intervention strengthens Naira
T
HE Central Bank of Nigeria (CBN's) market intervention and dollar inflows from the twice-weekly Wholesale Dutch Auction System (WDAS) helped the naira to regain its positive outlook last week. Consequently, last Friday the Naira gained 0.9 per cent to N159.65 per dollar, putting last week's gains at 1.9 per cent. The banking watchdog sells dollars at auctions on Mondays and Wednesdays to boost the Naira and had last week alone, offered and sold $600 million at auctions. It has offered and sold the same volume over the last three auctions to support the naira. Although the naira breached CBN's three per cent above N155 to a dollar target a fortnight ago, analysts insist the CBN is positioned to stabilise the currency within the three per cent band either side of N155 to a dollar in the short term. The Debt Management Office (DMO) raised N20.8 billion this month through three offerings, which were re-openings: four per cent Federal Government of Nigeria April 2015 bond, 15.1 per cent April 2017 bond and 10 per cent July 2030 bond. Currency Analyst at Ecobank Nigeria, Olakunle Ezun said although the market demand matched the supply, the pricing reflected investor's "wait and see attitude" on the naira short term outlook. The stop rates were 12.25 per cent, 13 per cent and 13.5 per cent respectively.
•Naira notes
KYC deadline The CBN extended Know Your Customer (KYC) deadline for Designated Non-Financial Businesses and Professions (DNFBPs) from April 30 2013 to December 31, 2013. Its Acting Director, Financial Policy and Regulation, A.O Ikem advised DNFBPs that have not registered with Special Control Unit against Money Laundering (SCUML) to do so before the deadline ends, failing which they would not be allowed to operate such accounts. The CBN said the extension is meant to address some of the challenges encountered by SCUML as a result of the number of persons seeking to enjoy late compliance. The CBN had earlier issued a circular, mandating DNFBPs on the need to provide additional KYC requirements to their banks and Other Financial Institutions (OFIs). It said compliance is in line with international best practice against adverse developments resulting from money laundering and financing of terrorism globally.
NDIC The Nigeria Deposit Insurance Corporation (NDIC) also signed a memorandum of understanding (MoU) with Bank Guarantee Fund of Poland in a move seen as helping both bodies share ideas on regulation. NDIC said the move is in line with the mission of the International Association of Deposit Insurers (IADI) to share knowledge and experience in deposit insurance and areas of compliance with core principles of effective deposit insurance practice among its affiliates globally. The MoU was signed at the end of the NDIC's working visit to the Bank of Guarantee Fund of Poland on capacity building, information and experience sharing in key operational areas. The statement named such areas to include early warning system, failure resolution, establishment of target fund ratio and implementation of a single customer view system. The NDIC delegates comprised the Managing Director and Chief Executive Officer, Umaru Ibrahim and the Executive Director of Operations, Prince Aghatise Erediauwa. It said both bodies are members of International Association of Deposit Insurers (IADI) and the President of the Management Board of BGF, Poland, Jerzy Pruski is the current Chair of the Executive Council and President of IADI.
NIBSS The vision of Nigeria being among the top 20 economies in the world providing efficient e-payment services by the year 2020 will be achieved, the Nigeria Inter-Bank Settlement System (NIBSS) has said. NIBSS Executive Director, Business Development, Chritabel Onyejekwe disclosed this at the 13th Card , ATM & Mobile Expo held in Lagos. She said the cash-less banking initiative has recorded huge success and has been able to drastically reduce banks' operational costs significantly.
By Collins Nweze
She said NIBSS in collaboration with the CBN, banks and other international partners are committed to the journey of transformation for the e-payment industry via cash-less economy. He said all the parties agree that a lot of work needs to be done at the grassroots. She said, SIBS International, a Portuguese firm has been supporting NIBSS in achieving the cash-less objective.
CITN The Chartered Institute of Taxation of Nigeria (CITN) has elected Mark Anthony Chidolue Dike as its new President. He replaces Asiwaju John Femi Sunday Jegede, his predecessor. Dike was elected at the 21st Annual General Meeting of the Institute. A statement signed by CITN Head, Corporate Services, Gbolahan Bilewu, said other elected officers of Council included Teju Somorin as Vice President; C. I. Ede, Deputy Vice President and Adesina Adedayo who returned unopposed as the Treasurer. Dike, the Director of Tax Policy in the Federal Inland Revenue Service, is a seasoned tax administrator and chartered accountant. He obtained a Bachelor of Science (B.Sc.) degree in Economics from the University of Ife, (now Obafemi Awolowo University) Ile-Ife, Oyo State.
IFC The International Finance Corporation (IFC) has estimated that the bankable need for private health institutions within the country is currently worth $3 billion. The global lender also said in a statement that with an available leveraged funding potential of about $1 billion that could be tapped for investment into health. This is according to a new Study by the IFC, the private sector arm of the World Bank Group, which is partnering with the Federal Ministry of Health and James Daniel Consulting to organize the Nigerian Healthcare Infrastructure Investment Summit holding this month in the country. "This summit targets the private sector in healthcare and aims to showcase the best practices of what works within the private health sector in Nigeria and other countries. The IFC will also be launching her maiden edition of the study, Nigeria Health Market Studies, which details investment opportunities within the Nigerian health sector and how to create value for Nigerian patients
through private sector investment.
CIBN/FITC The Chartered institute of Bankers of Nigeria (CIBN) will be partnering with Financial Institutions Training Centre (FITC) to improve the competency level among bank's staff. In a statement, CIBN said such move would help in bridging skills gaps in the banking and finance industry. The exercise is coming after stakeholders' engagement with the FITC led by CIBN' President/ Chairman of Council, Segun Aina. He noted that the engagement was part of familiarisation and bridge-building efforts to dialogue with major stakeholders in the sector. He observed that the industry was so large and replete with many value adding opportunities such that there was room for the each of the two organiSations to make its own impact without any hindrance. He called for collaboration and cooperation between the CIBN and FITC in areas of common goals and interest.
Investment Actis, a private-equity company, will lead investment of as much as $1.5 billion in African commercial property to meet rising demand from international companies targeting a growing middle class, Bloomberg report had said. "We are seeing a shift in interest from South African brands to European retailers" seeking opportunities in fast-growing economies such as Nigeria, Ghana and Kenya, Kevin Teeroovengadum, director of Actis' sub-Saharan Africa real estate unit, said. Actis, which is based in London, plans to invest in projects including shopping centers, office towers and industrial parks that will come to fruition over the next five years, Teeroovengadum said. The company will use the proceeds of its second African real estate fund that raised $280 million in October, while the rest of the investment will come from commercial partners and loans. Africa's economy, excluding Libya and Somalia, is forecast to expand 4.5 per cent in 2013 and 5.2 per cent next year amid a rise in oil and mining projects and direct investment from foreign companies, according to the Tunis-based African Development Bank's annual outlook. Nigeria, the continent's most populous country, grew 6.6 percent in the first quarter while South Africa, the continent's biggest economy, expanded by an annualized 0.9 percent. Actis has raised about $1.4 billion across seven Africa funds since 2003, according to data compiled by Bloomberg. The company is also pursuing deals in South America and Southeast Asia in sectors including energy and technology.
‘Though the market demand matched the supply, the pricing reflected investor's "wait and see attitude" on the naira short term outlook. The stop rates were 12.25 per cent, 13 per cent and 13.5 per cent ’
Bank to bank report Mainstreet Bank Limited released its group financial result for the year ended 31 December 2012, which saw the bank's profit before tax (PAT) hitting N24.1 billion during the period. The lender is one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Afribank Plc and its subsequent recapitalisation and ownership by the Asset Management Corporation of Nigeria (AMCON). A statement issued by the bank said the result rekindled hope across the industry especially amongst customers, financial analysts and investors who had expressed mixed feelings on the ability of AMCON to stabilise the nation's financial system after taking over some banks under the bridge model. "The declared result, showed a marked improvement in all key financial indices especially given the bank's loss position of N4.4 billion within the five-month period it operated as at December 2011. The figures from the result also show that the bank grew its gross earnings to N47.9 billion within the period under review," it said. United Bank for Africa (UBA) Plc has been named the best bank in support of agriculture in the country. In a statement, the bank said it got the recognition following its contribution to the growth of the agricultural sector and value addition to the economy. UBA clinched the award at the maiden edition of BusinessDay Annual Banking Awards, which held recently in Lagos. According to statistics, UBA tops the Central Bank of Nigeria's (CBN's) list of lenders to the agricultural sector. By 2012 financial year end, the lender had channeled seven per cent of its N687 billion loan book to agriculture. This is the highest exposure of any bank in Nigeria and invariably places the bank as one of the strongest supporters of agriculture in Nigeria. Divisional Head, Consumer Banking, UBA Plc, Mr. Ilesanmi Owoeye, received the award on behalf of the bank. Diamond Bank said it had broken a new campaign to claim its position as one of the leading financial institutions in Nigeria. In a statement, the bank said the launch follows a successful brand refresh in November 2012 where the brand saw changes in its colours moving away from the monosyllabic greys and dark tones to more vibrant colours. It said the motive was to make the brand more approachable in line with its positioning as one of the leading retail bank in Nigeria. Diamond Bank's new media campaign "you need a new bank," reminds customers of the power of choice especially when it comes to choosing a bank. As customers are becoming more discerning of banking products and services, the bank is putting a stake in the ground- armed with a portfolio of products and technology to produce faster and more efficient services, the question becomes ''why do you stay with a bank that does not meet your needs?" said Ayona Trimnell, the bank's Head Corporate Communications.