All Posts in "Day: July 6, 2021"

Distressed Banks: NDIC  Urges Depositors To File Claims

The Nigeria Deposit Insurance Corporation (NDIC),says it established  strong structure to meet its obligations of settling depositors who lost money in any closed banks.
Managing Director/Chief Executive Officer NDIC, Mr. Hassan Bello,who disclosed this during a courtesy  by the executive members of the Finance Correspondents Association of Nigeria (FICAN) in Abuja,implored such depositors to file their claims through the zonal offices of the corporation in Nigeria
Besides,the NDIC has  appointed ten agent banks to help facilitate payment across the nation.
The banks are; First Bank of Nigeria, United Bank of Africa, Zenith Bank, Wema Bank, Heritage Bank, Union Bank, Fidelity Bank, Polaris Bank, Unity Bank and Access/ Diamond Bank.
The corporation also disclosed that the maximum deposit insurance coverage (MDIC) per depositor per bank has progressively increased from ₦50,000.00 at inception in 1989 to its current ₦500,000 per depositor per deposit money bank (DMB).
The insured limit for microfinance banks (MFBs) and primary mortgage banks (PMBs) in 2009 was increased from ₦100,000.00 to ₦200,000.00 per depositor per MFB/PMB in 2010.
Five years ago  there was an upward review of the deposit insured limit for depositors of PMBs to ₦500,000.00 in order to ensure coverage of over 90 percent of depositors in that sub sector.
The NDIC  further extended deposit insurance coverage to the subscribers of Non-interest banking institutions, under the sharia compliant banking services to the maximum limit of ₦500,000.00 per depositor.
Besides,the corporation had developed framework on Pass-Through Deposit Insurance Scheme (PTDIS) to protect the subscribers of Mobile Money Operators (MMOs) with a maximum insured limit of ₦500,000.00 per subscriber of this banking product.
The  corporation  has emphasized the need for media support to help in creating the needed awareness and as such has assured that the it will continue to support capacity building initiatives in the Nigerian Media industry, especially in areas covering bank failures and deposit insurance.
Bello said NDIC launched its capacity building workshop for finance correspondents and business editors in 2002 as a veritable means of building capacity in the media industry especially on the workings of deposit insurance system in Nigeria as well as other topical issues in the Nigerian financial services sector.
Ever since the commencement of the capacity building program the symbiotic relationship between NDIC and financial journalists has remained cordial.
He said through this platform, the  horizon and knowledge of deposit Insurance of members of FICAN has broadened while the corporation has enjoyed robust and informed reportage of its mandate and activities.
“You have demonstrated such an understanding and support that cannot be quantified. This means the collaboration has been a win, win situation for both NDIC and FICAN. It is on this note that I want to commend your entire membership in particular and the media in general for this wonderful relationship.”
He said the desired level of knowledge of the deposit insurance system in Nigeria among different strata of the banking public has not been achieved, as evidenced by the result of a survey carried out by NDIC in 2019/2020.
This is why he added, the corporation will continue to collaborate with the media in order to Increase this awareness, stressing that there is need for increased collaboration between regulatory agencies and the media.
Online Editor by — July 6, 2021 in Insurance&Pension 0
CBN Promises To Deepen Support For SMEs

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has pledged the bank’s  intent to increase its development finance interventions to further support start-ups and Small and Medium Enterprises (SMEs) in Nigeria.
He spoke at the 51st Convocation Lecture of the University of Lagos, Lagos, where he noted  that increased access to finance for start-ups and SMEs was highly essential for the nation’s economy to grow.
According to him, he  special consideration should be given to the strengthening of physical and ICT infrastructure to enable SMEs perform more efficiently and become globally competitive.
He emphasized  the critical role of vibrant and growing SMEs to the growth of the economy and the creation of jobs for Nigerian youth, adding  that special consideration should  be given to the strengthening of physical and ICT infrastructure to enable SMEs perform more efficiently and become globally competitive.
Noting  that the potential of SMEs in enhancing economic growth was hampered by limited access to finance, inadequate infrastructure and poor digital penetration, Mr. Emefiele enjoined the Government and the private sector to provide more support in addressing the challenges of SMEs in the country. Specifically, as users of new technology, he urged that policies should incentivise the adoption of innovations that will improve SMEs competitiveness and productivity. He also tasked all relevant stakeholders to deepen reforms that will improve human capital development through skills enhancement and proper linkage of research to the SME sector.
He implored tertiary institutions in the country to tap into the educational trends that are significant drivers of productivity in advanced and emerging markets, in order to reshape the existing curriculum, enhance the learning experience of students and foster innovation amongst the faculty and staff in Nigerian institutions.
He that enhanced collaboration between universities and players in key sectors of the economy such as agriculture, manufacturing and ICT were necessary to enable implementation of sound ideas generated from the universities.
 He, however, noted that universities in many developing countries had little or no formal linkages to industry, thereby, resulting in the production of ill-equipped graduates.
He  challenged Nigerian tertiary institutions to ensure effective collaboration with industry players in key sectors of our economy, in the training of relevant manpower to minimize mismatches between the skills required by firms and the educational qualifications of Nigerian graduates.
He spoke on the role of the CBN in the development of SMEs in Nigeria, and reiterated that the apex  had  launched massive developmental interventions in some critical sectors of the Nigerian economy, especially in agriculture, manufacturing and SMEs. He said attention had also been paid to advancing knowledge and innovation through various initiatives targeted at promoting youth’s entrepreneurship, research and development.
Congratulating the graduating students, Emefiele urged them to take advantage of some of the Bank’s directly aimed at supporting SMEs such as the SME Credit Guarantee Scheme (SMECGS); Micro, Small and Medium Enterprises Development Fund (MSMEDF); Youth Entrepreneurship Development Programme (YEDP); Agri-business/Small and Medium Enterprises Investment Scheme (AGSMEIS); Creative Industry Financing Initiative (CIFI); Targeted Credit Facility (TCF) and the Nigeria Youth Investment Fund (NYIF).
Online Editor by — July 6, 2021 in Banking&Finance 0
Nigeria Spends N60bn Annually On Pipelines Repair

Lai Mohammed,
Minister of Information and Culture, Laid Mohammed,says that about N60 billion is spent yearly to repair and maintain the vandalized pipeline points across the country.
Mohammed, who disclosed  at a town hall meeting on protecting Oil and Gas Infrastructure in Abuja, said over 1,161 pipeline points across the country were vandalized between January 2019 and September 2020 .
He noted that an average of 200,000 barrels of oil is lost per day on the wanton damage to pipelines in the country.
He observed that apart from the impact on the nation’s earnings, there are also 3environmental problems caused by the incessant vandalism, in terms of freshwater pollution, air pollution, soil pollution.
He lamented that Nigeria has long suffered massive infrastructure deficit due to decades of neglect, population explosion and the absence of maintenance culture.
 He added  since  advent coming of the Muhammadu Buhari Administration in 2015,it  has embarked on a rapid economic growth with equity, i.e. people-centered economic management as well as prioritizing human capital development through enhanced social services and infrastructure development.
He noted that despite a drastic drop in revenues and competing priorities, especially that of tackling insecurity, the Administration has invested heavily in providing new infrastructure, in addition to reconstructing and rehabilitating existing ones.
He maintained  that protecting oil and gas infrastructure is very important, considering that the destruction of this infrastructure has socio-economic and environmental implications adding that with oil providing 80 per cent of Nigeria’s budgetary revenues and 95 per cent of foreign exchange earnings, one can only imagine the impact of the incessant destruction of oil pipelines on the economy.
The minister said that public infrastructure is at the very core of economic growth and national development therefore, the destruction of public infrastructure by some unpatriotic Nigerians calls for great concern and immediate action, hence our decision to organize this town hall meeting series to sensitize communities, especially those where infrastructure are located, to be conscious of the import of such and protect them, expose, arrest and prosecute all those who engage in vandalisation among others.
He said, “To have such laudable efforts of the government thwarted by some unpatriotic citizens through wanton destruction of critical infrastructure is totally unacceptable. To have railway tracks subjected to wanton destruction, bridge railings removed, manhole covers pilfered, street lights and other power infrastructure, oil pipelines, telecoms facilities and critical aviation infrastructure damaged or stolen do not augur well for our growth and development. Apart from endangering the lives of fellow innocent citizens, such unpatriotic acts take a toll on the government’s limited revenue, as it seeks to replace, rehabilitate or totally reconstruct such destroyed infrastructure”.
Also speaking, the Group Managing Director of the Nigeria National Petroleum Coorporation (NNPC), Mele Kyari revealed that from January-December 2020, losses along system 2B amounted to 146.809 Million litres of PMS valued at N22.487bn adding that some notable hotspot areas are Abagbo, Ikate, Akaraba, Ilashe, Imoren, Ijegun, Ikotun, Baruwa, Oke Odo, Warewa and Ilara.
He noted that system 2E lost 0.237Million Litres of PMS valued at N36.3million in 2020 stressing that fom January-May NNPC pipeline segments have suffered 203 pipeline breaks with System 2B having 80 pipeline breaks and System 2E, a total of 114 pipeline breaks with a total cummulative loss of 39million litres amounting to N5.973bn
He observed that  attacks on oil facilities is a major concern to the Government as the activities of vandals  have resulted to environmental damage, huge product losses, high cost for repairs, lost time on operations as well as human and property damage and urged the citizens to take the Pipelines as critical national assets and report activities of suspected vandals to relevant authorities.
He appealed to community Leaders to ensure that pipeline right-of-way is not encroached to avoid unfortunate incidences of fire outbreaks.
Online Editor by — July 6, 2021 in Oil&Gas 0
IOCs Deepening Unemployment,Poverty In Nigeria-NCDMB

NCDMB dismisses IoCs' concerns about Nigeria's fiscal regime — Business — The Guardian Nigeria News – Nigeria and World News
Nigeria is losing oil and gas jobs to China as some international oil companies operating in Nigeria now take their jobs to the Asian country,Mr. Simbi Wabote, the Executive Secretary, Nigerian Content Development and Monitoring Board,has said
Wabote, announced  this at the ongoing Nigeria Oil and Gas conference in Abuja.
He also stated that the NCDMB had created a $400m intervention fund for the oil and gas sector, said the drive by IOCs to cut cost at the detriment of Nigeria as their host country should be reconsidered.
He said:”What I see from where I see is a constant battle with some of the IOCs who believe that the only place to carry out their work must be China and not Nigeria.And I’ve said it severally that nobody can compete with the Chinese, not the Europeans, not the Americans. You cannot compete with them when it comes to cost.
“But I think that for a country that you’ve been around for almost 50 years, you must have in your heart on how to develop the country and help the government to create employment and value. But I don’t see it in some of the IOCs that operate in Nigeria.”
Wabote clarified   that the NCDMB was not created to block the development of projects by IOCs, rather the agency would continue to support the oil firms in accordance with the law.
According to him, local content must not be seen as a cost centre but part of the business with several benefits for all nations, businesses and investors involved in the practice.
He added:”We in local content believe in balancing cost in whatever we do. But for those who argue about cost, you must also balance the cost discussion with stability in the country.In a country where perhaps you have almost 35 per cent unemployment rate, with bulging youth population, what will you benefit if you take the jobs out of this country to China and then leave that youth population? I can assure you that when you finish your project you cannot operate it.
“This is because you must balance the social need of the people with your craze, crave and drive for cost reduction against the survival of a nation.
“Let me highlight that we are not helpless or oblivious of what to do as a regulator when it comes to dealing with recalcitrant defaulters. We are very pragmatic and only resort to the deployment of our powers when all efforts to bring the offending parties to compliance fail”.
Online Editor by — July 6, 2021 in Oil&Gas 0