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Jaiz Bank MD Says NPL within Tolerable Limits

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As the incidences of Non-Performing Loan (NPL) continue to dog bank’s in Nigeria, Jaiz bank plc Wednesday disclosed that its exposure to NPLs in the short to medium term was within tolerable limits.

Mr. Hassan Usman , Managing Director of the bank, said in Abuja on Wednesday that Jaiz bank was not heavily or significantly exposed to the oil sector, but the bank’s exposure is to real estate.

Hassan Usman added that Jaiz bank has limited exposure because Forex: is important because “we do not have the exposure that other banks have because we do not borrow or invest in dollars.”

Speaking on the foreign exchange situation in the country now, Usman noted that Jaiz bank “makes money from selling Forex and our counterparts/customers depend on forex for various reasons. If they don’t get dollars on time our exposure to them is intertwined.”

Hassan Usman also justified listing of the bank’s shares in the Nigerian Stock Exchange (NSE) on twins reasons of enhancing transparency and openness in the  bank’s activities.

Usman said the gesture of listing Jaiz’ shares “fulfilled the bank’s pledge in 2012 at its Initial Public Offerings (IPOs), that its shares would be publicly listed at the Exchange to create additional values for its shareholders.”

The Jaiz MD was optimistic that the bank’s outlook for 2017 will be much better than 2016, stressing that “if current policies on forex and infrastructure provision is maintained, 2017 will be a good year.”

Jaiz bank he said has challenges like any growing institution. One of such challenges he said has to do with perception. According to him, “this product is not a religious product it is a mode of financing that tries to provide goods and services to people who cannot afford to buy such goods and services directly.”

Usman lamented that the most important challenge facing the bank “is awareness by all stakeholders but this is being overcome. Islamic banking is not about the creed. There are issues about specifics. Even those clamouring did not fully know or understand what Islamic banking was all about. They thought it was charity, when they found out, that they had to pay for services there was a rude shock, we normally try to explain this. It is an Organization set up to make profit, create value and be sustainable.” Other challenges he pointed out are the enabling environment like infrastructure for non-interest banking like liquidity instruments. The Ministry of finance he said “had promised us last year that by the first quarter of this year, there will be sukuk. Another challenge is the limited number of qualified trained manpower to manage Islamic banking.”

In spite of these challenges, Hassan Usman noted that “the product (Jaiz bank) has proved itself to be sustainable. We now have national franchise branches in South West and South-South and we are opening more branches in other parts of the country.”


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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