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NDIC Saves 6,000 Jobs in Defunct Skye Bank

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The Nigeria Deposit Insurance Corporation (NDIC) has said the corporation was able to save 6,000 workers from being dismissed from defunct Skye bank (now Polaris) as a result of poor handling of the operations of the bank by former management.

 

Alh Umaru Ibrahim, managing director of the corporation, noted “It is on record that the Bridge Bank resolution option adopted by the Corporation in the case of the defunct Skye Bank saved over 6000 jobs in the industry and also ensured that normal operations continued in all the 277 branches of the bank.”

 

In addition,  the resolution option utilised which was completed with the establishment of the bridge bank now called the Polaris Bank ensured that depositors of the closed banks had unhindered access to their deposits in excess of N949.60 billion as at June 2018.

 

According to him, the corporation has also taken measures to ensure that all those who contributed to the failure of the bank are prosecuted through the appropriate legal means to serve as a deterrent to others.

 

More so, in February this year,  a Lagos Federal High Court sentenced the managing director of the failed integrated microfinance bank (IMFB) plz, Mr Simon Ademola Akinteye to 32 years imprisonment over frauds that led to the failure of the banks.

 

The corporation has also been relentless in its debt recovery efforts particularly the debts owed to banks in liquidation so as to enhance payment of liquidation dividends to depositors whose balances are in excess of the insured limits.

 

Also in 2018, a total of N526, 397, 116.26 was recovered in respect of deposit money banks in liquidation, N51,159,867.97 and N710, 057.83 from primary mortgage banks and microfinance banks respectively. The cumulative recovery from debtors of deposit money banks,  microfinance banks and primary mortgage banks as at December 31, 2018, stood at N29.01 billion, N125.84 million and N290.43 million respectively.

 

These efforts were boosted by a series of judgements obtained against banks in liquidation and realisation of physical assets of closed banks, apart from the conviction of the MD of the defunct integrated MFB,  the Corporation also secured a landmark judgement against the First Bank of Nigeria Plc, to the tune of N556,493,034.16 in favour of depositors of Lead Merchant Bank Limited (in liquidation).

 

As the corporation will mark it’s 30th anniversary this year, it has been three decades of resilient hard work and continuous innovations in order to achieve our goal of becoming the best Deposit Insurer in the world by the year 2020. We may not be there but the NDIC already has become a reference point in the implementation of the DIS in Africa and beyond. He said.

 

The NDIC also reinstated its commitment towards achieving a safe sound and stable financial system which is geared towards sustainable economic growth.

 

Adding,  this year’s theme “consolidating interface between industry and agriculture for Nigeria’s sustainable development” strongly supports the federal government initiative of unleashing the full potentials of the nations agricultural  sector to drive employment generation,  robust revenue base and sustainable growth of the economy assignment stipulated in the economic recovery growth plan (ERGP).


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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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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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