E-Financial
NEXIM Bank Bags Best Performing African DFI
The Association of African Development Finance Institutions (AADFI) has rated the Nigerian Export-Import Bank (NEXIM) as ‘Best Performing African DFI.’
The decision was an outcome of the ‘2013 Annual AADFI CEOs Forum of African Development Banks and Finance Institutions’ on the theme “Strengthening African DFIs with Appropriate Standards and Guidelines: 3rd Peer Review & Rating of African DFIs” held at Kenya on November, 2013.
The Forum marked the conduct of the 3rd Peer Review of DFIs with the AADFI Prudential Standards, Guidelines and Rating System (PSGRS).
In the letter conveying the message to NEXIM Bank, titled “CONGRATULATION ON YOUR RATING AS BEST PERFORMING AFRICAN DFI”, Mr. J.A. Amihere, secretary general of AADFI, stated, “In the light of your institution’s rating as ‘Best Performing DFI”, we are pleased, on behalf of the Chairman of the Association, to extend our warm congratulations to your Board of Directors and Management Team on this record performance, and urge you not to relent in your effort at entrenching best practices in the operations of your institution as you continue to sustain your development financing mandate.”
According to AADFI, the Peer Review Exercise with the AADFI PSGRS was not a competition but an approach to evaluate DFIs in the various areas of governance, finance and operation in order to identify areas of weaknesses for self-improvement and strengths for consolidation.
Suffice to state that considering NEXIM Bank was in the ‘Negative rating’ for a long time before the Roberts Orya-led Management took office in August 2009, it is instructive to note that it quickly moved to ‘B’ rating in 2012, then progressed to ‘Best Performing African DFI’ in 2013.
The state of affairs of NEXIM at the time Mr. Roberts Orya took charge of the then newly-constituted Executive Management on August 20, 2009 was such that the financial and operational performance of the Bank had deteriorated to a punching level, in addition to a myriad of other problems.
These extended to an alarming decline in the quality of risk assets as the Bank’s total loan portfolio of N14.6 Billion was non-performing by 72%. Within that category, N10.03 Billion or 69.05% was classified as completely lost resulting in a decline in the bank’s income.
The net effect was a depletion of the Bank’s shareholders funds as a result of accumulated losses, significant decrease in income and tolerance of excessive and escalating overheads. Coupled with these were the issues of non-adherence to corporate governance tenets, non-existent risk management framework, lack of strategic focus and digression from core mandate, lack of visibility of the Bank, etc.
In light of the above, the Executive Team set to reverse the problems and ensure NEXIM Bank was able to contribute significantly to the economic development of Nigeria.
Under the leadership of Dr. Kingsley C. Moghalu, former board chairman, the Management received approval in 2010 to reposition the Bank to effectively deliver on its statutory mandate and become an ‘effective enabler of Nigeria’ economic transformation.
Accordingly, a Corporate Transformation exercise was initiated centering on the key perspectives of Strategy, Risk Management and Corporate Governance, Financial Performance, Operations, Organization and People, with assistance from KPMG Professional Services.
The outcome of the exercise was the Corporate Transformation Project (Project Spring) which led to the re-definition of the Bank’s Mission, Vision and Strategic Objectives targeting four sectors, namely, Manufacturing, Agro-processing, Solid Minerals & Services, which have high employment and foreign exchange earning potentials in the non-oil sector of the Nigerian economy. This has become the MASS Agenda of the NEXIM Bank.
The Securities and Exchange Commission (SEC) has cancelled the registration of Mainland Trust Limited, and suspended Centurion Registrars, following their failure to comply with regulatory directives.
The commission made the disclosure through circulars which were released at the weekend. The circular on Mainland Trust Limited read: “The Securities and Exchange Commission hereby notifies the general public that the registration of Mainland Trust Limited as a capital market operator has been cancelled with immediate effect.
“This cancellation order is made pursuant to the powers of the Commission under Section 38(4) of the Investments and Securities Act, 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
“The Commission’s decision is informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.
“All clients of Mainland Trust Limited are by this notice advised to contact the Central Securities Clearing Systems Plc (CSCS) for appropriate guidance on the transfer of their stocks to another stockbroker of their choice.”
SEC directed that the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc and all capital market trade associations to discontinue capital market-related dealings with the company.
In the same vein, the SEC announced the suspension of Centurion Registrars Limited, its directors and sponsored individuals from capital market activities with immediate effect.
The SEC said the suspension order was made pursuant to the powers of the Commission under Section 38(4) & (5) of the Investments and Securities Act, 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
It explained that its decision was informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.
“All clients of Centurion Registrars Limited are advised to contact Africa Prudential Plc for appropriate guidance on the transfer of their portfolios to another Registrar of their choice.
“In addition, the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc and all Capital Market Trade Association are directed to discontinue capital market related dealings with the company and its principal officers,” the circular stated.
The commission also disclosed that in furtherance of the commission’s unwavering commitment to the maintenance of zero tolerance for infractions in the Nigerian capital market and in line with its revised enforcement strategies, stakeholders and the general public are hereby informed that henceforth, the names of capital market operators (CMOs) found to have violated market laws/regulations would be published in the commission’s “name and shame” journal.
“The publication would be in addition to the sanctions/penalties for the respective infractions prescribed in the ISA 2007 and the SEC Rules and Regulations.
“This enforcement strategy underscores the Commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations.
“Stakeholders and CMOs are advised to be guided accordingly” the commission added.
FirstBank has formally denied allegations of fraud in an ongoing court case filed by customer Dr. Agbai Eke, describing the claims as “entirely unfounded and false.”
According to a statement from the bank, their internal investigation points to “unprofessional and unethical dealings” between Dr. Eke and a former bank employee.
FirstBank claims these individuals used a personal relationship to conduct unauthorised transactions without the bank’s knowledge or involvement.
The bank said it has reported the matter to law enforcement authorities for further investigation.
Officials noted that suspects have already provided statements to investigators.
FirstBank also declined to provide additional details, citing the ongoing court proceedings.
“We will refrain from further comments to allow the Court to dispassionately determine the issues before it,” the bank stated.
The case gained public attention following reports by Thisday Newspaper and Arise Television, as well as through a circulating video regarding the legal dispute.
Nigeria is undergoing a significant shift toward digital payment methods, with cash payments projected to decline by 32 percent by 2030, according to Worldpay’s Global Payment Report 2024 (GPR).
This is because access to financial services in remote areas via smartphones has transformed millions of people’s access to the global economy.
According to the report, Nigeria led Middle Eastern and African countries in cash dominance for point-of-sale transactions, accounting for 40 percent of 2024 PoS value from 91 percent in 2019.
The report said the use of cash in Nigeria is higher when compared to the MEA region including Saudi Arabia with 22 percent in 2024, South Africa (30 percent), and the UAE (17 percent).
“Over the past decade, Nigeria has witnessed progress in financial inclusion. According to the World Bank, the percentage of banked Nigerians increased from 30 percent in 2011 to 45 percent in 2021. Similarly, South Africa’s banked population grew from 54 percent in 2011 to 85 percent in 2021,” it said.
The Nigerian Inter-Bank Settlement System (NIBSS) reported that the number of active bank accounts surged to 311 million in 2024, further underscoring the country’s rapid financial transformation.
The global report disclosed that account-to-account (A2A) transfers via the NIBSS Instant Payments (NIP) have emerged as the leading e-commerce payment method in Nigeria.
Furthermore, A2A payments via NQR are now the second most popular payment method at the PoS, trailing only cash. This surge in A2A usage underscores the growing adoption of instant payment systems in the country.
Recent data shows that electronic payment transactions in Nigeria rose to an all-time high of N1.07 quadrillion in 2024. This is a 79.6 percent increase from the N600 trillion recorded in 2023.
Beyond transaction value, the volume of e-payments also saw a substantial increase. The total number of transactions processed by NIBSS rose from 9.7 billion in 2023 to 11.2 billion in 2024, representing a 15.5 percent year-on-year growth.
Also, PoS transactions soared to N19.4 trillion in 2024, marking an 81 percent increase from N10.73 trillion in 2023.
Industry experts attributed the surge in electronic transactions to a combination of factors, including the cash scarcity experienced in early 2023 and the continued implementation of the Central Bank of Nigeria’s (CBN) cashless policy.
The GPR report highlights MEA’s progress in digital payments, with e-commerce transactions accounting for 29 percent of total value in 2014. By 2024, digital payments represented 49 percent, nearly matching the combined value of cash and card transactions (51 percent). By 2030, digital payments are expected to dominate e-commerce, making up 65 percent of transaction value.
“The shift is even more pronounced at PoS. In 2014, digital payments accounted for only 1 percent of PoS transaction value. By 2024, they had grown to one-third of the market. Worldpay projects that by 2030, digital payments will account for 47 percent of PoS transaction value, nearly equalling traditional cash and card payments,” it said.
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