E-Financial
No Bank Will Die Under My Watch-Emeflele, CBN Gov
Godwin Emefiele, governor, Central Bank of Nigeria (CBN) has said that he will not leave a legacy as someone that supervised the death of any bank in the country.
Emefiele said this on Tuesday while speaking at an interactive session with chief executive officers and other top executives of private sector firms in Lagos.
He spoke on the theme: “The Nigerian economy in 2015: A review of recent developments in oil price and Nigeria’s foreign exchange market.”
He was responding to remarks by one of the participants that he should suspend banks allegedly encouraging unhealthy practices in the forex market.
According to Emefiele, such a move might cause panic in the system. “I will try as much as possible not to suspend a bank, but we would try as much as possible to try to make them do the right thing. You see, I don’t want to leave a legacy of somebody who killed a bank. It is very simple. All I need to do is to ban them from the forex market from one week and there is going to be a run on the bank. But my responsibility today is to create financial system stability by ensuring that we support the banking and financial system so as to grow the economy,” he said.
He explained that naturally, if oil prices go up, the external reserves would also appreciate, adding that Nigeria is not the alone among countries that have suffered depreciation or revaluation in their currencies.
“Beginning from Russia, whose currency has lost 40.3 per cent, Brazil and others. What we did was to look at 26 countries in the emerging market. Are you looking at Chile, Columbia? These are part of the emerging economies. I am not saying it is normal, but I am saying that sometimes this should be expected as a fallout of drop in commodity prices in the world.
“We have seen the pressure in the forex market arising mostly for the lopsided dependent on imports. Today in Nigeria, toothpick, tomato paste, furniture, rice, sugar, fish, petroleum products are all being imported into Nigeria.
“Perhaps, I want all of us to know that if we import one cent worth of toothpick, it impacts on the reserves. So, why should we be seen to be importing items that can be produced locally? I must give credit to the cement industry. The lesson from that sector is that if we are committed to a course, we can improve our economy. Some years ago, we were importing cement and the list of items of import in Nigeria, cement used to rank among the highest. Up to three years ago, we were importing cement in Nigeria, but today, we are not only producing cement for our local production, we have started to export cement and Alhaji Dangote is at the forefront of that,” he added.
He also threatened to ban the importation of certain goods and products that can be produced in the country.
“We are not going to ban the importation of rice, but we are going to say we would no longer provide foreign exchange if you want to import rice into this country. If you want to use you dollars that you got from somewhere else to import rice, no problem! But with the way we are going, we would not allocate foreign exchange for you to import rice. The same way we would graduate it to other products.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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