Banking Briefs
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THE Bank of Industry, BoI, is to provide funding support for artisans from Industrial Training Fund, ITF, and vocational skills training centers under the federal government’s Industrial Skills Development Programme, NISDP. Based on this, Longman Sambo Wapmuk, director general of ITF, has charged graduates from its training schools to form themselves into cooperatives and register with the Corporate Affairs Commission, CAC, Self-Regulatory Organisations, SROs, and Business Member Organisations, BMOs, so that they can access BoI’s loans as cooperatives in order to own their businesses.
Wapmuk, said that after the trainees must have acquired skills from the Fund, they would be retrained by the Small and Medium Enterprises Development Agency, SMEDAN, and would be referred to the BoI for funding. He projected that by the end of this year, the fund would have trained over 37,000 Nigerians, adding that in the past one year alone, a total of 10,000 youths from some selected states and the FCT, were trained in the first phase of the programme which commenced on December 3, 2012, and ended in March 2013.
“The second phase of the programme commenced on June 3, 2013, with the following states: Adamawa, Akwa Ibom, Borno, Edo, Enugu, Gombe and Kogi States. Others include Kwara, Niger, Kaduna, Katsina, Ogun, Ondo and Sokoto states. The remaining states of the federation will be covered in the third phase of the programme and this implies that before the year runs out, the 36 states and the FCT will be covered. In order to sustain the training and to succeed as entrepreneurs, graduates of the NISDP will require funding. “It is our belief that the NISDP will positively impact on the current fight against unemployment as majority of graduates of the programme will start-up their own businesses, while some will be employed in various sectors of the economy, thus readily becoming potential members of various BMOs,” he said.
Evelyn Optutu, managing director, BoI, had earlier said that for the bank to give out loans to cooperative societies, prospective borrowers need to present and convince the bank on the viability of their proposals with the assurance to pay back their loans as and when due. The bank also insists on 10 percent committment fee of the total amount of the loan wanted from the bank by the borrowing cooperative society.
Moving the Capital Market Forward
ISSUING houses in the country are to meet with the Central Bank of Nigeria, CBN, and Asset Management Corporation of Nigeria, AMCON, to discuss the regulator’s policies affecting the capital market. Victor Ogiemwonyi, vice-chairman, Association of Issuing Houses of Nigeria, AIHN, said they will be meeting with the CBN and AMCON to discuss a wide range of issues.
Ogiemwonyi said there were so many pronouncements and policies that had been carried out by the CBN which have affected the market and “we want to sit down and find out how they can help so that the policies can move the market forward.” Bolaji Balogun, chairman, AIHN, said the global economy was yet to shake off the effects of the financial crisis of 2008 and 2009, adding that the slow trend would likely continue with a mix of cautious improvement in economic conditions in mature economies and a stabilisation of the growth rates in major emerging markets.
On the association’s operating performance, he said total receipts of membership subscription reduced marginally from N22.5million in 2011 to N21.9million in 2012 in spite of the increase in the number of member houses who had paid their annual dues in 2011 and 2012. He added that the statement of account showed that the AIHN expenses increased marginally to N23.8m in 2012 from the 2011 figure of N23.3m and N10.3m had been transferred to the accumulated fund, increasing the fund to N153m.
Balogun, said that the activities of the association had continued to play a fundamental role in creating an enabling environment for investment banking business and the issuance of different asset classes in the Nigerian capital market. He said: “Through our collaboration with the Nigerian Stock Exchange, Chartered Institute of Stockbrokers, Association of Stock Broking Houses of Nigeria and the Nigerian Economic Summit Group, the market had received tremendous support from the finance minister. This led to the announcement of debt relief on the margin facilities of 84 stock broking firms and certain tax reliefs in order to re-invigorate activities in the stock market.”
ABCON Backs CBN Anti-Money Laundering Measures
ASSOCIATION of Bureaux De Change Operators of Nigeria, ABCON, has thrown its support behind recent measures of the Central Bank of Nigeria, CBN, to check money laundering, and other malpractice in the foreign exchange market. The CBN had, recently, announced some measures to check money laundering tendencies observed in the foreign exchange market.
These include the ban on importation of foreign currencies, and suspension of 20 Bureaux De Change, BDCs, for not rendering returns and non-compliance with anti-money laundering regulations. Aminu Gwadabe, acting President, ABCON, said the measure taken by the CBN is in line with the position of ABCON in compliance with regulatory requirements.
“The Association has a zero-tolerance stance when it comes to the issue of compliance with regulatory requirements, especially the rendition of returns as well as compliance with approved limits for foreign exchange transactions. We have made it clearly known to our members that we would not hesitate to impose sanctions or report to the CBN, any member found guilty of not complying with these requirements. So we are fully in support of the actions of the CBN. Such action is necessary to ensure sanity in the foreign exchange market, and most importantly the stability of the naira, which is critical to our economy.
“Most of the 3000 licensed BDCs in the country conduct their businesses in compliance with the requirements of the CBN, and only very few are an exception. The action of these few ones are capable of creating a negative impression about the BDC sub-sector and also undermines the stability of the naira. Any BDC that is not playing by the rules is a threat to the business of other operators and also to the foreign exchange market as a whole. Such BDCs have become a cancer to the system and they should be treated as such”, he said. According to him, this is why ABCON has put in place measures to ensure its members fully comply with the regulatory requirements.
Compiled by Chinwe Okafor
– Oct. 21, 2013 @ 01:00 GMT
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