Naira strengthens slightly against the dollar

The fluctuating rate of the naira against the dollar continued this week as the Nigerian currency began the same way it ended last week (N325/dollar). But since the real business began, there have been slight improvements on the price of the naira against the dollar on the black market as it has remained steady since Monday, March 21.

NAIJ.com’s findings from the Bureau De Change (BDC) operators revealed that although the exchange rate has not improved so much from what was obtainable before now, their customers have not stopped patronizing them for foreign exchange purposes. 

The operator who pleaded anonymity, informed that although the pace of the patronage has reduced, “they still come here to exchange money and for two days now, it has been N324 to one dollar.” Speaking also on the state of the economy, the operator stated that they are not sure of any improvement, but remain optimistic with the recent trends of currency fluctuation.

“We just hope for the best in the coming days since the naira has gathered a little momentum against the dollar in the past two-three days,” he noted.

Mrs Giwa, who made the call at an international conference where she was spotted by journalists, said: “It is believed that an increased collaboration between the various diaspora organizations and the formal sectors of government (especially the financial sector) will result in increased foreign exchange inflow from Nigerian diaspora into the country.”

naij.com

Banks record N11.98bn fraud in six months – CBN

The banking sector recorded 5,917 cases of fraud involving the sum of N11.98bn in the first half of this year, statistics obtained from the Central Bank of Nigeria have indicated. The figures are contained in the CBN’s Financial Stability Report.

The report stated that the 5,917 cases of fraud represented a decrease by 333 when compared to the 6,250 cases recorded at the end of December 2014.

However, the report stated that the incidence of fraud recorded a decline, while its monetary value rose by N2.98bn from N9bn in December 2014 to N11.98bn in June this year.

It stated, “Key operational risks reported were incidents of fraud and forgeries, disruption of banking activities during the fuel crisis, slow implementation of the unique identifiers’ scheme and insecurity in some parts of the country.

“Cases of fraud and forgeries decreased to 5,917 at end-June 2015 from 6,250 at end-December 2014. However, the amount involved increased to N11.98bn at end-June 2015 from the N9bn recorded in the second half of 2014.”

The CBN report noted that out of the N11.98bn fraud recorded in the banking sector, the actual amount lost was N1.89bn.

It added, “Actual losses from these incidents decreased to N1.89bn at end-June 2015 from N3.04bn in the second half of 2014. Banks experienced operational challenges owing to protracted fuel shortages and epileptic power supply.

“These challenges emphasized the need to fast-track the implementation of the Shared Services Scheme. Meanwhile, prolonged insecurity in the North-East continued to affect the operations of banks in that region.”

The report was silent on the type of banking transactions that resulted into the frauds, but findings showed that over the years, there had been increase in reported Internet fraud.

For instance, the Nigerian Deposit Insurance Corporation had in its 2014 report on the banking sector stated that there were 7,181 reported cases of ATM/card-related frauds, while Internet frauds and fraudulent transfers recorded 1,277 and 1,099 cases, respectively.

Other fraud cases with high frequency are fraudulent conversion of cheques (138 cases), presentation of stolen cheques (59 cases), unauthorised credits (98 cases), presentation of forged cheques (62 cases) and outright theft by bank workers (107 cases).

Nigeria’s Forex reserves drop to $29.88billion

Nigeria’s foreign reserves fell below $30 billion for the first time in more than four months, putting more pressure on the Central Bank of Nigeria’s (CBN) bid to defend the naira and avoid a devaluation.

Gross reserves decreased to $29.881 billion as at December 1, the first time they have fallen below $30 billion since July 13, according to data from the central bank.

Bloomberg reported that the reserves have fallen by 20 percent since the end of June 2014, when Brent crude prices began a more than 60 per cent plunge, hammering the finances of Africa’s biggest oil producer and economy.

“With the oil price remaining low, the pressure isn’t dissipating,” said Ikechukwu Iheanacho, who manages N40 billion  ($202 million) of stocks and bonds for Lagos-based Chapel Hill Denham Securities.

“It raises questions about how long the central bank can continue defending the naira.”

The naira has been all but fixed at  N197-N199 per dollar since early March after Governor Godwin Emefiele restricted banks’ ability to buy foreign-exchange. In June, Emefiele stopped importers of about 40 items, including toothpicks and glass, from obtaining dollars.

Emerging market investors including Aberdeen Asset Management, AllianceBernstein and Investec Asset Management have sold Nigerian bonds and stocks this year to avoid what they see as an inevitable devaluation, which would cause losses on their holdings in foreign-currency terms. The naira rose 0.6 percent to N197.90 per dollar on the official market on Wednesday. Forwards prices suggest the naira will fall 19 percent to 243 in a year.

Meanwhile, the Debt Management Office (DMO) has disclosed plan to raise N50 billion ($251.26 million) in local currency denominated bonds maturing in February 2020 and March 2024 at its last debt auction of the year on December 9. The debt office said it would sell N30 billion of the 2020 debt and N20 billion of the benchmark 2024 paper. 

Reuters reported that the bonds are a reopening of previously issued paper. Results of the auction will be published the following day, the debt office said. The 2020 bonds closed with a yield of 11.73 percent on Wednesday and the 2024 at 11.85 percent, with dealers predicting yields would fall at the auction next week.

[ThisDay]

We are not in distress, disregard SaharaReporters malicious report, Diamond Bank speaks

Diamond Bank Plc, one of Nigeria’s leading banks providing financial services across the shores of the country, has dismissed a media report by Sahara Reporters suggesting that the bank is distressed.

Describing the story as “false and malicious”, the bank in a statement issued and signed by the Head of Corporate Communications Division, Ayona Trimnell, debunked the report.

The bank insisted it is healthy and meeting its financial obligations as required by the regulatory body.

The statement reads: “Our attention has been drawn to a malicious story published by Sahara Reporters alleging that Diamond Bank Plc is one of nine commercial banks that have demonstrated a level of distress that requires they recapitalize to avert the banks possibly falling into distress.

“Our customers, stakeholders and indeed the general public should please disregard the said report and be informed that the story is false, baseless, mischievous and attention seeking. Diamond Bank’s Q3 2015 result approved by the Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange (NSE) show capital adequacy ratio of 18%, which is 3% higher than CBN’s minimum requirement.”

The bank said anyone in doubt should check out its Q3 2015 financial results, which can be found at http://www.diamondbank.com/images/banners/linkcreation/Financials/2015%20Nine%20Months%20Unaudited%20Financial%20Statement.pdf/

It could also be recalled that the Central Bank of Nigeria has issued a statement recently condemning the same falsehood by Sahara Reporters.

The apex bank said no Bank in Nigeria is facing stress as alleged by the online news portal.

Sterling Bank secures $40m loan from Turkey EXIM Bank

In recognition of its commitment to international trade finance and investment among individuals and institutions across the world, Sterling Bank has secured a $40million facility from the Turkey EXIM Bank.

The facility was granted by Turkey EXIM Bank following the conclusion of a due diligence on the Bank which confirmed it as a reputable financial institution with capacity to meet its obligations and a worthy partner through which funds could be brought into the country for trade finance leading to the development of the country.

This further lays credence to the rating of the Bank by Moody’s, a leading global rating agency which assigned a first-time local and foreign currency issuer and deposit ratings of B2 with a stable outlook to Sterling Bank Plc.

The rating, according to the Agency, reflects the Bank’s solid asset quality metrics and provision coverage, improvements to its Information Technology (IT) infrastructure and risk management processes as well as its high liquidity buffers and a solid deposit funding base.

In a statement issued over the weekend, the Bank indicated that the facility would be used to support trade businesses and projects with Turkish origin.

With this development, members of the Turkish business community in Nigeria as well as Nigerian businessmen and women doing business with Turkish partners will have easy access to finance for their businesses especially in the importation of necessary raw materials and other infrastructure for production which would also serve as a catalyst for economic development in the country.

The Bank in the statement explained that the choice of the Bank by Turkey EXIM Bank may have been informed by its role in international finance, its reputation as a stable and reliable financial institution and its capacity to support both local and international institutions.

The Turkey EXIM Bank is a fully state-owned bank acting as the Turkish government’s major export incentive instrument.

Like Nigeria’s NEXIM Bank, Turkey EXIM Bank’s main objectives are promoting Turkish exports through diversification of exported goods and services by increasing the share of Turkish exporters in international trade, finding new markets for traditional and non-traditional export goods and providing exporters and overseas contractors with support to increase their competitiveness and to ensure a risk-free environment in international markets.

Stanbic IBTC sanctions: CBN acted in bad faith – Financial Reporting Council

The Financial Reporting Council of Nigeria has responded to the letter by the Central Bank of Nigeria which claimed the regulatory council lacked the authority to order the suspension of Stanbic IBTC and its directors.

The Executive Secretary of the council, Jim Obaze, said in a letter dated November 10, 2015 with reference No. FRC/2015/DIM/Regulatory/002, that despite the intervention of the presidency in the matter, the CBN has refused to keep agreements.

Copies of the letter were sent to the National Office for Technology Acquisition and Promotion, Securities and Exchange Commission, and the Ministry of Industry Trade and Investment.

Following the meeting with the Chief Of Staff to the President, Abba Kyari, the FRC said it was agreed that CBN should write to Stanbic IBTC directing it to immediately stop all negative publicity against the council. The council was in turn asked to desist from similar media publications.

Besides, the CBN was directed to visit Stanbic IBTC to review the records to establish whether the errors were as a result of oversight, incompetence or compromise, while FRC should secure written positions on the matter from external auditors of the bank.

Although the FRC said it had since written to KPMG professional services, to send within seven working days the relevant documents as advised by the COS, the CBN was yet to comply.

“CBN actions are calculated to embarrass the Council and the Federal Government,” the FRC said. He accused the CBN of mixing up issues and ending up with a very “wrong and hasty conclusions”.

The council said the CBN did not have the competence, nor the authority to evaluate the FRC Act, adding that the process of inspection of the FRC, should be left for the office of Attorney General of the Federation and Minister of Justice or a court of competent jurisdiction.

The Council listed a series of procedural infractions committed by the regulator – rather than the bank – and dismissing all allegations of “financial misstatements” brought against the bank.”

FRC accused the CBN of not acting in good faith over the matter, by harmonising their positions on the review of the financial Statements of Stanbic IBTC for the year ended December 31, 2013 and 2014.

“The Council asked that the CBN should equally be sanctioned if it was discovered that the observed errors in the financial statements were true since the CBN approved the said financial statements before they were issued,” the statement said.

Mr. Obazee said the “Purchase and Assignment of Banking Application software” request made by (NOTAP) by Stanbic IBTC on July 3, 2013 was another transaction other than the one the CBN addressed.

He denied that Stanbic IBTC actually obtained the necessary approval for the software at the NOTAP, referring to alter that stated that the request was not approved.

“The transfer/reclassification of computer software in 2012 of N1.367 billion was not properly accounted for in the financial statements,” he disclosed, pointing out that the “inconsistencies and poor disclosures made the financial statements esoteric and incomprehensible, even to financial literate users.”

Apart from directing the two financial regulatory bodies in the country to ensure the problem was corrected and a consensus reached before the years ended 31st December, 2013 and 2014 respectively, the presidency had directed that they found the way to resolve the issue.

The Council sought an independent opinion of the financial reporting matter from the Institute of Chartered accountants of Nigerian (ICAN) and the Association of National Accountants of Nigeria (ANAN) to enable the CBN reach an informed decision.

The CBN Director of Communications, Ibrahim Mua’zu, said the bank was not in a position to comment any further on the issue for now, since the public had faulted FRC decision that it could not be the accused and the judge in the case.

Sterling Bank makes N82bn revenue in nine months - Report

Sterling Bank Plc has posted N82 billion in revenue for the third quarter ended September 30, 2015, representing 12 per cent growth over N73.1 billion achieved in the previous quarter.

GT Bank defies CBN dealine, extends BVN registration beyond October 31

There are strong indications that depositors in Nigerian banks will still have the opportunity of having access to their accounts after the deadline of the registration for the Bank Verification Numbers (BVN).

Another Blogger lands in Police custody over false story against MD, Union Bank PLC

The police on Monday arraigned a blogger, Desmond Chima, for allegedly posting two offensive stories on the Internet against the Managing Director of United Bank for Africa, Philips Oduoza.

Breaking news: Robbers raid banks in FESTAC

Vanguard gathered that the heavily armed robbers who came via the canal in speed boats blew up the security doors of Diamond, Finbank and Access banks and carted away unspecified amount of money.

Reward! UBA’s Oduoza wins CEO of the Year award at Investment Summit in New York for the second time

The Group Managing Director and CEO, UBA Plc, Phillips Oduoza, has emerged the 2015 Ai Socially Responsible Investment (SRI) 30 CEO of the year at this year’s 8th annual Ai CEO Investment Summit.