Connect with us

Business News

NDIC’s Prompt Resolution Saves Banking Sector from Collapse – Shokefun

Published

on

Share

The Nigeria Deposit Insurance Corporation (NDIC) said its prompt resolution of banks’ failure over the years saved the banking sector from systemic collapse.

Mrs Ronke Shokefun, Chairman NDIC Board of Directors, said this at a retreat organised by NDIC for Members of the House of Representatives Committee on Insurance and Actuarial Matters, on Thursday in Lagos.

The retreat had, “Strengthening Nigeria’s Financial Safety-Net: The Role of Deposit Insurance (DI)” as theme.

She said the prompt resolution of banks’ failure had also in the corporation’s 32 years of existence, further provided a Financial Safety-Net for the banking sector.

“Bank Resolution options applied so far by the NDIC have included Financial Assistance, Technical Assistance, Hold Action, Assisted Mergers and Acquisition, Purchase and Assumptions, as well as the application of the Bridge Bank Mechanisms.

“It is only when all these options could not rescue a bank that it is allowed to go into liquidation,” she said.

Shokefun said 49 Deposit Money Banks, 367 Microfinance Banks and 51 PMBs were either completely liquidated or undergoing the process of complete liquidation by the NDIC.

She said this followed the revocation of their operating licenses by the Central Bank of Nigeria (CBN).

See also  Emefiele Assures Investors of Funds Security

The Managing Director of NDIC, Mr Bello Hassan, said there were four key components of financial safety-net, which would aid financial stability at all times.

“Financial Safety-Net is a framework comprising four key components/functions of prudential Regulation and Supervision, Resolution, Deposit Insurance and Lender of Last Resort.

“The various components aim to promote financial stability at all times and manage eventualities of any financial crisis,” he said.

Mr Darlington Nwokocha, Chairman, House of Representatives Committee on Insurance and Actuarial Matters, assured NDIC that the legislature would be used to strengthen Nigeria’s Financial Safety-Net.

“The Insurance Bill which is almost getting to the third reading will highly synergise what we are doing to a very great height.

“When we are talking about strengthening, there are too many indices and factors that must come together to guarantee such strengthening.

“I think that one of the core reasons the machinery to drive that process will come from the legislature and that is the more reason why we are saying that we are ever ready to strengthen the NDIC Act by amending that Act,” Nwokocha said.

One of the participants, Oghene Emmah Egoh, representing Amuwo Odofin Federal Constituency, Lagos State, urged the Corporation to ensure it properly regulated to new banks as the financial industry was rapidly growing.

See also  NDIC Begins Payment of Dividends to Depositors of 14 Closed Banks

“This topic will enable us to look at the financial industry and see how we can handle it by ensuring that the nation moves forward because if there is a crisis in the finamcial industry then this country is finished.

“But they will need to consolidate, they will need to expand and look at the new businesses that are coming up for instance, several new companies do money transfer using different apps and all these ones are part of the financial services,” he said. (NAN)

BUSINESS

Foreign Inflows Fall by 32%, UK, South Africa, others Slash Nigeria Investments

Published

on

Central Bank of Nigeria CBN
Share

The Central Bank of Nigeria has disclosed that capital importation into the country fell by 32 per cent to $500m in October 2021, from $660m recorded in September.

The CBN disclosed these figures in its latest monthly economic report (October) recently released on the bank’s official website.

The decline is a negative turnaround from the increase recorded in September when capital inflow rose by $220m from $440m in August.

The report also shows that there is a corresponding decline in investment inflows from the United Kingdom, South Africa and other countries leading the pack in capital importation into Nigeria.

A breakdown of the inflows recorded in October shows that foreign portfolio investments dominated capital importation with a value of $330m.

The CBN said, “New capital importation decreased by 32.0 per cent to US$0.50bn in October 2021, from US$0.66bn in September 2021.

“Disaggregation of capital importation by type of investment shows that foreign portfolio investment inflow (mainly money market instruments), at US$0.33bn, decreased by 34.0 per cent, relative to the US$0.50bn in September 2021.

“Despite the decline, portfolio inflow remained dominant in total foreign investment, accounting for 65.0 per cent.

“The inflow of other investments, mostly loans, was US$0.14bn or 28.2 per cent of the total, a slight increase from US$0.13bn in September 2021.

See also  Emefiele Assures Investors of Funds Security

The report also noted that foreign direct investment accounted for only 6.8 per cent of capital inflows in October at $30m.

Considering capital importation by nature of business, the central bank said financing led the chart representing 47.4 per cent, banking stood at 13.8 per cent, shares got 12.9 per cent while trading was 8.9 per cent.

Other sectors such as telecommunication and service contributed 7.4 per cent and 3.8 per cent, production/manufacturing accounted for 3.6 per cent while agriculture contributed 2.1 per cent.

The CBN added that, “Capital importation by country of origin indicates that the Republic of South Africa led the pack (46.1 per cent), followed by the United Kingdom (16.4 per cent) and Singapore (10.0 per cent). The Netherlands contributed 9.5 per cent, the United States of America (9.4 per cent), Guinea (2.0 per cent), Mauritius (1.8 per cent), United Arab Emirates (1.0 per cent), Czech Republic (0.9 per cent), and Denmark (0.9 per cent). Others accounted for the balance.

“Analysis of capital importation by destination (states), reveals that Lagos and Abuja were the main recipients with US$0.44 billion (or 88.3 per cent) and US$0.06 billion (or 11.7 per cent) of the total, respectively.”

Continue Reading

Business Analysis

FIRS Loses N5.8bn to MDAs Tax Evasion, Others – Report

Published

on

Share

The non-remittance of tax deductions by ministries, departments and agencies of government as well as the House of Representatives and Senate led to the loss of tax revenue of N5.8bn by the Federal Inland Revenue Service in 2019.

The Office of the Auditor General of the Federation disclosed this in its 2019 Annual Report on non-compliance, internal control, and weakness issues in MDAs of the Federal Government of Nigeria for the year ended December 31, 2019.

The MDAs are the Federal Ministry of Agriculture and Rural Development; Federal College of Freshwater Fisheries Technology, New Bussa; Advertising Practitioners Council of Nigeria; Nigerian Civil Aviation Authority; Nigerian Communications Satellite Limited; Hussaini Adamu Federal Polytechnic, Jigawa State; Federal Medical Centre, Keffi, Nasarawa State’ Department of Petroleum Resources; National Assembly Service Commission; and Nigerian Correctional Service.

The report said between 2018 and 2019, the MDAs failed to either remit one per cent stamp duty, value added tax, withholding tax or Pay As You Earn tax deducted from awarded contracts, thereby contravening sections of the Financial Regulations and Treasury Circular issued on December 29, 2015.

According to the report, Paragraph 234(I) of the Financial Regulations states that ‘it is mandatory for accounting officers to ensure full compliance with the dual roles of making provision for the Value Added Tax and withholding tax due on supply and services contract and actual remittance of same’.

See also  IATF2021 Poised to Boost Commerce Across Africa

It quoted Paragraph 235 as saying, “Deduction of VAT, WHT, and PAYE shall be remitted to Federal Inland Revenue Service at the same time the payee who is the subject of deduction is paid.”

According to the report, the Treasury circular Ref No. TRY/A12&B12/2015 and OAGF/CAD/VOL.II/390 dated December 29, 2015 states that “1% Stamp Duty chargeable on contract awards and the remittance be made to the relevant tax authority (Federal Inland Revenue Service).”

It said, “The audit observed that the sum of N5,828,621,715.06 was the amount of taxes not remitted by 12 Ministries, Departments and Agencies.

“The Nigerian Civil Aviation Authority has the highest amount of N2,984,887,250.00 while Federal College of Freshwater Fisheries Technology, New Bussa has the least amount of N1,021,011.13.”

Continue Reading

BUSINESS

Customs Targets N4.1trn Revenue in 2022

Published

on

Share

The Nigeria Customs Service (NCS) says it has a revenue target of N4.1 trillion in 2022.

NCS had said it generated N2.3 trillion revenue in 2021, exceeding the target by N63 billion. The FG had set a 2021 revenue target of N1.

67 trillion for the agency last year.

Yusuf Malanta, customs area controller (CAC), Apapa Command of NCS, disclosed this during a press briefing in Lagos yesterday.

According to Malanta, the command gathered N870.4billion from importers in 2021.

Furthermore, he said the revenue profile of the command increased significantly by 68 percent in 2021, compared to N518.

4 billion collected in 2020.

He also said the Apapa command was ready to achieve the 2022 revenue target.

“The revenue target of the NCS has been increased to N4.1 trillion,” he said.

“For us in Apapa Area Command, we have already boarded and fastened our seats towards the realization of this revenue target.

“We hope that the service will surely leverage the deployment of digital transformation of Customs business processes which will further take care of many control mechanisms through its risk management system.”

Speaking on the revenue collected for 2021, Malanta said despite COVID-19, gridlock, and other challenges, they were able to overshoot their target.

See also  Court Orders Reopening of Wuse, UTC Markets in FCT

“Despite the enormous challenges faced in the trade supply chain; occasioned by Covid-19 pandemic still ravaging economies around the world, high cost of freight, incessant traffic gridlock, rail construction through the port, as well as ensuring an increase in compliance level from stakeholders, the Command between January and December 2021 was able to collect a revenue of N870,388,340,650.65 and remitted to the federation and non-federation accounts of the Federal Government, respectively,” he added.

“This clearly shows that the revenue profile of the command has significantly increased by about 68% when compared with the collection of N518.4 billion in the year 2020.”

Continue Reading

Email Subscription

Name *

Email *

Top Stories

Foreign News4 hours ago

First Foreign Planes Arrive in Stricken Tonga

Share Post Views: 16 The first foreign aid planes have arrived in Tonga, bearing much-needed supplies for the Pacific nation...

Foreign News4 hours ago

Burkina Faso Shuts Facebook over Security Concerns

Share Post Views: 29 The authorities in Burkina Faso have said they disrupted access to Facebook due to security fears....

Foreign News4 hours ago

Church Stampede Kills Liberian Worshippers

Share Post Views: 29 At least 29 people, including 11 children and a pregnant woman, have died in a stampede...

Labour4 hours ago

The Imperative of Manpower Development in Ogun Civil Service

Share Post Views: 32 By Ebunlomo Taiyese Okuwa The civil service refers to a sector of government that comprises workers...

POLITICS5 hours ago

2023: North East Group Beckons on Akpabio to Run for Presidency

Share Post Views: 30 By Mohammed Muktar Umar, Bauchi A political pressure group within the ruling All Progressives Congress (APC)...

COLUMNISTS5 hours ago

Buhari, Amaechi and a Regime of Contractual Impunity

Share Post Views: 28 By Odunayo Ajala As I sit to write this piece, a wave of indignation is sweeping...

COLUMNISTS5 hours ago

Killings: Where are Northern Elders?

Share Post Views: 33 By Emmanuel Onwubiko Nigerians must reinvent their collective sense of national outrage so we can know...

SPORTS8 hours ago

Sierra Leone, Equatorial Guinea Fighting for their AFCON Lives

Share Post Views: 41 Qualification for the knockout stages of the Africa Cup of Nations will be on the line...

SPORTS8 hours ago

Tunisia Looking to Deny Gambia Top Spot in Group F

Share Post Views: 36 Africa Cup of Nations debutants Gambia will be looking to secure top spot in Group F...

Foreign News8 hours ago

Egypt Edge Sudan to Secure Last 16 Berth

Share Post Views: 31 Egypt have secured a last 16 berth at the Total Energies Africa Cup of Nations after...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc