The Nigeria Deposit Insurance Corporation (NDIC) has extended its insurance coverage to subscribers of Mobile Money Operators (MMO) to the maximum limit of N500,000.
The Managing Director/ Chief Executive Officer, NDIC, Umaru Ibrahim, disclosed this during the NDIC’s special day at the 33th edition of Lagos International Trade Fair on Wednesday.
He said, “One of the most significant achievements of the corporation is the provision of the deposit insurance coverage to subscribers of Mobile Money Operators to the maximum limit of N500,000 through the pass-through deposit insurance framework.
“As it stands, the number of licensed MMOs by the Central Bank of Nigeria is 23, with eight being bank-led and the remaining 15 non-bank-led. As of 30th June, 2019, the number of subscribers to the MMOs stood at 9,249,265.”
As provided in the NDIC Act 2006, Ibrahim explained that when insured financial institutions failed, depositors of Deposit Money Banks, Non-Interest Banks and Primary Mortgage Banks were reimbursed up to a maximum limit of N500,000, while the maximum insured coverage for depositors of microfinance bank would be N200,000.
He added, however, that the insured limits were periodically reviewed by the board of the corporation to ensure that majority of depositors were covered.
He said that the corporation as of June this year, received a total number of 35 petitions and complaints from bank customers on various issues such as the ATM frauds, unauthorised fund transfers, cheque related issues and much more.
Ibrahim said investigations and mediation were carried out where necessary and customers were appropriately reprieved.
According to him, the corporation took the measures so as to engender confidence in the system and discourage bank customers from keeping cash at home, shops and other places outside the banks.
UBA Rolls Out Quick Loan Facility For Salary Earners
The United Bank for Africa (UBA) has rolled out a low interest loan facility that is targeted at addressing the urgent needs of customers that have salary account with the bank.
The UBA’s low interest loan facility which is ‘Click Credit’, it was gathered, can enable salary earners that have salary account with the UBA to obtain such loan up to the tune of N5 million.
Disclosing this in a chat with aviation correspondents, yesterday, the UBA’s Group Head of Marketing, Dupe Olusola, said that the bank as part of its programmes, was committed to empowering its customers to fund urgent needs.
According to her, customers can apply for loans up to the tune of N5 million and pay back in a period of 12 months at an interest rate of 1.58 percent, monthly.
She said that salary earners that are aged between 18 and 59 years who earn at least N25,000 monthly are also eligible for the loan without need for paper work at extra cost or collateral.
“Some customers have begun to enjoy the service after eligibility for the loan had been concluded, within a minute.
“As Africa’s most innovative and technology driven financial institution with array of novel products and services tailored to the needs of its millions of customers, we have launched ‘click credit’.
“This product is straightforward and more affordable than many other loan products in the market. Its unique feature is that it meets a critical credit need of our customers”, she said.
The UBA marketing executive, however, disclosed that the product was first rolled out in Nigeria before subsequent release in other countries where the bank operated.
By: Corlins Walter
Nigeria’s Foreign Reserves Drop By $1.64bn
Nigeria’s foreign exchange reserves continued its downward trend as it dropped by $1.64bn from $38.34 billion on January 15, 2020 to $36.69 billion on February 20, latest figures from the Central Bank of Nigeria(CBN) has revealed.
The apex bank disclosed that the reserves stood at $38.53 billion on January 2, 2020.
According to the figures, the reserves dropped from $39.8 billion on November 11, 2019 to $39.24 billion on December 13, after falling by $1.26 billion from $41.76 billion on October 2 to $40.5bn as of the end of October.
The reserves dropped by $482.18m from N45.14 billion as of July 8 to $44.65 billion on August 8.
The CBN Governor, Mr Godwin Emefiele, said recently that Nigeria’s overdependence on crude oil for over 60 per cent of fiscal revenue and over 90 per cent of forex inflows meant that shocks in the oil market were transmitted entirely to the economy via the forex markets as manufacturers and traders who required forex for input purchases were faced with dwindling supplies.
He said, “Average monthly inflows of forex into the CBN fell from over $3.4 billion in June 2014 to a low of $1.4 billion in September 2016. The decline in forex earnings was further complicated by the foreign capital flow reversals due to rising yields in the USA. The impact on our economy was evident in the rising pressure on the naira-dollar exchange rate.
“With the drop in forex inflows, the exchange rate at the parallel market rose from about N200/$ in August 2015 to N525/$ in February 2017. Inflation also rose from 9.6 per cent in January 2016 to over 18.7 per cent in January 2017.
“Our external reserves fell from about $31billion in April 2015 to $23 billion in October 2016, and activities in the industrial sector witnessed a lull as manufacturers struggled to get access to key inputs needed in the production process.”
He said the CBN introduced a demand management approach in order to conserve the country’s reserves and support domestic production of certain goods in Nigeria.
Emefiele said the impact of a tighter monetary policy regime, attractive yields in the money market, and the bank’s efforts at supporting domestic production in the agriculture and manufacturing sectors, along with improvements in oil production, had supported continued forex inflows into the Nigerian market.
He stated, “In the import and export window, over $60 billion worth of transactions have taken place since the inception of the window in April 2017, and our foreign exchange reserves are above $40 billion as at October 2019, relative to its low point of $23 billion in October 2016.
“We have been able to build our reserves in the midst of lower oil prices, as strong reserves aid the confidence of domestic and external investors. Today, our current stock of external reserves is able to finance 12 months of current import commitments.”
Food Security: FG To Develop Agro-Industrial Processing Zones
The Minister of State for Agriculture and Rural Development, Mustapha Baba Shehuri, has stated that the ministry, in collaboration with African Development Bank (AfDB), would promote and develop Special Agro-Industrial Processing Zones (SAPZs) in the country.
This he said was aimed at enabling both local and foreign partners to advance the level of trade and investments in the agricultural sector as a veritable strategy to diversify the economy.
The minister made this known during the Ecobank Agribusiness Summit with the theme, “Unlocking Productivity and Investment Opportunities across Nigeria’s Agribusiness Value Chain,” a collaboration with Vanguard Newspapers, held in Lagos recently.
Shehuri noted the need for a viable synergy and collaboration of all the relevant stakeholders including the financial sector as well as governments at various levels and the development partners.
He further said, “within the overall set of policy principles, the Federal Government is concentrating on providing an enabling environment and a level playground for stakeholders at all levels to enhance investment and capital flow into the agric sector.”
He stated that, “this summit also marks another milestone and traction in the journey of economic diversification in line with the vision of the Economic Recovery and Growth Plan (ERGP) of the present administration of President Muhammadu Buhari.”
According to him, it is critical “to boost agricultural production, food security, promote innovative technologies and investment in the agricultural sector in order to achieve poverty reduction and job creation, especially for our aspiring youths.”
He emphasised that Nigeria’s potential and prospects make the agricultural sector a pivot for economic stabilisation, diversification and growth for the country, adding that the sector remains a major contributor to the GDP with about 27 per cent and the biggest in the area of job creation in the non-oil sectors.
Education2 days ago
Okowa Approves Supply Of Science Equipment To Public Schools
Politics1 day ago
Insecurity: Rep Urges nass To Begin Buhari’s Impeachment
News2 days ago
Bayelsa: Rivers NASS Caucus Berates FG Over Attack On Odili
Niger Delta2 days ago
25 Ex-Agitators Get Presidential Amnesty, Commodity Starter Packs
Politics2 days ago
Senator Intervens In Ondo Community, BEDC Row
News2 days ago
Army, Boko Haram Clash Claims Soldier, Terrorists In Adamawa
News2 days ago
Late Mechanic: Rivers CP To Disclose Autopsy Result
Business2 days ago
LASG Opens FADAMA Food Market In Badagry