City Crime
Improve Regulatory Capacity, LCCI Urges CBN
The Lagos Chamber of Commerce and Industry (LCCI) has said that due to the significant growth in Nigeria’s banking industry in recent times, that there was need for the apex regulatory body, the Central Bank of Nigeria (CBN) to also scale up its supervisory capacity.
This it said is necessary if the Central Bank would do its work of supervision well.
The Chamber, which spoke through Asiwaju Solomon Kayode Onafowokan, its President, said the accompanying sophistication in the operation of the bank, disversity and complexity of their operations require that the CBN also raises its bar of supervision.
According to him, the CBN should as a starting point, examine critically capacity issues within its operations while also ensure improvement of in- house capacity through training and related programmes.
He said the bank should also ensure recruitment of experienced hands from the industry; and engagement of consultants through outsourcing.
He observed an astronomical growth in the rate of credit, alongside rise in non-performing loans over the last five years, saying this has credited serious difficulties for banks in accessing assets used as collaterals for most of the non-performing loans.
He said it has created serious risk management for many banks, adding: “The legal processes involved in debt recovery are cumbersome, awkward and frustrating. The new CBN leadership, in collaboration with the National Assembly, should put in place enabling legislations to protect creditors from debtors who deliberately want to avoid repayment of loans. The CBN should be part of the courts that would deal swiftly with debt recovery issues, among other commercial disputes.”
He made reference to the current global financial meltdown, saying the huge exposure of Nigerian banks to the capital market and resultant adverse impact on asset quality was mainly a failure of risk management.
Onafowokan said the chamber is pleased to note that risk management is an area of core competence of the new governor of the CBN and that they were expecting him to bring this to bear on the quality and standards of risk management in the industry.
He said compliance with the best practice standards outlined in the Basle 11 Acord should be rigorously enforced for operators in the industry, and that the CBN should ensure full disclosure by banks with regard to their exposure and also full provisioning.
According to the LCCI President, this will help preserve the stability of the financial system, protect the depositors’ funds and safeguard the investments of the shareholders.
He said the pressure on the financial sector at times like this is quite high, and that the capital market window for the boosting of capital and liquidity is no longer as robust as it used to be.
He said given that investors’ confidences had dwindled considerably, there is need to create a conducive environment for market driven consolidation to create accommodation for the weak banks.
According to him, this would encourage voluntary mergers and acquisition which would result in stronger banking institutions and a more stable financial system.
“One of the major initiatives to lessen the impact of toxic assets on the financial system was the move to create asset management company to manage toxic assets. This has been in a drawing board for over five years. We appreciate that there should be an enabling legislation for this to happen. We urged the governor to work closely and quickly with the national assembly to fast-track the process for the creation of the asset management company to bring relief to banks which are burdened with loans” the LCCI President said.
Rivers State Governor, Sir Siminalayi Fubara, has felicitated Muslim faithful as they celebrate the birth of Prophet Muhammad, urging them to show love, tolerance, perseverance, patriotism and commitment to the growth and development of the State.
Governor Fubara, in a message in Port Harcourt, the State capital, urged the Muslim Ummah to use the lessons of the 12th day of the third month of Rabi’ al-Awwal to reflect on the core teachings of the Holy Prophet, and interceed for one another as exemplified by the sacrifices He made for humanity.
The Governor charged the faithful in the State and across the country to commit to ensuring that they continue to benefit from the genuine policies and programmes of government put in place to make live easy for all living and doing business in the State, without discrimination.
He said, “I, on behalf of the government and good people of Rivers State, heartily felicitate all Muslim faithful on the occasion of the Eid-el-Maulud celebration, to honour the birth of the Holy Prophet Muhammad, and urge for prayers for the revival and unity of Nigeria.
“The occasion, yet again, provides an opportunity to reflect deeply on the need for greater application of the Prophet’s teachings bordering on piety, charity, patience, resilience, justice and peaceful coexistence,” he added.
Governor Fubara assured the Muslim community in Rivers State, and indeed, all residents of the resolve of his administration to sustain the tempo of providing critical projects and social services to improve the quality of life of the people.
Workers in the nation’s telecommunication-s industry, under the aegis of the Private Telecommunications and Communications Senior Staff Association, PTECSSAN, will today begin an indefinite nationwide strike over sack, and poor working conditions, among others.
Among the employees going on strike include field maintenance engineers, transmission engineers, customer service engineers, fibre engineers, and other critical staff.
There are fears that the strike could disrupt telecommunications services nationwide if not resolved quickly.
The Tide’s source gathered that PTECSSAN, has pending issues with no fewer than 39 telecoms servicing companies including the sack of three of its members by Specific Tools & Technology Limited.
The 39 companies provide critical support services to the telecommunications operators in the country.
The Tide’s source was informed that the union had earlier given a seven-day strike notice to the affected companies to address its demands or risk indefinite strike.
Among PTECSSAN’s demands include immediate recognition of the fundamental right of the employees to freely associate with the union, immediate recognition of the union as negotiating body for the employees on workers welfare and immediate remittance of membership dues into the union’s account as earlier provided.
The demands equally are immediate recognition of the years of service of these workers, immediate commencement of appropriate pensions deduction and remittance of same as required by the Pension Act, immediate approval of the National Health Insurance Scheme that covers the employees, their spouses and four of their dependents, immediate enrolment of Union members in the Group Life Insurance as stipulated in the Pension Reform Act 2004, Section 9(3).
The union is also demanding immediate implementation of leave and leave allowance in accordance with the international best practices, immediate negotiation on review of salaries of the workers to meet the economic reality in the country today, and immediate provision Operational Vehicles or in the alternative immediate negotiation on review of the Self Drive/Self Rental to meet the economic reality in the country today.
Also in the union’s demands are immediate stoppage of 24-hour job and introduction of work hours in line with the international best practices, immediate stoppage of work overload (combining passive tasks to theirs) on the workers, and immediate adherence to occupational health and safety for the workers in line with international best practices.
Announcing the commencement of strike, General Secretary of PTECSSAN Abdullahi Okonu said “We have made every effort to engage with employers, but our legitimate demands have been disregarded.
“This strike is a last resort to protect our members’ rights and well-being. We urge the public to understand our position and support our struggle for fair treatment.”
While pleading with Nigerians to bear with the Union throughout the period of the strike, PTECSSAN “assures that it will engage with employers and the government to resolve the issues, but the strike will continue until their demands are met.”