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CBN emphasizes Fintech regulation, tasks Fintechs on inclusion  

The CBN has tasked Fintech companies to put in more effort to drive financial inclusion in Nigeria by providing services at low cost to consumers.  

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Aishah Ahmad, Central Bank of Nigeria, Godwin Emefiele,, CBN emphasizes Fintech regulation, tasks Fintechs on inclusion, Here’s why women are financially excluded in Nigeria 

The Central Bank of Nigeria (CBN) has tasked Fintech companies to put in more effort to drive financial inclusion in Nigeria by providing services at low cost to consumers.

The Deputy Governor, Financial System Stability, CBN, Mrs Aishah Ahmad, while delivering her keynote address at the Nigeria Fin-tech week in Lagos yesterday, stated that customers would have greater freedom if prices were favourable.

Fintech as a tool and as institutions would help us meet a number of objectives. Customers would have greater freedom, wider access at favourable prices and even at zero prices.”

[READ MORE: CBN automates trading system, introduces electronic form to facilitate exports]

However, as earlier published on Nairametrics, the CBN is moving to regulate the activities of fintechs which are disrupting the financial services industry by enabling banking services to be provided at cheaper rates.

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Mrs Ahmad, speaking on the regulatory concerns said, “The challenge before us shall be to thrive not survive so that the benefit outweighs the risk. We see innovation and it is good, but it must be responsible, it must be inclusive and it must be held accountable.

“Policymakers are faced with a number of considerations, a few questions that have no easy answers and I’ve had this conversation in Nigeria and out of the country and no one has an answer. The first one is the supervisory and regulatory question. I get text messages every day asking about new companies and what they are doing and I’m asked if they are regulated and the question arises because there are new companies that are doing the same things banks are doing but are not being regulated by banks.

“All regulatory institutions including the central bank are faced with developing the framework to keep up with these technological changes that would retain the confidence. It is the basic requirement for users of financial transaction to be sure that the system is safe and credible. We also need to think of how we use professionalism is our supervision, regulatory framework and so on.”

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[READ ALSO: CBN boosts cotton production with N19bn loan]

Meanwhile, the CBN praised the fintechs for breaking the jinx and allowing banking services to be more inclusive and offered at favourable prices, which will potentially lead to growth.

We having been trying for many years to lower the cost of deploying services by banks through many initiatives and some of these disruptions is actually helping us lower costs. Once more people are included, you would see better economic inclusion and you can have better growth.

1 Comment

1 Comment

  1. Iheanyi

    October 30, 2019 at 9:46 pm

    They CBN should consider utilizing “regulatoru sandboxes” to ensure that the right policies are formulated and implemented strategically.

    Such policies have to be well curated as they can either promote innovation or stifle progress

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Hospitality & Travel

COVID-19: Lufthansa resumes flights to Nigeria after 8 months suspension

After eight months of suspension due to the Coronavirus pandemic, Lufthansa Airline has resumed its flights to Nigeria.

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Lufthansa Group appoints Adenike Macaulay as GGM

Lufthansa Airline has resumed its flights to Nigeria after eight months suspension due to Coronavirus pandemic. The first Lufthansa flight arrived in Lagos on Thursday, 03 December 2020.

This was disclosed in a statement issued by the airline on Friday and seen by Nairametrics.

According to the airline, it is expected to do up to eight weekly departures scheduled from Lagos and Abuja Airports to Frankfurt. The German carrier also will offer up to five weekly departures from Lagos to Frankfurt and starting on 08 December also connect the capital Abuja with three weekly departures.

Adenike Macaulay, General Manager, Nigeria & Equatorial Guinea Lufthansa Group Airlines, said, “All intending travellers to Nigeria must have tested negative for Covid-19 as PCR test in the country of departure pre-boarding. The PCR test must be done within 120 hours before departure and preferably within 72 hours pre-boarding. International travellers will require a second test to be done in Nigeria, seven days after arrival.

“All long-haul flights depart from Nigeria in the evening as overnight flights, arriving in Lufthansa’s main hub Frankfurt in the early morning. This allows all passengers from Nigeria to get the full choice of connecting flights to European, American and Asian destinations, leaving all from the same terminal 1.

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‘’As we have received the final permission to reopen our flight operations, we are happy to be the first airline to reconnect Nigeria directly to the centre of Europe and onwards to all other continents. We offer a considerable number of flights to the US and Canada, allowing our Nigerian guests to have family members and friends again at reach throughout the world. Health and safety continue to be our top priority and we are committed to maintaining strict adherence to hygiene regulations for all our flights.”

What you need to know

Nairametrics Lufthansa has notified its patrons of the suspension of all flights out of Nigeria from 23 March 2020 to 19 April 2020. This was disclosed in an email sent by the airline through its agency, Lufthansa City Centre TIFA Travels and seen by Nairametrics.

In the notification, the airline explained that the decision was due to the current global situation and to curb the spread of Coronavirus, also known as COVID-19. It read,

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“Lufthansa flights out of Nigeria are hereby suspended from 23 March 2020 until 19 April 2020. The last flights from Lagos, Abuja & Port Harcourt will operate on Sunday 22 March 2020, to resume on 20 April 2020 as currently planned.

“Due to the uncertainty surrounding the spread of COVID-19 in Nigeria, our offices are closed to walk-in customers until further notice, however, we can be reached via telephone lines of our ticketing offices and reservation e-mails. We hope for your understanding as we would do our utmost best to ensure a quick response to your requests.”

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Companies

Abbey Mortgage Bank Plc projects N60.13 million profit in Q1 2021

Abbey Mortgage Bank Plc has projected a Profit after Tax (PAT) of N60.13million in its 2021 Q1.

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Abbey Mortgage Bank announce the appointment of substantive Managing Director, and 5 Directors.

Abbey Mortgage Bank Plc has projected a Profit after Tax (PAT) of N60.13million in its 2021 Q1.

According to the earnings forecast issued by the bank and seen by Nairametrics, it projected the 134.7% Q-o-Q rise from a loss of N173.49 million recorded in its most audited financial statement for Q3, 2020.

key highlights of its earnings forecast for Q1 2021 when compared with Q3 2020 figures include;

  • Pre-tax profit increased to N88.4 million, +151.5% Q-o-Q.
  • Interest income increased to approximately N515.9 million, +55.45% Q-o-Q.
  • Net operating income increased to N421.94 million, +79.9% Q-o-Q.
  • Interest expense increased to N208.06 million, +63.95% Q-o-Q.
  • Operating expenses declined to N333.52 million, -17.9% Q-o-Q.
  • Credit loss expense increased to N19.83 million, +100% Q-o-Q
  • Gross earnings of N649.83 million
  • Taxation of N28.3 million
  • Other income of N133.84 million.

Bottom line

Despite recording not too impressive results in its last financial statements, the firm is, however, optimistic going for Q1 2021 as reflected in its forecast.

This optimism might be premised on the news of a positive general economy by Q1 2021, which will trickle down to various sub-sectors of the economy.

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Economy & Politics

Nigeria needs $3trillion in 30 years to reduce infrastructure deficit – Osinbajo

Vice President Yemi Osinbajo has stated that Nigeria will need $3trillion in the next 30 years to reduce its infrastructural deficit.

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Solar, FG to slash import duties on tractors, buses, others in 2020 Finance Bill, Nigeria will not issue Eurobonds, says Vice President Yemi Osinbajo, FG guarantees mortgage loan to low income buyers at low interest rate, FG inaugurates gold refinery project in a landmark event

The Vice President, Yemi Osinbajo has said Nigeria will need $3trillion in the next 30 years to reduce its infrastructural deficit.

He disclosed this while featuring at a webinar organized by the Bureau of Public Enterprises (BPE).

Osinbajo told the webinar that Nigeria needs to adopt new models of investments for infrastructural developments because relying on public expenditure alone is not sustainable.

READ: How digital transformation will impact Nigeria’s projected $8.79 billion economic expansion

The seminar discussed the roles of Public-Private Partnership (PPP) in developing Nigerian infrastructure. The Vice President said Nigeria still face a huge infrastructural deficit, despite government investment which is a roadblock to rapid economic growth.

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The Federal Government recognizes this fact, which is why we are considering other approaches to complement and boost financing for the development and maintenance of infrastructure in Nigeria.

READ: Nigeria’s Broadband subscriptions peak at 82.7m – Prof. Danbatta

“It is clear that this deficit can only be made up by private investment. Private sector is 92 per cent of GDP, while the public sector is mere 8 per cent. So, the synergy between the public and private sector through Public-Private Partnerships (PPP) is really the realistic solution.

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“The fact that only N2.49 trillion was appropriated for capital expenditure in 2020, reflects the importance of deliberate and pragmatic action to boost infrastructural spending.

READ: #EndSARS: Infrastructure and Works, Education, 3 others are prioritised in Lagos’ 2021 budget

“It seems to me to be quite clear that the financial outlay and management capability required for infrastructural development and service delivery outstrip the financial and technical resources available to government.

“In other words, the traditional method of building infrastructure through budgetary allocations is inadequate and set to become harder because of increasingly limited fiscal space,” he said.

READ: FEC okays FMBN’s request to purchase banking application software for N487.39 million

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He revealed that the FG has launched a series of PPP’s to enable Nigeria meet its infrastructure deficit needs, citing the roles of agencies like the BPE with PPP’s.

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The Federal Government has recently issued a circular on the administration of PPP projects in the country to provide the much-needed clarity.

READ: AfDB to support FERMA with $10 billion for roads, others 

“The circular re-emphasises that the BPE shall be responsible for the concession of public enterprises and infrastructure already listed in the First and Second Schedules of the Public Enterprises Act.

“The circular equally stipulates that the BPE shall act on behalf of the Federal Government, as the counterparty on all infrastructure projects being developed on a PPP basis,” he said.

READ: CBN launches Private Sector-led Accelerated Agriculture Development Scheme

He disclosed that the Infrastructure Concession Regulatory Commission (ICRC) would continue to act as the regulatory agency for PPP transactions, with directives including inspections and monitoring PPP projects.

“It is expected that this new policy direction would provide clarity to stakeholders and foster the improvement of PPP programmes in the country.

“Ministries, Departments and Agencies, as well as the multilateral agencies and our development partners are urged to support the PPP policy objectives and institutional arrangements already put up by government,” he said.

READ: FG says vehicle owners to pay N250,000 to convert from petrol to autogas

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What you should know 

  • Nairametrics reported last month that Moody Investors Services revealed that Nigeria needs to spend about $3 trillion in over 30 years to bridge the infrastructural gap experienced in the country.
  • The Minister of Works and Housing, Babatunde Raji Fashola, revealed that the Federal Government needs at least N500 billion annually for the next 3 years to develop and fix its 35,000 kilometres road network, as work continues on 13,000 kilometres of the network.
  • Nairametrics also reported last month that the FG approved the establishment of an infrastructure company that will be wholly focused on critical infrastructural investments in the country.

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