Banks’ customers pay N45.9b as account maintenance fees in H1’22 MONEY MARKET •As e-banking charges rises 21% By Elizabeth Adegbesan (YoY) rise when compared to YoY by 21 per cent to N246.77 N36.29 billion paid in the corresponding period of 2021. billion in H1’21. billion in H1’22 from N203.51 CUSTOMERS of leading commercial banks in Nigeria paid N45.9 billion as acmission data in the H1 ’22 Finan- paid for electronic banking ser- Findings from the fees and com- The data also showed that fees count maintenance fees in the first cial Statements of the banks vices rose by 21 per cent YoY to half of the year (H1’22). This represents a 26 per cent year-on-year sion income of the nine banks rose N71.38 billion in showed that net fees and commis- N86.52 billion in H1’22 from H1’21. CONFERENCE — From left: Social Impact Manager, Project Management Institute (PMI), Laura Davidson; Executive Director, Anzisha Prize, Josh Adler; Executive Secretary, MTN Foundation, Odunayo Sanya, and Managing Director, Sub-Saharan Africa, Project Management Institute (PMI), George Asamani at the 7th annual Project Management Institute (PMI) Africa Conference held on Tuesday, September 13, 2022, in Eko Hotels, Lagos. Nigeria’s GDP to reach 4% by 2023 —Moody’s By Elizabeth Adegbesan MOODY’s Investor Service has forecasted a 4.0 per cent Gross Domestic Product, GDP, for the Nigeria’s economy in 2023. However, the global finance and investments analytics company also indicated that in overall the GDP growth in Nigeria and other leading African economies would be muted by macroeconomic headwinds which would in turn hamper banks’ profitability. Disclosing these yesterday in a statement titled: “Banks – Africa: Higher inflation will weigh on CURRENCY BUYING SELLING US DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYAL RAND 217.60 - 6.35 2347.00 - 3.00 118.30 - 0.08 94.75 +1.55 87.47 -0.31 427.81 428.31 428.81 501.7783 502.3648 502.9512 435.4678 435.9767 436.4857 450.0894 450.6155 451.1415 3.0106 3.0141 3.0177 0.6426 0.6526 0.6626 557.1523 557.8034 558.4546 61.7633 61.836 61.9086 113.7944 113.9274 114.0604 25.1388 25.1682 25.1976 CBN Exchange rate as at 14/09/2022 •Says rising inflation, interest rates will reduce lending ECONOMY African banks’ profitability”, Moody’s stated: “Higher inflation and interest rates will hamper investment and economic activity, and slower real growth will, in turn, weaken banks’ business generation and loan quality. “In 2023, we forecast real GDP growth of 4.0 per cent in Nigeria, 4.5 per cent in Egypt, 1.5 per cent in South Africa,3.5 per cent in Morocco and 5.3 per cent in Kenya.” Moody also projected widening of net interest margins saying,”Net interest margins will widen, with banks with short-term or floating-rate loans benefiting most. “South African margins will benefit the most as interest rates rise; the impact for Nigerian and Kenyan banks will be more modest. “South African banks’ margins will benefit the most from higher interest rates, given the faster repricing of their assets relatively to their liabilities, while gains for Nigerian and Kenyan banks will be smaller, given the already high interest rates on their loans. “We expect the impact on Nigeria and Kenyan banks to be more limited because their lending rates are already high and the transmission of policy rates to lending rates is slow in both countries.” Moody’s also noted that rising inflation coupled with increasing interest rates will reduce the quality of banks’ lending in Africa. According to the company, higher inflation would diminish borrowers’ repayment capacity because income would be needed to meet other competing and rising costs. It stated:”Higher interest and inflation rates will increase loanloss provisions across the board. “We expect a bank’s exposure to sectors most vulnerable to inflation, such as households, will be a key factor impacting their provisioning costs. Higher inflation will diminish the borrowers’ repayment capacity because income will be needed to meet other competing and rising costs.” Vanguard, THURSDAY, SEPTEMBER 15, 2022 —21 The rise in electronic banking services fees indicates that more Nigerians are embracing the cashless policy of the Central Bank of Nigeria (CBN). Data released by the Nigeria Inter-Bank Settlement Systems (NIBSS) revealed that transactions worth N33.2 trillion were performed electronically in August through the NIBSS Instant Payment Platform (NIP) bringing the total value of e-payment deals Expert proffers solution to challenges in real estate investment By Cynthia Alo REAL estate investments may be facing challenges in return on investment as potential investors, especially Nigerians in diaspora, are said to be diverting to holding foreign currency assets in Nigeria. This was disclosed by Keji Giwa, the founder of Digital Landlords and ShortletHomes, who noted that Nigerians in Diaspora are not just high-income earners, but significantly contributing a whopping five per cent to Nigeria’s Gross Domestic Product, GDP. He said: “While the diaspora market clearly presents a huge opportunity to fund the Nigerian real estate, there is little attraction for investors to want to invest today out of the funds remitted to Nigeria each year from the diaspora market. in the last 8 months to N238.7 trillion. According to NIBSS, the data showed that the August 2022 record came as an all-time high e- payments value recorded in a month since the deployment of the platform. Compared to the N29.3 trillion recorded in July, the August figure showed a 13.3 per cent month-onmonth growth. YoY, the e-payment value increased by 50 per cent compared to N22.1 trillion recorded in August last year. NIBSS noted that the value of e- payment recorded was a reflection of the increase in the volume of deals within the month. The NIP volume rose to 448 million in August, showing a 10.6 percent increase over 405 million recorded in July. ECONOMY “The bad news is that investments into real estate have started to dwindle as more people start to realise it is better to invest in dollars or pounds rather than in naira.” Commenting on how to fix the current issues, he said: “Developers hold the key to making real estate in Nigeria attractive to Nigerians in diaspora. Nigeria is fast becoming the destination hub for indigenous tourist every easter, summer and what is now called dirty December. Property developers should focus on recreational real investment to attract tourism and recreational activities. This will boost the recreational short let market which can generate as 30 per cent Return On Investment for investors.” FCCPC tasks Nigerians on sustainable consumption By Yinka Kolawole THE Federal Competition and Consumer Protection Commission (FCCPC), has called on Nigerians to embrace the culture of sustainable consumption, even as Nigerians are said to use and dispose about 60 million plastic sachets every day. Vice Chairman/Chief Executive Officer, FCCPC, Mr Babatunde Irukera, said this at a one-day stakeholders’ workshop on National Sustainable Consumption and Waste Management in Nigeria in Lagos. Irukera noted that the sustainable consumption initiative was borne out of a decision reached Heirs Insurance, Heirs Life Assurance commence Bancassurance with UBA By Cynthia Alo HEIRS Insurance Limited (HIL) and Heirs Life Assurance (HLA) have commenced a bancassurance partnership with global banking group, the United Bank for Africa (UBA). The partnership will permit the distribution of affordable and dependable insurance products for all, at UBA Nigeria branches, providing a wider range of financial security options for individuals, families, and businesses, whilst driving financial inclusion starting mid next month. Speaking on the rollout, the Group Managing Director, UBA, Oliver Alawuba, said: “This partnership with Heirs Insurance Limited and Heirs Life Assurance helps us once again to significantly expand our branch and digital offering, to the benefit of our customers and advance our commitment to driving financial inclusivity.” Adaobi Nwakuche, Managing Director, Heirs Insurance, said: “This partnership will offer millions of people nationwide the •As Nigerians dispose 60m plastic sachets daily INSURANCE financial security that is so needed. We are committed to our transformative path of improving the lives of Nigerians, while ensuring that insurance is made accessible to all”. Managing Director, Heirs Life Assurance, Niyi Onifade, said: “We promised Nigerians accessibility to insurance, and this bancassurance partnership is one of the key ways we are fulfilling that promise. The new bancassurance partnership with UBA reaffirms our shared digital-first approach and innovation culture, which inspire us to provide the utmost value to our customers.” INDUSTRY by stakeholders during the 2020 World Consumer Rights Day. “They decided that we should set up a taskforce that will address the question of sustainable consumption. They have been working for the past two years and they have come up with an action plan” he stated. The FCCPC boss said that the advocacy aspect involved engaging consumers more on handling waste generally, particularly plastic, which does not decompose as well as managing it in a manner that promotes recycling and saves the environment. His words: “The level of plastic waste management in the country is high and we have a big problem with that. We also need to find more cost effective ways of distributing products and at the same time get consumers to be sensitive to their own habits.” In her presentation, a consultant, Funke Adekola, stated: “70% of Nigerians consume at least one bag of sachet water daily. This amounts to about 60 million plastic sachets that are being used and disposed off each day. “Plastic waste pollution in Nigeria is exacerbated by the general overdependence on plastic packaged consumer goods, which is influenced by factors such as sachetization of consumer goods; on-the-go consumption habits; economic Influences; and lack of suitable alternatives.”
22— Vanguard, THURSDAY, SEPTEMBER 15, 2022
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