published 16-03-2011; 9.34am

E-BANKING

REWANE ADVOCATES FOR INDUSTRY PARTNERSHIP

Mr. Bismarck Rewane, the managing director of Financial Derivatives Company (FDC), has called for direct collaboration between banks and telephone companies in other to improve the payment and settlement system in the country through tele-banking.

Tele-banking is a banking service that involves using the telephone to perform a variety of banking functions, although some aspects of this service are currently been offered by some institutions in the country. Rewane maintained that tele-banking, if fully applied, would expand accessto financial services in Nigeria.

He was speaking while delivering a paper titled, “Moving Nigeria’s Economy forward: what banks must do”, at a seminar organized by the Canadian High Commission, the Chartered Institute of Bankers of Nigeria (CIBN) and the Royal Bank of Canada (RBC) in Lagos.

He said this was necessary because as at today 40percent of Nigerians are financially excluded, assuring that with tele-banking they can be brought into the system. “The central bank should allow banks and telephone companies work together without middleman”, he argues.

MOBILE BANKING CRITICAL TO GROWTH IN BANKS

The banking sector in Africa is expected to grow by 15 percent over the next 10 years across Africa. This disclosure was made by consultancy firm Bain and Companyin a report which indicates that mobile phone banking would be a key driver of the growth.

The company predicts that Africa’s financial services industry valued at$107billion would log impressive growth for the rest of the decade as more banks targets the continent’s emerging middle class.

Mr. Andrew Tymms of Bain and Companyalso said the continent’s financial services industry would continue to grow at a compound annual rate of 15percent up to 2020, outpacing gross domestic product growth;especially with creative products likekiosk banking and community lending being pushed by regional banks such as South Africa’s Standard and Togo-Based Pan-African bank, Ecobank Transnational to widen their customer base.

CAPITAL MARKET

Stockbrokers Criticize NBC’s Planned Delisting

The decision of the Nigerian Bottling Company (NBC), to de-list from the Nigerian Stock Exchange(NSE) and become a private company has provoked an avalanche of criticism from shareholders, stakeholders and the public. According to the President of the Chartered Institute of Stockbrokers (CIS), Mr. Mike Itegboje, the company’s reason for de-listing is that it wants to become a wholly owned subsidiary of its parent company, Coca- Cola Hellenic Bottling Company (CCHBC). It is reported that the company is viewed by the CCHBC as operating on the sidelines, because of its NSE listing. Although the stock market permits free entry and exit of companies into the NSE, some shareholders have vowed to kick against the move, if they are treated unfairly.  Stockbrokers have also revealed that the move is likely to have adverse effects on the market, as well as the nation’s economy, as a company with a foreign - dominated board of directors is not likely to take decisions that would favour the Nigerian staff. Itegboje lamented that “having been nurtured to  a very rich and comfortable position, the majority Greek owners of NBC are not only de-listing, they are also dumping the Nigerian shareholders who have helped to sustain them over the years. They do not want any dilution (in share ownership).”  Beyond concerns over the dilution of shares many directors are worried that the market has been unfavourable and share prices do not necessarily reflect the value of their companies.

FRAUD

NIGERIANS LOSTN100BILLION TO WONDER BANKS - CBN

Central Bank of Nigeria deputy governor, Financial Systems Stability, Dr. Kingsley Moghalu,says that Nigerians may have lost over N100 billion to operators of wonder banks, many of whom close shop and escape after perpetrating their scams. He was speaking in Awka at a lecture he delivered to mark the sixth edition of the public service lecture series, organized by the Head of Service of the Anambra State Government.He said the wonder banks, so named because of their promised unbelievable returns to investors, are a big menace. Unfortunately, he adds, they are not under the purview of the CBN, they are under the Securities and Exchange Commission, and so the CBN could do little to apprehend them.He however disclosed that his office is liaising with the Securities and Exchange Commission and the Corporate Affairs Commission to come up with a solution to the menace of the wonder banks.He added that the problem with the wonder banks is that there was lack of disclosure and transparency.