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NIGERIA (old version) [Compatibility Mode]

Presentation · October 2019 DOI: 10.13140/RG.2.2.26779.41767

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Onukwube Alex Alfred Anedo Nnamdi Azikiwe University, Awka

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ABOUT THE SPEAKER

ALEX ALFRED O. ANEDO
DEGREES ACQUIRED:
N.C.E; BA.ED, M.A, PhD (African Culture & Civilization), DPM. (Chinese Culture) & M.A (Chinese Culture & Anthropology) In View
LECTURER: Nnamdi Azikiwe University, Awka-Nigeria
STUDENT: Xiamen University, P.R.C.

Major states and cities where importers come from: 1. Anambra (Onitsha & Nnewi) 2. Abia (Aba) 3. Lagos (Lagos) NIGERIAN STORY

FORMER BRITISH COLONY- INDEPENDENT IN 1960, OCTOBER IST.
HAD UNDERGONE TURBULENT TIMES IN THE PAST AS A RESULT OF MILITARY CUES
NOW A DEMOCRATIC NATION UNDER PRESIDENTIAL SYSTEM OF GOVERNMENT SINCE MAY 29TH , 1999
HAS 6 REGIONS, 36 STATES AND FEDERAL CAPITAL (ABUJA) NIGERIAN LANGUAGES

OVER 600 LANGUAGE/CULTURAL GROUPS
ALL NIGERIAN CULTURES ARE UNIQUE AND RECOGNIZED.
HOWEVER, ONLY THREE MAJOR LANGUAGES: IGBO, HAUSA & YORUBA ARE RECOGNIZED ALONG ENGLISH
THE MAJOR LANGUAGE GROUPS, IGBO(EAST), HAUSA(NORTH) & YORUBA(WEST). NIGERIAN ECONOMY

AMONG THE RICH NATIONS IN AFRICA
LARGEST PRODUCER OF PETROLEUM IN AFRICA & SIXTH IN THE WORLD
HAS FERTILE LANDS PRODUCING TIMBER, PALM OIL, COCOA, RICE, CASSAVA, YAM & MANY OTHERS
APART FROM ATLANTIC, HAS MANY RIVERS HENCE SEA FOODS NIGERIAN MARKETS • THESE PRODUCTS AND OTHERS ARE SOURCES FOR BIG MARKETS IN NIGERIA • THEREFORE EXPORTERS & IMPORTERS ABOUND IN VARIOUS CITIES SUCH AS ONITSHA, NNEWI, ABA (all in eastern part) and LAGOS in the West • HOWEVER, THESE IMPORTERS & EXPORTERS COULD NOT CARRY OUT THEIR LEGAL BUSINESSES ALONE WITHOUT BANKS BANKING IN NIGERIA BANKING SYSTEM COULD NOT BE SAID TO BE PALATABLE IN NIGERIA BEFORE 2004. MANY THINGS WENT WRONG :

A. IN NIGERIA, MOST OF THE BANKS HAD A LOW CAPITAL BASE, LESS THAN 10 MILLION US DOLLARS.

Nigeria, had eighty -nine banks many of which had a capital base of less than US$ 10 million.

This has rendered the system very marginal relative to its potentials and in comparison to other countries. There has therefore been the need to be proactive and to strategically place Nigerian Banks to be active players and not spectators in the emerging world economy. B. THE LOCAL BANKS IN NIGERIA WERE NOT VERY EFFICIENT AND ALSO THEIR CAPACITY WAS LOW. SO, THE GOVERNMENT HAD TO DEPEND A LOT ON THE FOREIGN BANKS

It has been seen as a paradox that despite the size of the economy, the country’s reserves are still deposited in foreign Banks due to the low capacity of the local Banks THROUGH FINANCIAL INTERMEDIATION, BANKS ARE SUPPOSED TO FACILITATE CAPITAL FORMATION AND PROMOTE ECONOMIC GROWTH BY OPERATING IN A SAFE AND SOUND MANNER. Weak corporate governance evidenced by high turn over in the Board and management staff, inaccurate reporting and non-compliance with regulatory requirements, late or non-publication of annual accounts that obviates the impact of market discipli ne in ensuring bank soundness;
In the past, some financial institutions showed glaring inability to maintain an efficient flow of funds within the economic system.
In as much as the minimum capital base requirement for banks was N2 billion, a lot of Banks still depended on deposits from the public sector. Many banks appeared to have abandoned their essential intermediation role of mobilizing savings and inculcating banking habit at the household and micro enterprise levels.
Although the distribution among banks of public funds was not uniform, there were some banks whose dependency ratios were in excess of fifty percent. The implications were that the resource base of such banks became weak and volatile, rendering their operations highly vulnerable to the swings in government revenue, arising from the uncertainties of the international oil market.
THE SHARP PRACTICES OF SOME BANKS TOGETHER WITH THE UNSOUNDNESS OF OTHERS LED TO A WIDE SPREAD OF FINANCIAL SECTOR DISTRESS AND LOSSES TO DEPOSITORS.

Gross insider abuses, resulting in huge non-performing insider related credits; insolvency, as evidenced by negative capital adequacy ratios and shareholders funds that had been completely eroded by operating losses. THE PROBLEMS CONTINUED

C. NIGERIA HAD BEEN SUFFERING FROM A WEAK CORPORATE GOVERNANCE AND INSOLVENCY FOR A LONG TIME. SO THE GOVERNMENT FAILED TO PROVIDE A SOUND BANKING SYSTEM.

D. MOST OF THE BANKS IN THE COUNTRY DEPENDED UPON THE PUBLIC SECTOR DEPOSITS WHICH WAS LOWERING THEIR CAPITAL BASE.

E. THE PUBLIC FUNDS HAD NOT BEEN DISTRIBUTED EQUALLY AMONG ALL THE BANKS. BANKING SECTOR REFORMS IN NIGERIA
On Tuesday, 6th of July 2004, the new Governor of the Central Bank of Nigeria (CBN), Professor Charles C. Soludo made pronouncements on Banking sector reforms.
. The first phase of the reforms is designed to ensure a diversified, strong and reliable banking sector, which will ensure the safety of depositors money, play active developmental roles in the Nigerian Economy and become competent and competitive players both in the African and global financial systems,
while the second phase will involve encouraging the emergence of regional and specialized banks. SOME KEY ELEMENTS OF THE REFORMS INCLUDE THE FOLLOWING: 1. Requirement that the minimum capitalization for banks should be raised to a minimum of N25billion (approx $250million) from N2billion (approx $15million) with full compliance before the end of December 2005.
Only banks that meet this requirement can hold public sector deposits and participate in the Dutch Auction System of buying and selling foreign exchange
Consolidation of banking institutions through mergers and acquisition
Phased withdrawal of public sector funds from banks.
Adoption of a risk focused, and a rule based regulatory framework.
Adoption of zero tolerance in the regulatory framework.
The automation process for reporting of returns.
Establishment of a hotline, confidential internet address for all Nigerians wishing to share any confidential information with the Governor of the CBN on the operations of any bank or the financial system.
Strict enforcement for the contingency planning framework for systemic banking distress.
Work towards the establishment of an Assets Management Company as an important element o f distress solution.
Promotion and enforcement of dormant laws, especially those relating to the issuance of dud cheques, and the laws relating to the vicarious liabilities of the Board members of banks in cases of failings by the bank.
Revision and updating of relevant laws and drafting of new ones to the effective operation of the banking system.
Closer collaboration with the Economic and Financial Crimes Commission (EFCC) in the establishment of the Financial Intelligence Unit, and enforcement of the anti -money laundering and other economic crime measures. Greater transparency and accountability will be the hallmark of the system CONSOLIDATION OPTION

The CBN has recognized that all over the world and given the internationalization of finance, size has become an important ingredient for success in the globalised world. The last few years have witnessed the creation of the world’s banking group through mergers and acquisitions.
Flowing from this, the CBN has stipulated that the only legal modes of consolidation allowed are mergers and outright acquisition/takeovers. A mere group arrangement is not acceptable for the purpose of meeting the minimum capital base. This means that all banks that have other banks as subsidiaries or have common ownership are encouraged to merge. THE INCENTIVES
The CBN has provided the following incentives for the Banks that consolidate or are able to achieve the required minimum capital base by 31 December 2005.
Authorization to deal in foreign exchange
Permission to take public sector deposits and recommendation to the fiscal authorities for the collection of public sector revenue
Prospects of managing part of Nigeria’s external reserves, subject to prevailing guidelines.
Tax incentives in the areas of capital allowances, company income tax and stamp duties.
Reduction in transaction costs.
Provision of team of experts to provide technical assistance to the Banks.
Another very important incentive the CBN has provided is Amnesty For Past Misreporting .
Banks are encouraged to be open in their negotiations by placing the actual value of their assets on table.
Sanctions will not be imposed for any previous misreporting detected in the course of consolidation.
However, if any of the parties to the consolidation is found after the consolidation exercise to have presented false or misleading information to the other parties and or the regulatory authorities, such party will bear the full legal and regulatory consequences of such misbehavior. IMPACT OF REFORM:

Several banks were able to increase their capital base through this reform. By merging some banks the government established an efficient and disciplined banking system. Many local banks were emerged, therefore the Nigerian government had no need to depend on the foreign banks fully. In one word, it can be said that, through banking sector reform the government of Nigeria was able to move their economy forward. FURTHER MOVES FOR BETTER NIGERIAN BANKING
Nigeria's banking sector is undergoing a series of changes aimed at overcoming the mistakes of the past.
The European Investment Bank (EIB) is providing €240m to three Nigerian banks for infrastructure projects, in a move that it is hoped will bolster confidence in the country's banking system. CURING NIGERIA'S BANKING WOES

Firing the chief executives responsible for mismanaging Nigeria's banks has been the first step to fixing the country's financial problems. Now the system is more transparent, Central Bank of Nigeria governor Lamido Sanusi is spelling out his vision for banking reform and stability LIST OF BANKS IN NIGERIA
This is a list of commercial banks in Nigeria:
Visit www.nigeriabusinessdesk.com to get the comprehensive list of Banks in Nigeria including their contact details:  Access Bank  Afribank  Bank PHB  Citibank  Diamond Bank  Ecobank LIST OF BANKS CONTINUED

 First Bank of Nigeria  First City Monument Bank  Fidelity Bank  First Inland Bank  Guaranty Trust Bank  IBTC -Chartered Bank  Intercontinental Bank  Nigeria International Bank  Oceanic Bank  Skye Bank  Spring Bank LIST OF BANKS CONTINUED

 Stanbic IBTC Bank Nigeria Limited  Standard Chartered Bank  Sterling Bank  Union Bank of Nigeria  United Bank for Africa  Unity Bank Plc.  Wema Bank  Zenith Bank CAREER WEBSITES OF THE 25 BANKS IN NIGERIA
Access Bank http://www.accessbankplc.com/index.cfm ID=9000
Afribank http://www.afribank.net
Bank PHB http://www.bankphb.com/hd/mainsite.as p
Diamond Bank http://www.diamondbank.com/metadot/i ndex.pl?id=4908
Ecobank http://www.ecobank.com/english/group/ model.aspx?RubID=6&SRubID=16
ETB http://www.equitorialtrustbank.com/?pa ge=pre_cv CAREER WEBSITES OF THE 25 BANKS IN NIGERIA
Fidelity Bank http://www.fidelitybankplc.com/bank/bank_ca reers.aspx
First Bank http://www.firstbanknigeria.com/car/car_opp ort.asp
FCMB http://www.fcmbltd.com/Fcmb/AboutUs.asp?id =2
First Inland Bank http://firstinlandbankplc.net/default.asp?r=3
GT Bank http://portal.gtbplc.com/portal/index.pl?iid=3 7237
IBTC Chartered Bank http://www.ibtc.com/career%20opportunity.as p
Intercontinental Bank http://intercontinentalbankplc.com/careers_at_ intercontinental.asp CAREER WEBSITES OF THE 25 BANKS IN NIGERIA
Nigeria Int'l Bank (Citibank) Oceanic Bank http://www.oceanicbanknigeria.com /#
Skye Bank http://www.skyebankng.com/openin g.php
Spring Bank http://www.springbankplc.com/care eer.htm
Stanbic Bank http://www.stanbic.com.ng
Standard Chartered Bank http://www.standardchartered.com/ global/home/careers_sitemap.html CAREER WEBSITES OF THE 25 BANKS IN NIGERIA
Sterling Bank http://www.sterlingbankng.com/final/c areers.cfm
Union Bank http://www.unionbankng.com/carreer.h tm
UBA http:// www.ubagroup.com/careers/defa ult.asp
Unity Bank http://unitybanknigeria.com/
Wema Bank www.wemabank.com/wema_careers.htm
Zenith Bank http://www.zenithbank.com/careers.cf m
First Bank traces its ancestry back to the first major financial institution founded in Nigeria; hence the name. First Bank has created a small market for some of its retail clients
At the end of August 2006, the bank had assets totaling 650 billion Naira or $5 billion dollars. The bank was also the most highly capitalized stock on • The Nigerian Stock Exchange, and had about 10 billion outstanding shares. It has a subsidiary in the United Kingdom, (UK), which has a branch in Paris. The bank also has representative offices in South Africa and China. • The company was named the best bank in Nigeria by Global Finance magazine in September 2006
The firm has solid short and long term ratings from Fitch and the Global Credit Rating Company partly due to its low exposure to non-performing loans. The firm's compliance with financial laws has also strengthened with the Economic Financial Crimes Commission giving it a strong rating.
The Bank traces its history back to 1894 and the Bank of British West Africa
The bank originally served the British shipping and trading agencies in Nigeria.
The founder, Alfred Lewis Jones, was a shipping magnate who originally had a monopoly on importing silver currency into west Africa through his Elder Dempster shipping company.
In 1957, Bank of British West Africa changed its name to (BWA). After Nigeria's independence in 1960, the bank began to extend more credit to indigenous Nigerians. At the same time, citizens began to trust British banks since there was an 'independent' financial control mechanism and more citizens began to patronize the new Bank of West Africa.
In 1965, Standard Bank of South Africa acquired Bank of West Africa and changed its acquisition's name to Standard Bank of West Africa. In 1969, Standard Bank of West Africa incorporated its Nigerian operations under the name Standard Bank of Nigeria. In 1971,
Standard Bank of Nigeria listed its shares on
The Nigerian Stock Exchange and placed 13% of its share capital with Nigerian investors.
After the end of the Nigerian civil war, Nigeria's military government sought to increase local control of the retail- banking sector. In response, now Standard Chartered Bank reduced its stake in Standard Bank Nigeria to 38%.
Once it had lost majority control, Standard Chartered wished to signal that it was no longer responsible for the bank and the bank changed its name to First Bank of Nigeria in 1979. By then, the bank had re- organized and had more Nigerian directors than ever.
In 1982 First Bank opened a branch in London, that in 2002 it converted to a subsidiary, FBN Bank (UK).
Its most recent international expansion was the opening in 2004 of a representative office in Johannesburg, South Africa.
In 2005 it acquired MBC International Bank Ltd. and FBN (Merchant Bankers) Ltd. Paribas and a group of Nigerian investors had founded MBC in 1982 as a merchant bank; it had become a commercial bank in 2002. FIRST BANK BAGS ISO/IEC 27001:2005 CERTIFICATION 09.07.2010
On September 7, 2010, First Bank of Nigeria Plc, received the prestigious ISO/IEC 27001:2005 Information Security Management Systems (ISMS) from the British Standard Institute (BSI), a leading organization in the field of auditing management systems and processes .
The certification is the world’s highest accreditation for information protection and security from the International Organization for Standardization (ISO). This feat, the first of its kind in corporate Nigeria, places the bank at par with leading international and multi -lateral corporate organizations including the International Monetary Fund (IMF) and the World Bank in the area of security and protection of customers’ information. . “It is a process that involved auditing and verification of the Bank’s Information Security Management System (ISMS) practices by the British Standard Institute (BSI), a leading organization in the field of auditing management systems and processes. The certification is a clear indication of the strength of our investments in people, process and technology for enhancing the customer experience by improving information security’’ he said.
The certification is in sync with the ongoing transformation in the bank. It is aimed at improving the bank’s systems and process with a view to outperforming competition, sustain its leadership position and meet the changing demands of different generations of customers .
With presence in London, Paris, Johannesburg and Beijing, First Bank is Nigeria’s most diversified financial services group and the most profitable. The bank recorded a six-month profit before tax of N31.7 billion and profit after tax of N25.3 billion during the six - month ended June 2010. NIGERIAN BANKS IN 2010, TOP 1000 WORLD BANKS RANKING

First Bank of Nigeria PLC.
Zenith Bank PLC.
GTBank Plc, Access Bank PLC.
UBA Plc, Fidelity Bank PLC.
FCMB, Skye and Diamond Bank PLC. THEIR POSITIONS

First Bank of Nigeria PLC. again occupies the first position among Nigerian banks with a Tier 1 capital of $2.277 Billion, down from $2.993 Billion in 2009.
First Bank ranked sixth in Africa and 285th in the world, down from 215th position in the world ranking in 2009. THEIR POSITIONS CONTINUED

Zenith Bank Plc is the second in Nigeria, 7th in Africa and 287th in the world. Its Tier 1 capital also plummeted from $2.935 Billion in 2009 to $2.270 Billion in 2010 NIGERIAN INSURANCE SYSTEM

Brothers and sisters, ladies and gentlemen, there is no gain spending time on insurance system in Nigeria. This is because what happened to banking sector also affected the insurance & stock exchange.
Right now, reorganization is still on in these industries with the hope that better business environment will emerge at the end. REFERENCES
"Nigeria - Unexplored Territory - With 84% Of Money In Circulation Outside The Banking System, Banks Have Little Impact On Nigeria's Population, Providing Few Consumer Retail Services And Virtually No Consumer Lending", The Banker, April 1, 2006
"FIRST BANK HAULS GLOBAL FINANCE AWARDS," Vanguard (Nigeria) September 13, 2006
Richard Fry: Bankers in West Africa, The Story of the British Bank of West Africa
Alfred Jones: Banking in West Africa. The Journal of African Society
Jibrin Abubakar (5 June 2009). "Onasanya Succeeds Sanusi as Firstbank GMD". Daily Trust . http://allafrica.com/stories/20090605 0124.html. Retrieved 2010-03-01.
List of Licensed Commercial Banks in Nigeria
Mergers in the offing Among Nigerian Banks
Savannah Bank Gets Its License Bank
About Skye Bank
THIS DAY Special Release, 2010: 09: 07. This Day Newspapers View publication stats