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Adeduntan Urges Banks To Improve Loan Monitoring To Prevent NPLs’ Build-Up

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Managing Director/Chief Executive Officer of FirstBank, Dr. Adesola Adeduntan, has advised financial institutions in the country to be vigilant and improve the monitoring of their customers’ loans in order to prevent the build-up of non-performing loans (NPLs) in the industry as a result of the macroeconomic challenges.

Speaking in an exclusive interview with THISDAY, Adeduntan also urged businesses and their bankers to approach the new year in a collaborative relationship in order to overcome anticipated headwinds in the economy.

Adeduntan explained, “To prevent rising NPLs, businesses and their bankers will have to collaborate more and ensure timely flow of information to prevent surprises.

“Banks on their part will have to improve monitoring of their loan portfolio to quickly identify early warning signals for attention before a full-scale loan deterioration.

“Overall, businesses and their bankers must approach 2023 with a partnership mindset to ensure that a win-win outcome is achieved despite the anticipated macroeconomic challenges.”

Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, recently warned that 2023 would be tougher than 2022 for much of the global economy, as the United States, European Union and China see slowing growth.

Georgieva had said 2023 would be a “tough year”, with one-third of the world’s economies expected to be in recession.

The IMF had in October cut its global growth forecast to 2.7 per cent, down from 2.9 per cent forecast in July, amid headwinds, including the war in Ukraine and sharply rising interest rates.

Owing to the anticipated weakening of the global economy, Adeduntan said with slowing growth and elevated inflation rates, the sustainability of foreign debts, especially for developing nations, was likely to call for a re-evaluation by lenders given the increased likelihood of default.

He stated, “When this is juxtaposed with the higher interest rate environment at which these debts are likely to be refinanced, you will observe a scenario where further strain is exerted on the debt repayment capacity of these economies.

“However, this situation does not necessarily translate to an automatic economic doom for developing nations. The actual impact on each developing economy will depend on the economy’s level of fiscal discipline and revenue generating capacity.

“Developing nations, who are able, in the short term, to increase revenues either from taxes or sale/refinancing of idle/sub-optimal assets will be able to negotiate reasonable refinancing terms from lenders and prevent further economic turmoil.

“Nonetheless, all concerned nations need to take the issue of debt sustainability more seriously by limiting fiscal wastages, reducing inefficiencies, growing revenues, and aggressively working down unsustainable debt-to-GDP levels that may worsen the impacts of external shocks.”

Adeduntan also pointed out that expectedly, rising cost of debt and contracting demand would exacerbate the challenges that businesses would face this year, particularly for players operating in small-margins sectors of the economy.

Locally, the surging inflation rate was also expected to reduce disposable income of most consumers and demand for non-essential goods and services may dip, he said.

He, however, pointed out that despite the expected macroeconomic challenges in 2023, there were also emerging business and revenue opportunities that could be exploited by discerning players in the financial services industry.

Specifically, he identified the areas that would provide significant opportunity to players in the financial services industry to include payments, digital security, mergers and acquisition (M&A) opportunities, partnership across segments and consumer lending.

Adeduntan explained, “The Central Bank of Nigeria’s renewed drive on cashless policy has provided an opportunity for players in the financial services industry to enhance existing digital product offerings and create more attractive product offerings that will further reduce frictions in the payment process.

“This will help to reduce the financial exclusion gap, increase fees and commissions revenues, and improve overall viability and stability of the financial system.”

In the area of digital security, the chief executive said, “Increasing adoption of digital payments platforms will necessitate increased requirement for the security of payment channels. Thus, opportunities exist for players in the financial services industry to leverage robotics and artificial intelligence to improve security protocols on digital payment channels.”

He added, “With the anticipated pressures on earnings, opportunities exist for big and liquid players to gain additional scale and market share through outright acquisition of fringe players with the right strategic fit.

“There is also an opportunity for two or more small and/or medium size players to merge their operations/businesses to obtain scale advantage.

“The growing number of Fintechs and licensed Payment Service Banks also presents an opportunity for improved partnerships across various categories of players in the financial services industry for both mutual and industry-wide benefits.

“Tightening financial conditions of the average household will create opportunities for consumer loans in several variants such as buy-now-pay-later (BNPL), salary advance, consumer asset finance, etc. The industry is already witnessing a rising trend in the creation of digital consumer loan product offerings. This is likely to intensify in 2023.”

BIG STORY

Equitorial Guinea Sacks Senior Government Official, Baltasar Engonga Over “Sexcapade”

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The Director General of the National Financial Investigation Agency in Equatorial Guinea, Baltasar Engonga, has been dismissed following the discovery of over 400 explicit videos involving him with high-profile women across the country.

The dismissal, ordered by President Teodoro Obiang Nguema Mbasogo, was confirmed by Real Equatorial Guinea, which referenced Decree No. 118/2024, issued on November 4.

According to the decree, Engonga’s removal was due to alleged professional misconduct and personal behavior deemed incompatible with his public position.

The scandal surfaced during a fraud investigation involving the 54-year-old economist, leading to a surprise search of his house and office by ANIF officials.

During the search, they uncovered several CDs containing explicit videos that revealed his sexual encounters with different married women.

One of the women involved has since committed suicide. It has not been confirmed whether Engonga will face prosecution for his actions.

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BIG STORY

Kaduna Government Gifts N100,000, Smartphones To 39 Released #EndBadGovernance Protesters

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The Kaduna State government has provided N100,000 in cash, new smartphones, and additional support to 39 #EndBadGovernance protesters who were recently released from detention.

The government facilitated their reunion with their families on Wednesday, following their release from detention.

The reunion ceremony took place at the Children Homes along Kauru Road in Kaduna, where Governor Uba Sani offered support to the protesters, promising to assist them in reintegrating into society.

He assured them of opportunities for empowerment, contingent upon their commitment to lawful and responsible conduct.

Speaking to journalists after the release of the protesters, the Secretary to the Kaduna State Government, Abdulkadir Meyere, who represented the governor, revealed that Sani had instructed him to gather the credentials of those who have completed their tertiary education.

‘’The governor promised that some of them will be given start-up capital to begin trading, others will be taught skills, and some will be offered employment,’’ he said.

However, the SSG emphasized that the activities and conduct of the released protesters would be monitored to ensure they maintain good behavior, “before these benefits will be extended to them.”

Meyere also noted that the state government had taken the details of the released detainees, including their contact information, telephone numbers, and the names of their Next of Kins, to facilitate tracking and monitoring.

He further explained that the protesters underwent medical evaluations and received psycho-social counseling to encourage them to make positive changes and become productive members of society.

“Both Islamic and Christian religious leaders preached to them to embrace the teachings of their faiths and avoid bad company, so as to benefit from God’s blessings here and in the hereafter,” he said.

Meyere added that the detainees were each given a phone because they had lost theirs during detention, and ‘’the Governor has graciously given each of them N100,000 as a measure of goodwill.”

The state Commissioner for Human Services and Social Development, Hajiya Rabi Salisu, also addressed the protesters during the reunion, emphasizing the government’s commitment to their welfare.

She stated that the 39 protesters, including two minors aged 16 and 17, had received various forms of support from the government.

“We want you to be ambassadors of peace and preach peace within your peer groups, so you won’t be involved in any unlawful protests.

“We want you to return to a more peaceful environment with your families, and then we can invite you back for further training,” she said to the released protesters.

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BIG STORY

Two Robbers Gunned Down, 23 Suspects Arrested In FCT

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The Federal Capital Territory Police Command has killed two armed robbers during a gun duel and arrested four others in the Jahi area of the nation’s capital.

Additionally, no fewer than five car snatchers were arrested, and 13 stolen vehicles were recovered during operations carried out by the FCT command’s Scorpion Squad.

Speaking on Wednesday while parading the suspects in Abuja, FCT Commissioner of Police, Tunji Disu, said the armed robbers opened fire on October 21 after seeing police officers who had responded to a distress call about a robbery in the Jahi area.

According to Disu, during the ensuing gun battle, the police neutralized two of the armed robbers, recovered two of their vehicles, and arrested two suspects, Haruna Abdullahi, 32, from Ikara LGA, Kaduna State, and Yerima Usman, 28, from Itoro LGA, Bauchi State.

He said, “Upon sighting the police patrol vehicle, the suspects opened fire, and in the ensuing confrontation, two suspects were neutralized.”

Disu added that after a follow-up operation on October 23, the suspects led police operatives to arrest two additional gang members—Abba Ismail, aka Dan-Abba, and Ashiru Suleiman—who had escaped from the scene.

“During interrogation, the suspects confessed to being part of a gang of armed robbers led by one Dan Auwalu, who is still at large. So far, they have carried out armed robberies in Mabushi, Jahi, and Gishiri. Efforts are ongoing to apprehend the remaining gang members,” he stated.

Disu also identified the arrested car-snatching suspects as 32-year-old Arji Thomas from Gwoza LGA, Borno State; Amobi Ndukwe, 40, from Awgu LGA, Enugu State; and Amaechi Sampson, 26, from Imo State.

He said the trio—Thomas, Ndukwe, and Sampson—are members of a notorious car-snatching gang led by one Chidiebere, who is currently on the run.

According to him, the suspects were apprehended just as they were about to sell a stolen blue Toyota Corolla with registration number KTW 2155D.

“It is important to note that both Arji Thomas and Amobi Ndukwe are ex-convicts. During interrogation, they admitted to operating in Garki for the past year and a half, claiming responsibility for numerous car thefts within the metropolis,” Disu added.

Disu also explained how Joseph Abang was arrested. He said one Philemon Olaoluwa reported at the Central Police Station that his mechanic, Abdulhamid Saidu, had absconded with his car—a 2006 ash-colored Honda Accord with registration number RBC 40—after repairing it and taking it to Jos.

He added that Saidu, who is still at large, handed over the vehicle to Abang, who confessed to being part of a gang of car thieves operating in Abuja, Plateau, and Nasarawa states.

Disu said, “Extensive investigations led police operatives of the Central Police Station to Jos, Plateau State, where Joseph Abang was arrested. During interrogation, he informed the police that he belonged to a gang of car thieves who operated in Jos, Abuja, and Nasarawa State.

“He specializes in receiving, remodelling, and selling off vehicles stolen by his gang members. During a search operation at his residence and place of business, two additional vehicles—a Hyundai Accent and a Peugeot 208—suspected to be stolen were also recovered from him. He is in custody and will be charged in court upon the conclusion of the investigation.”

Disu also revealed that a Toyota Hilux with registration number 03A309 FG, stolen by a newly employed security guard, Usman Abubakar, was recovered. Efforts are ongoing to apprehend the suspect.

Disu explained that the vehicle, owned by Mr. Frank Udah, was stolen on October 7 by Abubakar, who had only been employed for three days. Preliminary investigations revealed that Abubakar took the vehicle to Nasarawa State, where he handed it over to two other gang members, who have since been arrested and are facing trial for another offence in Nasarawa State.

“Preliminary investigations revealed that the security guard, who had been employed for barely three days, stole the said vehicle on October 7, 2024, and took the same to Nasarawa State where he gave the vehicle to two other gang members who were arrested and currently facing trial for another offence in Nasarawa State. While the vehicle has been recovered, efforts are in place to arrest the suspect, Usman Abubakar, who is still on the run,” Disu stated.

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