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Improve Regulatory Capacity, LCCI Urges CBN
The Lagos Chamber of Commerce and Industry (LCCI) has said that due to the significant growth in Nigeria’s banking industry in recent times, that there was need for the apex regulatory body, the Central Bank of Nigeria (CBN) to also scale up its supervisory capacity.
This it said is necessary if the Central Bank would do its work of supervision well.
The Chamber, which spoke through Asiwaju Solomon Kayode Onafowokan, its President, said the accompanying sophistication in the operation of the bank, disversity and complexity of their operations require that the CBN also raises its bar of supervision.
According to him, the CBN should as a starting point, examine critically capacity issues within its operations while also ensure improvement of in- house capacity through training and related programmes.
He said the bank should also ensure recruitment of experienced hands from the industry; and engagement of consultants through outsourcing.
He observed an astronomical growth in the rate of credit, alongside rise in non-performing loans over the last five years, saying this has credited serious difficulties for banks in accessing assets used as collaterals for most of the non-performing loans.
He said it has created serious risk management for many banks, adding: “The legal processes involved in debt recovery are cumbersome, awkward and frustrating. The new CBN leadership, in collaboration with the National Assembly, should put in place enabling legislations to protect creditors from debtors who deliberately want to avoid repayment of loans. The CBN should be part of the courts that would deal swiftly with debt recovery issues, among other commercial disputes.”
He made reference to the current global financial meltdown, saying the huge exposure of Nigerian banks to the capital market and resultant adverse impact on asset quality was mainly a failure of risk management.
Onafowokan said the chamber is pleased to note that risk management is an area of core competence of the new governor of the CBN and that they were expecting him to bring this to bear on the quality and standards of risk management in the industry.
He said compliance with the best practice standards outlined in the Basle 11 Acord should be rigorously enforced for operators in the industry, and that the CBN should ensure full disclosure by banks with regard to their exposure and also full provisioning.
According to the LCCI President, this will help preserve the stability of the financial system, protect the depositors’ funds and safeguard the investments of the shareholders.
He said the pressure on the financial sector at times like this is quite high, and that the capital market window for the boosting of capital and liquidity is no longer as robust as it used to be.
He said given that investors’ confidences had dwindled considerably, there is need to create a conducive environment for market driven consolidation to create accommodation for the weak banks.
According to him, this would encourage voluntary mergers and acquisition which would result in stronger banking institutions and a more stable financial system.
“One of the major initiatives to lessen the impact of toxic assets on the financial system was the move to create asset management company to manage toxic assets. This has been in a drawing board for over five years. We appreciate that there should be an enabling legislation for this to happen. We urged the governor to work closely and quickly with the national assembly to fast-track the process for the creation of the asset management company to bring relief to banks which are burdened with loans” the LCCI President said.
The Rivers State Government has vowed to enforce strict compliance with approved building plans by property owners and developers in the State to guarantee safety and adherence to regulatory standards.
The Commissioner for Physical Planning and Urban Development, Rt. Hon. Evans Bipi, in his inaugural meeting with the Permanent Secretary, Directors and staff of the Ministry, said he would ensure full implementation of the Physical Planning Development Law of the State.
He warned that the Rivers State Government will no longer condone a situation where developers make deliberate adjustment or completely deviate from approved building plan in the execution of their projects without recourse to the Ministry.
Hon. Bipi solicited the cooperation of the civil servants of the Ministry while promising to run an open door policy and be easily accessible.
He also promised to right the wrongs, make a positive impact and leave an enduring legacy in the Ministry.
He promised to enhance the physical landscape and aesthetic of Old and New GRA as well as other parts of Port Harcourt.
In his remarks, the Permanent Secretary of the Ministry of Physical Planning and Urban Development, Surv. Wisdom Hebron, assured the Commissioner of maximum cooperation to foster a harmonious working environment.
Rivers State Governor, Sir Siminalayi Fubara, has approved the payment of N85,000.00 as the new minimum wage for civil servants in the employ of the Rivers State Government.
This is the agreement reached during a closed door meeting presided over by the Governor and attended by representatives of organised labour under the auspices of the Joint Public Service Negotiating Council in the State at Government House in Port Harcourt on Friday.
Briefing newsmen after the meeting, the Head of Rivers State Civil Service, Dr George Nwaeke, who spoke on behalf of the Government, affirmed that Governor Fubara has graciously approved a new minimum wage of N85,000.00, adding that the government will begin in November, 2024.
Dr George said, “He (Gov Fubara) has pronounced a figure that is higher than the National Minimum Wage. He pronounced a sum of N85,000.00, which is higher than the minimum wage that was prescribed nationally.
“So, as the Head of Service and a major stakeholder in the labour family, I am very happy to say that the Rivers State Civil Servants have never had it this good since the inception of this State.
“The labour union leaders and all the other major stakeholders were happy with this development,” he added.
Responding to possible payment of arrears, Dr Nwaeke, said it is yet to be determined because a technical committee has been set up to critically work out a tenable payment chart, which will cater to issues of arrears.
He clarified, “Issues of arrears will be worked out by the committee that I am going to be Deputy to the SSG. We are already going to work on it in a technical committee that will now get the nitty gritty of the payment and inform the press later.”
On his part, the Rivers State Chairman of the Joint Public Service Negotiating Council, Comrade Emecheta Chuku, explained that this is their first meeting with Governor Fubara to discuss the issue of the new minimum wage as approved by the Federal Government of Nigeria.
Comrade Chuku pointed to the fact that the gracious approval of N85,000.00 new minimum wage is very appeasing to the labour leaders, adding that it demonstrates love for the workers.
He explained, “For the Governor to come, against all the crisis, against all the things that he is facing and more, to say he will pay N85,000.00 minimum wage, I think our hearts are full of joy.
“Of course, we have no doubt, knowing the kind of person we have as our Governor. He is a decent man; very responsible enough; and grew through the rank and file of the system. He understands what it takes to earn a living salary; he understands the difference between gifting money and paying somebody salary that can sustain him or her from the first day to the last day of the month.”
Also speaking, the Chairman, Nigeria Labour Congress (NLC), Rivers State Chapter, Comrade Alex Agwanwor, noted that the amount approved by Governor Fubara puts Rivers State Government ahead of Lagos State as the highest minimum wage paying State to civil servants in Nigeria.
He stressed, “Why do I say that? Lagos State said N85,000.00 and Rivers State is paying N85,000.00. The IGRs of Lagos State and Rivers State are not the same. So, for the Governor to agree to pay the same rate with Lagos, that means we are at the top of it.
“We are the best, and we want to continue to commend the Governor. We assure him that, as far as this State is concerned, labour is going to stand with him. We will be with him even until the next eight years.
“I want to commend His Excellency, Executive Governor of Rivers State, our own Number One Worker in Rivers State, he has, once again, proven that the workers in Rivers State gave him an award on May Day as the Champion of Labour, as the Most Labour-Friendly Governor in Nigeria. He, again, has shown that to us today, and I want to commend him.”
He added that they were returning to the State Secretariat Complex to inform workers of the Governor’s magnanimity and benevolence towards civil servants in the State.
Rivers State Governor, Sir Siminalayi Fubara, has felicitated Muslim faithful as they celebrate the birth of Prophet Muhammad, urging them to show love, tolerance, perseverance, patriotism and commitment to the growth and development of the State.
Governor Fubara, in a message in Port Harcourt, the State capital, urged the Muslim Ummah to use the lessons of the 12th day of the third month of Rabi’ al-Awwal to reflect on the core teachings of the Holy Prophet, and interceed for one another as exemplified by the sacrifices He made for humanity.
The Governor charged the faithful in the State and across the country to commit to ensuring that they continue to benefit from the genuine policies and programmes of government put in place to make live easy for all living and doing business in the State, without discrimination.
He said, “I, on behalf of the government and good people of Rivers State, heartily felicitate all Muslim faithful on the occasion of the Eid-el-Maulud celebration, to honour the birth of the Holy Prophet Muhammad, and urge for prayers for the revival and unity of Nigeria.
“The occasion, yet again, provides an opportunity to reflect deeply on the need for greater application of the Prophet’s teachings bordering on piety, charity, patience, resilience, justice and peaceful coexistence,” he added.
Governor Fubara assured the Muslim community in Rivers State, and indeed, all residents of the resolve of his administration to sustain the tempo of providing critical projects and social services to improve the quality of life of the people.
