Banking
Heritage Bank, RIMAN, FDC Task Firms on Modern Risk Mgt. Practices
By Modupe Gbadeyanka
Heritage Bank Plc, Risk Managers Association of Nigeria (RIMAN) and Financial Derivatives Company Limited have called on corporate organizations to adopt systemic and cultural changes to embed risk management into their organisations in a bid to manage uncertainties that may arise at any given time.
This call was made at the 17th Annual Conference organized by RIMAN in partnership with Heritage Bank Plc, which was attended by eminent personalities including Oba of Lagos, Mr Rilwan Akiolu; President of the Chartered Institute of Bankers of Nigeria (CIBN), Professor Segun Ajibola; among others.
CEO of Financial Derivatives Company Limited, Mr Bismarck Rewane, stated this in a keynote address, remarking that risk advantage is the ability to systematically manage the uncertainty inherent in any given strategic position in order to generate an attractive return with less risk.
He said the Boston Consulting Group (BCG) risk advantage framework could be used to establish competitive strength in an age of uncertainty and that the components of the framework are expansive, anticipation, discipline and resilience.
He remarked that regular scenario planning helped to establish expansive anticipation and also hold managers accountable for factoring risk and uncertainty into their planning.
Mr Rewane whose keynote address was titled: Risk Management for Economic Development and Revenue Diversification also enjoined them to take into account risks taken when reviewing the results achieved because linking risk to human resources and corporate governance builds resilience.
The keynote speaker who looked at risk from a multidimensional perspective but mainly from a policy maker perspective noted that the business cycle is a natural economic phenomenon of boom to slowdown to bust.
Quoting Matthew Bishop, Mr Rewane defined risk as the chance or probability that things not turning out as expected, adding that risk taking lies in the heart of capitalism and is responsible for a large part of economic growth.
Other definitions of risk he proffered are: profit is the reward for risk taking; risk management is the process of bearing the risk of tolerance and minimizing the risk one does not want and risk is also hedging, diversification and buying insurance.
He remarked that economies were vulnerable to both exogenous and domestic shocks s as they go through business cycles, noting that in the last 100 years, there have been no less than 14 recessions, one depression in 1929 and at least two times when economic, financial and market crisis happened.
Mr Rewane noted that a stress test of the Nigerian banking industry presently would measure exposure to oil and gas (N1.62 trillion), telecoms (N673 billion) and power (N306 billion) which showed the industry non-performing loans were on the rise and thereby necessitating additional capital raising.
In his address of welcome, the President of RIMAN, Mr Jude Monye welcomed delegates and participants to the conference with the theme: The Role of Risk Managers in Economic Development and Revenue Diversification.
According to him, the global oil crisis has left a bitter taste with most oil producing nations and Nigeria in particular, due to its heavy reliance on oil revenue and non-diversification of its revenue base among others.
He said RIMAN has been at the fore front of best practice in risk management in Nigeria for more than 16 years, adding that the resolve of the association to ensure best practice in risk management and risk advocacy remain unshaken.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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