22 - Vanguard;MONDAY, MAY 30, .2 011
Plan for oil price shocks now -Rewane
BRIEFS
The ' economic team of ~ , President Goodluck Jona than must develop a Plan B against oil price shocks and battle entrenched on. Thanks to the oil windfall around how to share windprices and revenues are an interest for Nigeria to excess crude account and falls. In other worns, the increasing function of time i.e transform into a modern prior external debt. pro-cyclif:ality of policy. oil revenue only increases and nation, says Bismarck Rerescheduling . "On May 5, for example oil never declines . Following from The assertiveness ' and the wane prices fell 15% in one day'to this is. the misconception that "The Goodluck' economic battle ag'ainst vested interests $109pb. The revenue impact natural wealth is equivalent to team must in the form ulation is anotlier major Challenge. of this fall on Nigeria is produced wealth. In my terling BankP1c has of ' their Marshall plan for approximately $Ubn pb . The consensus that a interaction with public officials, been recognised for Nigeria, develop a fall back combination of free markets there is an entrenched view This has serious conseits outstanding human capital (plan B) just路incase there is a and democracy will transform quences on exchange rate, that oil price shocks are development activities by precipitate or sudden drop in developing nations and sweep ,temporary whilst oil prosperity inflation and public finance. Industrial Training Fund (ITF) oil prices, production and away ethnic hatred and The Nigerian economy 'has and peaks are hormal'. ' revenues", said Rewane, ' religious zealotry is now to brac'e up for future "l'he Goodluck , economic The Fund, awarded Sterling who is the Managing Director, flawed . Crony capitalism has team must in the formulation of volatility and exogenous Bank the 2010 Best Employer Financial Derivatives blocked the deregulation of shocks. their Marshall plan for Nigeria, in Human Resource Company (FDC) . petrol prices , impeded gas "In 2008, when oil prices develop a fall back (plan B) Development after examining . In the May Economic and power sector development declined sharply, resulting just in 'case there is a the bank's contributions to Bulletin titled, Making sense that are pivotal to the in revenue gaps, internal precipitate or sudden drop in human capital development. of the Macroeconomic chaleconomic transformation of and external balances , the . oil prices , production and ITF considered the bank for lenges facing, post-election Nigeria. G.overnment had no revenues . The econo,mic the award during its annual Nigeria, Rewane said there anticipatory plan to fall back managers have only planned . performance review and award ' must be a new mindset in the ceremony for 2010 held in J os manaqement of t!!~ !!~ti()!!':,; trQ!!! ~~1~r~~ 1~t t:; 3,d. 281"1. III economy and urged Presithe course of the review, the dent Jonathan to focus on Director-General and key targets and pick a team Management of Industrial that can deliver on the plan. Training Fund adjudged the He also urged the Presibank the best in Human dent not to meddle with the . Resource activities for 2010 in autonomy and independence the Lagos Island zone. of organs of government e.g "The efforts put by the bank Central Bank of Nigeria, into the provision of training Securities & Exchange Comservices to its workforce, mission and the 路 National participation in ITF training Communications Commisprogrammes, acceptance and sion, saying, "Frustrating supervision of students on these champions of reform industrial attachment were could easily lead to subopticonsidered in the decision mal economic 'performance process ", said Area Manager, and be counter-productive." Industrial Training Fund, He said, "The greatest Ibrahim Lawal. challenge that the new 'e conomic team and Nigeria will confront is an economic mindset that must change. L-R: Miss. Tina Omoruyi, one of the winners at the Benin zonal draw of the ongoing FinBank "There is a wealth delusion PIc savings promo tagged, " Finsplash", receiving her prize from His Royal High!less, Rich'!rd in Nigeria especially in the OSdigbono Ogunbor, the traditional ruler of Ukhiri-Eresoyen, at the event held In Beron City, public sector. This is based Edo State, May 26. on a false premise that oil
Sterling Bank wins Human Capital Devt Award
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路ACCA partners Association of Corporate Treasurers
he Association of C hartered Certified T Accountants (ACCA), the global professional accountancy ' body recently partnered the Association of Corporate Treasurers (ACT) . The agreement which was signed at ACT's annual conference in ' Uverpool. United Kingdom, is for a period of three years . The partnership is geared towards extending the existing mutual co-operation between these two organisations to benefit ACCA's global membership. According to the memorandum of understanding, . ACCA will partner ACT working internationally to promote the Associate Member of the Association' of Corporate Treasurers (AMCT) Diploma to ACCA's global 147,000strong membership. It comes at a time when ACT student numbers have grown by over 60 per cent since April 2008 to reach 2.400.
CBN order banks to lend to all agric segments ' The Central Bank of , ~ ' Nigeria (CBN) on Friday ordered banks to lend to all the agricultural value chains and develop sound financial delivery system that would serve the needs of farmers . The apex bank also imposed a deadline of six months for banks to comply with the order failure of which sanctions would be imposed. The order was contained in a circular to all banks titled, Re: Establishment of agricultural finance departments/ units /desks in head offices/ zonal/regi onal and desks by deposit money banks .
The circular which was signed by Sola Awoyungbo, Director, Financial Policy and Regulation department said: "All Deposit Money Banks are hereby ' required ' to establish Agricultural Finance,
Department/Units/Desks in their Head/Zonal/Regional offices and branches to facilitate lending' to agricultural value chainin Nigeria. ' ! Deposit money banks are requited to implement the following initiatives within six (6) months : Establish Agricultural Finance Departments/ Units/Desks in their Head Offices, Regional and Branch Offices; Appoint qualified agricultural graduates and other professionals with relevant experience in agriculture to handle all agricultural lending activities; Develop sound financial delivery system that would serve the needs of fariners and the sector at large; Lend to the entire agricultural value chain (Agric input' supply, production, storage, processing, marketing and other ,a reas of agric development) ; Provide advi-
SOry services to their target 'clientele; and Establish reliable database Iln agricultural finance for use:in planning by government and the private sector. " The Agricultural finance department in the Head office shall have two units . These are (i) Business Plan Unit and ((ii) Development and Advisory Units . The Business Plan Unit shall: Assist farmers to fit into the agricultural value 'c hain; Give policy direction on agricultural lending processes and procedures; and Maintain the database of all agricultural lending activities . ' "The Development and Advisory Unit shall: Assess credit risk and develop markets; Develop , needbased products targeted at agricultural value chain fi-
nancing ; Develop Business plan for the operations of the Department.;, Determine capacitY ,building requirements of all agricultural personnel/Desk Officers; Develop reporting lines that are in consonance with the bank's structure . "Each Deposit Money Bank shall render returns on its agricultUral business portfolio to the Development Finance Department, Central Bank of Nigeria, Ahuja, on quarterly, half yearly and annual basis, on forms that would be provided by the CBN. This circular takes immediate effect while Deposit Money ' Banks are requir~d to establish Agricultural Departments/Regional/Desks Offices within a period of six months from the date of the circular."