Thursday , 8 October 2015
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Category Archives: Business

Shell Flags Off Crude Oil Production from Bonga Phase 3 Project

shell nig


Shell Nigeria Exploration and Production Company Limited (SNEPCo) on Monday, October 5, announced the start-up of crude oil production from the Bonga Phase Three project, offshore Nigeria.

This development makes for another milestone in Nigeria’s oil and gas industry.

The feat is coming barely three weeks after the United States oil giant, ExxonMobil Corporation, announced that its subsidiary, Esso Exploration and Production Nigeria Limited (EEPNL), had commenced oil production five months ahead of schedule at the Erha North Phase two project offshore Nigeria.

Shell’s Upstream International Director, Andrew Brown, in a statement on Monday, said the “new start up is another important milestone for Bonga, adding valuable new production to this major facility”.

He explained that the Bonga Phase three was an expansion of the Bonga Main development, with peak production expected to be some 50,000 barrels of oil equivalent.

“This will be transported through existing pipelines to the Bonga floating production storage and offloading (FPSO) facility, which has the capacity to produce more than 200,000 barrels of oil and 150 million standard cubic feet of gas a day,” Brown added.

GTBank Named 2015 Bank of the Year and Most Innovative Company


Foremost African financial institution; Guaranty Trust Bank plc has been named the 2015 Bank of the Year and Most Innovative Ai SRI 30 Company by leading international investment and communications group, Africa Investor (Ai), at the prestigious Ai Institutional Investment and Capital Market Awards 2015, which took place on the sidelines of the UN General Assembly.

Launched in 2007, the Ai Institutional Investment and Capital Market Awards is the only pan-African Awards designed to recognize Africa’s best performing stock exchanges, listed companies, investment banks, research teams, regulators, socially responsible companies and sovereign wealth and pension fund investors. The investment and business leadership awards aim to reward exceptional business practices, economic achievements and investments across Africa, whilst recognizing the institutions and individuals improving the continent’s investment climate.

According to Hubert Danso, CEO of Africa investor: “We are delighted to say that this year’s winners are our most exciting yet, and are testament to the ever-improving investment climate in Africa. GTBank’s ability to continuously deliver notable success and significant progress across its businesses, despite increasing regulatory headwinds and an extremely challenging business environment has enabled it emerge double award winners in the 2015 Ai Institutional Investment and Capital Market Awards

Receiving the awards on behalf of the Bank, Segun Agbaje, Managing Director/CEO of GTBank said “We are humbled and proud to be recognized as the Bank of the Year and Most Innovative Company in 2015. For us, our emergence as double award winners is an acknowledgement of the hard work and dedication of our staff, management and Board. It represents our commitment to serving our customers and providing them with value oriented products and services suited to their varied needs. We remain resolute in our commitment to providing our customers with superior banking experience by prioritizing innovation, integrity and excellence in service delivery.

He further stated that, “As a Bank, we will continue to differentiate ourselves by aggressively pursuing innovative solutions and maintaining high standards in creating sustainable value for stakeholders.”

GTBank has consistently played a leading role in Africa’s banking industry. The GTBank brand is regarded by industry watchers as one of the best run financial institutions across its subsidiary countries and serves as a role model within the financial service industry due to its bias for world class corporate governance standards, excellent service delivery and innovation. The Bank operates from over 230 branches within the country and has banking subsidiaries in Kenya, Rwanda, Uganda, Cote D’Ivoire, Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom

UBA Awoof Promo Impresses Customers, As 20 Win Dubai Trip, 60 Get Prizes

9k=(1) As part of its commitment towards rewarding customer loyalty, Pan African financial institution, United Bank for Africa Plc has rewarded 80 of its customers in the first batch of the UBA Remittance Awoof Promo. The draws, which was well attended by customers of the bank, journalists and regulators from the National Lottery, is part of the bank’s efforts to reward loyalty, give back to the society and impact the lives of individuals that carry out business with the bank. At the draws, which took place at the bank’s Head Office on Friday, 20 winners, 10 each of Western Union and MoneyGram, were drawn and will be enjoying a 3-day all expenses paid trip to Dubai, sponsored by the bank. The winners emerged from customers and non-customers that sent and received MoneyGram and Western Union money transfers at the bank within the period of January and August this year. The 10 winners for the Dubai Trip that received money through MoneyGram are; Anyim Okorie of Lagos, Aneke Emeka of Enugu, Linda Dede of Sapele; Samuel Diei of Asaba, Olatokunbo Olaleye of Kano State; Harris Adeniyi from Ife, Oluwatosan Nicol from Unilag, Abiodun Fakeye from Lagos Island, Ibisobia Hezekiah from Port Harcourt and Alofe Tope from Ibadan. From Western Union,  the 10 winners are; Omeregie Osadebamwen Peter from Benin, Benita Ojeh from Asaba, Richard Ojo from Iju, Ndidi Ojukwu from Port Harcourt, Ime Davis from Ikot Abasi and Osahon Idugboe of Ugbowo. Others are Ibrahim Sunusi from Kano, Oluwabukola Owoeye from Unilag, Alali Blessing from Port Harcourt, and Itunu Fakiyesi from Ogbomosho. Also a total of 60 customers won 20 rechargeable fans, 20 generating sets and 20 water dispensers. The 60 customers represented an equal number of Western Union and MoneyGram customers. One of the winners, Mr. Ibrahim Salisu, a UBA customer from Kano expressed his joy and gratitude to the bank when he was informed of his winnings through the phone. “I am very happy at  this opportunity, I still do not know what to say, but I am very grateful to UBA”. Ikemefuna Mordi, Head of Marketing and Brand Communication, expressed his appreciation to customers for their loyalty and trust in the bank, adding that the Awoof Promo was carried out to add value to customers, who continued to do business with the bank. “This is the first time a bank is doing something that is unique, stepping out of the usual dynamics, to acknowledge our customers, we are doing this to create a rewarding experience for the UBA customer. We want to make this seasonal and we are taking this across Africa to other countries,” he said. UBA is a leading player in the Remittance segment, offering money transfer services through MoneyGram, Western Union and AfriCash.   Millions of the bank’s customers rely on the UBA extensive network across Africa for transfers across the continent. The UBA Group is a highly diversified financial services provider, with business offices in New York, Paris and a subsidiary in London. A leading player on the African continent, UBA has significant market share and operations in 19 different African countries. The Group has a strong retail franchise across the continent offering its more than seven million customers a bouquet of products and services tailored to meet their different financial needs.

Uncovered! How Aero Contractor Deceived AMCON In #25Million Debt Deal



The Asset Management Corporation of Nigeria, AMCON, may have lost about N25 billion for taking over the debts of Aero Contractors, sources revealed.

According to sources familiar with the deal the assets of the carrier worth less than N4 billion, but were overpriced.

Findings revealed that AMCON after paying the huge amount of money controlled only 40 per cent stakes while the Ibru family retained controlling share of 60 per cent until AMCON re-evaluated the sale and took over 90 per cent stakes.

Initially AMCON was asked to pay N35 billion for the assets including what the source described as the company’s goodwill, which was outrageously put at billions. It was gathered that the government agency paid N29 billion, however, industry sources said at the time of the transaction, the total assets of Aero was about N4 billion.

“What are the criteria for buying over a debt that cannot be substantiated in assets and at the same time give the Ibru’s 60 per cent of the stakes? But now, it has been taken up to 90 per cent controlling shares and that was why they wanted to make the airline a national carrier after it was re-evaluated by AMCON,” an industry source said.

The source said AMCON’s decision to pay so much to take over the airline was a bad call given that the money could have been enough to start five new airlines.

It was also gathered  that Aero is yet to get out of its financial glitch. Also out of about 10 aircraft in its fleet, only five are operational while the others need maintenance.

UBA Weathers Storm To Remain Outstanding

Phillips Oduoza, UBA - MD

Amidst challenges in Nigeria banking environment, UBA, according to experts is outstanding in her banking services. United Bank for Africa Plc is delivering on its commitment to superior returns to shareholders.

Among the several regulatory headwinds that deposit banks  in Nigeria have grappled with is the recent single treasury account (STA) directive by the Federal Government of Nigeria (FGN).

The Central Bank of Nigeria (CBN) and other regulatory policies that the banks have had to whether include the reduction on Commission on Turnover (CoT) fees, increase in contribution to the Asset Management Corporation of Nigeria (AMCON) and Nigeria Deposit Insurance Corporation (NDIC) levies and high Cash Reserve Ratios (CRRs) are also depleting banks’ profits.

Consequently, some banks that hitherto made huge profits, are now struggling to survive, no thanks to the impact of tougher regulatory demands on their profits.

That is not all. The result of the last CBN liquidity stress test on the banking sector released in May this year jolted many observers and stakeholders in the industry. The test conducted on 23 banks, showed that ‘six small banks’ Capital Adequacy Ratios (CARs) fell below regulatory threshold.  CAR is a ratio of a bank’s assets to its risks.

Deputy Governor, Financial System Stability of the CBN, Dr. Joseph Nnanna said the unnamed ‘small banks’ CARs fell to 8.85 per cent, against stipulated 10 per cent for lenders operating only in Nigeria and 15 per cent for those with foreign subsidiaries.

The test was conducted using both the bottom-up and top-down approaches specified in the modified International Monetary Fund (IMF’s) stress test framework, captured the diverse nature of individual bank’s balance sheet and observed weaknesses.

Although, the deputy governor defended the stability of the banking sector, the result of the test gave insight to the grave situation faced by lenders.

Standing Out

However, it is not totally a bad story for the Nigerian banking sector. While some banks grapple with headwinds, a few are actually reporting stellar results. The United Bank for Africa (UBA) Plc is one of the outstanding banks in the industry today.

Ranking in the top-three bracket of the Nigerian banking sector in terms of market share and returns on equity, UBA Plc, impressed stakeholders with its second quarter results.

The financial markets were generally impressed with pan-African financial services group; UBA Plc results for the first quarter of 2015 but the second quarter financial performance has surpassed their expectations.

UBA released its half year audited results on September 3, 2015 which showed earnings grew strongly by 21 per cent to N166.9 billion during the period, compared to N138.2 billion in the same period of June 2014. The bank’s profit before tax (PBT) also rose 35.1 per cent to N39.0 billion, while profit after tax (PAT) was up a significant 40 per cent to N32 billion within the same period.

Further analysis of the UBA 2015 half year results showed significant improvement in operational efficiencies. The Bank’s net operating income rose 21 per cent to N108.7 billion in June 2015, compared to N90 billion in the comparable period of 2014. The Bank has continued to focus on operational efficiency, with a cost to income ratio of 64 per cent; as against 68 per cent in the same period in 2014.

UBA maintained a healthy loan book, with non-performing ratio at just 1.8 per cent of total loans granted, one of the lowest in the banking industry. These asset quality metrics are a reflection of its prudent approach to lending and disciplined focus on less volatile segments of the market.

As a reward to shareholders, the Bank announced the payment of an interim dividend of 20 kobo per share.

Decision to Pay Interim Dividend

Group Managing Director and CEO of the UBA Group, Mr. Phillips Oduoza, explained that the decision to pay interim dividend was reached after carefully considering the capital need of the bank over the near to medium term, earnings prospect, and varying investment objectives of its diversified shareholder base, some of whom require consistent dividend payment, especially given the bearish equity market.

“Having fortified our capital base, well ahead of the June 2016 timeline for BASEL II capital compliance, we found it imperative to meet the varying expectations of our diversified shareholder base, some of whom require consistent dividend payment” Oduoza explained during a conference call with analysts.

He also explained that while UBA did not have a target dividend pay-out, the bank ensures that its “dividend policy adequately balances our need for earnings retention for growth opportunities and the need for return to shareholders, by way of dividend payment.“

“Given our current earnings and prospect as well as our capital position, we believe our decision to pay 20 kobo interim dividend on every ordinary share is justified” he said.

Oduoza also assured that that the bank is confident on the quality of its loan portfolio, including exposure to the oil and gas sector.

He explained that so far, the bank had to restructure a cumulative N10 billion loan to give breathing space to the concerned obligors in the oil and gas sector, due to the lower crude oil price.

He, however, reiterated that the loans were performing and the restructuring, which is majorly tenor elongation, was a part of the bank’s partnership with its customers to ensure mutual success, as the restructuring improved the cash flow of the customer and  enhanced working capital position for increased production activities.

He further explained that following an internal stress test conducted on the bank’s loan book, which sensitises its exposures to different macroeconomic variables, including lower crude oil price, the management is comfortable with the quality of the loan book and does not expect any further restructuring.

Oduoza, while speaking to analysts at a conference call explained that the bank has been very cautious and risk conscious in growing its loan book to the oil and gas sector and other sectors of the economy which has resulted in it having one of lowest non-performing loans ratio in the banking industry.

“Our diligent assessment of risk and return of every opportunity will sustain the quality of the balance sheet and thus ensure that our asset quality remains one of the best-in-class in the industry” Oduoza said.

Sustaining Improved Performance

The UBA boss also assured the bank’s shareholders that the bank will sustain the improved performance recorded in the first and second quarters of the year.

“I am convinced that we are now in a much better position to deliver sustainable and superior return to our shareholders. Thus, let us take the journey together as we build a truly great pan-African bank that we can all be proud of” said Oduoza.

The UBA Group, he added, is one of Africa’s leading financial institutions, operating in 19 African countries, as well as New York, London and Paris.

“The Group provides a sophisticated suite of banking services to almost 9 million individual customers, SMEs, corporate clients, organisation and public institutions across Africa, priding itself on bringing financial inclusion to the continent and supporting Africa’s next generation of entrepreneurs, “he stated.

Financial Analysts’ View

Financial analysts have commended the results for outperforming market expectations with the bank’s share price advancing by more than 30 per cent within four trading sessions, following the release of the results.

Analysts at CSL Stockbrokers while reaffirming their “Buy” rating on UBA Plc’s stocks and a target price of N7.20, noted that based on the half year results, UBA Plc is likely to surpass their current profit and earnings forecasts.

Also analysts from Chapel Hill Denham were of the view that some key strategic decisions taken by UBA Plc in the last few months had brought impressive results, adding that this was evident from increased earnings reported by the bank.

“We like the aggressive stance UBA Plc took on expanding its loan book, which appreciated by 8.5 per cent since the beginning of the year. We maintain our earnings forecasts, with a BUY rating on UBA Plc.”

Renaissance Capital analysts also noted “UBA Plc’s numbers read well versus our estimates. We note that profit before tax growth in the second quarter of 2015 was supported by a decent top line growth, and a decline in impairment charges, down by 51 per cent.” The investment banking firm reaffirmed their “Buy” rating on UBA Plc stock with a target price of N8 per share.

With additional report from Thisday.

Exposed Cecilia Ibru Made #Billions From Casualisation Of Bank Workers

cecilia ibru

Prior to the austerity measures decreed by the apex bank, fraudulent bankers like Mrs. Cecilia Ibru, the convicted former managing director of the defunct Oceanic Bank, had used casualisation to defraud both her bank and some of its lower ranking staff.

Those affected were mostly drivers and security men.  She floated a company which recruited those categories of staff for the bank at N30, 000 per month.  However, on the records of Oceanic Bank, those lowly workers were collecting N150, 000 per month.  The difference between their real pay of N30, 000 and the N150, 000 on the books of the bank, went to Mrs. Ibru. She atoned for her inhuman crime by donating generously to her church.
With the apex bank decreeing massive cuts in bank workers remuneration, the banks took casualisation to levels never imagined by Mrs. Ibru.  They outsourced everything from security jobs to deposit mobilization.  Even the tellers on the desks of most of the banks are casual workers.
Most of the companies supplying the banks with casual staff are owned by the directors of the outsourcing banks.  The graduates recruited for the jobs are offered starving wages ranging from N60, 000 and given Herculean monthly targets to meet.  The outsourcing company collects N40, 000 monthly from the starving wage of each slave labourer.

Ironically most of the casual workers do not carry the ID cards of the banks they mobilize deposits for.  That implicitly makes depositors the first casualty of the banking system’s casualisation policy.  With the implicit legalization of casualisation in the banking system, Nigeria and bank depositors are sitting on a ticking time bomb.
Nothing stops a tricky casual deposit mobiliser from fleeing with millions of the raised deposit.  With the mobiliser carrying the ID card of the outsourcing company, rather than that of the bank he mobilizes for, the banks can easily disown the depositor if the money gets lost in transit.  Under that circumstance, the money mobilized is purely at the risk of the depositor.

Unlike the situation in banks’ premises where customers are warned by a poster that they park cars at their own risk, depositors are unknowingly dealing with casual mobilisers at their own risk.  Banks should be compelled to let depositors know the risk of dealing with casual mobilisers.
The banking system itself is deliberately toying with a dangerous cost-cutting policy that could one day wreak havoc on it.  With the purchasing power of the naira receding by the day, the graduates engaged by banks as casual workers are earning below minimum wage.  Yet they count millions of naira daily.  That is pretty tempting.

The statistics reeled out by the CIBN may sound horrendous.  However, the crime of casual workers is not proportionate to the inhuman treatment meted out to them by banks. Casual workers have no pension scheme.  Their pay on the other hand is too poor for them to save for the days when they would no longer have the strength to fend for themselves.  A social time-bomb is ticking. The CBN and NDIC must terminate the inhuman policy of outsourcing.

The Chartered Institute of Bankers of Nigeria (CIBN) last week reeled out statistics on banking fraud that should make depositors shudder.
Mrs. Debola Osibogun, CIBN’s president was on a courtesy visit to the Nigeria Deposit Insurance Corporation (NDIC) when she lamented that 75 per cent of the fraud in the nation’s banking system is committed by the casual workers thrown up by the inhuman and sinister policy derisively tagged outsourcing. The banks have the figures, but the proceeds of the inhuman policy are too tempting for the slave drivers to look back.
Outsourcing or casualisation was foisted on the country’s banking system by the systemic distress that rocked the global financial system in 2009.  In Nigeria, the calamity was triggered by an odd combination of fraudulent risk management and insider dealings in the shares of banks listed on the Nigerian Stock Exchange (NSE).

Banks were fraudulently and excessively exposed to the country’s downstream sector of the oil industry. Suddenly oil price tumbled from $147 to $60 within a few weeks. The prices of refined petroleum products imported when crude oil price was at $147 per barrel suddenly plummeted with the price of crude.  Fuel importers lost from both ends.

The imported refined products were sold at half of the landing cost, while the dollar- denominated loans raised for the imports at N116 to the dollar had to be paid back at N150 to the dollar.  The Central Bank of Nigeria (CBN) had been compelled to devalue the naira as the drop in oil revenue engendered by the tumbling oil price triggered massive capital flight that drained the country’s foreign reserves.
Most of the refined petroleum products marketers who obtained massive dollar-denominated loans on self recognition could no longer pay back.  They had no collaterals that the banks could grab to recover the loans.  The crisis rocked the Nigerian banking system to its very foundation.
The apex bank responded to the crisis by, among other measures, ordering drastic cuts in banks’ mouth-watering staff remuneration.  That directive foisted what is now known as outsourcing or casualisation on the banks.

Expert Warns Against The Dangers Of CBN’s Policies


The Chief Economist, Standard Chartered Bank, Africa, Razia Khan, has cautioned that the recent foreign exchange policies introduced by the Central Bank of Nigeria (CBN) – the imposition of forex restrictions on imports and the requirement that clients’ demand for forex be pre-funded 48 hours ahead – were already fueling inflation, thereby making it difficult for the Federal Government to implement key reforms such as the removal of the subsidy on petroleum products and increasing the Value Added Tax (VAT).

In a statement made available, she said: “The authorities’ policy options are likely to be constrained unless there is a change in Nigeria’s FX regime, which would likely relieve pressure on the FX reserves and attract new inflows, while reducing – over time – the need for very tight monetary conditions. To date, FX reserves and the real economy, rather than the currency, have borne much of the adjustment to lower oil prices. This has been costly.

“In the absence of policy change, little can be done to boost banking- system liquidity. Fiscal policy has little scope to boost growth amid reports of substantial government arrears. Monetary policy cannot do much either. The worry is that recent FX restrictions, which appear to have exacerbated existing price pressures, further restrict the policy choices available.”

Also speaking on the backdrop of rising inflation, she said it will be difficult to proceed with important reforms such as longterm revisions to costly fuel subsidies and a VAT increase to sustainably boost non-oil revenue.

“In theory, lower oil prices and the goodwill generated by a successful election should be creating opportunities for reform in Nigeria. But the policies enacted to date, including a frozen interbank FX market and the controversial imposition of FX restrictions on imports, have significantly restricted the choices available. Inflation is arguably higher than it needs to be. A poorly functioning FX market discourages new FX inflows – both direct investment in the real economy and portfolio flows that might help to finance a larger fiscal deficit.”

Diamond Bank In Fraud Allegation, Dragged To Court

Diamond Bank Plc has been dragged to court on account of breach of agreement which detrimentally affected the business and income of one of its customers -Charismond Nigeria Limited (Importer of chemical products)and its Managing Director, Mr. Aliandu Monday.
This was revealed in a statement of claim filed before the Federal High Court of Nigeria, Lagos under Suit No: FHC/L/CS/1148/2013.
The whole saga started in June 2012 when a staff of Diamond Bank Plc, Chinonso Chijioke who happened to be the account officer of Charismond Nigeria Limited advised the company’s Managing Director to commence processing its import papers from the bank’s branch at Agidingbi to prevent stress of shuttling between Mainland and Island for its bank transactions going by the proximity of the company’s location with Diamond Bank’s Agidingbi Branch.
It was learnt that the MD accepted the advice after being assured by his account officer that he would get the same quality of professional banking service equal to the one he gets at the bank’s head office.
Pursuant to the advice, the MD visited Diamond Bank Plc Agidingbi branch where he collected three different sets of Form ‘M’(MF1 valued at $42, 752, MF2 valued at $44, 352, and MF3 valued at $37, 376) for the importation of chemical products – Normal Butanol, Ethyl Acetate and Iso-Propylol respectively.
It was claimed that after proper filling of the import papers, he returned them to Agidingbi Branch of the Diamond Bank Plc on the 28th June, 2012 for processing.
Eventually, he forwarded the endorsed copies of the import papers to the company’s chemical products suppliers – GAPUMA (UK) Limited for onward transmission of the Bill of Lading as well as other shipping documents for shipment of the goods into Nigeria from United Kingdom.
Moreover, two months after the aforementioned events, the MD claimed he called the attention of the bank to the fact that first batch of the goods had been ferried to Nigeria and that it had forwarded the shipping documents to the bank.
Consequently, while preparing for clearing of the goods, he visited the Agindigbi branch of the Bank to inquire about the shipping documents which was forwarded and received by the bank via DHL Courier service. But to his dismay, he was directed to the International and Operations department of Diamond Bank’s Head Office to pick the documents – a development which negated the promise and confidence he received on the Agidingbi branch of Diamond Bank Plc initially.
Thereafter, it was all drama filled with twists and turns. The MD requested for the debit note for payment of his import duties to the government but he was informed at the bank’s head office that he cannot make the payment because the bank’s computer system cannot trace the import papers (Form Ms) registered on the bank’s database. The officer who attended to MD, one Mrs. Ifeoma Iwunna further stated that hard copies of the import papers which were earlier submitted to the bank could not be found.
He was redirected to Diamond Bank Plc branch at Agidingbi and fortunately, the import papers were presented to him. But to his chagrin, the important papers were unprocessed and or treated whatsoever.
According to the bank’s officer, he said the development ensued due to the fact that the import papers were not forwarded to the Scanning and Risk service provider (COTECNA) registration after six weeks which the import papers were submitted to the bank for processing. The forms were meant to be submitted to COTECNA within 5 working days.
The unfolding issue persisted and the imported goods remained unclear, hence accumulating huge demurrage, yet the bank couldn’t provide the import papers for the company to clear goods over two months after.
It was further claimed that the import papers were finally processed and released to the company’s clearing agent from Diamond Bank’s Ajao Estate Branch on the 5th October, 2012.
On getting to Apapa sea port, the company was compelled to pay a whopping sum of N6, 294, 279.5 (Six Million, Two Hundred And Ninety Four Thousand, Two Hundred And Seventy Nine Naira) as demurrage and other shipping charges due to the delay in the clearing of the goods caused by the negligence of the Diamond Bank Plc in processing the import papers (Form Ms).
However, to prevent further compilation of the charges, the company sought for loan from Diamond Bank Plc which was declined. It therefore, resulted into paying huge interest on the money borrowed from KECO Nigeria Limited to fund the belated clearing of the imports.
Consequently, the plaintiff (Charismond Nigeria Limited) through its Managing Director, Mr. Aliandu Monday demanded the payment of the sum of N50, 000, 000 (Fifty Million Naira)as general and special damages of severe economic and financial loss it incurred as a result of the bank’s breach of contractual and legal duty.

Apparently, the Diamond Bank Plc disinclined with the demand of the company, hence sought redress in the court of law with a counter affidavit deposed to by its solicitors-Philip Ndubuisi Umeh & Co. The bank averred that the facts and documents attached to the plaintiff’s statement of claim are of no value and irrelevant to any of the parties.

Access Bank Announces New Director, As Gbenga Oyebode Resigns

Mosun-Belo-Olusoga, access bank,chairman

According to a statement from the bank, the retirement of Oyebode follows his successful completion of the maximum term limit as prescribed by the Central Bank of Nigeria’s Code of Corporate Governance for Banks and Discount Houses in Nigeria.

The appointment of Belo- Olusoga also follows a thorough selection process by the Governance and Nomination Committee of the Board led by Mr. Emmanuel Chiejina, a non-Executive Director. Belo-Olusoga joined the Board of the Bank in November 2007 as a non-Executive Director. Until her recent appointment, she was the Chairperson of the Credit and Finance Committee and member of the Board Committees on Audit, Governance and Nomination, Risk Management and Remuneration.

She was formerly an Executive Director of Guaranty Trust Bank Plc and was at various times responsible for Risk Management, Corporate and Commercial Banking and Transaction Services and Settlements. She is a graduate of Economics from University of Ibadan and a Fellow of the Institute of Chartered Accountants of Nigerian and Chartered Institute of Bankers of Nigeria.

Speaking on her appointment, Belo-Olusoga said; ‘‘I consider it a great privilege to chair Access Bank, an outstanding financial institution at a time like this. I look forward to working with its great team in transforming it into the world’s most respected African bank.’’

NAME & SHAME: Fidelity, Union, Other Banks List Debtors


Banks are exposing the businesses and people behind the mountain of debts threatening to kill the sector  – courtesy of a Central Bank of Nigeria (CBN) directive that expired at the weekend.

Barring unforeseen developments, some of the banks will begin the publication of their debtors’ list today.

The publications are coming on the heels of the July 31, 2015 deadline set by the apex bank for the debtors to pay up.

The lists, an official of one of the banks said, is just a part of the whole.  “Some debtors have entered into various payment schemes  to avoid being shamed by this exercise,” the bank official, who pleaded not to be identified because of “the sensitivity of the action”, said.

The debtors are to be blacklisted and banned from participating in the foreign exchange market as well as trading in the Nigerian Government Securities market. The publication of the debtors’ lists is to be a continuous exercise.

Union Bank is owed  huge sums by 176 debtors. Six customers collectively owe the bank N27.91 billion. They are Dec Oil & Gas, owing N15.7 billion following a 1999 contract finance loan that expired in 2000. The directors of the company are Patrick Ugboma and Pius U. Malaka.

Other debtors include Alliance Energy, which is owing the bank N4.92 billion. The term loan approved in 2004 expired 2006. The directors are Akinwale Omoboriowo, Kojo Anan and Timi Austen-Peters.

Hajaig Construction is owing the bank N2.99 billion on a loan approved in 2012 and which expired in 2014. The directors are Abdul Nasser Hajaig, Rud Wan Hajaig and Mohammed Hajaig.

Sapta International Industries Limited is owing the bank  N1.87 billion over a 1987 term loan that expired in 1988. The directors are Alex Aloy Nwokodikwa and Clement Nwokodikwa.

Petroleum Project International has a debt of N1.25 billion over a term loan obtained in 2004 that expired in 2007. The directors are Akinwale Omoboriowo, Kojo Anan and Timi Austen-Peters.

Best Aluminum owes N1.11 billion for import and lease facilities obtained between 2010 and 2012. The directors are Chief Godwin Nweke and Chief Pius Nweke.

Fidelity Bank’s debtors include the telephone firm Starcomms Limited, which owes N3.08 billion cumulatively in the three accounts it runs with the lender under the same name and directors. The first account, which got in 2009 an overdraft which expired in 2014, is owing the bank N1.68 billion; the second account, a term loan approved in 2011 and which expired in 2014, is indebted to the tune of N1.16 billion. The third account, also an overdraft approved in 2007 and expired 2014, is indebted up to N239.65 million. The directors are Chief Maan Lababidi, Paul Edwards, Tajudeen Dantata, Omar Lababidi, Dr. Chris Ogbechie and Olusola Oladokun.

Fidelity released a list of 28 customers with “delinquent” loans. Other customers include Kesio Associates, which is owing the bank N328.1 million and Diesel Solutions (N324.28 million). Patemglobal Limited is owing the bank N268.5 million.

Kasolute Nigeria Limited owes Sterling Bank Plc N475.3 million over an overdraft loan approved in 1999, which expired in 2000. Just Jays Limited owes the bank N254.7 million; Alcun Industries Limited owes N192.1 million. G.Cyrus Global Resources  is owing the bank N187 million.

One bank executive  said  that  many of the banks offered some debtors who made moves to settle  “their  long-outstanding  loans the option of rescheduling, or  making part-payment of the loans.

“Those that have reached this understanding with their banks have their names removed from the published debtors list, “ he said, adding that the other category whose names are missing from the list, are those that are contesting their indebtedness in the courts.

“The CBN has directed that all cases that are in the purview of the courts should be reserved for judicial determination and resolution,” the official said.

He said the Loan Recovery unit of the banks were still working hard,  compiling the list of other debtors. “This publish and shame strategy would continue,  as the next category of NPLs falls due, except otherwise directed by the regulator, he stressed,” the source said.

A CBN official, who spoke in confidence, said the resolve of the apex bank to adopt “the publish and shame” strategy was as a result of the failure of persuasion which many of the banks  have adopted over the years. He warned that this would be the beginning of a long-battle  aimed at recovering all outstanding loans due the lenders.

Some of the facilities in the bank books are classified as overdrafts, project  financing, term loans and others which are said to be unauthorised credit advances. The NPLs range from one to over five years in many instances.

However, there are strong indications that much pressure is being mounted by some prominent debtors against the publication of the debtors’ list. We learnt that about two to three banks have withdrawn the list they sent to some media houses for publication, saying they required more time to clean them up.

A banker, who craved anonymity, said he was concerned that the strategy that these debtors applied in the past to evade settlement of their debts might come to play again. He said many of the debtors were strong enough to offset their indebtedness, but regretted that lack of determination to apply the rules always favoured them.

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