Banking
Bank CEOs, Others Jittery Over EFCC Asset Declaration Directive
By Dipo Olowookere
Some executives of financial institutions, including the Deposit Money Banks (DMBs) in Nigeria, are jittery over a new directive of the nation’s chief anti-money laundering agency.
On March 16, 2021, the newly appointed chairman of the Economic and Financial Crimes Commission (EFCC), Mr Abdulrashed Bawa, said employees of financial institutions in the country, including their CEOs, have till June 1, 2021, to declare their assets.
Mr Bawa said this when he addressed newsmen after a meeting with President Muhammadu Buhari at the Presidential Villa in Abuja.
The EFCC boss said the failure of any banker in the country to declare his/her assets by the deadline will result in imprisonment for a term of 10 years as stipulated by the law.
The directive has legal backing
He told journalists that the Bank Employees, ETC. (Declaration of Assets) Act 1986 mandates every employee of a bank to make full disclosure of assets upon employment, and annually in subsequent years.
According to him, section 7 (1) of the law stipulates that, “It shall be an offence for an employee of a bank to own assets in excess of his legitimate known and provable income.”
He added that section 7(2) emphasised that, “Any employee guilty of an offence under subsection (1) of this section shall on conviction be liable to imprisonment for 10 years and shall, in addition, forfeit the excess assets or its equivalent in money to the federal government.”
Reason for the order
Mr Bawa said his agency is triggering these provisions to sanitize the nation’s financial system and block some of the loopholes currently being exploited by unscrupulous players in the sector to undermine Nigerian economy through money laundering and illicit financial flows.
He said the EFCC was determined to tackle money laundering in the country and bring sanity into the financial system.
Bank executives already jittery
But since this information was revealed yesterday, some bank executives have been nervous and sources close to some of them informed Business Post that efforts are being made to lobby powerbrokers in the country to push the deadline forward.
“I can tell you that this statement by the EFCC chairman is not going down well with a lot of bank executives.
“I can also tell you for a fact that some of them are making efforts to clean up their tracks and possibly talk to those in power to extend the June 1 deadline.
“To them, the timeframe is too short and they believe it should be moved forward except the EFCC chair wants to use this as a vendetta,” one of the sources told this newspaper.
Another said, “I am not surprised this is coming from the EFCC chairman. He is vast in financial crimes and forensic. He has handled cases of high-profile Nigerians and he knows how senior bankers help politicians to launder money.
“A few of us saw this coming and we expect more from him because he knows the game very well. He has already thrown many top executives of banks into confusion with this directive. I think it is good for the financial sector.”
Buhari supports directive
But it is not certain how these CEOs and executives would go about it as the President fully supports the EFCC chairman on this directive.
Mr Bawa, according to information gathered, was in Abuja yesterday to discuss this issue with him and by informing State House Correspondents of the development shows that he has the full banking of Mr Buhari.
President Buhari has not hidden his desire to clean up the country of corruption. In fact, it is one of the key targets of his administration and he has been fighting corruption vigorously since he assumed office in 2019.
By Aduragbemi Omiyale
The N6.2 billion series 2 fixed rate senior unsecured bonds issued by LAPO Microfinance Bank Limited in 2020 have been redeemed by the company.
The small lender repaid bondholders on the maturity of the corporate debt instrument, Business Post gathered.
The thick of the COVID-19 lockdown and economic meltdown, LAPO Microfinance Bank approached the capital market to source funds from investors at 13 per cent.
Due to the confidence investors have in the organisation as one of the top microfinance banks in Nigeria, the bond issuance was oversubscribed by N200 million.
The bank attributed this investor confidence to its “strong corporate governance and fundamentals.”
The financial institution did not disappoint as it fully paid the bond subscribers at maturity, further solidifying the trust investors have in the company.
When it sold the papers five years ago, the Managing Director said the N6.2 billion was to be used to “enhance our capacity to meet the needs of micro and small enterprises, especially actors in the rural economy.”
“The success of this journey is largely due to the support of African Local Currency Bond (ALCB) Fund (two-time anchor investor) and other parties to the Issue; FBN Quest Merchant Bank and Coronation Merchant Bank who served as Lead and Joint Issuing House/Book Runner.
“LAPO Microfinance Bank Limited is already standing by owners of micro and small enterprises who are determined to overcome the set-back of the COVID-19 pandemic. From January to July the microfinance bank delivered N59.4 billion to micro and small enterprises.”
After issuing the notes in 2020, LAPO Microfinance Bank took them for listing on the FMDQ Securities Exchange.
LAPO Microfinance is a leading microfinance bank in Nigeria, accounting for over 20 per cent of the market share.
The firm had wanted to raise N6 billion from the bond issuance under its N20 billion bond programme, but was oversubscribed by N200 million. A unit of the note was sold at N1,000 via book building, opening from Tuesday, February 10 and closing on Wednesday, February 19, 2020.
By Modupe Gbadeyanka
Seventy lucky winners have emerged in the Season 4 of the Reward4Saving Promo put together by Stanbic IBTC Bank to foster a sustainable savings culture in Nigeria.
The beneficiaries were chosen at the fourth monthly draw of the campaign conducted in Lagos with keen oversight from regulatory representatives to ensure transparency and fairness.
Notable attendees included representatives of the Federal Competition & Consumer Protection Commission (FCCPC); Advertising Regulatory Council of Nigeria (ARCON); and Lagos State Lotteries and Gaming Authority (LSLGA).
The 70 lucky winners were from the lender’s seven business zones; each winning N100,000 for maintaining a minimum savings balance of N10,000 in their Stanbic IBTC Savings Account or @ease Wallet. The balances were maintained for a minimum of 30 consecutive days.
Speaking during the draw, Oluwakemi Zollner, Head of Sales and Distribution, Lagos Mainland, stated, “Stanbic IBTC Bank is committed to rewarding loyal customers while enhancing the savings culture within society.
“The promo is open to both existing and new customers. By saving just N10,000 in your Stanbic IBTC Savings Account or @ease Wallet for 30 consecutive days, you qualify for the draw. More savings equal higher chances of winning.”
One of the recent winners, Ebinum Abosede, an entrepreneur, shared her emotional journey upon receiving her prize. “When I initially received the call, I was doubtful and thought it could be a scam. Even my daughter warned me against going. But now that I am here and have received my alert, I could not be happier. I just moved into a new house and was searching for funds to paint my apartment. Thank you to Stanbic IBTC Bank; I can finally give my new home a fresh coat of paint.”
The Reward4Saving Promo continues to create a buzz across Nigeria, inspiring individuals to practice financial discipline while being rewarded for their dedication. Through this initiative, Stanbic IBTC Bank celebrates the achievements of savers and strengthens its role in promoting financial inclusion and empowering local communities.
Since the commencement of the Reward4Saving Promo – Season 4, a total of 288 customers have shared in N37 million worth of cash rewards, with the total prize expected to reach N130 million by the conclusion of the initiative in April 2026.
With N93 million remaining in the prize pool, excitement continues to climb among customers of Stanbic IBTC Bank nationwide.
By Adedapo Adesanya
Guaranty Trust Holding Company Plc (GTCO) has strengthened the capital base of its banking subsidiary, Guaranty Trust Bank Limited (GTBank), with a fresh equity injection of N365.85 billion through a rights issue.
According to a statement on the Nigerian Exchange (NGX) Limited on Friday, the additional funding was raised under its two-phased equity capital programme approved by shareholders at its 2024 Annual General Meeting and implemented in line with approvals obtained from regulators.
As part of the transaction, it issued and allotted 6,994,050,290 ordinary shares of 50 Kobo each made by the bank to the company.
“The company continues to hold 100 per cent of the entire issued and paid-up share capital of the bank. None of the directors of the company have any interest, direct or indirect, in the bank,” the statement said.
With this capital injection, GTBank’s share capital has risen from N138.19 billion to N504.04 billion, positioning the lender in compliance with the Central Bank of Nigeria’s (CBN) new minimum capital requirement for banks with international authorisation.
Business Post reports that banks across various spreads have less around seven months to meet to the deadline set by the apex bank in late 2023.
According to the group, the fresh equity will be channelled into branch network expansion, growth of its loan and investment securities portfolio, and upgrades to its information technology infrastructure.
“The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” the company said.
“The bank also plans to leverage the strengthened balance sheet to tap into emerging opportunities across Nigeria and the operating environments where it maintains banking presence,” the statement added.
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