Bank in Debt Crisis, Reps May Order CBN Takeover

Image

By Aduragbemi Omiyale

The banking industry in Nigeria may be plunged into another crisis if urgent steps are not quickly taken to address the issue so as to douse the looming tension.

Business Post reports that a few years ago, precisely in 2018, depositors and shareholders of Skye Bank were in a panic mood after the Central Bank of Nigeria (CBN) nationalised the lender to Polaris Bank Limited because of debts and the House of Representatives on Thursday raised an alarm that another financial institution is allegedly swimming in huge debts.

The lower chamber of the National Assembly had invited the tier-two bank with a green colour and its Managing Director to explain why the amount the company owes the federal government is more than its share capital, but he has failed to honour the request.

This action has infuriated the parliament, which has threatened to direct the CBN to take over the ownership of the lender if its head ignores their latest invite next Wednesday.

Mr Adejoro Adeogun, Chairman of the Adhoc Committee on Assessment and Status of All Recovered Loots, Moveable and immovable Assets from 2002 to 2020 by agencies of the federal government for Effective and Efficient Management and Utilisation, issued this threat at the resumed hearing of the committee yesterday.

“I need to send this message to [the] bank that we are not comedians here and we are not joking here. If [a bank] owes Nigeria more than its share capital, we will not hesitate to ask the National Assembly to write to CBN to take [it] over.

“They cannot be owing more than their share capital and feel too big to respond to invitations from the National Assembly. Clerk, you have to write them, give them till Wednesday next week. That is the last time we are going to give them,” an angry Mr Adeogun barked.

Share
Related Stories
Image
16-February-2024

Ecobank Seeks Entries for International Art Exhibition +234Art

By Modupe Gbadeyanka Emerging young Nigerian artists have been invited to participate in an international art exhibition organised by Ecobank Nigeria in partnership with Soto Gallery. The 10-day event tagged +234Art, is scheduled to commence on Friday, March 22, 2024, and is dedicated to nurturing and uplifting the burgeoning art industry in Nigeria by providing a platform to support emerging artists and encourage increased interest in art acquisition, thereby contributing to the growth and prosperity of the local art sector and its international recognition. The art fair will among other things seek to create a sustainable platform for young and

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
24-January-2024

Fidelity Bank Restores Service After Routine Banking Platform Upgrade

By Aduragbemi Omiyale Fidelity Bank has announced the restoration of its service after a routine upgrade on its banking platform on Tuesday. Yesterday, some customers of the financial institution experienced a few difficulties in completing their financial transactions. The bank later sent a message to its customers, informing them of an upgrade being carried out to ensure they enjoy better services. “Please be informed we are currently carrying out a routine upgrade on our banking platform. “As a result of this, you may experience intermittent service disruptions while using our digital platforms. Kindly bear with us as the upgrade will

More Stories
Image
29-September-2020

Itakpe-Ajaokuta-Warri Rail Commences Commercial Operations

By Modupe Gbadeyanka The 326-kilometre Itakpe-Ajaokuta-Warri rail has commenced commercial operations after President Muhammadu Buhari commissioned it on Tuesday. The rail passes through the Itakpe and Ajaokuta towns of Kogi State to Edo State and ends in Warri, Delta State. At the event, which was done virtually, Mr Buhari said the facility will improve the economy of the country because it would ease the movement of goods and services. He commended Minister of Transportation, Mr Rotimi Amaechi, and his team for the completion of the project, applauding the host communities on the rail corridor for their patience during the long

Image
12-October-2017

Wema Bank Holds EGM on Capital Restructuring

By Dipo Olowookere Wema Bank Plc has announced holding an Extra-Ordinary General Meeting (EGM), seeking the consent of its shareholders in a comprehensive Scheme of Capital Reduction pursuant to the procedures set out in Sections 105, 106, 107, 108, 109, 110, 111 and 120 of CAMA and Rules 4(d), 4(g) and 5(4) of the Company Proceedings Rules 1992. In a notice issued on Friday, September 29, 2017, the lender explained that it was pursuing this holistic approach to enable it position its balance sheet for better efficiency. Having been transformed to one of the leading banks within the Retail Banking

Image
26-April-2020

9mobile Urges Nigerians to Stay Safe and Stay Connected Through its Online and Virtual Channels

9mobile, has urged Nigerians to stay safe and connected with their families, loved ones and business associates through its online and virtual channels, during this period of lockdown caused by the COVID-19 pandemic. These channels have been optimized to provide access to airtime and data to customers round the clock. As a result of the circumstances created by the stay-at-home order that became compulsory in many states across the country, 9mobile continues to put her customers first by bridging the gap and providing solutions to help them comply fully with the order. “These are trying times, and we want everyone

Image
11-October-2023

Northern Nigeria Faces Educational Threat—Lawmaker

By Bliss Okperan A lawmaker representing Kaura-Namoda/Birnin Magaji Federal Constituency in the National Assembly, Mr Aminu Sani Jaji, has raised alarm over the safety of children in schools in some parts of Northern Nigeria. The part of the country has witnessed kidnappings by terrorists and bandits, including in schools, leading to a low appetite for education over safety issues. While addressing newsmen in Abuja, he said, “These concerns intensify as incidents like the kidnapping of Federal University Gusau students follow purported dialogues, prompting public figures to call for a holistic approach to address the insecurity crisis decisively.” “Addressing the issue

Image
17-January-2023

PIA and Gestation of Acts

By Jerome-Mario Chijioke Utomi Many Nigerians with critical interest had hitherto believed that the advent of Nigeria’s Petroleum Industry Act (PIA) 2021, which was signed into law in the year mentioned above, and arguably the most audacious attempt to overhaul the petroleum sector in Nigeria, would solve the real and imagined challenges in the nation’s petroleum sector, and turn the Niger Delta region, particularly host communities, to a zone of peace in their relationship with crude oil prospecting and exploration companies. However, facts have since emerged that instead of providing the legal, governance, regulatory and fiscal framework for the Nigerian petroleum

Image
05-February-2018

DMO Opens February FGN Savings Bond Auction

By Dipo Olowookere The Debt Management Office (DMO) on Monday commenced the sale of the FGN Savings Bond subscription for the month of February for two-year and three-year to investors at 10.277 percent and 11.277 percent per annum respectively. The DMO is conducting the auctioning on behalf of the Federal Government of Nigeria. The savings bond gives Nigerians the opportunity to invest in the bond market for as low as N5000. Business Post reports that subscription for the bonds opens Monday, February 05, 2018 and ends on Friday, February 9, 2018. However, the coupon rates for the two papers are

Image
07-March-2019

Phillips Consulting Launches Webinar Series

By Modupe Gbadeyanka In order to keep professionals abreast of the latest developments in the workplace in this digital age, the management of Phillips Consulting Limited is launching webinar series. The main reason for this is to promote the transfer of innovative, cost – effective and sustainable solutions in 12 insightful topics. In addition, the webinars will give the audience a crash course on topics that have a huge impact on the present and future of businesses and organizations. At some point in one’s work life, he must have come across an example of digital transformation and how it has

Image
07-November-2021

SERAP to Block Buhari from Spending N26bn on Travels, Others

By Adedapo Adesanya Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit asking the Federal High Court in Abuja to stop President Muhammadu Buhari from spending N26 billion in the 2022 presidency budget on local and foreign travels, meals and refreshments, ‘sitting allowance’, ‘welfare package’, and office building. In the suit number FHC/ABJ/CS/1361/2021 filed last Friday by its lawyers, Mr Kolawole Oluwadare and Ms Adelanke Aremo, SERAP is seeking: “an order of mandamus to direct and compel President Buhari to cut the N26bn presidency budget on local and foreign travels, meals and refreshments, and to send a supplementary appropriation

Ad
Ad
Recent Stories
Image
05-March-2024

Mosan-Okunola LCDA Chairman Calls for Proper Maintenance of Roads

By Adedapo Adesanya The Executive Chairman of the Mosan-Okunola Local Council Development Area (LCDA), Mrs Olabisi Adebajo, has called on residents to properly maintain and ensure the durability of the currently reconstructed roads in the area. She made this disclosure while on an inspection visit to the Powerline-Okunola axis of the area on Tuesday afternoon, adding that those found defacing the roads will be made to face the punishment. The council boss said, “We have some people dumping refuses where they are not supposed to, those shops will be sealed, and until they do the needful, we won’t reopen the

Image
05-March-2024

What Pentecostal Pastors Have in Common With Politicians

By Michael Owhoko, PhD The disparity of roles between ecclesiastics and politicians is generally expected to translate to differences in values, lifestyles and creeds, but this pattern has been disrupted and bridged in Nigeria by materialism.  Moral disconnects, lust and insatiability for money, wealth, fame, influence and power have conspired to bring the men of God to the level of politicians.  This is evident in the Pentecostal ministries where some founding pastors and general overseers {GOs} no longer exhibit ascetic dispositions and restraints from material allures. Men of God are ordained servants positioned to constantly communicate God’s values and the

Image
05-March-2024

Ghana’s Central Bank Suspends FX Trading Licence of First Bank

By Aduragbemi Omiyale The foreign exchange (FX) trading licence of FBN Bank Ghana Limited, a subsidiary of FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, has been suspended by the Bank of Ghana. A statement issued on Monday by Ghana’s central bank disclosed that its action was because of the bank’s fraudulent documentation in its forex operations. The country’s banking sector regulator also suspended the FX trading licence of GTBank Ghana Limited, a subsidiary of Nigeria’s GTCO Plc, the parent company of GTBank Limited for the same offence. The notice from the central bank disclosed that

Image
05-March-2024

Binance Exits Nigeria, to Convert Naira Balances to UDST

By Adedapo Adesanya Binance will discontinue all services for Nigeria’s fiat currency, the Naira, following the ongoing regulatory onslaught on the firm by the Nigerian authorities. The crypto exchange will automatically convert Naira balances to US Dollar Tether (USDT) from March 8 but will cease support for deposits after today. Withdrawals will become unsupported after March 8 by 12 noon Nigerian time, a statement sighted by Business Post confirmed. The conversion rate for automatic conversions will be pegged at N1,515.13 to 1 USDT, according to an announcement from the website. Other features, including Binance Convert, Binance P2P, the exchange’s Auto

Image
05-March-2024

Petrol, Electricity Subsidies Will Gulp 3% of Nigeria’s GDP—IMF

By Adedapo Adesanya The International Monetary Fund (IMF) has warned the Nigerian government the payment of subsidies on petrol and electricity could take up to 3 per cent of the country’s gross domestic product (GDP) in 2024. The IMF stated this in a statement released on Monday on the completion of its 2024 Article IV Mission to Nigeria. The lender said that the recent improvements in revenue collection and oil production are encouraging, as “low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development.” But it emphasised that, “The capping of fuel pump prices

Image
05-March-2024

Deel Buys 100% Stake in African HR Solution Company PaySpace

By Adedapo Adesanya Global human resources company, Deel, has announced the acquisition of African-based payroll and HR solution company, PaySpace, for an undisclosed amount, in one of its largest acquisitions to date. By acquiring PaySpace, Deel will become the first global payroll and Employer of Record (EOR) with its full-stack payroll engine localized in 50 countries and integrated into its offering. PaySpace’s proprietary technology is a cloud-native framework built as a single engine. Its platform allows for easy configuration to add additional countries through localization. These localization projects normally take years to complete, but with PaySpace’s innovative technology, it can

Image
05-March-2024

Emotions Pour as Dignitaries Eulogise Late Herbert Wigwe

By Adedapo Adesanya  It was an emotional rollercoaster at the tribute event held on Monday night to celebrate the late group chief executive of Access Holdings Plc, Mr Herbert Wigwe. Dignitaries from government, corporate organisations, and royalty paid tribute to the late titan who died alongside his wife, son, and a former group chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbajo, on February 9 in the United States. The event which was monitored by Business Post was divided into six segments – Young Hebert, the banker, the entrepreneur, the CEO, the builder and the ambassador. These personalities

Image
05-March-2024

Nigeria’s Economic Outlook is Challenging—IMF Declares

By Aduragbemi Omiyale The International Monetary Fund (IMF) has alerted that tough times await Nigerians, though it retained its gross domestic product (GDP) growth forecast for 2024 at 3.2 per cent. In a statement on the conclusion of the IMF Staff 2024 Article IV Mission to Nigeria, the global lender said the administration of President Bola Tinubu “inherited a difficult economic situation marked by low growth, low revenue collection, accelerating inflation, and external imbalances built up over years.” However, it praised the government’s approval of an effective and well-targeted social protection system, including the release of grains, seeds, and fertilizers,

Image
05-March-2024

Banks Involved in 70% of Economic Crimes in Nigeria—EFCC

By Aduragbemi Omiyale Nearly 70 per cent of financial crimes in Nigeria have the involvement of banks, the Economic and Financial Crimes Commission (EFCC) has claimed. “Broadly speaking, banking fraud in Nigeria is both inside and outside related. “The inside related fraud comprises outright selling of customers’ deposits, authorising loan facilities, forgery and several other kinds of unhealthy and criminal practices,” the chairman of EFCC, Mr Ola Olukoyede, said while speaking at the Annual Retreat and General Meeting of the Association of Chief Audit Executives of Banks in Nigeria held in Abuja. The EFCC boss, represented by the agency’s Director

Image
05-March-2024

Nigerian Air Force Airstrikes Hit Two Illegal Refineries in Rivers

By Adedapo Adesanya The Nigerian Air Force component of Operation Delta Safe, through airstrikes destroyed two illegal oil refining sites in Krakama and Temakiri, Degema Local Government Area of Rivers State, in continuation of efforts to stamp out the activities of crude oil thieves and oil pipeline vandals in the country. This was disclosed by the Director of Public Relations and Information, Nigerian Air Force, Mr Edward Gabkwet, an Air Vice Marshal, saying the illegal oil refining sites were observed actively operating with Cotonou boats sighted nearby with the probable intent to illegally siphon crude oil from the sites. Mr