Banking

Examining Stanbic IBTC vis-à-vis Banking Industry Compliance and Corporate Governance Practices

Published

6 years ago

24/07/2019

At a recent function in Abuja, the Managing Director/CEO of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, delivered a lecture where he revealed that there has been a consistent decline, over the past three years, in the recorded rate of successful fraud incidences, thefts and forgeries in the banking industry. Specifically, Ibrahim said such cases had declined by almost half, 48.12%, of the rate it was in 2015.

In response to how the industry was able to achieve such impressive reductions, Ibrahim, while putting in perspective the key reason for frauds to help buttress his response, explained that poor corporate governance practices in terms of regulatory and supervisory oversight and compliance allow frauds and forgeries to thrive. So all that needed to be done was to ensure a stronger corporate governance practice. He said the reduction is indicative of the strict adherence to sound corporate governance practices by banks, which include compliance with regulations.

Indeed, experts at a recent workshop organized by the National Institute of Compliance (NIC) agreed that compliance is at the heart of sound banking practices and sustainable banking and that the risk of banking industry failure is remoter now than it was some years back due to a higher level of compliance. The nature of the banking industry, with its intermediation functions, is such that failure can have very dire consequences for businesses and the economy. Thus, banks have a responsibility to ensure a stable industry and this can only be achieved by sound corporate governance practices.

In the 90s and early 2000s, regulatory and supervisory oversight was weak and compliance by banks to regulations was mainly in the breach. Then, the industry was an all comers’ affair, mostly populated by charlatans who see the industry as mainly a meal ticket. Banks were being opened at a dizzying pace then, with sometimes three or four opened in a month. Before the recapitalization exercise of 2005, there were close to 200 banks in the country. There was widespread corruption in the industry at the time, which led to billions of naira of depositors’ money and investors’ funds lost or misappropriated. But following the recapitalization exercise and especially after the global financial crisis of 2008, corporate governance became a major issue leading to the introduction of a raft of corporate governance codes.

For a bank like Stanbic IBTC, regulatory compliance comes like second nature. The brand’s penchant for regulatory compliance was validated in 2015 at the maiden edition of the Corporate Affairs Commission’s Corporate Citizens Awards. Stanbic IBTC Bank came first for compliance among Nigerian banks and was awarded the Most Extensive Compliance award. According to CAC, “over 800 companies were nominated for the awards, only 26 companies made the final list, out of which the nine winning companies emerged,” including Stanbic IBTC and three other banks.

Certainly, there is no better validation than a regulator attesting to a company’s good corporate citizenship. And it is no surprise that a bank like Stanbic IBTC was adjudged the first among equals in terms of compliance.

Many sometimes view the bank’s processes and policies as cumbersome because of the different layers of regulatory requirements it insists must be met before a transaction can be consummated. But then on the flip side is that Stanbic IBTC Bank is one of the most secure, transparent and trusted financial institutions in the country today.

These qualities continue to translate into very strong financial performances in its operations and a bullish outlook for the stock at the Nigerian Stock Exchange.

In its 2018 financial report, Stanbic IBTC Bank posted an impressive 54% growth in PAT. Balance sheet grew by 20% to N1.6 trillion, driven mainly by deposit growth of 7%. And most importantly, was able to improve its asset quality as ratio of non-performing loans to total loans improved to 3.9%.

Financial institutions, particularly Stanbic IBTC, fully appreciate and understand that their survival depend on how well they are able to manage the relationships amongst their stakeholders, which require them to establish and maintain harmony between parties whose interests sometimes conflict. It is the management of such relationships that corporate governance code embodies. It is this realisation that led banks to self-regulate when in 2003 the Code of Corporate Governance for Banks and Other Financial Institutions in Nigeria was established by the Bankers’ Committee and CIBN.

Stanbic IBTC’s strong corporate governance practices are critical to the financial institution’s continued growth trajectory. The seamlessness of its change of leadership last year was quite impressive and such practices will no doubt give it the desired stability to further increase its market share and to post impressive financial results, going forward.

With the 2003 code, the 2014 CBN code and a spate of regulations by the apex bank as situation demands, which makes for a stronger regulatory oversight, one can almost argue that the possibility of a banking industry failure is remoter than constant uninterrupted power supply in the country. Despite the cost of compliance, which can sometimes be huge and burdensome in terms of time and direct cost, and the risk of managements of banks becoming particularly focused on compliance at the expense of doing business, financial institutions remain resolute in ensuring a strong and viable industry. And this is beginning to produce dividends as shown by the recent NDIC figures and the industry’s financial scorecards.

Today, banks sometimes face the wrath of stakeholders as they strive to comply with regulatory directives. A case in point was the directive by the CBN that banks publish the names of delinquent debtors on its books, which did not go down well with some customers.

Another was the foreign exchange utilization position, mandated to be published weekly, and the various restrictions to dollar disbursements to bank customers. Treasury Single Account (TSA), which required all agencies of government to each maintain a single account with the CBN, leading to the withdrawal of trillions of naira from commercial banks, was another policy that banks would have gladly avoided but nonetheless diligently complied with. And most recently is the ‘appointment’ of banks by the Federal Inland Revenue Service as tax collecting agents, which pitched the banks directly against some of their customers and trade partners.

There is no doubt that there is a new compliance orientation in the banking industry. And as banks like Stanbic IBTC, Zenith Bank, Access Bank and UBA continue to lead the financial services industry towards improved compliance levels, it will not only check corruption in the banking industry and risk of possible collapse, it will, due to banks’ pivotal role in the economy, help sanitize business practices and thereby attract investors and boost the economy.

Banking

BVN Enrolments Stood at 67.8 million in 2025—NIBSS

Published

21 hours ago

09/01/2026

Adedapo Adesanya

By Adedapo Adesanya

The Nigeria Inter-Bank Settlement System (NIBSS) has disclosed that Bank Verification Number (BVN) enrolments rose by 6.8 per cent year-on-year to 67.8 million as at December 2025 from 63.5 million in the corresponding period of 2024.

In a statement published on its website, NIBSS attributed the growth to stronger policy enforcement by the Central Bank of Nigeria (CBN) and the expansion of diaspora enrolment initiatives.

According to the data, more than 4.3 million new BVNs were issued within the one-year period, underscoring the growing adoption of biometric identification as a prerequisite for accessing financial services in Nigeria.

NIBSS noted that the expansion reinforces the BVN system’s central role in Nigeria’s financial inclusion drive and digital identity framework.

The growth can largely be attributed to regulatory measures by the CBN, particularly the directive to restrict or freeze bank accounts without both a BVN and National Identification Number (NIN), which took effect from April 2024. The policy compelled many customers to regularise their biometric records to retain access to banking services.

Another major driver was the rollout of the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to obtain a BVN remotely without physical presence in the country. The programme has been widely regarded as a milestone in integrating the diaspora into Nigeria’s formal financial system.

A five-year analysis by NIBSS showed consistent growth in BVN enrolments, rising from 51.9 million in 2021 to 56.0 million in 2022, 60.1 million in 2023, 63.5 million in 2024 and 67.8 million by December 2025. The steady increase reflects stronger compliance with biometric identity requirements and improved coverage of the national banking identity system.

However, NIBSS noted that BVN enrolments still lag the total number of active bank accounts, which exceeded 320 million as of March 2025.

It explained that this is largely due to multiple bank accounts linked to single BVNs, as well as customers yet to complete enrolment, despite the progress recorded.

Business Post reports that BVN, launched in 2014, was introduced to establish a single, unique identity for every bank customer in Nigeria and to strengthen the overall financial system. By linking each customer’s biometric data to one verified number, it helps to curb financial fraud, identity theft, and impersonation, while improving customer identification and eliminating the practice of operating multiple bank accounts under different identities.

Beyond security, BVN improves oversight, reduces loan defaults, protects customers, and supports financial inclusion.

Banking

Fidelity Bank Raises Fresh N259bn to Overshoot CBN N500bn Capital Base

Published

2 days ago

08/01/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The N500 billion minimum capital requirement of the Central Bank of Nigeria (CBN) for financial institutions with international banking licence has been met by Fidelity Bank Plc ahead of the March 2026 deadline.

The local lender met and surpassed the new capital base after raising about N259 billion from private placement, a notice on the Nigerian Exchange (NGX) Limited revealed.

Before the latest injection of funds, Fidelity Bank raised N175.85 billion through a public offer and rights issue in 2024, bringing its eligible capital to N305.5 billion and leaving a margin of N194.5 billion to meet the new regulatory capital requirement of N500 billion for commercial banks with international authorisation.

Giving an update on its recapitalisation exercise, Fidelity Bank said it got the fresh N259 billion from the private placement after approvals from the central bank and the Securities and Exchange Commission (SEC).

It was disclosed that “it successfully opened and closed a private placement of ordinary shares on December 31, 2025.”

“The private placement was conducted pursuant to the authorisation received from the bank’s shareholders at the Extraordinary General Meeting (EGM) of February 6, 2025, to issue up to 20 billion ordinary shares by way of private placement,” a part of the disclosure said.

A few days ago, First Bank of Nigeria also met the N500 billion capital base after injections of funds from one of its main shareholders, Mr Femi Otedola, who sold his stake in Geregu Power Plc for the purpose.

Banking

Unity Bank Gives N270m Grants to 608 Corpreneurship Winners

Published

2 days ago

08/01/2026

Modupe Gbadeyanka

By Modupe Gbadeyanka

More than N270 million have been won in grants by about 608 young Nigerian entrepreneurs in the Unity Bank Corpreneurship Challenge since its inception in 2019.

The business grants were mainly won by graduates undergoing the mandatory one-year National Youth Service Corps (NYSC).

It is part of the lender’s Youth Entrepreneurship Development Initiative designed to equip fresh graduates with the funding, confidence, and support required to launch and scale viable businesses.

The Corpreneurship Challenge provides a competitive platform where corps members pitch business ideas, assessed on originality, feasibility, market demand, scalability, and job-creation potential. Successful participants receive financial grants to kick-start or expand their ventures, alongside exposure to business guidance and mentorship.

Unity Bank implemented the scheme through the Skill Acquisition and Entrepreneurship Development (SAED) programme of the NYSC.

In the most recent edition of the Corpreneurship Challenge, held between November 18 and December 9, 2025, across 10 NYSC orientation camps nationwide, 30 youth corps members emerged as winners during the Batch C, Stream I, 2025 exercise of the programme.

They were selected from orientation camps in Lagos, Delta, Kaduna, Jigawa, Kwara, Enugu, Abia, the Federal Capital Territory (FCT), Akwa Ibom, and Plateau (Jos), after pitching innovative business ideas across diverse sectors of the economy.

Unity Bank’s cumulative investment in the Corpreneurship Challenge underscores its long-standing commitment to youth empowerment, MSME development, and job creation in Nigeria.

Speaking on the continued impact of the initiative, Unity Bank’s Divisional Head for Retail and SME, Mrs Adenike Abimbola, reaffirmed the financial institution’s belief in entrepreneurship as a catalyst for economic transformation.

“At Unity Bank, we recognise that entrepreneurship remains one of the most effective tools for tackling youth unemployment and driving inclusive economic growth.

“Through the Corpreneurship Challenge, we are not only providing financial support, but also instilling confidence in young graduates to transform viable ideas into sustainable businesses.

“Reaching over 600 beneficiaries since inception reinforces our belief in the immense potential of Nigeria’s youth,” she said.

Mrs Abimbola further emphasised the programme’s role in strengthening Nigeria’s MSME ecosystem and creating long-term economic value.

“Small and medium-scale enterprises are the backbone of any resilient economy. By supporting corps members at the earliest stage of their entrepreneurial journey, we are helping to build businesses that can create jobs, stimulate local economies, and contribute meaningfully to national development. Our focus is on impact that goes beyond grants, impact that translates into lasting livelihoods,” she added.

Since its launch, the initiative has supported youth-led businesses across value chains, including fashion, agribusiness, food processing, creative services, manufacturing, and retail. Over the years, it has become an integral part of the NYSC experience, attracting thousands of applications annually and earning national recognition for its contribution to youth empowerment.

By sustaining and expanding the Corpreneurship Challenge, Unity Bank continues to reinforce its role as a strategic partner in Nigeria’s entrepreneurial and MSME development landscape.