Banking
Examining Stanbic IBTC vis-à-vis Banking Industry Compliance and Corporate Governance Practices
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.
By Aduragbemi Omiyale
The banking segment of Stanbic IBTC Holdings Plc, Stanbic IBTC Bank, is making home ownership in Nigeria seamless.
In partnership with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), the lender is offering Nigerians highly attractive terms, including a fixed interest rate of 9.75 per cent, providing up to N100 million, with a flexible repayment period of up to 20 years. These features are well-suited to both consistent professional incomes and business owners.
The aim is to help professionals, entrepreneurs, and married couples in the country and the diaspora achieve homeownership with greater ease and confidence.
In a market where housing supply significantly lags demand and traditional mortgage penetration remains low, Stanbic IBTC Bank is enabling more eligible Nigerians with the financial capacity to take the important step toward ownership. The financial institution focuses on removing common barriers through clear processes and dedicated support.
Clients benefit from Stanbic IBTC’s comprehensive range of services, which covers pre-qualification, documentation support (including mixed-income scenarios), digital verification, and clear communication throughout.
Many applications are now progressing smoothly, with completion within three to four weeks, subject to the provision of required documents. This practical approach has made the process far more accessible for Nigerians both at home and in the diaspora.
As more professionals secure homes in high-growth areas, couples build family stability, and entrepreneurs expand their asset base, the positive impact is becoming increasingly visible.
Stanbic IBTC Bank’s consistent focus on transparency, efficiency, and client support is helping to make homeownership a realistic and rewarding choice for more Nigerians ready to build long-term wealth.
The company has achieved notable successes through the MREIF scheme, with many clients completing seamless ownership transitions, securing properties in strategic locations, and effectively converting rental expenses into valuable equity-building assets.
Interested individuals have been encouraged to explore this established offering by visiting the dedicated MREIF Home Loans page at https://www.stanbicibtcbank.com/mrief or contacting the nearest Stanbic IBTC Bank branch to begin the journey toward homeownership.
By Aduragbemi Omiyale
The non-payment of dividends for the year ended December 31, 2025, by Access Holdings Plc has continued to generate reactions from shareholders and others.
The company, in a statement made available to Business Post on Thursday, explained that the cash reward was not given to investors in the fiscal year because it could not get the regulatory clearance.
It dismissed insinuations that the decision not to pay shareholders a dividend was due to weak performance in the period under review.
Last year, Access Holdings delivered a resilient and diversified performance, underscoring its capacity to generate sustainable shareholder returns.
Gross earnings grew by 13.3 per cent to N5.53 trillion, supported by strong growth in net interest income and a 40.9 per cent increase in fees and commissions to N585.07 billion.
Profit before tax rose by 16.2 per cent to N1.01 trillion, while total assets expanded by 24.2 per cent to N51.56 trillion, reflecting scale accretion and the successful integration of recently acquired subsidiaries.
Its cost-to-income ratio improved significantly from 56.7 per cent to 51.7 per cent, driven by disciplined cost management and operating leverage. Capital adequacy remained strong at 18.2 per cent at the holding company level, while the banking subsidiary ended the year with a capital adequacy ratio of 20.2 per cent.
Shareholders would have thought something would drop into their bank accounts, but Access Holdings did not pay a cash reward despite recommending this.
“Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the Board and Management. The non-payment of dividend for 2025 was not due to earnings weakness or cash flow constraints, but an alignment with regulatory and prudential guidelines,” the chief executive of Access Holdings, Mr Innocent Ike, was quoted as saying in the statement.
“Our performance in 2025 demonstrates the strength of the franchise and its capacity to generate value for shareholders. Our focus is to ensure that shareholder distributions resume on a sustainable basis once all regulatory conditions are satisfied and the required approvals are obtained,” Mr Ike added.
It was explained that while dividends were recommended at both the half-year and full-year in 2025, regulatory approvals were not obtained. At the half-year stage, the constraint related to Section 7.1 of the CBN Guidelines for Financial Holding Companies, which has since been fully resolved following the successful completion of an approved private placement.
At full year, an additional matter arose under Section 19(8)(c) of BOFIA, which places limits on investments in foreign banking subsidiaries relative to shareholders’ funds. The group has been granted a twelve-month window to fully remediate this position. The company noted it will partially divest from some banking subsidiaries but will still retain its super majority shareholding.
According to Mr Ike, “Maintaining the confidence of our regulators, depositors and stakeholders is fundamental to our operating philosophy. In line with our long-standing culture of prudence and sound governance, the Board remains committed to balance sheet strength and capital resilience, as the basis for sustainable shareholder distributions.”
However, the organisation reassured stakeholders that it remains committed to engaging constructively with all relevant stakeholders to address the matters raised and achieve alignment with applicable requirements within the stipulated timeline.
Reaffirming management’s confidence, Mr Ike stated: “We remain actively engaged with the investment community and focused on resolving the matters raised within the prescribed timeline. Our priority remains delivering sustainable long-term value to shareholders through stronger execution, improved financial performance and disciplined growth. Subject to the successful conclusion of this process and the necessary approvals, our objective is to restore dividend payments on a sustainable basis.”
Concluding, he said, “Access Holdings is uniquely positioned to leverage its scale, geographic diversification and strong franchise to deliver resilient earnings growth, stronger returns and enhanced long-term shareholder value.”
By Modupe Gbadeyanka
Two suspected fraudsters, identified as Oguntoyinbo Olawale and Kazeem Omokayode, are currently in police custody, explaining what they know about the N713.9 billion diverted from the bank accounts of 15 customers of a financial institution in Nigeria.
A statement issued by the Force Public Relations Officer, Mr Anthony Okon Placid, a Deputy Commissioner of Police (DCP), disclosed that the suspects worked in connivance with a Chinese national, simply identified as Linda, who is at large, to carry out the alleged act.
They were accused of using personal identification details, including Bank Verification Number (BVN), National Identification Number (NIN), and other credentials, to open multiple bank accounts across various financial institutions, mainly to receive, conceal, and launder illicit proceeds.
The fraud syndicate was busted by the Police Special Fraud Unit (PSFU) after a complaint from the bank, which observed a series of unauthorised debits linked to security breaches associated with a third-party platform.
Personnel of PSFU deployed advanced investigative and digital forensic techniques, and found out that 15 customers’ accounts were compromised, with funds swiftly funnelled through a network of accounts in a coordinated laundering operation.
The statement said the suspects would be arraigned before a court of competent jurisdiction, while efforts are being intensified to apprehend other members of the syndicate still at large.
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