By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has reportedly slammed a fine of N250 million on Paystack for operating its personal banking product, Zap, without its approval.

According to TechCabal, Paystack didn’t follow due diligence and operated the product without the appropriate regulatory licence.

Zap was launched in March to solve challenges around bank transfers. However, there were whispers that Zap did not get its independent licence and was covered by Paystack’s licence.

Paystack holds a switching and processing licence, which permits it to route financial transactions between banks and other institutions, but not to hold customer funds.

Business Post reports that if a product launches without the proper license, the apex bank has the right to shutdown its operations or impose a fine, and since it appears that Paystack didn’t get the appropriate authorisation, the banking sector regulator in Nigeria had to wield the big stick.

Customers can fund their Zap account by linking their Nigerian bank accounts to Zap using Paystack’s direct debit infrastructure or depositing money directly into a Paystack-Titan account.

The app is limited to only commercial bank accounts which can be linked through Paystack Vault. So, account numbers like like OPay, PalmPay, and Moniepoint are excluded from the list of supported institutions.

Users can also link debit or credit cards from any country to the Zap app.

This may also present another rationale for the fine since Zap can carry out international transfers, particularly to the United Kingdom, even though it doesn’t have a International Money Transfer Operator Licences (IMTOs) from the CBN or even registered with the UK’s Financial Conduct Authority (FCA), which regulates financial services in the UK, as per checks.

Since its launch, Zap, has faced challenges including claims of trademark infringement as Nigerian crypto startup Zap Africa accused Paystack of stealing its name.

The matter is currently still undergoing legal battles between both entities.

Right now, the question that people will be asking is: how could a prestigious firm like Paystack fail to do the necessary things?

By Aduragbemi Omiyale

Bank officials have been warned against creating multiple accounts for customers, alerting them of an investigation, or hinting them of their accounts being flagged by security officials.

At a meeting with compliance officers of banks in Port Harcourt, Rivers State, on Tuesday, the Acting Zonal Director of the Economic and Financial Crimes Commission (EFCC), Mr Adebayo Adeniyi, said bankers must collaborate with the agency to minimise crime in the country.

He also emphasised the need for financial institutions operating in the country to enforce the Customer Due Diligence and Know-Your-Customers (KYC) policies to strengthen the fight against corruption.

Mr Adeniyi stated that banks and the EFCC must strengthen their partnership to rid the nation of economic and financial crimes and other acts of corruption, noting that customers must be reminded of the importance of KYC.

“It is important to remind banks of their critical roles as major stakeholders in the fight against corruption and that there is a need for the commission and the banks to work together,” he said.

He pointed out that issues of identifying bank customers and for banks to update records of their customers are very important to facilitate investigation processes.

Mr Adeniyi specifically cautioned account officers against encouraging internet fraudsters to commit fraud through multiple accounts creation or alerting their customers that they are under investigation by the EFCC or that their accounts have been flagged.

“In as much as you have to protect the bank, don’t do so at the detriment of the nation, do not protect the bank and destroy the image of your family and that of the society,” he stressed.

Responding, one of the compliance officers, Mr Edward Keto, appreciated the efforts of the anti-money laundering agency, saying, “It is a privilege to have this kind of meeting with the commission and it will help in dealing professionally with our customers.”

By Aduragbemi Omiyale

The payment of N195.7 billion as dividend by Zenith Bank Plc for the 2024 financial year has been applauded by shareholders as the lender promised quantum leap in future cash reward.

At its 34th Annual General Meeting (AGM) on Tuesday in Lagos, shareholders said they were satisfied with the dividend policy of the financial institution.

Business Post reports that yesterday, shareholders approved the payment of N4.00 per share as final dividend, bringing the total cash reward for the year to N5.00, after paying an interim dividend of N1.00 in September 2024.

One of the shareholders at the gathering, Mr Olatunde Okelana, who is the Balogun Olugbon of Orile-Igbon, Oyo State, said his investment in Zenith Bank has been “the best for me.”

“I want to believe that whoever has not invested in Zenith Bank has lost. Their dividend policy is very palatable, very beautiful in the banking industry and the lady at the helm of affairs is performing wonderfully well. She is one of the best female CEOs in the banking Industry in Nigeria.

“I am a capitalist, so I invest where my money can give me beautiful returns. I want to tell you that Zenith Bank has been the best in the capital market and it is the best investment. Mr Jim Ovia, the founder and chairman, is a benefit to mankind; he has done the best by giving us Zenith Bank,” he added.

Mr Okelana added that, “99.9 per cent of my savings is in Zenith Bank because I have confidence in them and in the management led by Ms Adaora Umeoji. I want to encourage many Nigerians to invest in Zenith Bank so that they too can reap the fruit of their labor as soon as possible. I am very happy to be a shareholder of this bank.”

Also speaking, the president of the Shareholders Solidarity Association of Nigeria, Mr Timothy Adesiyan, praised the Zenith Bank team for their consistent delivery of value to shareholders.

“The dividend we received this year of N5 has been a promise which they have given to us at several forums which they have called at different times, and we thank them for not failing us in their promise.

“I am very proud to be a shareholder of Zenith Bank, and also their customer. The bank is a very reliable bank – if you keep your investments in Zenith Bank, you can go to sleep because there is always somebody there watching your investment for you,” he stated.

In the same vein, the president of the Association of the Rights of Nigerian Shareholders (AARNS), Mr Faruk Umar, applauded the Ms Umeoji for her efforts in ensuring the growth of the bank’s financial indices.

“We are very happy that the bank is paying us N5. Most importantly, Ms Umeoji has done so well. In the past year, she won the award for the Banker of the Year which is very commendable, and all the bank’s indices have gone up; we are now experiencing trillions in profit against N676 billion the previous year, and the shareholder’s funds, the gross earnings – everything now is in trillions. I think this is very commendable.

Also, the chairman of the Trusted Shareholders Association of Nigeria,Mr Mukhtar Mukhtar, said, “The consistency of Zenith Bank dividend payout has never been matched in Nigeria.

“Since the inception of this bank, they have kept giving shareholders a consistent dividend payout, and this has made shareholders to be richer, happier, and more excited at the hardwork, performance and commitment of the bank. We are very happy.

“If you look at the Profit Before Tax (PBT) and the Profit After Tax (PAT), they have been able to cross the N1 trillion threshold. They have given us a PBT of N1.3 trillion, which is very commendable,” he stated.

In his address to shareholders, Mr Jim Ovia thanked them for their unflinching support and commitment, which have been responsible for the bank’s stellar performance over the years.

He noted that despite challenges globally in 2024, Zenith Bank was able to leverage the opportunities within the environment of each subsidiary to record a performance that solidly attests to the bank’s resilience as a brand.

On her part, Ms Umeoji said, “This is the first time that I am addressing the AGM in my capacity as the first female chief executive of Zenith Bank. I would like to thank you for your confidence and support that has placed me in this position today.

“Zenith Bank is committed to, not only meeting your expectations, but exceeding them. We are focused on running a very efficient and sustainable institution that is resilient and will ensure that our institution outlives many generations to come.”

“If you look at our dividends trajectory, payments over the period have always increased and we will continue to maintain this record. We have successfully completed our recapitalization exercise, achieving 160 per cent subscription.

“Therefore, we are not under any pressure to go back for the second time to raise funds. Zenith Bank has sufficient capital buffer to do business and we will continue to delight our shareholders. We are committed to growing our topline organically while adhering to our strict corporate governance culture,” she added.

Last year, Zenith Bank grew its gross earnings by 86 per cent to N3.97 trillion from N2.13 trillion due to a 138 per cent leap in interest income, supported by investment in high-yield government securities, and growth in the bank’s loan book.