Banking
Skye Bank On Edge Of Total Collapse?
By Dipo Olowookere
It is no doubt that since the Central Bank of Nigeria (CBN) changed the leadership of Skye Bank some weeks ago, the bank has not remained the same again.
Skye Bank and CBN have had to assured depositors and the general public that all is well, trying every possible means to allay the fears of people, especially depositors.
Also, the Lagos State government, which uses the bank for collection of different levies, including for tax collection and payment of workers’ salaries, has also said the bank is healthy. In fact, it told civil servants under its payroll not to close their accounts with the bank.
Vanguard takes a look at the issue and below was what the respected newspaper said on the issue.
Why CBN and Lagos state might fail to save Skye Bank
“SKYE Bank is not distressed.” CBN advert in several newspapers.
The Central Bank of Nigeria, CBN, and the Lagos State government have different reasons for desperately averting possible Skye Bank distress. Even the hint of likely distress inhibiting deposits and inviting a run on the bank is not in their interests. For the CBN, the collapse of any bank, at this time, is likely to create collateral damage affecting other banks, governments, the organized private sector and the financial system. So their anxiety on this matter is understandable.
Before the CBN advertisement, the Permanent Secretary, Lagos State Ministry of Finance was reported to have told Lagos State employees not to close their accounts with Skye bank.
The report was not clear whether what was issued was an order, a plea, or advice. None of them is without its perils for all concerned – Lagos State, the bank and the employees.
It is questionable if an employer, even a government can issue instructions to its employees regarding the bank to patronize after paying them.
While it might be acceptable for administrative reasons to request all employees to open accounts with a bank for salary transfers, it is doubtful if the state can force the civil servants to keep their money in the designated bank and risk their funds going down in case of distress.
Who then will suffer the consequences?
Advice, the public servants definitely don’t need especially when only the state’s and the bank’s interests will be served by compliance. SKYE bank certainly needs all the deposits it can get – more than ever before.
The state being a major shareholder in the bank also needs the bank to recover the confidence of other stakeholders in order to survive and perhaps improve its performance.
Depositors, including the staff of Lagos state, however, need a different sort of counsel. They need to be honestly informed about the real situation of the bank.
The CBN does not, without reason, order the change of directors and management of a bank unless a lot of things have gone wrong and some individuals charged with the management of the bank were involved – deliberately or inadvertently.
More perplexity is introduced by the fact that the directors and managers removed will apparently walk away without sanctions for putting every other stakeholder at risk.
Hundreds of thousands of depositors of SAVANNAH Bank and SOCIETE GENERALE Bank are still holding to empty air more than ten years after those banks were closed without previous warning from the CBN.
OCEANIC, INTERCONTINENTAL, BANKPHB etc were presented to the public as still strong banks until Sanusi replaced Soludo who helped to keep up the fiction of soundness.
So, why should depositors rely on a CBN which had failed them repeatedly and made them to pay dearly for it? To be quite candid, the last organization to declare a bank distressed is the CBN. Usually by then the depositors have been taken to the cleaners and their funds irretrievably lost.
Lagos state has its own problems with regard to SKYE Bank. Its shares in the bank, which sold for N17.50 per share in October 2008, are now going begging at 65 kobo per share.
The state has lost hundreds of millions of naira on that investment.
The quantum of loss is one of the most closely guarded secrets of the progressive governments since “Con-Soludo-tion” imposed by the CBN under Professor Soludo.
There is no shareholder alive who was not a victim of the calamity called “Con-Soludo-tion”. Lagos State is one of the biggest victims of the rush to acquire shares under “Con-Soludo-tion”, and it is understandable why the current government is eager to minimize the losses.
But, the truth remains. A grave mistake had been made; an error of judgment committed at the topmost levels of government.
As Agathon, 447-401 B.C, has reminded us, “Even God cannot change the past.” Lagos State is unlikely to recover those investments even if Ambode serves a second term.
The statement issued by the Perm Sec, if followed by public servants in the state, carries with it the risk that the state’s funds, now largely lost, will be followed down the drain by those of its staff – if anything goes wrong with SKYE Bank.
That would amount to a great disservice to the workers who were not consulted when the Governor who committed the state took the decision – admittedly in good faith.
But, such is life. There is always a lot of risk in banking. If there is none, everybody will be in banking. There is also a lot of risk in shareholding. If not, everybody will be in that venture too. In Nigeria, the combination of the two had almost always proved painful for a lot of people – except the insiders and manipulators who invariably walk away free. To some extent the reason Nigerian banking appears to be perpetually embroiled in crisis can be traced to our very lax laws which allow directors of banks to get away with their larcenies.
Until we stiffen the penalties for contraventions of banking rules, the nation will reel from one crisis to another.
Finally, it is curious that while others are desperately working to save the bank, its own directors are doing nothing. They are not reaching out to public opinion molders to present their plans for restoration of the bank.
http://www.vanguardngr.com/2016/08/cbn-lagos-state-might-fail-save-skye-bank/
By Dipo Olowookere
Ecobank Nigeria Limited has taken a significant step to ensure its customers get cheap personal loans by partnering with the Nigerian Consumer Credit Corporation (CrediCorp).
The service is available to civil servants and private-sector employees whose salaries are paid through Ecobank.
New customers can also benefit upon presentation of employer undertaking to pay subsequent salaries through Ecobank.
Starting this January, the initiative provides flexible repayment options and a streamlined loan application process.
These loans can be used to finance a variety of personal needs, including paying school fees, rent, maintenance costs, medical bills, car purchase and repairs, asset purchase, and more.
The loans come with affordable interest rates, a two-year term, and a repayment plan that ensures equal monthly instalments, including principal and interest, do not change throughout the life of the facility, regardless of the economic situation of the country.
According to the Head of Consumer Banking at Ecobank Nigeria, Ms Adeola Ogunyemi, the loans will provide salary earners, both in the public and private sectors, with better access to financial products.
“This collaboration is an excellent opportunity to serve our customers, and we believe it will improve the quality of life for many Nigerians.
“Eligible customers can use the loans to purchase electronics, solar systems, or CNG vehicle conversions, as well as for other essential expenses like school fees, rent, upkeep, medical bills, and car maintenance.
“We encourage working-class Nigerians to open an account with Ecobank to benefit from this initiative,” Ms Ogunyemi stated.
CrediCorp, a Development Finance Institution (DFI) established by the federal government, is focused on enhancing access to consumer credit for Nigeria’s workforce.
Under the partnership, CrediCorp will provide funds to Ecobank, for on-lending to qualified customers.
The arrangement covers personal loans, as well as asset financing for items like solar systems, home appliances, phones, laptops etc. and vehicle conversions to compressed natural gas (CNG).
Ecobank Nigeria is part of the Ecobank Group, a leading pan-African banking organization. The bank provides a full range of financial services to individuals, businesses, and institutions through its network of over 240 branches and 35,000 Xpress Point agencies across Nigeria.
By Modupe Gbadeyanka
No fewer than 131 customers of Wema Bank Plc will win N11 million in cash prize in the company’s 5 for 5 promo season 4 monthly draw fixed for Friday, January 24, 2025, in Warri, Delta State.
According to a statement from the lender, from the 131 customers, 80 of them will win N25,000 each, 40 will win N100,000 each, eight domiciliary account holders will win N250,000 each and three will get N1 million each, with one to be from Warri, venue of the event.
The 5 for 5 promo selects winners from the bank’s pool of active and transacting customers, via thoroughly regulated electronic live draws.
The first 3 seasons saw the Wema Bank 5 for 5 Promo disburse over N150 million to 2,378 Nigerians across the six geopolitical zones in Nigeria, and with the launch of Season 4 on October 1, 2024, Wema Bank raised the bar, setting aside a whopping N135 million for disbursement this season alone.
So far, over 1,000 Nigerians have won cash prizes in daily, weekly and monthly draws, with 540 customers winning in 55 daily draws, 550 customers winning in 11 weekly draws and 262 customers winning in 2 monthly draws; totalling over N27 million disbursed so far.
The third monthly draw of the season, which also happens to be the first monthly draw of 2025, is set to hold this January in Warri, and another 131 winners will emerge from the draw.
“The goal for us with the Wema Bank 5 for 5 promo is giving back, providing support and rewarding our loyal customers, it’s been one of the key means through which we say ‘thank you’ as a Bank, and four years strong so far, it’s only gotten better with each season.
“We made millionaires in December ahead of Christmas and it was heartwarming to hear from our amazing customers how instrumental these rewards were in sorting out some bills. Now, we are even more ready to kickstart 2025 on a millionaire note,” the chief executive of Wema Bank, Mr Moruf Oseni, said.
“As a tradition, the 5 for 5 Promo continues to tour different locations across the six geopolitical zones, however, our winners are always selected from across the country. So even though one of the millionaires will be from Warri where this draw will hold, there’s still room for two more millionaires and over 120 more winners of cash ranging from N25,000 to N250,000.
“The joy for us is in the smiles that are made, the stories that are positively impacted and the hope that these cash rewards bring to the winners; from students to small business owners, working professionals, and so on.
“We are all too familiar with the running ‘100 days of January’ reality that plagues a lot of us after the heavy spending that comes with December, so this draw is the perfect opportunity to support our customers beyond the daily and weekly draws that we hold every other weekday.
“I congratulate the winners in advance, and I encourage every new and existing Wema Bank customer to seize this opportunity and start transacting today. The 5 for 5 promo is as transparent as can be, so anyone can win, provided they meet the minimum requirements,” he added.
By Dipo Olowookere
The United Bank for Africa (UBA) Plc has completed its scheduled routine system maintenance on its card service.
The financial institution over the weekend informed its customers of a scheduled maintenance on its card service from 12 am to 5 am of Sunday, January 19, 2025.
Customers were told that the action could make them experience service disruption while using the UBA cards for financial transactions.
The lender said it was carrying out the maintenance for better service delivery, apologising for any issue they may encounter during the period.
“In line with our commitment to provide you with exceptional experience and to enable us to serve you better, we will be carrying out a scheduled routine maintenance on our card services.
“During this period, you may not be able to use your Debit & Credit Card. Please use our alternative channels, LEO, *919#, Mobile App or Internet Banking for transactions
“An update will be provided as soon as the maintenance is completed.
“We appreciate your understanding and apologize for any inconvenience this may cause. Please be assured that we are committed to providing you with excellent banking services,” the notice earlier sent to customers said.
After the completion of the process, UBA mailed another statement to customers, informing them they could use their cards without any issue.
“We are pleased to inform you that our scheduled routine system maintenance has been completed.
“You can now enjoy safer and quicker transactions on our card service.
“We regret any inconvenience you may have experienced, and assure you of our commitment to continuously provide you with excellent service,” the statement sighted by Business Post read.
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