Access Bank Hosts 2024 French Business Forum, Affirms Boost to Nigeria-France Trade Relations
L-R: Aigboje Aig-Imoukhuede, Chairman of Access Holdings PLC and President of the France-Nigeria Business Council; Laurent Favier, Consul General of France in Lagos; Zahrah Mustapha Audu, Technical Adviser to the President on Foreign Direct Investment; Folashade Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade and Investment; Roosevelt Ogbonna, Managing Director/Chief Executive Director, Access Bank Plc; Florent Mangin, Head of the Regional Economic Department French Treasury, at the French Week 2024 Business Forum at the Access Bank headquarters in Lagos…Tuesday, November 12, 2024.
Access Bank PLC has hosted the French Week 2024 Business Forum at its headquarters in Lagos, affirming its commitment to bolstering trade relations between Nigeria and France. The event, which kick-started the annual French Week celebration, highlighted Access Bank’s dedication to fostering bilateral business collaborations and creating a platform for growth, trust, and innovation in the France-Nigeria economic space.
The Business Forum attracted high-profile dignitaries, including Ambassador of France to Nigeria, Consul General of France in Lagos, President of the Franco-Nigeria Chamber of Commerce and Industry, and Chairman of Access Holdings Plc. Commissioner for Commerce, Cooperatives, Trade, and Investment in Lagos, as well as the Technical Adviser to the President on Foreign Direct Investment, conveyed the federal government’s full support for advancing cross-border partnerships with France, appreciating Access Bank’s leadership in organising such impactful forums.
In his opening remarks, Mr. Laurent Favier, the Consul General of France, acknowledged Access Bank’s growing presence in France, further underscoring the bank’s pivotal role in facilitating trade between the two nations. He lauded Access Bank for championing France-Nigeria economic relations by establishing both a strong footprint in Paris and a dedicated French Desk in Nigeria to facilitate seamless business transactions.
Aigboje Aig-Imoukhuede, Chairman of Access Holdings PLC, who also serves as President of the France-Nigeria Business Council, emphasised the council’s role in supporting economic policies that enhance the business environment for both nations. “The France-Nigeria Business Council seeks to play a crucial role in supporting our government, businesses, and citizens to create a more enabling, uplifting, and secure environment for cross-border businesses,” he stated.
During the first panel discussion, Roosevelt Ogbonna, CEO of Access Bank Nigeria, highlighted the bank’s efforts in supporting African presence in global markets. “Access Bank is dedicated to giving Africa a voice on the international stage, helping local businesses scale through better access to information, credit, and capital. Our presence in Paris not only strengthens Nigeria’s influence, but also facilitates investments that align with the ongoing economic transformations on the African continent.”
In his closing remarks, HE Marc Fonbaustier, the Ambassador of France emphasized the significance of the forum as a platform to elevate Nigeria-France trade and investments. “Events like this provide a rare opportunity to enhance our bilateral economic relationship, strengthening existing trade and investment channels and fostering new partnerships.”
With the successful launch of the French Week 2024 Business Forum, Access Bank reaffirms its commitment to positioning Nigeria as a key player in the international business landscape, promoting shared economic growth and sustainable partnerships that benefit both nations.
L-R: Moses Umoru, Director General, Franco-Nigeria Chamber of Commerce and Industry; Guillaume Niarfeix, President, Franco-Nigeria Chamber of Commerce and Industry; Aigboje Aig-Imoukhuede, Chairman of Access Holdings PLC and President of the France-Nigeria Business Council; Laurent Favier, Consul General of France in Lagos; Zahrah Mustapha Audu, Technical Adviser to the President on Foreign Direct Investment; Folashade Ambrose-Medebem, Commissioner for Commerce, Cooperatives, Trade and Investment; Roosevelt Ogbonna, Managing Director/Chief Executive Director, Access Bank Plc; Florent Mangin, Head of the Regional Economic Department French Treasury; Jean Haas, Secretary General, France Nigeria Business Council, at the French Week 2024 Business Forum at Access Bank headquarters in Lagos…Tuesday, November 12, 2024.
The Access Bank (UK) Limited to Acquire Mauritius-based AfrAsia Bank Limited
Access Holdings PLC (“Access Holdings”) today announces that its banking group’s, subsidiary, The Access Bank UK Limited (“the Access UK”) has entered into a binding agreement to acquire a majority equity stake in AfrAsia Bank Limited (“AfrAsia Bank”), the Republic of Mauritius’ third largest bank by total assets.
Mauritius, renowned for its robust financial services sector which contributes 13.4% to its Gross Domestic Product, provides Access UK with a solid foundation to expand its operations in the high-growth personal and corporate banking segments. Furthermore, Access Bank will utilise Mauritius as a strategic hub for trade finance and regional connectivity, thereby enhancing its capacity to facilitate cross-border transactions across Africa and beyond.
The transaction represents a transformational step forward for the Access UK and the overall Access Holdings’ banking franchise. At the end of its fiscal year ended June 30, 2024, AfrAsia Bank recorded Total Assets of more than US$5.7 billion and Net Profit After Tax of US$152.4 million.
Commenting on the acquisition, Roosevelt Ogbonna, Managing Director/CEO of Access Bank Plc and the CEO of the Banking Group said:
“This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading Pan-African financial institution. Mauritius offers immense potential as an international financial hub, and through AfrAsia Bank, we are excited to unlock new opportunities to drive trade, support businesses, and foster economic inclusion across the region as we continue our mission to be the World’s Most Respected African Bank.”
Jamie Simmonds, Managing Director of the Access Bank UK added:
“With a strong balance sheet and a well-established brand in Mauritius, AfrAsia Bank provides us with a sustainable platform to scale and achieve long-term profitability. The deal aligns with our strategy to diversify and future-proof our earnings; and offer bespoke solutions enabling our clients to access global markets with ease.”
The Access Bank UK remains focused on fostering sustainable growth and delivering innovative financial solutions that empower businesses and individuals, while advancing intra- and inter-African trade, unlocking opportunities, and contributing to its economic transformation. Access Bank UK remains committed to providing innovative financial solutions and fostering trade relations between Africa and the rest of the world.
The parties would be working in the coming months to complete the acquisition and would continue to make the required disclosures.
GTBank Customer Complaints to Disappearing Deposits, Deduction Issues, and the Silent MD
Customers of Guaranty Trust Bank (GTBank) have expressed growing frustration over unresolved issues, including disappearing deposits and unauthorized deductions. Many Nigerians are also voicing their concerns about the bank’s lack of communication, with customers facing difficulties accessing their funds and receiving little to no response from bank representatives.
GTBank’s Silence and Customer Service Challenges
Since Mariam Olusanya assumed the role of Managing Director (MD) in 2021, GTBank has maintained a notably quiet stance when it comes to addressing customer complaints. In fact, Olusanya has not made any public appearances or issued any official statements during her tenure. This lack of communication has left many customers feeling neglected and confused.
Industry experts have suggested that Olusanya’s silence could be attributed to the overbearing presence of Segun Agbaje, the Group CEO, who continues to dominate public events and media coverage, often overshadowing the MD. Despite Olusanya being regarded as highly capable, rumors indicate that Agbaje’s leadership style may be pushing her out of the spotlight.
GTBank’s Corporate Communication Breakdown
The silence from the bank’s leadership has extended to its customer service department, with many customers complaining about poor service and lack of transparency. Reports from GTBank account holders describe a snobbish attitude from the bank’s staff, who have failed to resolve critical issues such as missing funds and frivolous account deductions.
In addition, GTBank has been accused of misleading customers about the status of their system upgrade, assuring clients that the process was nearing completion, while many customers still report their savings being trapped weeks after the supposed improvements began.
Public Outrage and Calls for Regulatory Intervention
The absence of a clear statement from Mariam Olusanya and the overall communication failure from GTBank has led to widespread public outcry. Customers have taken to social media and online forums to share their experiences, calling on the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) to investigate the bank’s handling of customer funds and complaints.
With no sign of action from the bank’s leadership, customers are urging regulatory bodies to intervene and ensure consumer protection and accountability in the banking sector.
Conclusion: GTBank’s Growing Reputation for Customer Service Issues
In summary, GTBank is facing mounting dissatisfaction from customers due to poor customer service, disappearing deposits, and questionable deductions. The bank’s leadership, particularly Mariam Olusanya, has remained silent, which has only added to the frustration. As the situation worsens, many Nigerians are calling for stronger oversight from the CBN and the FCCPC to protect consumers and restore trust in the financial institution
First Bank Recapitalization: How Boardroom Conflicts and Declining Customer Trust may Affect
First Bank of Nigeria Limited and its parent company, FBN Holdings, are facing scrutiny as Nigerians question why the bank is yet to announce the much-anticipated recapitalization plan. This comes at a time when other banks are actively engaging investors in a dynamic stock market.
Historically, First Bank has been a cornerstone of the Nigerian banking sector, known for producing several Central Bank Governors and maintaining strong liquidity. However, recent developments suggest that the bank’s leadership may be struggling to uphold its prestigious reputation.
Boardroom Conflicts and Management Issues
Since 2021, First Bank has grappled with significant boardroom conflicts that have polarized the organization. The dismissal of then-Managing Director Dr. Adesola Adeduntan by the bank’s board, in conjunction with FBN Holdings, was overturned by the Central Bank of Nigeria (CBN), which deemed the board’s actions illegal. This reinstatement led to a restructuring of both boards, highlighting the ongoing power struggles within the institution.
The conflict escalated with billionaire Femi Otedola acquiring a 13.16% stake in First Bank, positioning himself as the largest shareholder. This power struggle delayed the Financial Group’s Annual General Meeting (AGM), as shareholders aligned with ousted chairman Oba Otudeko sought legal intervention. Although the court dismissed their case, the AGM is now set for November 12, where a proposed N350 billion capital raise will be discussed.
Eroding Customer Trust Amid Fraud Allegations
Customer trust in First Bank is at an all-time low due to several fraud allegations. Notably, former employee Adesuwa Ezenwa accused Oba Otudeko of facilitating approximately N12 billion in unsecured loans to companies he had significant stakes in, misrepresented as loans to Stallion Group of Companies. Ezenwa, dismissed in 2016 and currently contesting her termination in court, claims she was unfairly blamed for approving these loans while senior executives were not penalized. She is seeking damages for her dismissal and alleges complicity among high-ranking officials, with losses amounting to over N15 billion.
In a shocking turn of events, reports emerged of a massive internal fraud scheme involving around $29 million. This led to the termination of approximately 100 employees who failed to detect or report the crime. The mastermind, branch manager Tijani Muiz Adeyinka, exploited weaknesses in the bank’s oversight mechanisms over two years, raising serious concerns about First Bank’s internal controls.
Looking Ahead
As First Bank navigates these turbulent waters, it is crucial for the institution to address these internal issues and restore customer confidence. The upcoming AGM and proposed capital raise are pivotal steps in the bank’s efforts to stabilize and revitalize its standing in the Nigerian banking sector.
For more updates on First Bank and the Nigerian banking industry, stay tuned.
Wema Bank Releases Q3 2024 Unaudited Results… Reports Profit Before Tax of ₦60.62billion, a 174% YonY Growth
Wema Bank Nigeria (“Wema” or “the Bank”)) has released its unaudited Consolidated Financial Statements for the period ended September 30th 2024, to the Nigeria Exchange Group (NGX). The Bank reported profit before tax of ₦60.62bn, representing an increase of 174% over the ₦22.13bn recorded in the corresponding period in 2023.
Wema Bank’s balance sheet remained well structured with total assets growing by 38% to
₦3,084.27 trillion in Q3 2024 from ₦2,240.06trillion in FY 2023. The bank also grew its deposit base year to date by 23% to ₦2,292.30bn from ₦1,860.57bn reported in FY 2023. Loans and Advances grew by 25% to ₦1003.28bn in Q3 2024 from ₦801.10bn in FY, 2023. NPL stood at 3.19% as at Q3 2024.
The bank recorded an improved 3rd quarter performance as Gross Earnings grew by 91% to
₦288.32bn (Q3 2023: ₦150.90bn)). Interest Income was up 81% y/y to ₦229.11bn (Q3 2023:
₦126.67bn). Non-Interest Income up 144% y/y to ₦59.21bn (Q3 2023: ₦24.23bn).
Return on Equity (ROAE) of 38.62%, Pre-Tax Return on Assets (ROAA) of 2.64%, Capital Adequacy Ratio (CAR) of 14.06% and Cost to Income ratio of 60.47%, speak to the resilience of the brand.
The Managing Director/Chief Executive Officer of the bank, Mr. Moruf Oseni said, ‘our Q3 2024 numbers speaks to our resilience despite a tough operating environment. We will sustain our growth trajectory into 2025. The performance is headlined by impressive improvements in Profit before Tax which grew strongly by 174%. The growth of Gross Earnings by 91.07%, Total Assets by 38% and earnings per share at 328.1kobo shows the core improvements to our balance sheet. In addition, our cost to income ratio at 60.48% has witnessed significant improvement from the previous period.
Wema Bank Launches Export Trade Academy to Empower Nigerian SMEs in International Markets
In a bold step towards empowering Nigeria’s small and medium enterprises (SMEs), Wema Bank has launched the Wema Export Trade Academy, a groundbreaking initiative designed to enhance the global trade capabilities of local businesses. This forward-thinking program demonstrates Wema Bank’s commitment to empowering Nigerian businesses and supporting their international growth potential.
Navigating the complex landscape of export trade involves overcoming regulatory, financial, and logistical hurdles, which can often hinder small businesses from establishing a foothold, the Wema Export Trade Academy is designed as a solution to these challenges faced by Nigerian SMEs when entering international markets. The Academy specifically structured to address each critical aspect of global trade, providing SMEs with targeted guidance on compliance, documentation, financial planning, and risk management.
Participants in the Wema Export Trade Academy will benefit from sessions led by industry experts as well as mentorship opportunities with seasoned professionals. The academy goes beyond conventional training by offering real-world insights into international trade practices, such as export documentation best practices and navigating trade agreements, positioning Nigerian SMEs to confidently expand their presence in the global marketplace. Additionally, the program fosters a collaborative environment, encouraging participants to network with fellow Nigerian exporters, exchange ideas, and build connections with international trade facilitators. This supportive ecosystem is aimed at enhancing productivity and positioning Nigerian businesses as strong contenders on the world stage.
As a trailblazer in digital banking and business innovation, Wema Bank continues to set high standard within Nigeria’s financial landscape. The launch of the Wema Export Trade Academy marks a new chapter in the bank’s mission to support Nigerian enterprises, solidifying its role as an indispensable partner in their journey to international success.
The Wema Export Trade Academy embodies Wema Bank’s pioneering spirit and commitment to providing SMEs with practical, impactful solutions. With comprehensive training on export processes and access to strategic financial products, the program stands as a testament to Wema Bank’s role as an enabler of growth for Nigerian enterprises.
Ecobank Nigeria to Host Design and Build Expo, Featuring Premier Exhibitors
Ecobank Nigeria is set to host its inaugural Design & Build Expo, aimed at highlighting the latest trends, innovations, and sustainable practices in architecture, construction, building materials, household appliances, engineering, and interior design. This carefully curated five-day event tagged “Building Nigeria Together” will take place from November 27 to December 1, 2024, at the Ecobank Pan African Centre (EPAC) on Victoria Island, Lagos, starting daily at 10:00 am. Approximately 60 exhibitors have already signed up to present their products and innovations at this significant fair.
During the event announcement in Lagos, Omoboye Odu, Head of SMEs, Partnerships, and Collaborations at Ecobank Nigeria, emphasized that the expo is part of the bank’s broader initiative to support the country’s economic development. The expo aims to provide a platform for professionals in the design and building sectors to showcase and sell their offerings to a larger audience, while also facilitating valuable networking opportunities for entrepreneurs, consumers, and stakeholders in the economy.
The expo will focus on businesses that include real estate development, kitchen fittings, tiling and flooring, interior design, lighting, woodwork, electronics, and construction tools and equipment.
“As a Pan-African bank, this expo aligns with our mission to contribute to the economic growth of the countries we operate in. It’s a unique opportunity for industry players to showcase their products, network, and promote the adoption of sustainable practices, emphasizing renewable materials and energy-efficient technologies,” Odu stated.
Ms. Odu also highlighted that exhibitors would gain significant exposure to key decision-makers, influencers, and potential clients, allowing them to showcase their offerings and engage in interactive sessions, workshops, and live demonstrations. This will enhance their brand visibility, provide valuable market insights, and help them explore emerging industry trends. She concluded with an open invitation to stakeholders and enthusiasts in the real estate sector – asking that they join us at this novel exhibition and collectively let us combine forces in Building Nigeria Together.
In addition to the expo, Ecobank Nigeria has launched various initiatives to support SMEs and boost the economy, including the successful Adire Lagos Experience, +234 Art Fair, Ecobank National Schools Team Chess Championship, and Oja Oge 2024. The bank is also conducting its monthly MySME Growth Series, aimed at training and empowering over 1 million SME operators nationwide by the end of the year.
INTRODUCING ALAT XPLORE APP: NIGERIA’S FIRST LICENSED BANKING APP FOR TEENAGERS
In today’s world, financial literacy has become an essential life skill, particularly for the younger generation. Recognising this need, Wema Bank—Nigeria’s most innovative bank and pioneer of Africa’s first fully digital bank, ALAT—proudly introduces the ALAT XPLORE App, Nigeria’s first licensed banking app specifically designed for teenagers aged 13 to 17.
The ALAT Xplore Appempowers young individuals to take control of their finances while acquiring vital money management skills. ALAT XPLORE is not just another banking app; it is a comprehensive financial tool that seamlessly combines education, engagement, and empowerment for teenagers’ financial success. With a user-friendly interface and interactive features, the ALAT Xplore app provides teenagers with a unique opportunity to learn about banking, saving, and spending in a safe and controlled environment, as they journey towards the realities of adulthood.
The App encourages teens to explore intelligently, providing seamless navigation across its various functionalities and offering teens the chance to customise the App based on their preferences and request one of three unique debit card designs. The ALAT Xplore Cards are issued in the teenager’s name, fostering a sense of ownership, pride and independence that simultaneously instills a sense of responsibility in them as they learn to manage their spending. To request for your ALAT Xplore Debit Card, click here.
One of the standout functionalities of the ALAT XPLORE App is the goal-setting feature. Teens can set savings goals on the App—whether it’s saving for a new gadget, planning a fun outing, or even making a charitable donation. They can track their progress, seamlessly on the App, making the saving process exciting and rewarding for them.
To ensure financial security for the teenagers, the ALAT Xplore App works hand in hand with the ALAT App, allowing parents to guide their children in making informed financial decisions. Teens can easily request money from their parents or guardians in a few clicks on the App, while parents grant the requests and can track their teens’ expenses on the ALAT Xplore App, via the ALAT App. This not only promotes healthy conversations regarding budgeting and financial goals, but also ensures that teenagers can explore financial opportunities with maximum security.
Here’s how the ALAT Xplore App works:
– The Parent or guardian opens an ALAT App Account for their teenager on the ALAT app.
– The teenager downloads the ALAT Xplore App, fills in the required information and sends a link to the parent/guardian requesting permission to use the ALAT Xplore App.
– The parent/guardian grants the permission via the ALAT App.
– Once approved, the teenager can login at anytime, request an ALAT Xplore Debit Card, set up Savings Goals and explore all the unique features on the App, on their phone.
As the first licensed banking app for teenagers in Nigeria, the ALAT XPLORE App powered by Wema Bank is set to revolutionise how teenagers approach money management towards building more financially responsible adults.
The ALAT Xplore App officially launches on Saturday, October 26, 2024. However, teenagers can click here to download the ALAT Xplore App now on PlayStore or AppStore, to start exploring the innovative App.
Want to attend to virtual launch event, click here to register.
Zenith Bank Enhances Customer Online Experience with Revamped Digital Channels
Zenith Bank, one of Nigeria’s foremost financial institutions, has successfully restored full operational services across its electronic transaction channels, ensuring that customers can now enjoy seamless access to digital banking services.
This restoration follows temporary disruptions caused by a routine upgrade of the bank’s technology infrastructure, which aimed to optimize service delivery but impacted e-channel services recently.
In a post shared on Thursday through its social media platforms, the leading lender confirmed that all services across its electronic channels have been fully reinstated.
Reiterating its commitment to providing quality digital services, the bank assured customers of exceptional service with its newly enhanced technology infrastructure, designed to deliver seamless and innovative financial solutions.
The announcement stated:
“We are pleased to inform you that access to our digital channels has been restored, allowing you to perform transactions conveniently via your preferred platform.
We appreciate your patience during the IT infrastructure upgrade and sincerely apologize for any inconveniences you experienced.
Rest assured, we are dedicated to providing you with exceptional service, and the new IT infrastructure we have implemented will enable us to do so moving forward.
Thank you for choosing to bank with us.”
Important Reminder
Zenith Bank will NEVER call, SMS, or email you requesting your card details, PIN, token codes, mobile/internet banking login details, or any other account-related information.
We will also NEVER ask you to click on a link to update your bank information or activate your account. If you receive such messages, please DO NOT respond.
Segun Agbaje’s GTCO (GTBank) under Scrutiny over Huge Net Income Interest Profit Declaration, despite Pending Court Cases on Overcharging
Mark Twain, American humorist, journalist, lecturer, novelist and moralist was ascribed to have said “A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.” This simply means one can’t expect bankers to be of help when they are really needed, this much can be used to describe how the Segun Agbaje led Guaranty Trust Holding Company Plc/ GTBank, has been working against its clients for personal profit.
There has recently been so much noise about the ₦1 Trillion plus profit declared by the financial institution. According to the report made available the Segun Agbaje led group was said to have made a large chunk of the announced growth of its income from the Net Interest Income (NII), which recorded a 176.9 per cent growth to ₦491.5 billion from ₦177.5 billion last year.
For a clearer understanding the Net Interest Income (NII), is the difference between the profit earned as interest on loans given to borrowers against the money it pays out as interest on deposits or loans to depositors and its lenders.
The most common effects of net interest income on borrowers according to findings includes; Higher Interest Rates (this is the period whereby financial institutions arbitrarily raise interest rates to enable them make money). Overcharging (this is such that the financial institution manipulate things so additional fees are imposed or charges on borrowers), Stifling Innovation and Growth and many more.
With Segun Agbaje’s GTCO announcing ₦314 billion increase on the previous year coupled with the current economic crisis facing the country, there is strong indication that the many accusations against the group as inherited from the GTBank on overcharging by several companies may be founded.
If it would be recollected, the bank before and after it metamorphous into the Holdings Company it currently is, is not new to sanctions that has to be with disregard for laid down rules, in 2018, the UK Financial Conduct Authority (FCA) stopped GTBank UK from taking on new customers, note GTBank UK is an independent subsidiary of the GTCO.
The bank was later fined £7,671,800 for serious weaknesses in its anti-money laundering (AML) systems and controls between October 2014 and July 2019, the huge fine became necessary when lesser fine of £525,000 in August 2013 for serious and systemic failings fails to deter the bank.
In a similar action of disregard to rules for profit maximization the GTBank Ghana’s Foreign Exchange Trading License was suspended earlier this year over breaches of foreign exchange market regulations which include incidents of fraudulent documentation within their foreign exchange operations for a month in accordance with the relevant law in Ghana.
The Segun Agbaje led organization’s knack for bending the rules for profit was a major reason most people are calling on CBN and other relevant agencies to investigate the announced profit especially with regards to NII as the litigation against the bank on issues that has to do with overcharging is still pending before various courts in Nigeria.
If it would be recollected, overcharging is the main bone of contention of the now more than ₦20 billion case between GTBank and Innoson Motors. Innoson had dragged the bank to court for over-charging on a loan facility it got from the Segun Agbaje led bank.
Information was that Innoson has decided to conduct a proper auditing when they started getting strange charges in their account, it was the process that revealed GTBank has over-charged it to the tune of ₦786million over the course of several years dating back to 2004, after which Innoson informed the bank.
It was when the bank denied it and insisted that Innoson is still owing them that the company was forced to seek court help where a subsequently judgement was given in May 2013, and the Segun Agbaje led bank was asked to pay the sum of ₦559,374,072.09, “with a 22 percent interest on the admitted sum to be paid from March 1, 2004 since that was the interest rate on the loan, till satisfaction of the judgment debt.
The court also added a 100% penalty as stipulated in the CBN Guidelines for excess charges by banks, which brought the total judgment cost then to ₦2.4 billion, but is likely to be more that ₦2o Billion at the moment because the bank has been finding way to stop the execution of the judgement.
Another case pending in court against the Segun Agbaje led GTCO, was made public knowledge last year when GTBank through a receivers’ manager tries to illegally (by pronouncement of a court) take over properties of Stallion Group Nigeria over a purported ₦13 billion debt, whereas the CFO of Stallion Nigeria contends that it is not owing GTB any longer and that on the contrary, it is on record that it has paid more than what was outstanding to GTB by ₦6,423,700,000.
Stallion Nigeria in its application, which was granted by the Court had explained that the preliminary KPMG forensic audit report had established that GTB overcharged Stallion, in excess, fraudulent and illegal charges of ₦4,693,625,637.49, adding that GTBank had accepted this finding by the auditors.
Stallion has been in court with GTBank since 2019 over allegations and claims with Stallion winning against GTBank at the Court of Appeal, Nigeria. The Court of Appeal presided over by the Honourable Justices Daniel-Kalio, Sirajo and Banjoko, had previously delivered Judgment in favour of Stallion Nigeria against Guaranty Trust Bank Plc on 24 February, 2022 and set aside the Ruling of Honourable Justice Saidu in favour of GTBank.
The problems that come with the Overcharging and Higher Interest Rate are some of the profit driven actions the Segun Agbaje led group, has been heaping on many of their customers that makes doing profitable business difficult. While some are locked in prolong legal battle with the bank and the group as a whole, some had been forced to throw in the towel.
One of the companies that was not so lucky because of the nature of business is Toyin Subair led HiTV, in an interview the lawyer turned businessman granted a news media in 2019, he lamented how 25% – 27% interest rate becomes a burden that killed the company in his word “At 25-27% interest on debt, most businesses cannot survive and you will be a slave to the banks for life. That is why they take collateral from you. They lend against your collateral not your business case. Regardless of our strong cashflows, the funding requirements continued to increase.” He explained
Stating further while advising prospects, “HiTV was paying an average of 1.1billion Naira approximately in interests and guarantee charges annually, for over 5 years! For a new company, we did a damn good job but really got blown out. I never live by debt and so was really ignorant about how interest works up till HiTV and of course since then you won’t catch me near it. But what do you do when you have to? They say internationally that “equity is more expensive than debt”, but that is NOT true in Nigeria. Debt is way too expensive and destructive.” He continued.
Knowing the antecedent of the Segun Agbaje led financial group well-meaning Nigerians has been calling on relevant regulatory agencies to look into the declared Net Interest Income and put in place measures to make sure the effort of the government to revamp the economy will not be frustrated by the company’s insatiable appetite for profit.
