Business Archives - Page 17 of 84

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.

Access Holdings Reaffirms Commitment to Driving Inter-, Intra-African Trade

• Banking subsidiary targets November for African Trade Conference

Access Holdings Plc, the parent company of Access Bank Plc, has announced a series of initiatives aimed at empowering small businesses across Africa and enhancing intra-African trade. During a recent media roundtable, the leadership team, including Acting GCEO Ms. Bolaji Agbede, and Group Managing Director/CEO, Roosevelt Ogbonna, shared insights on the company’s strategic priorities for the coming years.

“Our commitment to fostering economic growth in Africa is well established,” said Agbede. “We believe that by supporting small businesses, we can create lasting economic value and drive meaningful change across the continent.”

Ogbonna outlined the strategic priorities for 2023–2027, which focus on infrastructure investments, retail banking, and small business empowerment. “We aim to provide an enabling environment for small businesses to access new markets on the continent,” he stated. To facilitate this, Access Bank will host a trade conference in November, designed to connect small businesses and stimulate intra-African trade.

The bank’s commitment to infrastructure investment is evident, with 61 new branches opened in Nigeria this year alone, despite challenging economic conditions. “This expansion showcases our dedication to enhancing retail banking and improving customer access to financial services,” Ogbonna added. Furthermore, the bank is in the process of establishing fully digitalised branches, known as ‘branches of the future,’ which will leverage advanced technology to increase financial access for underserved communities.

Access Holdings is also focused on enhancing regional trade dynamics. By fostering partnerships and collaborations among small businesses, the company aims to create a robust network that supports economic development across Africa. “We are committed to building a sustainable ecosystem that empowers businesses and drives growth,” Ogbonna emphasised.

As Access Holdings continues to expand its footprint across the continent, it remains dedicated to its mission of creating lasting economic value for Africa and empowering businesses that can drive meaningful change.

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.

FirstBank Joins Partnership for Carbon Accounting Financials, Reinforces its Commitment to Climate Action

As part of its commitment to sustainable finance and taking active steps towards reducing its carbon footprint, FirstBank has joined the Partnership for Carbon Accounting Financials (PCAF) to promote sustainable finance, combat climate change and advance sustainable socioeconomic development for the just transition.

PCAF is a collaboration between financial institutions worldwide to enable harmonised assessments and disclosures of greenhouse gas (GHG) emissions from loans and investments. With more than 530 financial institutions from six continents, the group is rapidly expanding in North America, Latin America, Europe, Africa and Asia-Pacific.

Joining PCAF aligns with FirstBank’s broader climate agenda, reinforcing its efforts to contribute meaningfully to global climate goals. By adopting PCAF’s globally recognised standards, FirstBank aims to enhance transparency in carbon accounting and reporting, integrate climate risk into its lending and investment decision-making, and support Nigeria’s transition to a low-carbon economy. This initiative complements FirstBank’s ongoing work on environmental, social, and governance (ESG) issues, underscoring its dedication to responsible banking practices.

PCAF will provide FirstBank with a standardised methodology and framework to measure and report the Bank’s GHG emissions and climate-related risks. By joining PCAF, the Bank’s capability in understanding and managing its exposure to climate risks and liabilities (physical and transition risks) will be enhanced. This will enable the Bank to make informed decisions and take proactive measures to mitigate these risks while leveraging on the opportunities for growth.

Dylan Hauser, regional lead For PCAF Africa said “We congratulate FirstBank on becoming a signatory of PCAF. We are absolutely delighted to have FirstBank on board sharing our commitment to driving positive change and reducing carbon footprints in the region through transparent and accountable practices.”

According to Patrick Akhidenor, Chief Risk Officer, FirstBank, “Joining PCAF is a significant milestone in our sustainability journey. It is not only a demonstration of our commitment to combatting climate change but also a step towards ensuring that we, as a financial institution, are accountable for the carbon emissions our activities finance. We are excited to collaborate with other global institutions in driving meaningful climate action”.

By joining forces with PCAF, FirstBank is poised to champion transparency and accountability in impact of the financial sector’s activities on climate change.

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.

StylebyKenyville Fashion House Opens in Festac

The fashion scene in Festac Town just got a stunning upgrade with the grand opening of StylebyKenyville Fashion House, commencing its grand entry into the key luxury market, and will offer same-day delivery across Lagos, Ogun, Oyo, Kwara and its environs for Starters.

Recently, fashion enthusiasts, celebrities, and local influencers gathered at the fashion house Located in the heart of Festac Town, 512 road, to witness some of the best quality fittings for both male and female including children and also drive its sales both at the store and online on all its handles.

The Fashion house, owned by Oluwakemi Coker, a fashion enthusiast prides itself with signature designs from iconic collections carefully crafted with the young and old in mind. it’s a reflection of the House of the Lagos cosmopolitan spirit.

Stylebykennyville, which commenced operation with ready to wear bespoke clothes on August 17 amid a grand launch, witnessed the gathering of the creme del a crème of the fashion community in attendance.

As guests arrived, they were greeted with an atmosphere brimming with style and sophistication. The store’s chic and modern interior design provided the perfect backdrop for the impeccable collection of fashion offerings.

StylebyKenyville collection showcased an array of outfits that catered to various tastes and occasions, ranging from classic and timeless pieces to bold and avant-garde designs.”

While speaking during the launch, Chief Executive Officer, Stylebykenyville, Mrs Oluwakemi Coker is optimistic that her platform, will offer some of the best iconic design made for a every moment, while offering a lower than market average rate for fashion luxury.

With the doors officially open, StylebyKenyville Fashion House promises to be a beacon of style in Festac, bringing the latest trends and unique designs to the heart of Lagos. Fashionistas, get ready to strut your stuff in style.

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

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 App empowers 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.

System Upgrade: GTBank Customers Stranded for Another Day amid Fraudsters Invasion

The crisis facing the Guaranty Trust Bank Ltd (GTBank) on the upgrade of the bank’s banking platform has extended into another day and against the statement dropped last week by the bank that some banking operations will be available during the process, the customers of the financial institution have been left stranded as none of the promised operations are working.

If it would be recollected, the GTBank had last week in a press release, notified its customers that all branches will close at noon on October 11, reopening at 9:00 a.m. on October 14.

And that digital banking services, including transfers, bill payments, and airtime/data purchases, will only be available during this process, but other functionalities will be limited for 11 hours, from 10:00 p.m. on Sunday, October 13, to 9:00 a.m. the next morning.

Findings now show that both the digital services and others services needed for day to day running of its numerous customers’ lives has not been working even after the bank had announced that the upgrade has been completed, thereby creating panicking amongst the customers.

It was discovered that many branches of the GTBank are shut for customers who has gathered around to try if they can make above the counter transaction.

This gap has also exposed desperate customers to schemes of fraudsters who are cashing in on the gap left by the bank to defraud some of GTBank’s unfortunate agitated customers.

The bank’s activities has come under scrutiny since, they started this system upgrade, as against learning from the issues that befell others, the bank which inside sources revealed is currently working to recruit new set of IT experts to help rescue it from incessant crisis it has been facing recently, seems not to have wisely prepare against such occurrence.

Meanwhile, customers of the GTBank has since trooped to various social media platforms to air their grievances with lost businesses and other loses or other disappointment faced.

According to an X user under the handle @monathegirl she was asking the CBN about the sanctions they will be imposing on GTBank, while also seeking for compensation for the loss accrued due to the bank’s service disruption.

https://x.com/monathegirl_/status/1845831401750351997?t=gJtln9YxLIOxeo1PKRLn8w&s=19

Another X user facing the same frustration of doing transactions even after the bank has announced that it systems has been successful upgraded as complained;

https://x.com/Styne_ish/status/1845727943139438600?t=PLAR-VhObKCgON81_yqZ4Q&s=09

Another late into the night and still unable to transact business with deposit in their account.

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.