Connect with us

General News

Nigerian Banks and the Culture of Concealment: How Financial Results Are Being Cooked to Hide Losses

Published

on

Kindly share this post

In Nigeria’s banking industry, profit has become more a press release than a performance. Every results season, the same storyline plays out with record profits, rising assets, and promises of “strong fundamentals.” Yet, beneath the eye-catching headlines lies a quiet deception of a pattern of accounting charades aimed at repressing the true picture of reality and skyrocketing success.

An analysis of the 2025 half-year results from ten leading financial institutions like Zenith Bank, GTCO, UBA, First HoldCo, Access Holdings, Stanbic IBTC, Wema Bank, FCMB Group, Sterling HoldCo, and Jaiz Bank exposed a pervasive culture of concealment. What the market is celebrating as a season of extraordinary profitability is, in truth, a story of concealed losses, revalued deceptions, and selective disclosure.

Zenith Bank reported a pre-tax profit of N625.6 billion, yet its trading gains fell by N328 billion and credit impairments jumped 83 percent. GTCO, the self-proclaimed profit leader, showed N900.8 billion in pre-tax earnings, but once last year’s N523 billion one-off fair-value gain is removed, actual profit declined by 26 percent. UBA’s earnings were flattered by revaluations, while its interest expenses exploded from N328.9 billion to N560.6 billion. Its trading desk flipped from a N98 billion gain to a N10 billion loss, forcing a drastic cut in interim dividends.

First Bank HoldCo’s books told their own story that despite higher revenues, pre-tax profit fell due to a N486 billion collapse in trading income from a N432 billion gain in 2024 to a N53.7 billion loss in 2025. Impairments doubled to N185 billion as the bank exited CBN’s forbearance regime, revealing losses long deferred. Access Holdings reported N2.5 trillion in gross earnings, but its statement of comprehensive income disclosed a N62.4 billion loss to shareholders driven by N155.9 billion in forex translation losses and N74.4 billion in fair-value write-downs. Profit at the top, destruction of value at the bottom.

Stanbic IBTC’s growth was buoyed by asset sales, not sustainable income. Wema Bank’s celebrated 229 percent profit surge rested on a fragile base: interest expenses rose 34 percent, while impairment charges remained suspiciously light at just N532 million. FCMB Group’s digital-era optimism could not hide the 35 percent slump in non-interest income following the loss of revaluation gains, or the N36.2 billion impairment that followed once regulatory leniency expired. Sterling HoldCo trumpeted a 157 percent jump in profit, which looks less impressive when you realise it was achieved in the shadow of a N100 billion recapitalization. The group admits it still needs N53 billion more to meet regulatory capital. Meanwhile, its cost-to-income ratio remains a heavy 64.5 percent, and non-performing loans hover above the 5 percent prudential threshold.

Jaiz Bank, meanwhile, announced N14.45 billion in profit, but its total assets shrank by N100 billion, and its operational cash flow swung from a N428 billion inflow to a N119 billion outflow with profit on paper and erosion in practice.

Behind the curtain of impressive numbers, a silent manipulation is taking place. Creative accounting, selective disclosures, and reclassification tricks have become tools in the bankers’ art of survival.

Insiders in the banking sector admit, off the record, that “results management” has become a normalised practice. The strategy is simple as in where the true numbers would reveal losses or mounting risk, the presentation is massaged to reflect strength. Loss-making subsidiaries are quietly merged into group accounts where their poor performance is diluted. Bad loans are reclassified as “restructured assets” or shifted into special-purpose vehicles that sit conveniently off the parent bank’s main balance sheet.

The Central Bank of Nigeria (CBN) bears part of the responsibility. In recent years, its supervision appears more reactive than proactive. While the apex bank routinely sanctions banks for minor customer-service infractions, it has been slow to demand full disclosure on FX exposures, hidden losses, or aggressive revaluations. Transparency is not a threat to stability; it is its foundation. A banking system that hides its weaknesses under glossy financial statements is like a house built on borrowed sand.

The real problem facing Nigerian banking today is not liquidity or profitability; it is credibility. When numbers are manipulated, when press releases are crafted to deceive, and when regulators turn a blind eye, the trust that underpins the entire financial system begins to erode. Depositors no longer believe in transparency. Investors no longer trust the data. Even genuine success stories are viewed with suspicion.

For too long, the industry has mistaken perception for progress. Banks inflate interest income in a high-rate environment, then bury the cost of risk in footnotes. They celebrate foreign-exchange gains in one year and quietly dismiss translation losses the next. They rely on regulatory forbearance to delay recognition of bad loans, then call the resulting impairments “non-recurring.”

Dividends are weaponised to signal confidence even when retained earnings are flat. Capital raises are packaged as expansion plays when, in reality, they are patchwork efforts to maintain solvency. And nowhere in these results, not even in the glossy CEO quotes, did we find a serious discussion of declining cash generation or sustainability of earnings once interest rates normalise. None of these manoeuvres strengthens the banking system; they only postpone accountability.

The way forward begins with truth. Banks must be compelled to present their financials in full, not selective highlights crafted for headlines. The CBN must demand clearer disclosures on FX positions, loan restructuring, and the sources of non-interest income, while requesting that banks disclose core operating profit separate from one-off gains and trading income; front-load cash-flow data; publish detailed impairment breakdowns that show exposures by sector and vintage; explain capital raises transparently; and align dividends with free cash flow, not cosmetic accounting profits.

Auditors must rediscover their professional conscience and not rubber-stamp whatever management wants. Journalists and analysts must drill into the notes of the accounts, asking why interest income is rising while impairment and non-performing loans are rising too. The health of the financial system depends not on who can publish the biggest profit figure, but on who can prove that the profit is real, repeatable, and resilient.

Until then, the public is advised to read every “record result” with skepticism. Because in Nigerian banking today, what the headlines celebrate, the balance sheets quietly contradict.

If the current trend continues, the supposed “profits” of today may soon be revealed as the losses of tomorrow.

A bank’s greatest asset is not capital; it is credibility. And once that is lost, no amount of cooked numbers can restore it.

Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]


Kindly share this post

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Continue Reading
Advertisement
Comments

General News

ALTON Backs CBN on Local Data Hosting Rule for Banks, Fintechs

Published

on

Kindly share this post

Association of Licensed Telecommunications Operators of Nigeria (ALTON), official industry body and advocacy group for major telecommunications providers in Nigeria, has backed the Central Bank of Nigeria’s (CBN) directive requiring banks and fintechs to host payment transaction data locally.

ALTON Backs CBN on Local Data Hosting Rule for Banks, Fintechs

Gbenga Adebayo, chairman, ALTON

Gbenga Adebayo, chairman, ALTON, said this in an interview with the News Agency of Nigeria (NAN) in Lagosat the weekend.

His position follows a recent CBN directive mandating that banks, fintechs, and other payment service providers store payment transaction data generated in Nigeria on local servers from January 1, 2027.

The directive forms part of measures aimed at strengthening oversight of the country’s rapidly growing digital payments ecosystem.

Adebayo said data sovereignty required countries to take responsibility for their entire data value chain.

According to him, this covers data collection, management, storage, and integrity assurance.

“We cannot continue to outsource that to other jurisdictions.

“The more we host our data locally, the better for us,” he said.

Adebayo said local hosting would enable Nigeria to manage data end-to-end and guarantee the integrity of critical information.

He noted that hosting payment data outside the country increased communication requirements, latency, and retrieval costs.

“For every transaction involving data hosted outside our shores, communication has to take place from your location to the host and back.

“It increases latency and also increases the cost of data retrieval,” he said.

The ALTON chairman described the directive as an important first step toward achieving national data sovereignty.

He also dismissed concerns about infrastructure readiness, saying Nigeria already had significant data center capacity.

According to him, several Nigerian-owned facilities currently host data for organisations operating from other jurisdictions.

“I’m happy to say that we have a lot of data centres owned and managed by Nigerians that are hosting data from other jurisdictions.

“If people overseas can host their data here, why can’t we host our own data here?” he queried.

Adebayo argued that local hosting would reduce dependence on foreign infrastructure while improving national control over data security.

He said concerns about security and reliability should not justify continued reliance on foreign hosting providers.

“No one can protect your house better than yourself.

“You have more at stake in terms of security and safety than somebody else hosting your data,” he said.

The telecom industry leader also highlighted the cost implications of local hosting.

He said organisations that host data locally would pay in local currency rather than foreign currency.

According to him, this would help reduce exposure to exchange rate pressures and lower long-term operating costs.

Adebayo said Nigeria currently had about six Tier III data centres, with additional facilities under development.

He, however, stressed that capacity was more important than the number of facilities.

“It’s not just about the numbers; it’s about the capacity of what they can host.

“So far, we can,” he said.

He urged stakeholders to accelerate efforts toward domestic data hosting and management.

“The earlier we begin to domesticate our data hosting and data management, the better for us,” Adebayo added.

 

 


Kindly share this post
Continue Reading

General News

Nwanegbo Bags Africa Digital Award in Applied Artificial Intelligence and Data Science

Published

on

Kindly share this post

Ifeanyi Nwanegbo, a distinguished Data Scientist and Applied Data Science professional, has been honoured as the Outstanding Innovator in Applied Artificial Intelligence and Data Science at the 2024 Africa Digital Awards (ADA). The prestigious event, held recently at the Oriental Hotel in Lagos, brought together the continent’s tech elite to celebrate pioneers pushing the boundaries of the digital economy.

In a formal recognition letter signed by Tayo Adewusi, the Publisher and CEO of ICT Watch Magazine, organizers of the awards, the body noted that Nwanegbo’s selection was in deep appreciation of his leadership role in reshaping core business operations through technology.

“His ability to build complex predictive models and robust data pipelines using Python, SQL, and AWS has positioned him as a transformative figure in the field of applied analytics,” the letter reads.

Nwanegbo’s professional journey highlights a consistent track record of converting raw data into strategic assets. With a Master of Science in Data Analytics and Information Systems from Texas State University, he has demonstrated expertise in transforming disparate datasets into actionable insights. His work focuses on feature engineering, statistical analysis, and machine learning to drive high-level business decisions and operational improvements.

His impact has been felt across major global and local organizations, including a significant tenure as a Data Scientist at MTN Group. During his time with the telecommunications giant, Nwanegbo analyzed large-scale customer and operational datasets to support data-driven decision-making across commercial teams.

He successfully transformed transactional and behavioral data into structured analytical sets, enabling more accurate customer segmentation and trend analysis.

At Texas State University, Nwanegbo led critical projects as an Analytics and Data Systems Associate, including a full-scale migration of departmental data systems from Gato to Calico. This project involved redesigning schemas and restructuring ingestion workflows to ensure long-term system reliability.

His work supported KPI tracking and student engagement analysis, providing academic leadership with the repeatable analytical workflows necessary for modern institutional management.

Beyond his corporate and academic roles, Nwanegbo has distinguished himself through high-impact technical projects, such as developing an end-to-end sales demand forecasting and inventory optimization pipeline. By utilizing Python and ARIMA models, he improved forecast accuracy to reduce stockouts and holding costs, demonstrating the tangible economic value of applied AI in supply chain management.

The Africa Digital Awards recognition serves as a testament to Nwanegbo’s technical certifications, including his status as an AWS Certified Solutions Architect, Professional and a Project Management Professional (PMP).

As the continent continues its digital shift, innovators like Nwanegbo remain central to building the high-velocity smart systems that will define Africa’s industrial and technological future.


Kindly share this post
Continue Reading

General News

Indwelt Studios Seeks Increased Awareness @ World Sickle Cell Day

Published

on

Kindly share this post

Every June 19th, the world pauses to recognize something that, for millions of families, never pauses at all. World Sickle Cell Day is observed across the globe to bring sickle cell disease out of the shadows; to name it, to understand it, and to stand with the people who live with it every single day.

This year, the world marks the day under the theme “Closing the Survival Gap: Equity in Sickle Cell Disease.” It’s a phrase that asks a hard, necessary question: why should where you’re born, or what your family can afford, decide whether you live well, or live at all?

For us at Indwelt, that question isn’t abstract. It has names and faces we know.

Why this day means something to us;

Here in Nigeria, sickle cell isn’t a distant statistic. Our country carries the heaviest burden of the disease anywhere in the world; roughly 150,000 babies are born with it here each year, and millions of Nigerians live with it into adulthood. Behind those numbers are real people: managing pain that often goes unseen, navigating crises that arrive without warning, and carrying on with a quiet courage that most of us will never fully understand.

Some of those people are our colleagues.

Since our inception, we’ve had and still have team members who live with sickle cell. They show up, they create, they pour themselves into the work we’re proud to put our name on; and they do it while carrying something most of us never have to think about.

Our team member with sickle cell, put it to us simply:

“People see the work I deliver, but they don’t see the days I show up after a night I didn’t think I’d get through. Sickle cell is part of my story, but it isn’t the whole of me; and being a part of an organization that understands that, supports me and let’s me do work I’m proud of continues to make a difference for me. I don’t want sympathy. I want a world that takes this seriously enough to change the odds for the next person.”

Supporting them, through medical interventions and through simply being a workplace that sees them fully, has never felt like a policy or a perk. It’s felt like family looking after family.

That’s where our commitment began. Not in a boardroom, but in the everyday reality of caring for our own.

If you’ve ever asked; this is the reason we’ve chosen to anchor our Corporate Social responsibility around sickle cell, supporting initiatives that improve care, and backing the research working toward a future where this disease no longer steals so many years from so many lives.

We believe the survival gap can close. We’ve seen what changes when someone living with sickle cell is met with the right care, the right understanding, and the right support; they don’t just survive, they thrive. They build, they lead, they make beautiful things. We know this because we work alongside them.

So, our promise is simple: to put our resources, our voice, and our craft behind the people and the science fighting for better outcomes. To keep learning. To keep listening to those who live this reality. And to use whatever reach we have to make sure that, in this country with the world’s heaviest burden, no one feels they’re carrying it alone.

For someone living with sickle cell, care that comes to you and care you can actually afford aren’t luxuries; they’re often the difference between a crisis managed and a crisis survived. We’re proud to walk alongside teams doing that quiet, necessary work.

To anyone living with sickle cell, today and every day; we see your strength; including the kind that doesn’t look like strength, the kind that’s just getting through a hard day and showing up for the next one. You are not your diagnosis. You are not a burden. You are someone we’re honoured to stand beside.

And to everyone reading: you don’t need a CSR budget to make a difference today. Learn what sickle cell really is. Know your genotype. Have the conversation. Give blood if you can. Be gentle with the people around you who may be carrying more than they let on.

Awareness is where compassion begins; and compassion, multiplied, is how survival gaps close.

This World Sickle Cell Day, we’re thinking of our own. And we’re committed to doing our part, not just today, but in all the days that follow.

To our clients, we owe a particular thank you. Every brief you trust us with, every project we build together, every time you choose Indwelt; you are doing more than growing your business. You are helping fund the care, the awareness, and the research behind this cause. The work we do for you is quietly working for someone living with sickle cell, too. That partnership means more to us than you may realise, and we’re deeply grateful for it.

Awareness is where compassion begins; and compassion, multiplied, is how survival gaps close. This World Sickle Cell Day, we’re thinking of our own. And we’re committed to doing our part, not just today, but in all the days that follow.


Kindly share this post
Continue Reading

Trending