Connect with us

E-Financial

Why EFCC is Pressing ahead with Directive to Bankers on Asset Declaration– Bawa

Published

on

Kindly share this post

Abdulrasheed Bawa, chairman, Economic and Financial Crimes Commission (EFCC), has said that the anti-graft agency’s directive to bankers to declare their assets was not to witch-hunt them but to save Nigeria from another serious crisis in the banking sector.

Why EFCC is Pressing ahead with Directive to Bankers on Asset Declaration– Bawa

Bawa said going by the rot in the financial institutions, the commission and stakeholders need to sanitize the industry as “Nigeria cannot afford to go through another serious crisis in the banking sector”.

He disclosed this at the opening session of a capacity-building workshop organized by the Nigeria Deposit Insurance Corporation (NDIC) for the law enforcement agencies in Abeokuta, Ogun State.

The EFCC chairman said the directive, which was aimed at clearing “the rot that permeates the nation’s banking sector”, was misconstrued by some people he tagged “ignorant”.

Bawa, who spoke through Ahmed Ghali, , head of Lagos Zonal Office of EFCC, vowed that despite the stiff opposition to the policy, the anti-graft agency would not relent in its efforts in sanitizing the country’s financial institutions.

Bawa said, “I recall that upon assumption of office, one of the major pronouncements I made was giving a directive to bankers to declare their assets before June 1, 2021.

“It is obvious that those who kicked or are still kicking against the directive are ignorant of the unmistakable details of the Bank Employees Declaration of Assets Act.

“The nation cannot afford to go through another serious crisis in the banking sector, and this explains the constant intervention by the EFCC.”

In his remarks, Mr. Bello Hassan, managing director and chief executive officer of NDIC, said the workshop would give the corporation the opportunity of sharing information and ideas with law enforcement agencies on the developments within the banking sector.

He added that the corporation had taken various measures to ensure that banks remain safe and sound despite the economic challenges occasioned by the COVID-19 pandemic.

“I’m happy to report that despite the effect of the pandemic, looking at the various financial indicators, the banking system is safe, sound, and resilient.

“For us as supervisors, what we advise the banks is to strengthen their internal control and also make sure that they do proper background checks when they are employing staff so as to ensure that they employ people that are fit and proper to work within the banking system,” Hassan said.

Anthony Abakpa, president of the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE), said, the union is not opposed to the move by the EFFC

Abakpa said: “based on their deadline, I think, 98 percent of bank workers have complied because this practice has been on the ground even before this policy pronouncement especially for staff crossing into the managerial cadre

“The banks and Insurance firms are an Integrity based organization and so things like this that dwells on transparency will not be taken likely.”

 

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Financial

Nigeria Worst Hit by Crypto Currency Fraud

Published

on

Kindly share this post

Fraud in the crypto industry in African continent has soared by 48 percent over the past year and Nigeria is worst hit according to report by CAJ News.

Nigeria Worst Hit by Crypto Currency Fraud

This is according to the Sumsub State of the Crypto Industry 2025 report, which indicates Nigeria recorded the highest rate of fraud across the sector, at 8,3 percent.

Thus, this percentage of verification attempts were flagged as fraudulent.

Uganda, Kenya and Tanzania all have fraud rates of 4,8 percent, with Cameroon (4,5 percent), Ethiopia (3,7 percent), Ghana (3,5 percent), Algeria (2,6 percent), Benin (2,6 percent) and Morocco (2,1 percent) recording significant rates.

The most popular fraud types are document forgery (affecting 31 percent of surveyed companies), phishing (20 percent) and money mulling (15 percent), followed by account takeover (14 percent) and forced verification (12percent).

Simsub, the cyber crime expert, believes this surge highlights the need for companies to adopt artificial intelligence (AI)-powered detection, biometrics and continuous monitoring to enhance security.

 

The report states that innovations like biometric checks, AI-backed automation and document-free verification have boosted crypto platform users’ on-boarding success rates to 93,39 percent and reduced verification time by 46 percent, overall improving customer on-boarding while reducing drop-off cases.

Hannes Bezuidenhout, Vice President of Business Development (Africa) at Sumsub, said Africa’s growing adoption of crypto provided its own challenges, but the company foresaw increasing demand and growing user expectations across the continent.

“So it’s crucial for VASPs operating in the region to implement secure verification systems and stay vigilant to fraud, while keeping an eye on evolving and new regulations concerning the crypto sector to avoid fines.”

VASP is an acronym for virtual asset service provider.

 

 


Kindly share this post
Continue Reading

E-Financial

Banking Consolidation Less Likely as Nigerian Banks Meet Capital Requirements – Fitch

Published

on

Kindly share this post

Fitch Ratings has said that Nigerian banks are making significant progress in raising core capital to meet new paid-in capital requirements. The rating agency noted that the banks are generally on track to meet the end-of-first quarter (Q1) 2026 deadline.

This is supporting a recovery in capitalisation from the impact of naira devaluation, providing fuel for business growth. It also reduces the likelihood of significant banking sector consolidation.

In March 2024, the Central Bank of Nigeria announced a significant increase in paid-in capital requirements (share capital plus share premium) for commercial, merchant and non-interest banks.

Banks have three ways to comply – through equity injections, M&A and downgrading their licence authorisation.

Fitch-rated banks have made notable progress towards compliance. Almost all have raised capital or formally launched the process to do so.

The two largest banks, Access Holdings and Zenith Bank, are the first to secure enough fresh capital to meet the N500 billion requirement for an international licence. First HoldCo, United Bank for Africa and Guaranty Trust Holding Company are taking a phased approach.

They have recently raised capital and have shareholder approval to begin raising more to meet the N500 billion requirement. First HoldCo’s and United Bank for Africa’s recent rights issues are awaiting final regulatory approval.

Fidelity Bank and FCMB Group have completed initial capital raisings but will need to raise more to maintain their international licences. As second-tier banks, they must raise significantly more capital relative to their balance sheets than larger banks.

They have extraordinary general meeting approval for this, although they could consider downgrading to a national licence as they each have just one foreign subsidiary.

Ecobank Nigeria Limited (ENG) and Jaiz Bank needed only small capital injections to meet their requirements and have already achieved compliance. We estimate that ENG is still in breach of its total capital adequacy ratio (CAR) requirement of 10 percent but it has further capital-raising plans to restore compliance. Stanbic IBTC Holdings has launched a rights issue to raise capital to maintain its national licence.

Strong investor appetite has ensured that the vast majority of capital raisings so far have been successful, and most first- and second-tier banks should be able to meet their new capital requirements through capital raisings alone. Therefore, we believe the likelihood of banking sector consolidation among first- and second-tier banks has decreased.

Union Bank of Nigeria (UBN), which is also in breach of its 10 percent CAR requirement, and third-tier banks have generally been slower to raise capital. Wema Bank has shareholder approval to raise enough capital to retain its national licence and plans to launch the process in April.

Coronation Merchant Bank recently received board approval. It is not clear whether UBN and unrated third-tier banks have received the necessary approvals. M&A activity and licence downgrades remain more likely among third-tier banks.

The capital raisings are contributing to a recovery in capitalisation from the impact of naira devaluation, which put pressure on capital ratios and increased US dollar credit concentration risks. Strengthened buffers over minimum CAR requirements will mitigate risks from a challenging operating environment, including regulatory intervention and further naira volatility, while providing room for business growth.

The capital raisings are unlikely to lead to banks with Long-Term Issuer Default Ratings (IDRs) of ‘B-’ being upgraded given the constraint of Nigeria’s ‘B-’/Positive Long-Term IDR.

However, they could contribute to Outlook revisions to Positive for some banks, and, providing CAR compliance is restored, to upgrades for UBN and ENG (both rated ‘CCC’). Capital raisings are more likely to affect National Long-Term Ratings, which measure the relative creditworthiness of Nigerian issuers.

 


Kindly share this post
Continue Reading

E-Financial

GTB Announces Zero Processing Fees on POS Transactions

Published

on

Kindly share this post

Guaranty Trust Bank Ltd has announced the removal of processing fees on all GTBank POS terminals, reinforcing its commitment to supporting businesses with cost-effective payment solutions.

This initiative, which took effect Tuesday, 11 February 2025, communicates that merchants using GTBank POS terminals will no longer incur Merchant Service Charges (MSC) when receiving payments from customers.

With this initiative, all qualifying SME Merchants can now receive payments at zero cost, allowing them to reduce operational expenses, whilst promoting the merchant’s enterprise, and enhancing customer experience.

Speaking on the initiative, Miriam Olusanya, Managing Director, Guaranty Trust Bank Nigeria, said: “At Guaranty Trust Bank, we are always looking for ways to add value to our financial ecosystem.

“By implementing the zero processing fees on POS transactions, we are empowering businesses to get the full value of every payment they receive, whilst also ensuring a more seamless and efficient payment experience.”

The Zero Processing Charge campaign aligns with GTBank’s ongoing efforts to empower businesses with innovative financial solutions that drive growth and efficiency.


Kindly share this post
Continue Reading

Trending