Business

FIRSTBANK EXPOSURE TO HERITAGE BANK HAS BEEN SETTLED

Published

7 months ago

June 4, 2024

FirstBank has announced that its FirstEdu product designed to put schools at an advantage in the financing of capital projects such as the acquisition of new property, school expansion and reconstruction has been remodeled to a period of up to a maximum tenor of 48 months.

The Nigeria Deposit Insurance Corporation (NDIC) yesterday announced the
commencement of the liquidation of the defunct Heritage Bank Plc, following the
revocation of its operating licence by the Central Bank of Nigeria (CBN).
The corporation said the move was in accordance with Section 55 sub-section 1 and 2
of the NDIC Act 2023, adding that depositors of the defunct bank that have alternate
accounts within the industry would be paid up to the insured amount of N5 million per
depositor using their Bank Verification Number (BVN) to locate their alternate account.
In a statement, NDIC Director, Communication and Public Affairs, Bashir Nuhu, said that
the liquidation process was with immediate verification and payment of insured deposits
to the bank depositors.

He said depositors with funds more than N5 million would be paid liquidation dividend
upon realisation of the bank’s assets and recovery of debts owed to Heritage Bank.
The revocation is coming on the revelation that FirstBank’s total exposure to Heritage
bank amounted to about N500 billion.

The CBN under former Central Bank Governor, Godwin Emefiele, got FirstBank to
support Heritage Bank at the level of forbearance, clearing of their checks and
instruments. “This led to their massive indebtedness to FirstBank to the tune of N500
billion,” a source with knowledge of the matter revealed.

THISDAY reliably learned last night that before the announcement of the revocation of
Heritage Bank’s licence was made, CBN paid off First Bank’s exposure to Heritage.
Since its intervention was at the behest of the apex bank under Emefiele.
The NDIC further advised all depositors of the defunct bank without alternate bank
account in the industry to visit the nearest branch of the bank with proof of account
ownership, verifiable means of identification such as driver’s licence, permanent voter’s
card, national identity card, together with their alternate account and BVN for the
verification of their deposits and subsequent payment of insured sums.
Nuhu, also the bank’s creditors to visit the nearest branch of the bank to file their claims
or via the online platform, adding that the process of payment of creditors would
commence immediately after all depositors have been paid.
He also advised debtors that are yet to complete the repayment of loans to contact the
corporation’s Asset Management Department (AMD) or visit the NDIC website for more
details.

The NDIC however, assured the entire banking public of its commitment to the
continued safety of depositors’ funds in all licensed banks.
It therefore, urged depositors to continue their banking businesses without fear as
banks whose licenses have not been revoked remain safe and sound.
The CBN had earlier announced the revocation of the operating licence of the failed
bank with immediate effect.
In a statement issued by CBN acting Director, Corporate Communications, Mrs.
Hakama Sidi Ali, the apex bank said the move was in accordance with its mandate to
promote a sound financial system in Nigeria and in exercise of its powers under Section
12 (1l of the Banks and Other Financial Act (BOFIA) 2020.
The central bank pointed out that the Board and management of the bank had not been
able to improve the bank’s financial performance, a situation which constitutes a threat
to financial stability.

This followed a period during which the CBN engaged with the bank and prescribed
various supervisory steps intended to stem the decline.
Sidi Ali said, “Regrettably, the bank has continued to suffer and has no reasonable
prospects of recovery, thereby making the revocation of the license the next necessary
step.”

Specifically, the CBN said the action became necessary due to the bank’s breach of
Section 12 (1) of BOFIA, 2020.
The CBN acting director further explained that the central bank took the action to
strengthen public confidence in the banking system and ensure that the soundness of
the financial system was not impaired.
She said the NDIC had also been appointed as the liquidator of the distressed bank in
accordance with Section 12 (2) of BOFIA, 2020.
She explained, “We wish to assure the public that the Nigerian financial system remains
on a solid footing.

“The action we are taking today reflects our continued commitment to take all necessary
steps to ensure the safety and soundness of our financial system.”
However, reacting to the licence revocation by the CBN, Founder/Chief Executive
Officer of Proshare Nigeria Limited, Mr. Olufemi Awoyemi, argued that at least four other
banks “are in situations requiring swift CBN intervention; therefore, the #CBN and the
#NDIC will have to shift regulatory/intervention gear sticks to ensure that the banking
system works with minimal disruption.”
He pointed out that the revocation of Heritage Bank’s licence did not come as a
surprise.

“For a bank under forbearance, this was a long time coming (as we recall the number of
reports on same and challenges with similar entities under the same program), given
the numerous follow-ups done by Proshare.

“Neither the CBN nor NDIC took to Proshare’s recommendations; with the wheels now
turning full circle with the CBN’s recent decision to liquidate Heritage Bank, the crackling
of regulatory noise has been tuned up. Therefore, we remain unsurprised and ask why it
took so long for the regulators (CBN and NDIC) to see the merit in the
recommendations proffered,” he added.

According to him, almost five years after, and sequel to the multiple interventions by the
CBN, including its forbearance position, nothing changed.
“Eventually, it would appear that the CBN took the first option we proposed. The action
today compels the need to interrogate the institutional decision-making capacity and
capability in the face of the obvious financial system and organisation shortcomings,”
Awoyemi said.

Also, Head, Financial Institutions Ratings at Agusto & Co, Mr. Ayokunle Olubunmi said,
“Heritage Bank has been struggling for a while now. The bank’s capital has been
persistently below the CBN minimum threshold.

“I believe that the revocation is meant to send a message to the banks that the CBN will
not hesitate to revoke the licence of any bank in breach of the CBN regulations. It could
also sanitise the banking industry to an extent.”
He noted that the revocation could improve confidence in the financial system since the
banks know that their licences could be withdrawn and would have to comply with the
various regulations.

Olubunmi, further stressed that the recent increase in the NDIC coverage would provide
some comfort to depositors.
Also, a banker who pleaded anonymity said the distressed bank had not reported their
financials in five years, adding that he perceived two other banks have negative capital
and bad financials which may go the route of license revocation.
The source said, “Heritage Bank had not produced their financials for years and over
the years there had been various investors that had tried to acquire the bank but once
they did their due diligence they backed out. Things have been so bad that they don’t
have senior staff for certain pertinent positions such as Chief Risk Officer and Treasurer.
So, things have been bad in the bank for a while.”

Culled from ThisDay

Related Topics:Banking and finance Featured firstbank

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FIRSTBANK’S DECEMBERISSAVYBE LIGHTS UP LAGOS WITH DAVIDO CONCERT

Published

8 hours ago

December 26, 2024

Sahara Weekly

FIRSTBANK’S DECEMBERISSAVYBE LIGHTS UP LAGOS WITH DAVIDO CONCERT

By Farouk Mohammed

Once again, FirstBank has reaffirmed its position as a champion of arts, culture, and entertainment through its annual DecemberIssaVybe initiative. This year, the bank brought music lovers an unforgettable Christmas Eve experience with the Davido Live in Lagos concert, held at the iconic Eko Hotel Convention Centre. As part of the initiative, the event was a highlight of the festive season, delivering joy, excitement, and unmatched entertainment to thousands of fans.

Delivering Exclusive Experiences

True to its legacy, FirstBank ensured its customers and followers had the chance to enjoy this spectacular event through ticket giveaways across its social media platforms. By engaging with fans on Instagram (@firstbanknigeria) and Facebook (First Bank of Nigeria Limited), the bank seamlessly connected with its audience, creating opportunities for them to witness one of Nigeria’s biggest stars perform live.

Through its First@arts initiatives like these, FirstBank continues to elevate the entertainment experience for its stakeholders, positioning itself as more than just a financial institution but a lifestyle enabler. The bank’s efforts underscore its commitment to bringing premium opportunities to its customers, creating memorable moments for families and individuals alike.

Davido: The Highlight of DecemberIssaVybe

On Christmas Eve, the atmosphere at the Eko Hotel Convention Centre was nothing short of electric as Davido, the Afrobeats superstar, delivered an exhilarating performance. With hits like “Feel,” “Unavailable,” “FUNDS,” and “Dami Duro”, the audience was immersed in a musical journey that celebrated Nigerian creativity and artistry. The energy was infectious, as fans sang along to every lyric, making the concert an unforgettable experience for all in attendance.

For many, this was their first time seeing Davido live, and FirstBank made it possible, proving once again its dedication to supporting the arts and providing access to world-class entertainment.

The Spirit of DecemberIssaVybe

The DecemberIssaVybe initiative is not just about music; it’s about community, homecoming, and shared joy. Designed to resonate with Nigerians, both at home and in the diaspora, the initiative creates opportunities for family bonding and cultural connection during the festive season. Events like Davido’s concert, the Calabar Carnival, and Flytime Fest have all contributed to making the 2024 edition of DecemberIssaVybe truly extraordinary. Through DecemberIssaVybe, FirstBank continues to demonstrate its commitment to enriching the lives of its customers by providing access to premium events and creating platforms that celebrate the essence of Nigerian culture.

More Than Banking: A Commitment to Community

FirstBank’s impact goes beyond providing financial services—it’s about enabling memorable experiences. By supporting events like the Davido Live in Lagos concert, FirstBank strengthens its bond with customers, enhancing its role as a catalyst for joy and togetherness during the festive season.

With its steadfast support for the arts and entertainment industry, FirstBank also contributes to the economic empowerment of the value chain, showcasing its leadership in promoting culture, music, and creativity in Nigeria.

Stay Connected, Stay Vibing

For those who experienced the magic of Davido’s concert and other DecemberIssaVybe events, the memories will remain cherished. For those who missed out, FirstBank offers more opportunities to join the excitement. Stay tuned to its social media platforms—Instagram (@firstbanknigeria), Twitter (@FirstBankngr), and Facebook (First Bank of Nigeria Limited)—for updates, contests, and more exciting opportunities.

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Don’t Return Fuel Subsidy Through Dubious Means, Group Tells NNPCL’s Mele Kyari

Published

14 hours ago

December 26, 2024

Sahara Weekly

Don’t Return Fuel Subsidy Through Dubious Means, Group Tells NNPCL’s Mele Kyari

The Afenifere Mandate Forum (AMF) has cautioned the Nigerian National Petroleum Company Limited (NNPCL) against re-introducing fuel subsidy through dubious means, citing the regime’s notorious history of corruption.

The group emphasised the need for transparency going forward, urging the Central Bank of Nigeria (CBN) not to make payments to NNPCL’s foreign partners in the name of subsidy.

In a statement signed by its President, Otunba Davies Folorunsho, the group said the fuel subsidy regime was embroiled in corruption, with allegations of fraudulent payments and inflated subsidies.

Folorunsho said Mele Kyari, the Group CEO of NNPCL, was at the centre of the controversy, with reports of the company importing toxic fuel from Malta.

He noted that this not only perpetuated corruption but also endangered the health and safety of Nigerians.

However, Folorunsho said the he removal of fuel subsidy has been a significant step towards economic recovery, saving the country billions of dollars that were previously spent on subsidizing petrol prices.

“In 2022 alone, subsidies gulped $10 billion, leaving the state oil company NNPC with nothing to remit to the treasury,” he added.

“Fuel subsidy were not only financially ruinous but also largely regressive, benefiting mostly car-owning urbanites and those who could afford petrol-powered generators.

“As a result of the subsidy removal, the financial burden on the government has been significantly reduced, freeing up more funds for critical infrastructure and social programs.

“Additionally, government revenue has increased, smuggling has decreased, and the risk of adulterated fuel has been mitigated. The removal of fuel subsidy has also paved the way for a more sustainable energy ecosystem, encouraging the use of alternative energy sources and reducing Nigeria’s reliance on fossil fuels.

The group urged the NNPCL to maintain transparency in its operations and avoid re-introducing fuel subsidy through the backdoor.

“We believe that the removal of fuel subsidy is a step in the right direction, and we urge the government to continue on this path towards economic recovery,” Folorunsho said.

Business

Adron Homes Celebrates Christmas with Customers, Reaffirms Commitment to Bridging Nigeria’s Housing Deficit

Published

20 hours ago

December 26, 2024

Sahara Weekly

Adron Homes Celebrates Christmas with Customers, Reaffirms Commitment to Bridging Nigeria’s Housing Deficit

As the world embraces the joy and warmth of the Christmas season, Adron Homes and Properties, Nigeria’s foremost real estate company, has extended heartfelt greetings to its esteemed customers while reaffirming its commitment to addressing the nation’s housing challenges.

In a message of gratitude and celebration, Adron Homes expressed deep appreciation to its customers for their trust and loyalty throughout 2024. The company highlighted its unwavering dedication to making incredible housing affordable for all Nigerians, in line with its mission of reducing the country’s housing deficit.

“Christmas is a time to celebrate family, unity, and gratitude,” the statement read. “As we reflect on the year, we are proud to have played a role in making homeownership a reality for thousands of Nigerians. Our vision is clear—to bridge the housing deficit by providing affordable, luxurious, and secure homes for all, regardless of income level.”

Adron Homes has continued to lead the real estate industry by implementing innovative solutions that make homeownership accessible, including flexible payment plans and cost-effective housing models tailored to meet diverse customer needs.

As part of its Christmas and end-of-the-year celebration, the company has launched a special festive promotions ‘Lemon Friday’ aimed at encouraging more Nigerians to join its growing community of homeowners.

“We remain committed to transforming dreams into reality. This is not just about building homes; it’s about building futures and creating opportunities for families to thrive in a space they can call their own,” the statement added.

Adron Homes extended warm wishes to all Nigerians and its global customers, urging them to embrace the season’s spirit of love and hope. “May your homes be filled with peace, joy, and prosperity this Christmas and beyond.”