Bank

VAT Discourse And Tinubu’s Pan-Nigerian View By Salamah Akindeko

Published

1 year ago

December 5, 2024

Sahara Weekly

From Homeowners to Squatters: Displacement Woes of Lagos-Calabar Coastal Highway

VAT Discourse And Tinubu’s Pan-Nigerian View

By Salamah Akindeko

If we agree with the utilitarianist view that one thing a leader must do is consider making choices that produce the greatest good for the greatest number of people, then Nigerians should commend President Bola Tinubu for choosing to break away from the past by elevating common national interest to a new level. And this did not start when he became president as this leadership trait had been demonstrated in various spheres he had held sway. His antecedents speak for him.

In May last year, President Bola Tinubu reinforced this view that he is for all. He pledged to govern Nigeria impartially and in accordance with the Constitution as well as the rule of law. He went further to task the citizenry to embrace national affinity and brotherhood. To observers who look at things dispassionately, this avowed commitment of the President has largely reflected in how he has been running his administration since he took over the reins of government.

President Tinubu, in his inaugural speech, among other things, said: “Today, let us recommit our very selves to placing Nigeria in our hearts as the indispensable home for each and every one of us regardless of creed, ethnicity, or place of birth…The South must not only seek good for itself but must understand that its interests are served when good comes to the North. The North must see the South likewise,” he had said.

One area where President Tinubu has again shown fidelity to his commitment is on the discourse around sharing formula for Value-Added Tax (VAT). Let me use this opportunity to correct erroneous impression that the North is against the president’s tax bills. The disagreement voiced by some northern leaders is on the proposed adoption of derivation model/approach to sharing of VAT revenue. VAT is only a portion of the bills. For emphasis, the four bills currently being scrutinized by the parliament seek to overhaul and modernise the country’s fiscal landscape in a way that brings benefits to the citizens and the three tiers of government.

Revealing President Tinubu’s position at an interactive session with members of the parliament recently, chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, said the president is concerned that Lagos and three other states go home with 70% of VAT revenue monthly, with Lagos (the president’s state) collecting the lion’s share of 42%.

“Today, I just signed the data on VAT [sharing] for October. Lagos will take 42% of the VAT[revenue], Rivers will take 16%, Oyo State will take 5.2%, and the FCT will take 10%. Go and check; these three states [and the FCT] are taking more than 70%. Why? Because those are the places where the head offices of those companies.…states like Borno and Bauchi collect only 0.32% and 0.4% of VAT proceeds respectively, compared to Lagos’ 42%.

“Any day I sign off on the data, I don’t feel like I am a Nigerian because this is not what we represent in our prayer as a nation. That is why, in the wisdom of Mr. President, we need to change this structure,” Adedeji told the lawmakers.

Listening to Adedeji, one would know that President Tinubu is a fair and just leader. He could have directed that status quo be maintained when some northern leaders apparently misjudged his intention on the subject. After all, Lagos and two other states will continue to cash out, while majority of the states will be left with what they currently get from the pool. So, the current attempt at reengineering the tax system is a big sacrifice for which Tinubu should be commended.

While there has been opposition to an aspect of the bills from the North, it is salutary that there are equally voices of reason who have studied the Bills and have seen the goodness of the heart of President Tinubu. A pro-North former Kaduna senator, Shehu Sani, while commending the Bills, said they are not in any way anti-North. According to the fiery critic,” It’s in fact economically beneficial and fair to all parts. People should keep aside sentiments and read the Bills carefully. It is a comprehensive and bold move to harmonise and simplify tax administration and streamline its operations and enforcement “

The Speaker of the House of Representatives, Tajudeen Abass, at the interactive session, located the controversy surrounding the VAT aspect of the Bills rightly, describing it as a reflection of their importance. For him, such debates are healthy and necessary in a democracy.

Apart from the fact that these Bills will when passed into law and assented to make states to look inwards and rethink, the issues of imbalance, fairness would be addressed by promotion of equitable distribution of the VAT revenue. These are some of the grey areas the reforms seek to address.

That noted, the total benefits of the bills should have been considered by those raising issues on VAT. People forget easily the confusing overlap of multiple tax laws. For example, why should small businesses pay taxes to the three tiers of government, a development that makes taxation unnecessarily complex? Why should there be multiple laws dealing with almost similar aspects of taxes in such a way that compliance with tax obligation is made difficult for taxpayers? Why should Nigeria not have a law that regulates cryptocurrency operations within its territory? Why in 2024 should we as a country be operating under laws that were made in 1939 (Stamp Duty Act), laws that are archaic and unfit for businesses in this modern time? The Federal Inland Revenue Service (FIRS) has to give way for the Nigeria Revenue Service (NRS) in order to accurately reflect the agency’s comprehensive services.

If there is any state that should be bellyaching over the proposal on restructuring of VAT sharing formula, it should be Lagos State. If there is any region whose voice should be loudest against the bills, it should be the South-West. But Lagos and the South-West understand where the President is coming from and have strong faith in his capacity to act in the best interest of the country.

With the town hall meeting held by Channels TV on the subject and with the kind of end-of-discussion explanation provided by Mr Taiwo Oyedele, who chaired the presidential committee on the matter, all opposition should stop henceforth. The National Assembly is there to look into the concerns raised by a few people and seek out ways to iron out those issues with vitiating the general objective of the Bills. It will not serve the interest of those speaking against the Bills if Lagos, which is going to be the biggest loser in the proposed VAT regime, sees reason to challenge either the status quo ante or the proposal. It will be recalled that in the immediate past administration, the issue of VAT sharing was litigated. A political option was sought to prevent the matter from running its full course.

Salamah Akindeko, a finance enthusiast, writes from Ila, Osun State

Bank

Wema Bank Meets Central Bank of Nigeria’s Recapitalisation; Retains National Banking License

Published

1 day ago

April 20, 2026

Sahara Weekly

Wema Bank Meets Central Bank of Nigeria’s Recapitalisation; Retains National Banking License

Wema Bank, Nigeria’s oldest indigenous national bank and pioneer of Africa’s first fully digital bank, ALAT, has successfully met and surpassed the Central Bank of Nigeria’s (CBN) recapitalisation requirements, reaffirming its status as a National bank. This achievement represents a critical milestone in the Bank’s growth journey, reflecting its ability to meet regulatory expectations and its deliberate strategy to scale sustainably, strengthen its balance sheet, and reinforce its position within Nigeria’s banking sector.
The milestone follows the Bank’s successful completion of a ₦150 billion Rights Issue and an additional ₦50 billion special placement in 2025, bringing its Total Qualifying Capital to ₦264.7 billion, well above the regulatory minimum. This achievement was concluded six months ahead of the CBN’s stipulated deadline, further reinforcing the Bank’s strong financial position, shareholder confidence, and long-term growth trajectory.

Earlier in April 2026, the Central Bank of Nigeria also formally confirmed that Wema Bank, alongside 32 other financial institutions across international, national, and regional categories, had successfully concluded the recapitalisation process. Notably, Wema stands among only ten national banks that met and surpassed the minimum required capital threshold, thereby sustaining its national banking license.
This milestone not only affirms regulatory compliance but also signals a new phase of accelerated growth for the Bank; one defined by stronger capital base, increased capacity to support customers, and a reinforced position within Nigeria’s competitive banking landscape.
Commenting on the milestone, the Managing Director/Chief Executive Officer of Wema Bank, Moruf Oseni, stated, “The successful completion of our recapitalisation exercise is a defining moment for Wema Bank. It is a strong validation of our strategy, our performance, and the enduring confidence our shareholders and stakeholders have in our vision. We have not only met the CBN’s requirements; we have exceeded them, reinforcing our position as a National Bank with the scale, strength, and stability to compete and lead.”
In March 2024, the Central Bank of Nigeria announced the recapitalisation programme requiring all national banks to maintain a minimum capital base of ₦200 billion. The initiative was designed to strengthen the resilience of financial institutions, enhance their capacity to absorb economic shocks, and position them to drive sustainable economic growth.

In response, Wema Bank embarked on a strategic capital raise through the stock market, successfully strengthening its shareholder base and securing the required capital through strong participation from existing investors. The ₦150 billion Rights Issue, which opened on April 14, 2025, and closed on May 21, 2025, marked a significant step in this journey. This was subsequently complemented by a ₦50 billion special placement later in the year, ensuring the Bank not only met but exceeded the regulatory threshold well ahead of schedule.

For Wema Bank, this journey is a testament to its transformation. After regaining its national license in 2015, the Bank has consistently demonstrated financial discipline and strategic foresight. By raising the necessary capital primarily from existing shareholders, the Bank has underscored a deep-seated mutual trust between the institution and its investors.

Speaking further on what this achievement means for the Bank’s future and its customers, Oseni added: “This milestone strengthens our ability to compete at scale, deepen our market presence, and deliver more value to our customers across Nigeria through improved access to credit, enhanced digital banking experiences, and innovative financial solutions. It positions us to play an even bigger role in powering Nigeria’s economy while continuing to deliver sustainable value to all our stakeholders.

Looking ahead, we remain focused on deepening our market presence, driving customer-centric innovation, and strengthening our role as a catalyst for growth across retail, SME, and corporate segments. This is not just about retaining our license; it is about building a bigger, stronger, and more impactful Wema Bank.”

The successful conclusion of the recapitalisation process underscores Wema Bank’s financial strength, disciplined execution, and unwavering commitment to regulatory compliance as it continues to expand its footprint across Nigeria. With a significantly strengthened capital base, the Bank is now positioned to do more – support more customers, enable more businesses, and unlock more opportunities across every segment it serves.
As it enters this new phase, Wema Bank is not only reaffirming its status as a National Bank; it is stepping forward with greater scale, sharper ambition, and a clear intent to lead. The Bank remains firmly committed to powering progress, driving innovation through ALAT, and delivering sustained value; powering a future of possibilities for all its stakeholders.

Bank

Wema Bank Releases Full Year 2025 Audited Financial Results

Published

1 week ago

April 11, 2026

Sahara Weekly

Wema Bank Releases Full Year 2025 Audited Financial Results

…Declares ₦221.85bn Profit Before Tax, ₦1.25 Dividend, Total Assets hit ₦5 trillion mark.

Wema Bank, Nigeria’s oldest indigenous bank, most innovative and pioneer of Africa’s first fully digital bank, ALAT, has released its FY 2025 Audited Financial Results, achieving record-breaking growth and unparalleled performance across several key metrics.

Key figures include the doubling of the Bank’s Profit Before Tax (PBT) from ₦102.5bn in FY 2024 to ₦221.9bn, an impressive 116.4% increase. Profit After Tax (PAT) also surged by 125.4% from FY 2024’s ₦86.2bn to ₦194.5bn. Total assets also reached the 5 trillion mark, with the attainment of ₦5.07tn, a 41.5% increase from FY 2024’s ₦3.59tn, reflecting a growingly resilient balance sheet. Gross earnings increased by 52.8% to ₦660.6 billion from ₦432.3 billion in FY 2024, a feat driven largely by a 62.7% growth in interest income, reflecting improved yields on earning assets and growth in the loan book.

Customer deposits grew by 30.3% to ₦3.29 trillion from ₦2.52 trillion in FY 2024, demonstrating sustained customer confidence. This growth in deposits provided stable funding for asset growth while supporting liquidity and balance sheet resilience. Net interest income more than doubled, rising by 103.9% to ₦361.0 billion, supported by improved asset pricing and balance sheet expansion. Non-interest income also grew modestly by 8.3% to ₦85.3 billion. Net loans and advances increased by 44.7% to ₦1.74 trillion, up from ₦1.20 trillion in FY 2024, thus reflecting Wema Bank’s continued support for key sectors of the economy while maintaining a disciplined risk management approach. Overall, Wema Bank is set to pay dividend per share of N1.25.

Commenting on the remarkable performance, Wema Bank’s Managing Director/Chief Executive Officer, Moruf Oseni, reiterated the Bank’s unwavering commitment to sustaining its impressive growth momentum and delivering superior value to all stakeholders. According to him, “Wema Bank has delivered one of the strongest growth trajectories in its history. From a Profit Before Tax of ₦14.75 billion three years ago, we grew to ₦43.59 billion in 2023 and reached ₦102 billion in 2024. In 2025, we have taken an even bolder step forward, recording a Profit Before Tax of ₦221 billion. Our Total Assets, which hit the ₦1tn mark in 2021, surpassed ₦3tn in 2024, standing at a staggering ₦5tn as of FY2025. This overall performance not only speaks strongly of Wema Bank’s exceptional financial strength and capacity for sustained growth, but also reflects disciplined execution, a resilient business model, and the unwavering commitment of our people”.

“As of September 2025, Wema Bank successfully surpassed the ₦200bn recapitalisation minimum threshold for commercial banks with national authorisation. Our FY2025 Financial Results only corroborate what has become abundantly clear—Wema Bank is here not just to stay, but to lead the future of banking in Africa. Our 80th anniversary celebration in 2025 marked a fitting commemoration of our 80 years of impact in the finance industry and beyond. With the launch of ‘ALAT: The Evolution’, the upgraded version of our pioneering fully digital bank, ALAT, we not just redefining the digital banking experience with enhanced intelligence, personalisation and flexibility; we ushering Africa into a future filled with profound possibilities”, Oseni concluded.

Wema Bank is a leading financial services entity with banking operations across Nigeria and the globe, through its trailblazing innovative solution, Africa’s first fully digital bank, ALAT. From surpassing the recapitalisation benchmark set by the Central Bank of Nigeria (CBN) to maintaining an unparalleled growth trajectory over the past 5 years, Wema Bank has proven itself stronger than ever—numbers perpetually skyrocketing.

The Bank’s position as leading innovative bank further proves that it is not only able to meet the prevalent needs of its customers but also equipped to anticipate and meet evolving needs as digital banking continues to reshape the finance industry.

Bank

GTCO Plc Releases 2025 Full Year Audited Result

Published

3 weeks ago

April 1, 2026

Sahara Weekly

GTCO Plc Releases 2025 Full Year Audited Result

…Declares Another Record Dividend of ₦12.76k; Re-affirming Unrivalled Capacity to Creating Value

Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the year ended December 31, 2025, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The Group reported profit before tax of ₦1.23trillion underpinned by strong growth in core earnings, with interest income and fee income increasing y-o-y by 23.2% and 25.9%, respectively. The performance reaffirms its capacity to generate sustainable earnings and builds on the momentum from 2024, when GTCO delivered a record profit of ₦1.27trillion, driven in part by ₦517.5billion in fair value gains, which did not recur in 2025.

The Group’s 2025 profit after tax came in at ₦865.75billion against ₦1.02trillion recorded in 2024. The profit after tax reflects the impact of recent fiscal policy adjustments to the taxation of investment securities, notably withholding tax on short-term instruments. However, when normalised for this effect, underlying earnings remain robust, driven by growth in core operating income.

The Group continues to maintain a well-structured, healthy, and diversified balance sheet in all the jurisdictions wherein it operates a Banking franchise, as well as across its Payments, Pension and Funds Management business verticals. Total assets and shareholders’ funds closed at ₦17.8trillion and ₦3.4trillion, respectively. Capital Adequacy Ratio (CAR) remained very robust and strong, closing at 43.8%, likewise asset quality improved as evidenced by IFRS 9 Stage 3 Loans which closed at 3.4% and 5.0% at Bank and Group level in FY-2025 (Bank, 3.5%, and Group, 5.2% in December 2024). Cost of Risk (COR) also improved to 2.2% from 4.9% in December 2024. In specific terms, the Group’s loan book (net) grew by 12.4% from ₦2.79trillion as of December 2024 to ₦3.13trillion in December 2025. Similarly, deposit liabilities grew by 23.8% from ₦10.40trillion to ₦12.87trillion during the same period.

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said: “Our 2025 result underscores the resilience and depth of our earnings capacity. Following a record 2024, which included significant fair value gains, our focus has been on strengthening the sustainability of our earnings by driving growth across our core banking and ecosystem businesses. The strength of our underlying earnings, despite a stronger Naira and tighter regulatory parameters, reflects the quality of our franchise and the discipline with which we execute our strategy. Importantly, this strong core earnings performance underpins our capacity to sustain and grow shareholder returns. Our record dividend payout this year is not only a reflection of our current profitability but also of our confidence in the Group’s long-term earnings potential. Looking ahead, we remain focused on scaling our ecosystem, driving innovation across our financial services platform, and delivering consistent, high-quality earnings that support superior value creation for our shareholders.”

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services Industry in terms of key financial ratios i.e., Post-Tax Return on Equity (ROAE) of 28.3%, Post-Tax Return on Assets (ROAA) of 5.3%, Capital Adequacy Ratio (CAR) of 43.8% and Cost to Income Ratio of 27.9%.

Guaranty Trust Holding Company Plc is a leading financial services group with operations across Africa and the United Kingdom. Renowned for its strong corporate governance, innovative financial solutions, and customer-centric approach, the Group provides a wide range of banking and non-banking services including payments, funds management, and pension fund administration. GTCO Plc is committed to delivering long-term value to stakeholders while driving growth and development across its markets