Headlines

Leading financial institution, Fidelity Bank, has been listed as one of most capitalized banks in Nigeria based on Q3 2023 financial results.

According to an article published in Thisday newspapers, the bank reported a capital base of N410.75 billion as of September 2023 against N314.3 billion in 2022.

Also featuring on the list are Zenith Bank, UBA, First Bank, Access Holdings, First Bank Holdings, Ecobank, GTCO Holdings, Stanbic IBTC Holdings, FCMB and Sterling

Financial Holdings.
Following the announcement of the planned recapitalisation of commercial banks by the Central Bank Governor, Dr. Olayemi Cardoso, at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria on 24 November 2023, industry watchers have anticipated the announcement of capital raising exercises by banks.
Incidentally, Fidelity Bank had taken the proactive approach by securing shareholders’ nod to raise additional capital earlier in the year.

At an Extra-Ordinary General Meeting (EGM) held virtually on Friday, 11 August 2023, the bank’s shareholders unanimously approved a capital raising exercise via a Public Offer for up to 10 billion Ordinary Shares and Rights Issue of up to 3.2 billion Ordinary Shares representing one new share for every 10 shares held to new and existing shareholders respectively.

Below is the list of the 10 most capitalised banks as of September 2023:

• Zenith Bank – N1.92 trillion
  The third quarter 2023 financial report of Zenith Bank Plc places the bank at the topmost position in terms of shareholders fund which it put at approximately N1.92trillion, as against N1.31trillion in 2022. The bank also ranks as Nigeria’s highest profit generator so far in 2023, with a pre-tax profit of N505 billion.

This eminent position was corroborated by Nairametrics, an online platform that noted that with a capital adequacy ratio (CAR) of 20.1 per cent as of September 2023, as against 19.8 per cent as of December 2022, the bank’s stability is not in question.

• UBA -N1.778trillion
  Following Zenith Bank closely is United Bank for Africa, Nigeria’s second-highest profit generator this year, which is also the second most capitalised bank as of September 2023. The bank posted a total shareholders fund of N1.778 trillion as of Q3, 2023. In 2022, the figure was N922.1 billion, with a capital adequacy ratio of 28.3 per cent, which suggests stable financial health at the end of FY 2022
• Access Holdings – N1.64 trillion
  Access Holdings is another Tier 1 capital bank with a total equity of N1.64 trillion as opposed to N1.231 trillion in 2022. With this figure, Access Holdings ranks as Nigeria’s third-largest bank in terms of capital base. Its Nigerian subsidiary, Access Bank Nigeria has a total equity of N1.208 trillion as of September 2023, which is a stable figure in case of any recapitalisation exercise.

•First Bank Holdings – N1.37trillion
The ranking in terms of capital base listed FirstBank as the fourth on the list. The Third Quarter 2023 results of First Bank Holdings released in September 2023 showed that the parent company of First Bank Limited has a total equity of N1.37 trillion.

However, its commercial banking arm, First Bank Limited has a capital base of N1.287 trillion. In 2022, the holding company posted a capital of 995.7billion.

•Ecobank- N1.37trillion
The bank’s third quarter 2023 performance result submitted to the Exchange last week showed it recorded a shareholders fund of N1.373 trillion as against N935 billion in the same period of 2022, placing it at the fifth position of the most capitalised banks.

• GTCO Holdings – N1.27trillion
GTCO Holdings, the parent group of GTBank has a total equity of N1.273 trillion, a year-to-date increase of 36.7per cent from the N931 billion recorded at the start of 2023.

While GTCO’s total equity is put at N1.27 billion, this is cumulative of all the group’s subsidiaries. However, its Nigerian subsidiary, GT Bank Nigeria holds a total capital base of N1 trillion as of September 2023 which is still a substantial figure ahead of any recapitalisation exercise.

•Stanbic IBTC Holdings – N471billion
Stanbic IBTC Holdings, the Nigerian subsidiary of Standard Bank Group is the parent of Stanbic IBTC Bank and it has a capital base of N471 billion as of September 2023. Its capital was N407.7 billion in 2022.

• Fidelity Bank Plc – N411 billion
  With a capital base of N410.75 billion as of September 2023 against N314.3 billion in 2022, Fidelity Bank sits in quite a comfortable place ahead of any recapitalisation exercise for Nigerian banks.

In September 2023, the bank made a foray into international banking by acquiring the UK division of Union Bank of Nigeria.

• FCMB -N373.7billion

With a capital base of N373.7 billion as of September 2023 as against N275.8 billion in 2022, FCMB ranks as the 9th most capitalised bank in Nigeria. With a capital adequacy ratio of 16.0per cent as of December 31, 2022, FCMB’s CAR was just a little above the regulatory 15% required by the CBN.

• Sterling Financial Holdings – N165.84billion
  Sterling Bank Limited is a full-service national commercial bank licensed by the Central Bank of Nigeria, and it’s a subsidiary of Sterling Financial Holdings Plc. The bank provides financial services to individuals, small businesses, and large corporations.

Sterling Bank’s capital base stood at N165.84 billion when total liabilities of N2.08 trillion were removed from total assets of N2.25 trillion. Its capital in 2022 was N154 billion.

Some parts of the Federal Capital Territory, FCT, are beginning to experience paucity of the Naira as Nigerians approach Christmas.

No fewer than seven commercial banks in the AYA area of Abuja failed to dispense cash on Thursday.

According to report, these ATMs on Thursday evening has been unable to dispense cash for about a week.

Our correspondent, however, observed that Point of Sales, POS, operators lined up in their numbers in front of those banks to make brisk business.

One of the POS operators, who identified himself as Samuel, lamented that the ATMs have not been dispensing cash as expected.

He noted that cash was only available at certain hours of the day.

Since we entered December these ATMs have not been dispensing as much.

“There is naira scarcity and most likely it may be because we are approaching December, but only CBN can explain this new scarcity,” he said.

This is coming amid the Central Bank of Nigeria, CBN, directive that both the old and the redesigned Naira notes remain legal tender in Nigeria.

The Supreme Court also in its judgment granted the prayers of the federal government to lift the December 31 extension deadline for the usage of N200, N500, and N1,000 notes.

While responding to the judgement, the CBN had this to say: “To avoid doubt, the Supreme Court ordered that the old versions of N200, N500 and N1000 banknotes, alongside the redesigned versions, shall continue to be legal tender.

A staggering 68 aspirants have entered the fray, gearing up to contest for the Edo State governorship seat ahead of the imminent party primary elections.

Punch reports that the contenders are jostling for the tickets of the Peoples Democratic Party (PDP), All Progressives Congress (APC), and Labour Party (LP).

According to the report, there 11 aspirants in the PDP, 29 in the APC, and 28 in the LP.

The APC’s decision against zoning the ticket to Edo Central has intensified the race, prompting diverse entries, including the unexpected participation of the state APC chairman, Col. David Imuse (retd), serving senators, House of Representatives members, and notable figures like former commissioner, Kassim Afegbua and former APC candidate Pastor Osagie Ize-Iyamu.

Renowned figures like Kenneth Imasuagbon in Labour Party, contesting for the fifth time under different political banners, advocate for experienced candidates, challenging the rising influence of political newcomers like Olumide Akpata and Dorry Okogie, sparking debates on the essence of political experience versus fresh perspectives.

Notably, the deputy governor, Philip Shaibu, engaged in a power struggle with Governor Godwin Obaseki. He announced his intent, emphasising his 30 years in politics and determination to sustain his boss’s legacy.

An ally of the deputy governor, Immam Babangida, said that Shaibu could pick the PDP ticket if the party provided a level playing ground for all the aspirants.

He said: “I am happy that the governor said that it is the members of the party that will determine Shaibu’s fate. But Governor Obaseki and the PDP must ensure there is a level playing ground for everyone to operate. Shaibu has the pedigree to win the ticket at the primaries.

“He has done well throughout his career and he is the only one who can help the PDP to remain in the saddle in the state. Without him, the PDP cannot win the election.”

A Federal High Court sitting in Abuja has issued a garnishee order, freezing at least 24 bank accounts belonging to the Kano State Government over N30 billion compensation to Incorporated Trustees of Masalachi Eid Shop Owners and Traders Association, for the demolition of their shops in the state

This order was granted in response to a suit filed by the Incorporated Trustees of Masalachi Eid Shop Owners and Traders Association who sought compensation for the demolition which they deemed illegal and unjust.

The ruling was delivered on November 28, 2023, by Justice I. E. Ekwo, who presided over the case.

According to the Certified True Copy (CTC) of the ruling signed by the Registrar, Chioma Chijioke, the action is aimed at satisfying the judgment in favour of the shop owners, following the alleged illegal demolition carried out by the state in June 2023.

Also, the court has mandated the garnishees to appear before it and provide cause, if any, against the order Nisi being made absolute. The Judge also stipulated that the judgment creditors should serve the defendants and Garnishees at least 14 days before the next hearing, scheduled for 18th January 2024.

The order by Justice Ekwo reads, “A garnishee order Nisi is hereby made attaching the funds (present and future) of Kano State Government, Kano State Urban Planning and Development Authority, KNUPDA and Attorney General of Kano State (including but limited to Kano State FAAC Account and Account No. 1019716320 at UBA and Account No. 1790249410 Polaris Bank) and other accounts in the custody of the respective Garnishees to the tune of N30 billion in satisfaction of the judgment of the Federal High Court sitting in Kano per S. A Amobeda, J. dated the 29th September, 2023 herein being enforced in favour of the judgment creditors.

“Order is hereby made granting the sum of N2 million only being the cost of the Garnishees proceeding.

“The Garnishees herein are hereby ordered to appear before this court to show cause (if any) why the order Nisi should not be made absolute against them.
“Judgment creditors to serve the defendants and Garnishees at least 14 days before the next date of hearing.’’

Senate President Godswill Akpabio has cancelled his scheduled trip to Dubai, the United Arab Emirates (UAE) for the COP28 Climate Change Summit.

Akpabio cancelled the trip following outrage that trailed Nigeria’s 1,411 delegates to the summit.

Nigerians have been aggrieved over the 1,411 delegates accompanying President Bola Tinubu to the summit.

The figure was comprised of government officials, representatives of the private sector, and civil society organisations.

Following the outcry, the Minister of Information, Mohammed Idris, said the government only funded 422 delegates.

While speaking at a one-day retreat on the 2024 budget in Abuja yesterday, Akpabio said criticisms from Nigerians made him cancel the trip.

He said he decided to focus on the 2024 budget defence sessions with government agencies.

“I have decided to stay back and I asked somebody from Cote d’Ivoire to represent me there,” Akpabio said.

Fintech company, Opay, has been down for over an hour as Nigerians cannot send money through its app on Monday evening.

This is even as Nigerians have gone to various social media platforms to express their fears.

A social media user, @8jagistplug tweeted: “I no understand weytin Opay Dey do this night make I just sleep wake up first. Abeg make nothing happen to my 1.5 Billion”

Another user, @iamvinicius_snr, said: “If opay crashes the amount of small businesses that would crash with it would be crazy.”

Also, @cajal_ebuara: “Please oh I made a transfer of 80k from my Opay and I haven’t gotten the money in my other account and the most scary thing is that it’s not showing in my transactions!”

Meanwhile, Opay, via its app had explained that it was undergoing maintenance, adding that all services will be restored soon.

The statement reads: “Dear user. The system is currently under maintenance and all services will be restored soon. Please bear with us.”