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How Over N400bn First Bank loan nailed Heritage bank

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The Central Bank of Nigeria (CBN) has settled the over N400 billion owed to First Bank by the now-defunct Heritage Bank, according to the lender and sources familiar with the matter.

“First Bank had exited the exposure and CBN settled the Bank,” Ismail Omamegbe, the lender’s corporate communications manager, said Tuesday.

Another source confirmed that the CBN has paid off First Bank’s exposure to Heritage, given that its intervention was at the behest of the apex bank under Emefiele.

In 2018, First Bank, serving as the clearing bank for all Heritage Bank cheques, noticed an alarming discrepancy.

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Of the cheques cleared for Heritage Bank, a substantial N200 billion remained unpaid. This revelation sent ripples of concern through First Bank’s boardroom.

The gravity of the situation was clear: allowing this debt to persist unaddressed posed a significant risk to the bank’s financial stability. However, the potential fallout from pulling the plug on Heritage Bank was equally daunting.

Godwin Emefiele, then Governor of the Central Bank of Nigeria (CBN), stepped in amid the brewing crisis, with a bold proposition.

The emperor, as he was called in banking circles, offered a central bank guarantee on behalf of Heritage Bank, ostensibly to be executed in 2019. This move, a lifeline for Heritage Bank, was designed to assuage First Bank’s concerns and provide a safety net, backed by the Central Bank’s authority.

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During a pivotal board meeting, First Bank’s directors were confronted with a distressing notification from their auditors, PricewaterhouseCoopers (PwC).

The auditors revealed that the much-vaunted CBN guarantee was conspicuously absent. This revelation left the board in a state of shock. Questions were immediately directed at then-Managing Director, Adesola Adeduntan, who defended the bank’s position by asserting that Emefiele had given his word regarding the guarantee.

Despite Adeduntan’s reassurances, the absence of a formal guarantee was a glaring oversight that PwC could not overlook.

Compounding the problem, by this time, the debt had ballooned from N200 billion to N300 billion, exacerbating the financial strain on First Bank. The board’s patience was wearing thin, and they issued a stern directive to Adeduntan to secure the guarantee without delay.

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The unfolding debacle reached a climax when the board was unceremoniously sacked by Emefiele who had taken offence to the board’s insistence on a formal guarantee.

The CBN on Monday revoked the licence of Heritage Bank Plc with immediate effect following breaches of banking legislation.

The management “have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability,” it said in an emailed statement.

Heritage Bank has struggled with non-performing loans over the years.

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An internal document released on Monday revealed that at least 90 percent of the bank’s active loan portfolio of around N700 billion was considered lost or doubtful as of March 31, 2024. The bank’s tier-1 capital comprising equity, reserves, and accumulated earnings was in a deficit of over N1 trillion.

Internal documents showed that less than 5 percent of outstanding loans were performing, with 90 percent classified as lost. Some of those loans date back to 2018 when the bank reported a loan impairment of N37.5 billion in the first half of 2018.

Depositors of the bank that have alternate accounts within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. Depositors with funds over N5 million will be paid liquidation dividends upon realisation of the bank’s assets and recovery of debts owed to the bank.

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FRSC expresses worry over fatal crashes

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*** Orders strict traffic law enforcement

By Francesca Hangeior.

 

The Corps Marshal of the Federal Road Safety Corps, Shehu Mohammed, on Thursday, lamented the spate of fatal road crashes in September.

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He specifically raised concerns about the accidents that occurred on September 8 in Niger, September 12 in Sabon Wuse, and September 15 in Kaduna State.

These three incidents, according to him, resulted in the tragic loss of at least 91 lives.
Speaking during a meeting with fleet operators and other stakeholders in Abuja, Mohammed expressed frustration that despite the government’s efforts to provide and maintain transport facilities according to global standards, many drivers continue to undermine these efforts with reckless behaviour on the roads.

He said, “While the Government continues to do its best to provide and maintain transport facilities in accordance with global best practices, some road users, especially drivers, have continued to make a mockery of this concerted effort by exhibiting a high level of recklessness on the roads.

” In the last month or thereabout, the Corps witnessed 3 landmark crashes that were caused by negligence, fatigue, speeding, night trips and dangerous driving. These three landmark crashes include that of Niger State which occurred on 8 September 2024 and killed 48 people, that of 12 September 2024 which killed 18 people in Sabon Wuse and that of 15 September 2024 which happened in Kaduna State leading to the death of 25 people.

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“These 3 crashes alone, which proved to have been obviously avoidable, claimed the lives of 91 people. This is alarming and it calls for concern.”

Mohammed ordered commanding officers to ensure round-the-clock enforcement of traffic laws.

He also disclosed that a special operation would be conducted to checkmate the incessant accidents recorded across the country.

Mohammed said, “I am compelled to state that the spate of the crashes recently recorded is, however, very disturbing and every step must be taken to avert continued future occurrences. It is against this backdrop that I have directed Commanding Officers to ensure round-the-clock enforcement of traffic offences to mitigate these excesses. A special patrol operation will be instituted and enforcement will be carried out nationwide.”

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Speaking, the President of the Independent Petroleum Marketers of Nigeria, Abubakar Shettima, dismissed the allegations linking the group to some of the accidents in the country.

He said, “We transport highly inflammable products through our trucks, and all the allegations being made are unfounded. We collaborate with NARTO and PTD.

” NARTO represents the truck owners, while the tanker drivers are our drivers. We always come together to make important decisions regarding safety, as it is our top priority, and we take it very seriously.

” Mohammed has been doing his best to reduce road accidents involving trucks. We’ve taken precautions, such as prohibiting our members from driving at night and advising them to rest if they feel sleepy. NARTO has also begun building rest parks for drivers to use when they need to take a break.”

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Tinubu to skip 79th UNGA to focus on pressing challenges at home

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By Francesca Hangeior

President Bola Tinubu has decided to skip the 79th United Nations General Assembly (UNGA) in New York, opting instead to focus on Nigeria’s pressing domestic challenges, particularly the recent devastating flooding that has affected the country.

A statement issued on Thursday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, which disclosed President Tinubu’s decision, also said Vice President Kashim Shettima will lead Nigeria’s delegation in his place.

The President’s move is seen as a prioritization of local concerns over international diplomacy, as President Tinubu aims to address the immediate needs of Nigerians affected by the floods.

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The UNGA, scheduled to take place from September 24 to 28, 2024, will feature discussions on sustainable development, peace, and human dignity.

VP Shettima will deliver Nigeria’s national statement to the General Assembly, attend key sideline events, and engage in bilateral meetings, ensuring the country’s interests are represented on the global stage.

“President Bola Tinubu will not attend the 79th United Nations General Assembly session in New York this year.

“The President has thus directed Vice President Kashim Shettima to lead Nigeria’s delegation.

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“President Tinubu, who returned to the country last Sunday after his trip to China and the United Kingdom, wants to focus on domestic issues and address some of the country’s challenges, especially after the recent devastating flooding.

“At UNGA 79, Vice President Shettima will deliver Nigeria’s national statement to the General Assembly, attend important sideline events, and hold bilateral meetings.

“The high-level General Debate, with the theme ‘Leaving no one behind: Acting together for the advancement of peace, sustainable development and human dignity for present and future generations’, will run from Tuesday, September 24, through Saturday, September 28, 2024”, the statement said.

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Tinubu Loyalist, Yemi Adenuga under fire after asking Igbos to leave Lagos but contesting for Elelection In Ireland

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By Francesca Hangeior

President Tinubu staunch loyalist and Igbo-Must-Leave-Lagos-Election-For-Yoruba campaigner, Yemi Adenuga is under fire in Ireland, where she is vying for nomination for position in the general election.

The Irish nationals who watched her video calling for the Igbo to leave elections in Lagos for the Yoruba, have called on Nigerians to enquire if it is morally right for her to leave Irish election for the Irish?

Yemi Adenugais facing avalanche of serious criticism over nominations to contest in Irish general election.

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Irish and Nigerian critics have questioned her conscience and moral right to take part in Ireland election when she was involved in hate election campaign that asked the Igbo to leave Lagos for Yoruba during the last election in February 2023.

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