News

Stakeholders, Depositors panic as Wema Bank lost over N1 billion to fraudsters

Published

5 months ago

April 15, 2024

Critical stakeholders and Depositors of the Moruf Oseni-led Wema Bank Plc are worried about the safety of their funds and the health of the lender over the high level of fraud cases the bank recorded in the year 2023.

In its full-year 2023 financial statement released recently, Wema Bank disclosed that it recorded fraud in its system to the tune of N1.136 billion.

This has become worrisome to financial analysts and further shows that the bank’s security system may be either weak, poor, not up to industry standards or operated by unqualified personnel.

Assuredly, this development does not only affect depositors and create panic in the minds of customers of the bank, it also has ripple effects on the dividend payout to its shareholders.

In the audited 2023 financial statement, the bank recorded 1,195 fraud cases to the tune of a whopping N1.136 billion, out of which N685.595 million was lost.

The bank claimed 97 per cent of the fraud cases were executed by outsiders, adding that the cases valued at N860.395 million occurred through operations and others and N595.017 million was lost in the process.

Internet fraud was worth N203.724 million and N90.017 million was ferried away by fraudsters.

Fraudsters also attempted to steal N36.071 million via point-of-sale channels and N8.148 million through mobile banking but only succeeded in carting away N506, 000.

Scammers also attempted to steal N869,000 via automated teller machines and N27.39 million web frauds, but they were foiled.

“There is no fraud, whether or not material, that involves management or other employees who have a significant role in the bank’s internal control system,” the management of the bank stated.

A financial analyst, Bolu Oyedeji who spoke with THE WITNESS in a report noted that the bank’s high fraud cases in 2023 leave much to be desired and exposed how vulnerable its system is. Oyedeji noted that the bank management must wake up and brace up its system, otherwise it will continue to lose investors’ confidence.

“Wema Bank needs to do something urgently to forestall this magnitude of fraud and assure its depositors that their funds are safe.

“The bank must adopt sophisticated cybersecurity measures to mitigate current cyber threats, engage professionals and educate customers on ways to avoid falling prey to fraudulent actors,” he noted.

Similarly, in the 2023 financial year, Wema Bank also incurred sanctions, paying penalties totalling N61.350 million, for contravention of cyber security framework law, a section of bank and other financial institutions Act BOFIA, 2020, late rendition of returns; circulars on the CBN know your Customers among others.

On the cyber security framework, the apex bank asked the Wema Bank to pay N2 million while a total of N17.450 million and N20.00 million were paid for contravention of the CBN circular on KYC and section 19 (3A) of the BOFIA 2020 respectively.

Wema Bank was made to pay a sum of N10 million, N8 million and N2 million for the late rendition of the returns, breaches of Risk-Based Supervision (RBS) and regulatory breaches on CBN clearance respectively.

The bank also paid N1.9 million for late filing of 2022 audited financial statements with the Nigerian Exchange.

However, despite the fraud and security challenges, NewsOnline Nigeria reports that the bank during this period grew its revenue by 70.54 per cent to N226.91 billion on the back of interest income that went up by 71.83 per cent to N185.64 billion and fees and communications revenue that improved by 50.50 per cent to N24.96 billion.

The lender’s pre-tax profit rose by 195.6 per cent to N43.59 billion and post-tax profit leapt by 220.42 per cent to N35.93 billion from N11.21 billion it recorded in 2022.

The bank also grew its total deposits by 59.6 per cent to N1,860.57 billion from N 1.17 trillion in the prior year, while loans to customers went up by 53.6 per cent to N801.10 billion in 2023.

However, its net trading income dipped by 79.45 per cent to N822.49 million from N4 billion in 2022, underpinned by the N1.15bn Treasury Bill loss it suffered in 2023.

News

President Tinubu Speaks On Ajuri Ngelale’s Indefinite Leave Request

Published

2 hours ago

September 8, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

President Bola Ahmed Tinubu’s administration has endorsed Ajuri Ngelale, the President’s Special Adviser on Media and Publicity, indefinite leave request.

Recall Ngelale, in a statement on Saturday, announced an indefinite leave of absence.

He proceeded on the leave to attend to pressing medical matters affecting his immediate family.

In a statement he posted on his general communication WhatsApp platform on Saturday, Ngelale revealed that he submitted a memo to the Chief of Staff on Friday.

He noted that the memo was a means of notifying him of the decision to pause his functions, including his roles as Special Presidential Envoy on Climate Action and Chairman of the Presidential Steering Committee on Project Evergreen.

Ngelale explained that the decision was after consultations with his family due to a worsening medical situation at home.

He expressed hope to return to full-time national service when circumstances permit.

In a statement posted on X by Tinubu’s Special Assistant on New Media, Olusegun Dada and signed by the Presidency, Tinubu approved Ngelale’s request.

Tinubu stated that he fully understands his Chief spokesperson’s reason and sympathizes with the circumstances that have led to this seemingly difficult decision.

The statement read: “The President has received the memo from Chief Ajuri Ngelale, Special Adviser to the President on Media & Publicity and Official Spokesperson of the President as well as Special Presidential Envoy on Climate Action, informing of his decision to proceed on an indefinite leave of absence for personal and health reasons.

“The President accepts his reasons for the leave, fully understands them and sympathizes with the circumstances that have led to this seemingly difficult decision.

“While extending his heartfelt prayers and best wishes to Chief Ngelale and his family during this challenging moment, the President hopes for a speedy recovery and full restoration to health.

“The President notes his tireless efforts and dedication in serving the nation, and thanks him for the remarkable contributions he made in his various capacities, especially in advancing national discourse and leading efforts on climate action and other key initiatives.

“The President wishes him well in all his future endeavors.

“During this period, we kindly ask that the wish for privacy of Chief Ngelale and his family be respected.”

News

Confusion As FG Denies Ownership Of Yacht Spotted In France With Nigerian Flag

Published

2 hours ago

September 8, 2024

Kayode Sanni-Arewa

…says it belongs to an undisvcosed private individual

By Kayode Sanni-Arewa

The presidency, on Saturday, denied ownership of a yacht spotted hoisting Nigerian flag in St-Tropez, a coastal town in France.

There had been reports of a “presidential yacht belonging to the Nigerian government being used for vacation at St Tropez” on social media.

Senior Assistant to President Bola Tinubu on digital and new media, Otega Ogra, in a post on X, said the yacht belongs to a private individual.

The presidential aide said flags used by the president or armed forces do not contain the coat of arms like the one on the yacht.

Ogra said on Saturday, “There have been false claims circulating that a private individual’s yacht was spotted in St. Tropez is a Nigerian government yacht. Here are some points to consider in order to discern the truth.

“The 42m Bennetti yacht currently being shared online has been privately owned for around 5 years since it was constructed.

It is important to note that this specific yacht has no connection or ownership ties to the Nigerian government, president or armed forces. Any claims or assertions suggesting otherwise are simply not true and inaccurate.

“It is not uncommon for luxury yachts to fly the flag of the owner’s country as well as the flag of the country in which they are registered.

“The official Nigerian flag is Green-White-Green without a coat of arms in the middle. Flags representing the Nigerian President or the Armed Forces do not contain a coat of arms in the center. Placing anything in the center of the flag is a clear deviation

News

Constituency Devt: Senator Manu fulfils promise, installs solar energy as alternative source of power for constituents(Photos)

Published

2 hours ago

September 7, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

In a bid to enhance better life for his constituents, Senator Manu Haruna has facilatated installation of solar energy in Takalafiya community in Bali Local Government Area of Taraba State.

Senator Manu who represents Taraba Central Senatorial District in the National Assembly fulfilled his promise of ensuring the energy needs of his constituents are adequately taken care of.

This initiative reflects his unwavering commitment to addressing the energy needs of his constituents by providing a reliable and sustainable power source.

The solar energy project is expected to improve the quality of life in the community, enabling access to electricity for homes, schools, and local businesses, while also promoting environmental sustainability.

This project is part of Senator Haruna’s broader efforts to enhance infrastructure and development in Taraba Central.

Manu is also working tirelessly to make sure areas not connected to the national grid are connected within the shortest period possible.