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

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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.

 

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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.

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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.

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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.

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“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.

 

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“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.

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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.

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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.

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Simon Ekpa May Be Released From Detention, Biafra, Says His Deputy

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Ngozi Ezeobika Orabueze, the Deputy Prime Minister of the Biafra Government In Exile, has said efforts are ongoing to ensure Simon Ekpa’s release from detention and the actualisation of the independent nation of Biafra.

Ekpa, the self-proclaimed Prime Minister the Biafra Government In Exile, is being detained in Finland.

Orabueze who made the vow in her Christmas message to the ‘people of Biafran Nation,’ said she and others were working to achieve the actualisation of the United States of Biafra and ensure Ekpa’s release.

Recall Finland district court in Lahti had ordered that Ekpa should be remanded in prison following his arrest for suspected terrorist activities.

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Ekpa was accused of using social media platforms to spread separatist propaganda linked to the Indigenous People of Biafra (IPOB), a group advocating for the secession of southeastern Nigeria.

The court alleged that the offences dated back to August 23, 2021.

Finland authorities have also investigated Ekpa in the past for alleged financial crimes, including the collection of funds through questionable means.

Orabueze in her message said, “As we celebrate this festive season, I extend my warmest Christmas wishes to every law-abiding Biafran, and especially to the Biafra Defense Forces for their unwavering defense of the territory of the United States of Biafra against the occupying Nigerian terrorist state actors.

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“May this Yuletide bring joy, peace, and an abundance of love into your homes.

“We stand on the cusp of a new year, and with it, we look forward to a future filled with great promise and prosperity.

“I urge you to continue placing your trust in and supporting our government-the United States of Biafra Government-under my stewardship.

“Together, we are working tirelessly toward the recognition of our country and preparing for the triumphant return of our able Prime Minister, Ekpa Simon Njoku.

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“He leads and will continue to lead us through the final stretch of our journey to realize the dream of the United States of Biafra as an independent, sovereign nation, guided by the principles of justice, fairness, and equity.”

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HoR minority caucus condemns crackdown on citizens by FG, calls for immediate release of detained persons

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By Kayode Sanni-Arewa

The House of Representatives Minority Caucus has slammed the Federal Government over crackdown on citizens criticisms and demanded for the immediate release of detained persons.

The caucus also reiterated the importance of dissenting opinions in a democracy, reminding President Bola Tinubu of his critical stance during the reign of President Goodluck Jonathan.

This was contained in a statement dated December 22, 2024 and signed by the Minority Caucus Leader, Rep Kingsley Chinda, stating that:

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“The Minority Caucus of the House of Representatives is very concerned about the growing controversial clampdown of citizens criticizing government.

“It is equally disturbing that agents of state are fingered in the brazen, callous, and ill-tempered harassment, and intimidation of citizens who on various medium express their respective disagreement, and apprehensions about some government policies which they believe will further exacerbate the near-zero situations of Nigerians.

“As a responsive and responsible group, we condemn in strong terms any, and every actions by the government; through security, and law enforcement agencies geared towards creating fears, panic, and make people to cow-tow to submission.

The Caucus further explained that: “We wish to reiterate that democracy can only thrive where there is virile opposition, and dissenting voices, as well as enabling alternative opinions
to express their differing views without fear or let.

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“The Caucus recalls that, before 2015 when the All Progressives Congress (APC) came to power, the party was very brazen, sharp-shooting, and sometimes not courteous in it’s vilification, and pillorying of the government in power.

” Indeed, President Bola Tinubu in 2011, as the National Leader of the Action Congress of Nigeria (ACN) was very frontal in his criticisms of (then president) Goodluck Jonathan.

” It is surprising that a party that went roughshod in attacking, and castigating the PDP, now abhors, rejects, and hates criticism with much derision.

“As a Caucus, while we counsel that every criticism should be civil, and align with accepted regulations, we enjoin government to eschew every action of citizenry intimidation, coercion, and prosecution which may have negative effects on democracy.

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” We also encourage the government to evolve results-yielding, and life-changing policies, and initiatives that will impact positively on Nigerians as an ingenious strategy to “defeat” its critics.

“While the Caucus calls for immediate release of anyone detained by state agencies for criticizing government policies, or under any guise, we also promise to resort to legislative actions against continuous abuse.

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BREAKING: Tension in Delta as soldiers invade another community

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Fear grips Okpare-Olomu town, located in the Olomu Kingdom of Ughelli South Local Government Area in Delta State, after Nigerian military personnel invaded the community with three Hilux vehicles.

The incident, which occurred on Thursday morning around 7:30am, has left residents on edge, with reports indicating that the soldiers took control of the community town hall by force. It was learnt that locals are concerned about the military’s presence in their community.

It was gathered that the military stormed the community in search of some of the community’s leaders, especially its President-General, Okiemute Otoka.

The sudden appearance of the military in Okpare-Olomu community sparked widespread panic, with residents fleeing in all directions, while women and children ran for safety to avoid a repeat of a similar incident in Okuama community.

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According to Otoka, Okpare-Olomu community President-General, the military’s true intention was to disrupt the community’s annual conference, scheduled for Thursday, where crucial decisions on growth and development were to be made.

Otoka’s allegations suggest that the military’s presence was not just a coincidence, but a deliberate attempt to interfere with the community’s affairs.

Otoka further accused some elders and leaders of the community of unlawfully selling communal land without the approval of the annual conference as those behind the invasion of the community by the military.

Meanwhile, at the time of filing this report, there was apprehension in the community as the invading military personnel were still in the community.

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Source: Saharareporter

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