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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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SEE 20 billionaires supporting Trump and Kamala in the race for The White House

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By Mario Deepromoter

The race for the United States Presidency has reached a fever pitch. As the US presidential election draws close, the financial backing of billionaires has become a defining factor in the campaigns of leading candidates.

Donald Trump, the Republican party candidate and Kamala Harris, who took the baton from President Biden for the Democratic party, continue to rally the support of some of America’s wealthiest, drawing powerful endorsements from influential figures in the country seeking to shape its future.

Elections are run with money, and political parties and their candidates require a lot of it to run successful campaigns. This process is supported by the high and mighty who donate good money towards the government they wish to see in power. These funds cover a range of expenses, including advertising, staffing, travel, and organising events.

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From business partners to friends, acquaintances and wealthy individuals who want to see the tide turn in their favour, here are 20 billionaires supporting Trump and Kamala as the next US President.

Billionaires supporting Donald Trump
1. Elon Musk
Perhaps being Donald Trump’s biggest fan on X, which he now owns, the world’s richest man Elon Musk could also be Trump’s loudest supporter. In July, the founder worth, $250.8 billion announced plans to commit around $45 million a month to a new super political-action committee, called America PAC, backing former President Donald Trump’s presidential run.

2. Linda McMahon
Linda McMahon is the wife of Vince McMahon, the former CEO of WWE. McMahon, who is currently worth $3.1 billion had made up to $16 million in donations to Trump groups to support his election campaign. She chairs the pro-Trump nonprofit America First Policy Institute, serving on the board of Truth Social’s parent company, Trump Media and Technology Group.

3. Diane Hendricks
“I know how hard it is to build a company from nothing,” she said. “And we need a president who understands that too,” Diane Hendricks, called America’s richest self-made woman, said on stage at the Republican National Convention in her home state of Wisconsin last month. Forbes says that the $20.9 billion-worth entrepreneur has already pumped $6 million into groups that support him.

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4. Andrew Beal
American banker and businessman, Andrew Beal gave more than $4 million to Trump committees and other GOP groups in 2020. The $12.2 billion- valued investor is now betting on Trump again, putting $1.8 million behind Trump’s 2024 ticket.

5. Kelcy Warren
Kelcy Warren, the billionaire in energy has been fond of Trump. Warren had given $100,000 to help elect him in 2016, then dropped more than $11 million in 2020. This time around, he has given about $6 million to support Trump’s campaign. Warren’s Energy Transfer is best known for the Dakota Access Pipeline, which Trump helped expedite in one of his first acts in office.

6. Elizabeth Uihlein & Richard Uihlein
Liz and Dick Uihlein are among the Republican party’s most generous donors, giving tens of millions per cycle. The couple have donated $5 million to trump groups according to Forbes. In 2021, the duo celebrated Trump’s “America First” trade policies and called out publicly-held companies for being “too concerned about their stock share price.”

7. Phil Ruffin
Ruffin is a significant Donald Trump donor, as well as his business partner and close friend. His donations to Trump’s PACs and committees have reached $3.3 million so far this cycle, surpassing his combined donations from the last two elections.

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8. Geoffrey Palmer
Geoffrey Palmer is one of the largest apartment developers in Los Angeles, with nearly 13,000 units in the greater L.A. metro area. Palmer is a major financial backer of former president Donald Trump, donating some $16 million to his campaigns and PACs from 2016 to 2022. This year, he’s up to $3 million. The developer is worth $3.1 billion.

9. J.Joe.Ricketts
Ricketts, whose family owns the Chicago Cubs, poured $3 million into a Republican anti-Trump group back in 2016 with his wife. They have given a combined $2 million to Trump groups so far this time around, betting against Kamala.

10. Jimmy John Liautaud
Since Jimmy John sold the majority of his business to a private equity firm, he has gotten more involved in politics, as has his wife Leslie. She backed Trump in 2016 and 2020 and John joined her this year, giving $2.8 million to Trump groups so far.

Billionaires supporting Kamala Harris
1. Mark Cuban
The billionaire Shark Tank star and former principal owner of the Dallas Mavericks is one of the Democrats’ most valuable supporters. Valued at US$5.4 billion according to Forbes, Cuban, who is known to have attended a Joe Biden fundraiser, has retweeted various posts about Harris’ campaign, and signed the “VCs for Kamala” pledge.

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2. Reid Hoffman
LinkedIn co-founder, Reid Hoffman has been a long-time Democratic donor and wasted no time backing Harris after Biden dropped. In January, he poured $2 million into a super political action committee (PAC) for Biden’s campaign. The former CEO, worth $2.5 billion plans to open a fundraiser for Harris and has been reported to push Netflix chairman Reed Hastings to donate US$7 million to a PAC supporting the current Vice President.

3. Vinod Khosla
Vinod Khosla, founder of Khosla Ventures, and OpenAI investor has backed Harris to win the elections in November following the withdrawal of President Biden, who he hosted a fundraiser for in May. Worth $7.2 billion per Forbes, the entrepreneur has donated to Super PACs in support of Harris.

4. Chris Sacca
Chris Sacca made early bets investing in Twitter and Uber through his venture capital firm Lowercase Capital. Now he’s making bets of Kamala Harris to be the next US president after donating to Biden’s campaign before he dropped out. Sacca noted that he and his partner Clay Dumas have “invested millions of dollars and countless hours helping build organisations and companies that we think have the best shot at giving blue candidates an edge in a game that is rigged against them.”

5. Eric Schmidt
Worth $22.5 billion per Forbes, the former CEO of Alphabet has given $1.6 million to Future Forward PAC, a Democratic super PAC, and $1.16 million to the Biden Victory Fund.

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6. Dustin Moskovitz
Moskovitz, who helped to launch Facebook (now Meta Platforms) in 2004, gave up to $929,600 to the Biden Victory Fund before he dropped out of the race. Now, he has directed his attention to Kamala who goes against the same opponent, Trump.

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IG Orders Redeployment Of FCT, Rivers, Delta CPs

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By Mario Deepromoter

The Inspector General of Police, Kayode Egbetokun, has directed the redeployment of the Rivers State Commissioner of Police, Tunji Disu, to FCT command.

The shake-up also affects the Delta State Police Command, with CP Abaniwonda Olufemi being reassigned to the Rivers State Command.

In his place, CP Peter Opara who was recently posted to the FCT command, has been appointed as the new Commissioner of Police for Delta State.

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The Force spokesman, Muyiwa Adejobi, in a statement on Thursday, said the redeployment was to ensure effective policing in the affected states.

He said, “The Inspector-General of Police in an effort to strategically emplace a Police Force well efficient for effective policing, has ordered the immediate redeployment of the Commissioners of Police of Rivers State Command, Delta State Command, and the Federal Capital territory.

“The order covers the redeployment of the CP Rivers State Command, CP Olatunji Disu as the new CP FCT; CP Delta State Command, CP Abaniwonda Olufemi as the new CP Rivers State Command and CP FCT, CP Peter Opara as the new CP Delta State.”

Adejobi also said the IG, in accordance with the approval of the Police Service Commission, has deployed four CPs to Lagos, Abia, Ebonyi, and Akwa-Ibom States.

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He said, “In addition, following the approval of the Police Service Commission, the Inspector-General of Police has also deployed four CPs as Commissioners of Police for Abia, Lagos, Ebonyi, and Akwa-Ibom State Commands.

“The deployment includes the posting of CP Danladi Nda to Abia State Command, CP Olanrewaju Ishola Olawale to Lagos State Command, CP Anthonia Adaku Uche-Anya, FDC to Ebonyi State Command and CP Festus Eribo to Akwa-Ibom State Command.

“The posting of these strategic managers reflects the mission of the Inspector-General of Police to strategically reposition the Police Force and ensure maximum utilization of human resources available to the Force. “

He stated that the IG urged the CPs to be innovative and ensure personnel are diligent in their duties.

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Adejobi said, “The IGP has, however, urged the new CPs of State Commands to ensure diligence in the discharge of their lawful duties and adopt innovations that could mitigate security challenges in their respective areas of responsibility. He further encouraged them to key into the police reform plans, which will help the progress of the Nigeria Police Force and the growth of the country in general.”

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Credible Intel Indicates Tinubu’s Defence Minister Matawalle Involved in Banditry – Zamfara Gov Alleges

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By Kayode Sanni-Arewa

Zamfara State Governor, Dauda Lawal, has made a startling disclosure, alleging Nigeria’s Defence Minister, Bello Matawalle, of involvement in banditry in the North-West region.

Speaking during an interview on TVC’s Politics Tonight on Wednesday night, Lawal cited credible information suggesting that his predecessor, Matawalle, played a significant role in the ongoing security crisis.

From all the information we’re getting, my predecessor was fully involved in some of this banditry issue,” Lawal stated. His comments come as northern Nigeria continues to grapple with relentless bandit attacks, particularly in Zamfara, Kaduna, and Katsina states. This is not the first time such allegations have been raised against Matawalle. In July, notorious bandit leader Kachallah Bello Turji had made similar accusations, claiming that the former Zamfara governor had been supporting terrorism in the region. Turji, in a video statement, maintained that Matawalle was involved in the rising wave of violence, an allegation that stirred significant controversy. However, Matawalle has consistently denied these claims. His media consultant, Deyemi Saka, labelled the accusations as unfounded and baseless, dismissing them as attempts to tarnish the minister’s reputation. Despite this, Turji and now Governor Lawal remain firm in their assertions, keeping the spotlight on Matawalle’s alleged connection to the banditry crisis.

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The accusation against a high-ranking government official comes at a time when northern Nigeria is plagued by severe security challenges, with banditry, kidnapping, and terrorism escalating in various states. The federal government’s response to these claims and the overall situation remains to be seen.

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