E-Financial
Cases of Banks’ Frauds on the Rise-NDIC
Nigeria Deposit Insurance Corporation (NDIC) yesterday released its 2012 report and statement of accounts, which showed that banks in the country reported a total of 3,380 cases of frauds involving a ₦17.97 billion loss to the industry.
Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution.
The reported cases of frauds represents a 43.7 per cent rise compared to 2,352 cases in 2011 while the expected/contingent loss rose by ₦455 million (10.9 per cent) from ₦4.072 billion reported in 2011.
The expected/contingent loss in 2011 however fell by 36.4 per cent from ₦28.40 billion in 2011, to ₦18.04 billion last year.
The corporation, however, noted the significant improvement in the financial standing of the nation’s banks in 2012, as they (banks) pooled a total of N525.34 billion pre-tax profit compared with the N6.71 billion loss reported at the end of 2011.
The return to profit, as contained in the 2012 NDIC report and audited statement, according to a statement by the corporation, was helped by the improved capitalisation resulting mainly from the activities of the Asset Management Corporation of Nigeria (AMCON), which acquired toxic assets in the industry.
This acquisition led to healthier balance sheets for the banks.
As a further sign of the improved health condition of the banks, the NDIC said the industry’s total assets improved by 10.91 per cent from N21.89 trillion in 2011 to N24.58 trillion in 2012.
Total loans and advances at N8.15 trillion represented a third of total assets, out of which 54.97 per cent or N4.48 trillion went to the real sector of the economy, compared with N3.88 trillion (or 53.37 per cent) and N3.51 trillion (or 48.95 per cent) in 2011 and 2010, respectively.
“Of particular note was the rising trend in the banking industry’s credits to the agric sector which stood at 3.60 per cent of total loans and advances in 2012 compared to 2.15 per cent and 3.11 per cent recorded in 2010 and 2011, respectively,” the statement added.
The corporation also expressed grave concern over the failure to assess financial condition and performance of 555 micro finance banks (MFBs) in the country on a continuous basis during the year.
It said in 2012, “310 out of the 323 MFBs that rendered returns had met the minimum paid-up capital of N20 million. A total of 302 MFBs had capital adequacy ratio of more than 10 per cent.”
Also, the NDIC said it has so far paid N73.58 billion as liquidation dividend to 250,209 depositors of banks that went under over the years, up to December 31, 2012.
Of this amount, the corporation said it paid a cumulative N6.82 billion to 528,212 insured depositors of closed banks by December 31, 2012, compared with N6.68 billion paid to 527,942 depositors in 2011.
The 2012 payout and beneficiaries could have been higher, the NDIC said, but for the unwillingness of many depositors to file their claims.
“It is pertinent to indicate that a total of 14 out of the 34 banks-in-liquidation prior to 2006 had declared a final dividend of 100% of their total deposits, indicating that all depositors of the affected closed banks had fully recovered their deposits,” the NDIC said.
The report further rated one of the nation’s existing 20 banks “marginal,” while 10 are “sound” and nine others “satisfactory,” following which the corporation concluded that “the industry could be considered to be relatively stable in 2012 (as there) was no unsound bank in the banking industry as at 31st December, 2012.”
Nigerian banks have resumed international transactions on naira-denominated debit cards, marking a significant shift in banking operations for customers who rely on foreign payments.
This is coming nearly three years of suspension.
United Bank for Africa (UBA) and Wema Bank, in separate communications to their customers, announced the restoration of international payment services on their naira cards.
In a notice to its customers, UBA said the reactivation of international transactions on its premium naira cards aligns with its commitment to delivering improved and seamless banking experiences.
“We are pleased to inform you that all UBA Premium Naira Cards, including Gold, Platinum, and World variants, are now enabled for international transactions,” the bank stated.
“This means you can now use your Premium Naira Card for global payments — including online shopping, POS, and ATM transactions — with ease and flexibility. If you haven’t used your card recently, now is a great time to rediscover the convenience and prestige that comes with being a UBA premium cardholder.”
Similarly, Wema Bank announced that its customers can now make dollar payments on international platforms using their naira Mastercards.
“Your Wema Naira Mastercard just went global!” the bank said. “Now you can pay in dollars on all your favourite international platforms — Amazon, eBay, AliExpress, Netflix, Spotify, YouTube.”
The development marks a major relief for Nigerian customers who have had to rely on dollar cards or alternative payment methods since most banks suspended international usage of naira cards in 2021 due to foreign exchange scarcity.
Flutterwave, Africa’s leading payments technology company, today announced the relaunch of its flagship remittance solution, Send App, across U.S. states following its newly acquired Money Transmitter Licences (MTLs).
This comes after Flutterwave secured 20 additional MTLs in the U.S., adding to the 14 licenses the brand has held since 2023.
Altogether, this achievement raises Flutterwave’s total number of direct licenses to 34, allowing the company to operate across many U.S. states and territories without partners or intermediaries.
Users in the U.S. can now send money to Nigeria, Ghana and Egypt, unlocking new remittance corridors that were previously unavailable.
Alongside this expansion, the onboarding process has been streamlined with a quick ID check, making it faster and easier for new users to get started.
Additional improvements include optimised payment support for US-issued Visa and Discover cards, enhanced security measures to safeguard transactions and maintain compliance, and improved in-app flows for a simpler, more efficient sending experience.
This return also highlights Flutterwave’s commitment to delivering a seamless, secure, and regulatory-compliant user experience for all Send App customers in the U.S. Users can now send money from DC, Georgia, Maryland, North Carolina, Michigan, South Carolina, Tennessee.
Other U.S. states and territories where Send App by Flutterwave supports outward remittances include Alaska, Arizona, Arkansas, Delaware, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Minnesota, Mississippi, and Missouri, Nebraska, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Dakota, Utah, Washington, West Virginia, Wisconsin, and Wyoming.
Commenting on the relaunch, Olugbenga “GB” Agboola, Flutterwave Founder and CEO, said, “By expanding our reach and enhancing our services, we are empowering millions of Africans in the U.S. to maintain strong financial ties with their home countries, support their families, and contribute to economic development across the continent. Additionally, we are staying true to our core mission of bridging Africa with the global economy and vice versa.”
Earlier this year, Flutterwave integrated Swap into Send App for seamless FX transactions and strengthened its services in Ghana by securing approval for inward remittance from the Bank of Ghana.
Federal High Court in Abuja on Friday affirmed the authority of the Nigeria Inter-Bank Settlement System (NIBSS), to manage the Bank Verification Number (BVN), database across the country, in line with the Central Bank of Nigeria (CBN), Act and other relevant banking laws.
This is according to a judgment delivered by Justice James Omotosho on Friday.
Wolemi Esan, senior advocate of Nigeria, NIBSS’s counsel, and Kofo Abdulsalam-Alada, lead counsel for the CBN, among others, had sought a restraining order to prevent any institution in Nigeria from challenging the agency’s statutory authority to maintain and manage the BVN database.
This comes as NIBSS had alleged that Digital Rights Lawyers Initiative filed multiple suits, either directly or through proxies, challenging its authority to manage the BVN database and claiming that such management violates constitutional privacy rights.
However, Justice Omotosho, delivering his judgment, said the BVN does not infringe on the constitutional right to privacy.
“The initiative does not infringe on the constitutional right to privacy but rather serves as a necessary tool for safeguarding public interest and enhancing financial security.
“NIBSS has the power to manage the BVN,” the judge said, citing relevant CBN laws.
“The court grants the reliefs of NIBSS as prayed,” he stated.
Nigerian Banks End Years of Embargo, Resume Intl Transactions on Naira Cards
Flutterwave Secures 20 more US Money Transmitter Licences
Court Affirms NIBSS Authority to Manage BVN
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