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E-PPAN, Others Say Judiciary Strategic In Combating Financial Frauds

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(L-r): Iliyasu Kwarbai,‎ head of Lagos zone, EFCC, Osioke Ojior, chief risk officer at NIBSS and Justice Atinuke Ipaye of the High Court of Lagos, at the 5th annual Payment Systems & Fraud Conference 2014 held in Lagos recently.
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Stakeholders in the Nigerian financial sector have urged the judiciary not to relent on the fight against financial and other related frauds in a bid to safeguard the economy.

Rising from the 5th e-fraud conference organized by the Electronic Payment Association of Nigeria (E-PPAN) in Lagos, the stakeholders issued a communiqué identifying the judiciary as strategic partners to stem fraud.

The communiqué signed by Mrs Onajite Regha, chief executive officer of E-PPAN read: The criminal justice process in Nigeria in relation to electronic frauds is evolving with relevant laws still being enacted and law enforcement agencies and judicial system still in the process of understanding the technicalities of the issues.

“The entire process is made up of Laws, Institutions and Processes. Participants welcomed the formation of a collaborative strategy between the judiciary, the law enforcement agencies and the financial industry. They offered the industry their full support to strengthen justice and to implement policies and procedures that ensure that all components of the process are effective. All of these measures are necessary in order to successfully combat electronic payment crimes which threaten the entire payment framework”.

The conference participants averred that electronic payment fraud is a threat not only to individuals and corporate organisations but to the entire nation. Its cost implication can be measured through its economic and social impacts.

“It affects job opportunities and reduces standard of living. It diminishes national image, affects consumers’ confidence, ruin big brands and erodes international confidence in the authenticity of our payments systems. They condemned the acts of fraudsters who gladly exploit the anonymity, global reach, speed and cost effectiveness of the electronic payment system to pursue criminal endeavours,” the Communique read.

According to the statistics provided by NIBBS, in the first 9 months of 2014, the industry had lost over Four Billion, Eight Hundred and Ten Million, Two Hundred and Sixty Two Thousand, Two Hundred and Sixty Six Naira, (N4, 810,262,266). Participants agreed to cooperate and do everything to ensure that offenders are brought to justice.

All participants accentuated the urgent need to enhance awareness creation at different levels of the criminal justice chain, which includes staff of financial institutions, the law enforcement agencies and the judiciary.

They decried the situation where the prosecutors and the judiciary are not invited to be part of knowledge event.

To that effect, the industry committed to supporting the judiciary and law enforcement agents with awareness and trainings on trends and techniques of electronic crime.

“The participants recognized the role of the judiciary as strategic partners to stem fraud. The Chief Judge of Lagos State reaffirmed the commitment of the judiciary to the fight against electronic payment crime.  She advised investigators and prosecutors to pay great attention to details and be meticulous to ensure investigations stand the scrutiny of the courts  since the courts decisions are based on evidence.

“The participants agreed that the role of the judiciary remains unchanged as the resolver of disputes, interpreter of the law and defender of the Constitution. What must change however, are the tools and resources to tackle crimes.

“Participants proposed a practice direction from the judiciary to accept opening statements in cases of electronic fraud to assist the court in understanding the gravity of offences before the court. The advantage of an opening statement is that both attorneys at the earliest opportunity are able to give a brief summary of their case and highlights the evidence they intend to lead in support or defence of the allegation.

“A well planned opening statement serves as a road map of the trial. Participants welcomed the prospect of working on an action plan to improve the knowledge of the judiciary as it relates to types, modus operandi and consequence of electronic fraud.

“The status of the current laws in Nigeria shows that the delay in the cyber crime law has its negative effect in the criminal justice process. There is need for accelerated passage of comprehensive laws on payment system e.g. the Payment System Management Bill and other relevant laws that can support the structure of the payment systems”.

The passage of the Evidence Act of 2011 has improved the opportunities for prosecution of criminals.

However, the deficiency of expertise in digital forensics within the banking sector impairs adequate evidence to prosecute fraudsters that are apprehended and charged to court.

Participants therefore called for an industry wide forensics laboratory and capacity building of experts in digital forensics.

Reiterating their support for E-PPAN, the Economic and Financial Crime Commission (EFCC) requested further cooperation of the financial institutions, ISPs, and telecommunication companies for crime investigators and prosecutors.

They lamented the current information sharing process within the industry.

The participants agreed that all parties involved in the e-Payment ecosystem should carryout due diligence and detailed background checks on employees before employment.

The Electronic Payment Providers Association of Nigeria (E-PPAN) hosted the 5th Annual Payment Systems and Fraud Conference on the 4th of November, 2014 with the theme: “Unbundling the Criminal Justice Process in a Digital Economy”.

Delegations came from thirty four companies to strategize on collaborative opportunities on achieving a smooth and speedy prosecution of financial crimes.

The communiqué acknowledges the push on the critical need for education and awareness within the criminal justice process and the crucial role of collaboration amongst stakeholders in ensuring the success of crime reduction within the cyber space.

The conference participants (Abbey Mortgage Bank, Altech West Africa, Central Bank of Nigeria, Computer Warehouse Group, Economic and Financial Crime Commission, Digital Encode, Eartholeum Networks, E-Payment Providers Association of Nigeria, Enterprise Bank Plc, First City Monument Bank, ITEX Integrated Services, Lagos State Judiciary and Mainstreet Bank Plc.

Others are Money4 Nigeria Services Ltd, Nigeria Inter Bank Settlement Systems, P O. Jimoh- Lasisi and Associates, Socketworks Ltd, Standard Chartered Bank, United Bank for Africa, Unified Payments Services, and VoguePay ) expressed their commitment to the development of a formidable electronic crime justice process.


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E-Financial

Moody’s Upgrades Ecobank’s Outlook to Stable

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Moody’s has upgraded the outlook on Ecobank Transnational Incorporated’s long-term issuer and senior unsecured debt ratings to stable from negative.

In the latest rating commentary, made available to media on Thursday, Moody’s also affirmed the pan-African banking group’s B3/Not Prime long- and short-term issuer ratings; B3 senior unsecured debt rating; b2 notional Baseline Credit Assessment and b1 Adjusted BCA.

ETI’s subsidiaries operate across 38 countries, including 35 African countries, and total assets of $28.9bn as of March 2025, details from the rating note highlighted. Moody’s said the decision to change the outlook to stable on the long-term issuer and senior unsecured ratings reflects ETI’s resilient financial performance.

The rating upgrade also takes into consideration higher dividends being upstreamed to ETI, resulting in lower double leverage and reduced refinancing risk.

The rating adjustment also reflects an expectation that the recapitalisation process of Ecobank Nigeria Limited will be completed by the end of 2025, with limited impact on the group’s financial fundamentals.

“The stable outlook also captures our expectation that a series of capital-boosting initiatives and actions to cure Ecobank Nigeria’s total capital position will be completed before the end of 2025”, according to the ratings agency.

In May 2025, ETI received shareholder approval to raise $250 million in Additional Tier 1 (AT1) capital and announced the launch of the transaction effective 9 July 2025, of which a portion is expected to be downstreamed to Ecobank Nigeria as AT1 capital during Q3 2025.

Ecobank Nigeria’s plan to raise $200m in AT1 capital was noted in the rating note. The ratings analysts said they consider

“We also note that Ecobank Nigeria’s recent successful offer to tender $150m of its February 2026 $300 million notes and consent to remove the capital adequacy ratio covenant from this bond’s terms alleviates risks of an event of default in Nigeria that would trigger cross default at the ETI level. Over the past year, ETI has shown resilience in its financial performance, which supports our change in outlook to stable. Liquidity risks are being moderated by the group’s gradually improving profitability during 2024 and Q1-2025.

“This has translated into a 22 per cent increase in dividends upstreamed to ETI during 2024, these being received from 22 dividend-paying subsidiaries compared to just 14 in 2021,” the rating commentary revealed.

In turn, albeit high, ETI’s double leverage ratio, which measures the liquidity risk taken on by the holding company, as a result of it borrowing in order to invest in the equity of its subsidiaries, has eased to 168 per cent as of December 2024 from 173 per cent in 2023.

Additionally, the stable outlook reflects reduced liquidity risk at the holding company level with the refinancing of short-term liabilities in 2024 with longer-term funding.

Moody’s said this is underpinned by demonstrated market access, notably through senior unsecured notes issuance of $400m in October 2024 and a tap increase of $125m in May 2025, maturing in October 2029.

ETI’s B3 long-term issuer ratings affirmation reflects the affirmation of the group’s b2 notional BCA; the affirmation of the group’s b1 adjusted BCA as captured by a one-notch uplift for affiliate support, reflecting Moody’s assessment of a moderate probability that the firm’s major institutional shareholders would extend support to the group. Moody’s said asset quality for the group has improved over recent years.

 


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SEC Grants “No objection” to N323Bn First Holdco Shares Deal

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The Securities and Exchange Commission (SEC) granted a “no objection” to the N323.45 billion First Holdco off-market deal that occurred on July 16.

The regulator in a statement clarified its role in the deal, which is famous for being the largest on the NGX, following public speculation over the nature of its involvement.

In a statement released Thursday, the Commission stated it conducted a comprehensive review. This review was carried out in line with existing laws and regulatory requirements. The capital market regulator also emphasised that there were no subsequent requests for additional information. It added that the Central Bank of Nigeria (CBN) made no further inquiries after the transaction was finalised.

Addressing circulating reports, the SEC noted that its communication with the parties involved should not be misconstrued as a query. Instead, it described the correspondence as part of an automated compliance mechanism designed to ensure transparency and proper closure of large-scale transactions in the Nigerian capital market.

“The Commission remains firmly committed to its mandate of regulating a fair, orderly, and efficient market; protecting investors; and fostering capital formation in Nigeria,” the statement added.

The June 16 transaction involved the sale of over 10.4 billion shares in First Bank Holdings by entities linked to Oba Otudeko and Tunde Hassan-Odukale to RC Investment Management. RC Investment has since been identified as a trustee acting under an arrangement coordinated by the Central Bank of Nigeria (CBN) and First Bank Holdings.

Otudeko and Hassan-Odukale, both former chairmen of First Bank of Nigeria, were key figures in the long-running power tussle for control of the lender.

The leadership struggle dates back to 2021, when billionaire investor Femi Otedola entered the fray and eventually emerged as chairman of First Bank Holdings. Otudeko, through his investment vehicle Barbican Capital, had taken legal action against the CBN and First Holdco, challenging the refusal to acknowledge his claimed majority stake.

 


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Kuda Unveils New Wallet for Multiple Currencies

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As the first currency supported by the functionality, Kuda launched an update for its app that allows users to send, receive, hold, and convert USD directly.

Kuda Unveils New Wallet for Multiple Currencies

Babs Ogundeyi, MD, Kuda

The action comes in response to growing consumer demand for currency-neutral spending, savings, and income management.

As part of its expansion strategy, digital bank Kuda has introduced a multicurrency wallet to assist Africans who live, work, and travel internationally.

Users may keep, fund, and convert between five main currencies—the US dollar, British pound, euro, Nigerian naira, and Canadian dollar—all within a single wallet on the Kuda app with this application, which is still undergoing testing.

“The new wallet is designed to simplify the fragmented experience Africans face when managing money across different countries and currencies,” said Nosa Oyegun, senior vice president, Business Banking, Kuda, during a media parley in Lagos.

“People no longer reside in a single nation. Due to their global reach, Africans should be able to transfer their money with ease, Oyegun stated.

He claims that eligible customers outside of Nigeria may already access the wallet on Android smartphones, and an iOS deployment is planned.

He clarified that Kuda purposefully decided against developing a distinct wallet app.

Customers will be able to log in as normal, open foreign currency balances, convert money when needed, and send or spend money without switching platforms because it will be integrated into the core Kuda experience.

More than N100 billion entered Kuda accounts from LemFi in 2024 alone.

“This wallet is just our first step in acknowledging and supporting the fact that our customers are already living this cross-border reality,” Oyegun stated.

Kuda wants to give people a smooth financial tool that suits their lifestyle, not only currency exchange.

By removing the bottlenecks involved in the need to switch between various apps or financial services, the wallet will enable users from overseas to send money home, exchange currencies, and continue spending from the same account when they visit Nigeria.

Oyegun emphasized throughout the event that the wallet also takes client retention into account.

Kuda plans to keep helping people who move overseas as they adjust to life in other nations rather than losing them.

He further claimed that these users had not churned. “They simply switched nations. We wish to continue servicing them.

Kuda is now one of many African fintech companies developing products for cross-border use cases as a result of the move.

Oyegun pointed out that Kuda’s goal is to become a financial partner for Africans wherever they may be, going beyond simply exchanging currencies.

The bank’s growth trajectory is reflected in Kuda’s first-quarter 2025 performance, which was disclosed during the briefing. Customer confidence in the company’s digital-first strategy was strengthened when it recorded N453 billion in savings deposits and processed N8.4 trillion in total transaction volume.

With the new feature being introduced on the app, Kuda Microfinance Bank hopes to assist online business owners, freelancers, and remote workers who make money in USD with the recently added feature, which is currently undergoing testing.

Users can choose to accept USD payments directly or convert naira into USD using the Spend tab.

In the near future, GBP and EUR will be recognized as alternative currencies, according to the financial institution.

Additionally, in Nigeria, where inflation is severe, having USD on hand might be advantageous and convenient for people.

More Nigerians have recently begun to use digital platforms to improve the stability of their financial status.

For the majority of them, managing multiple currencies—whether via remote work, cryptocurrency, or international trade—has become the standard. Kuda Bank aims to meet these demands and grow its business to meet the demands of the market.

The financial institution’s continued dedication to providing solutions that give its users the best possible experience which is demonstrated by the multicurrency wallet feature.

Speaking about the project, Kuda representatives emphasized that the new wallet was created to make it easier for Africans to manage their money across various nations and currencies.

Customers can log in as normal, open foreign currency balances, convert funds, and spend or send money without switching platforms thanks to the integration of this feature within Kuda.

Along with currency conversion, Kuda plans to provide a financial tool that eliminates the need for users to switch between apps or financial services by enabling users from other countries to send money to Nigeria, convert currencies, and spend from the same account when they visit.


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