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E-Financial

Foreign Banks aid $18Bn Corruption in Nigeria Annually- TI

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Transparency International (TI) has alleged that international enablers headquartered in Beijing, Dubai, London and New York are parts of every single illicit transaction perpetrated in Nigeria, costing the country $18 billion per annum in tax evasion.

Foreign Banks aid $18Bn Corruption in Nigeria Annually- TI

TI, also, observed that Nigeria had witnessed significant recovery of stolen assets from different countries worldwide, though lamented that absence of a harmonised stolen asset recovery regime had led to the re-looting of the recovered assets.

Mr. Auwal Rafsanjani, head of Nigeria Office, TI, made this allegation during a virtual special session of the United Nations General Assembly against corruption, which ended on Friday.

At the session, Rafsanjani lamented that corruption in Africa, especially Nigeria, “is aided by legitimate enablers that are only seldom held accountable and punished.”

He noted that Nigeria yearly “loses around $18 billion, most of it on tax evasion. International enablers headquartered in London, New York, Dubai and Beijing are part of every single illicit or corrupt transaction of significant proportion.

“The current situation is very bad. Putting things into perspective, Nigeria loses about $15bn to $18bn annually to illicit financial outflows like money laundering and the likes.

“Financial institutions, lawyers and other notaries help to facilitate Illicit Financial Flows (IFFs) and Money Laundering (ML). International jurisdictions that have become tax havens and allowed shell and shelf companies exist are also vehicles and destinations for moving these illicit funds out of developing countries.

“We also have cases of big companies finding loopholes in tax laws to prevent themselves from paying their fair share of taxes,” TI’s country representative alleged.

He said Nigeria had witnessed in recent years significant recoveries of stolen assets from abroad, noting that stolen assets recovered from the late tyrant, Gen. Sani Abacha was almost $2billion from the UK, New Jersey and Switzerland.

Despite what had been recovered from the late tyrant, Rafsanjani alleged that Abacha might have stolen “close to $6 billion. He inflicted incalculable social damage on the entire Nigerian population. Nigeria has experimented with a number of modalities on the management of international asset return.”

TI’s country representative, equally, lamented that some early recoveries were re-looted due to the lack of domestic management recovery framework and also due to incompetence of the international oversight.

“More recent recoveries reflect the growing realisation that civil society needs to be part of the monitoring of the management of the disbursement of recovered assets and they should be part of the entire asset recovery process from pre-investigation to the stage of disbursement of the recovered assets.”

Rafsanjani lamented that the victims of corruption “are not part of any stage of asset recovery in Nigeria. International asset recoveries follow bilateral agreement, which oversee and neglect the issue of identification of victims.”

In some cases, he explained that some attempts “have been made to prefer SDG financing or pro-poor allocation of compensation. However, no real standard is in place.”

Instead, according to Rafsanjani, countries of origin prefer ‘tangible mementos’ such as infrastructure projects, etc. that have nothing to do with the compensation of the real victims of corruption in the majority of asset returns;

In principle, he said there was a growing recognition in the Nigerian criminal law that there was a need to go beyond the notion of punitive justice, towards a solution that was more inclusive and encouraged the participation of victims and recognised the need to provide effective remedies for victims of crimes.

In practice, however, he explained that the courts were operating under the myth that corruption “is a victimless crime, partly because of the narrowed conception of corruption and the perceived legal challenges such as causation, legal standing, and evidence-gathering, victims of corruption are not identified.”

According to him, those who are economically and socially disadvantaged are the biggest victims of corruption, but have no access to the representation about their economic and social damages.

He said: “But it may be difficult to quantify the cost of corruption in most cases. This does not make the harms less real and deadly for Nigerians.”

He, therefore, challenged the UK, Dubai and other Island nations “to ensure that their financial institutions conduct proper Know Your Customer (KYC) measures or Enhance Due Diligence (EDD) as required by the Financial Action Task Force (FATF) and other global standards to combat money laundering.

“Having a beneficial ownership register that is accessible to the public is also very important in combating money laundering and illicit financial flows. The countries should ensure that companies who conduct businesses in developing countries pay their fair share of taxes in the countries where those profits are made.”


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E-Financial

Zenith Banks Leads as 8 Banks Suffer N156Bn Impairment Charges

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Eight leading Nigerian banks collectively set aside N156 billion as impairment charges on their credit and financial assets, marking a significant financial impact amidst a challenging economic environment, in the opening quarter of 2025.

Zenith Banks Leads as 8 Banks Suffer N156Bn Impairment Charges

Known commonly as loan losses or credit impairments, these charges highlight the banks’ defensive measures against risks arising from inflation, naira depreciation, and tightened liquidity affecting consumers and businesses alike.

The level of impairment varied considerably across institutions, reflecting divergent risk appetites and credit management practices.

Zenith Bank led with the highest provision of N49.38 billion, an 11.8 percent reduction from the previous year’s N55.97 billion.

This decline may suggest enhanced asset quality or more rigorous loan recovery tactics.

Broken down, loans and advances contributed N35.95 billion to impairments, while investment securities and treasury bills added N7.1 billion and N2.16 billion respectively.

Despite heavy provisioning, Zenith recorded a notable 20.7 percent increase in post-tax profit, soaring from N258.34 billion to N311.83 billion.

Similar trends emerged at First HoldCo, which posted N37.25 billion in impairment (down 11.2 percent), driven mainly by loans and advances provisions of N41.23 billion.

Offsetting this were write-offs and reversals that mitigated losses.

First HoldCo’s profit, however, fell to N171.10 billion from N208.11 billion.

Access Holdings and Guaranty Trust Holding Company also demonstrated reduced impairment charges, indicating stronger credit monitoring.

Access’s net provision dropped 4.5 percent to N21.77 billion, while Guaranty Trust’s impairment stabilized near last year’s N13.42 billion figure.

Yet, Guaranty Trust’s profit plunged 43.6 percent to N258.03 billion, a striking contrast to other banks’ profit growth.

On the other hand, United Bank for Africa (UBA) faced a staggering 332.2 percent surge in impairment, from N3.28 billion to N14.18 billion—pointing to amplified credit risks possibly driven by external economic pressures.

Nonetheless, UBA recorded a 33.1 percent profit uptick to N189.84 billion.

FCMB’s impairment charge fell notably by nearly 60 percent to N9.52 billion, aided by significant recoveries of previously written-off loans, boosting its profit to N32.23 billion.

Meanwhile, Fidelity Bank and Wema Bank posted sharp rises in impairment—285.8 percent and 64.7 percent increases respectively—reflecting heightened write-downs that underscore growing risk exposure amidst portfolio expansions.

Overall, while the cumulative impairment charge diminished by 5.2 percent compared to Q1 2024, individual bank results were mixed, embodying the varied strategies and external pressures in Nigeria’s banking sector.

 

 


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E-Financial

SEC Flags FF Tiffany as Ponzi Scheme

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Securities and Exchange Commission (SEC) has revealed plans to commence investigation into the activities of an entity operating under FF Tiffany, allegedly running a fraudulent investment scheme that has defrauded citizens.

SEC Flags FF Tiffany as Ponzi Scheme

A statement by SEC on Tuesday in Abuja said preliminary information revealed that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of naira.

The SEC said it viewed the activity as a threat to investor confidence and the overall integrity of the financial system.

The commission assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in the unlawful operation to justice.

According to SEC, those found culpable will be prosecuted in accordance with Investment and Securities Act (ISA) and regulatory provisions.

SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promised guaranteed or exaggerated returns.

”These schemes are not registered with the SEC and do not offer investor protection under the law.

“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC said.

The commission encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.

SEC said it remained committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market.

 

 

 

 


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E-Financial

AccionMonie App to Empower Low-Income Households

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Accion Microfinance Bank has unveiled AccionMonie, a next-generation digital financial services platform aimed at empowering individuals, micro, small, and medium enterprises (MSMEs), as well as low-income households across Nigeria.

Speaking at the official launch in Abuja, Chief Executive Officer of Accion MfB, Taiwo Joda, described the introduction of AccionMonie as a significant milestone and a testament to the bank’s culture of innovation, designed to meet the evolving needs of its customers.

“At Accion Microfinance Bank, we believe in the potential of every MSME to drive inclusive economic growth. That is why we are committed to empowering them with the financial support they need to grow, innovate, and make a lasting impact in their communities and beyond,” Joda said.

He added that the app provides instant access to essential services including loans, savings, and other forms of financial support.

According to Joda, AccionMonie is a strategic component of the bank’s “Always There to Lend You a Hand” campaign, which underscores its commitment to small business development and the economic upliftment of underserved households. The campaign positions Accion MfB as not only a financial institution but also a trusted partner in its customers’ journey to prosperity.

Highlighting the economic role of MSMEs in Nigeria, he noted that with an estimated 37 million MSMEs, the sector accounts for 86% of employment and contributes 48% to Nigeria’s Gross Domestic Product (GDP). However, these enterprises continue to face major challenges such as limited access to finance, inadequate infrastructure, and an unfavourable business environment.

Also speaking at the launch, the bank’s Chief Commercial Officer, Stephen Olalere, said the combination of AccionMonie and the bank’s expansive network of over 74 branches across 12 states will help bridge the gap in financial service delivery to small businesses.

“The platform’s user-friendly features are designed to simplify payments and offer vital support to businesses and individuals alike,” he said.

Paul Ehiagbonare, Chief Digital Officer of the bank, described the launch as a bold step toward digital leadership and financial empowerment.

“For us, AccionMonie reflects customer empowerment through digital tools and technologies. It offers a range of customer-focused features designed to promote financial inclusion,” he said.

One of its standout features is Save2Loan, which allows users to save between ₦50,000 and ₦250,000 over a 90-day period and become eligible for a loan worth twice their saved amount. This, Ehiagbonare explained, will help promote a savings culture while enhancing credit access.

In addition, customers can conveniently fund their AccionMonie accounts using any debit card, eliminating the need for physical visits or long queues in banking halls.

 


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