E-Financial
NDIC Pays N5m Each to Customers of Defunct Heritage Bank
Nigeria Deposit Insurance Corporation (NDIC) has said that it has successfully disbursed insured deposits of up to ₦5 million each to 82.36% of customers of the now-defunct Heritage Bank, following the Central Bank of Nigeria’s (CBN) revocation of the bank’s license on June 3, 2024.
In a statement on Sunday, Bashir Nuhu, a spokesman for the appointed liquidator NDIC, said the remaining 17.64% of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no Bank Verification Numbers (BVN).
Nuhu said the NDIC began the payment of the insured deposits of N5m maximum per depositor within a record time of four days of the bank closure using the BVN as a unique identifier to locate depositors’ alternate accounts in other banks.
“However, depositors with balances exceeding Five Million Naira have been paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank,” the statement partly read.
“This unprecedented achievement of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms, marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36% of the total insured deposit to date.
“It is instructive to state that, the remaining 17.64% of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no BVN.
“Others are those with no alternative accounts in other banks or accounts with KYC limit on the maximum lodgment per day and are yet to come forward for verification.
“These category of depositors are presently being contacted by the Corporation through telephone calls and text messages to come forward for verification.”
“In this regard, the Corporation is already working assiduously to ensure that all depositors with amounts in excess of the maximum insured amount of N5 million are timely paid through liquidation dividend from realisation of the defunct bank’s assets.
“The Corporation has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely reimbursement of the uninsured depositors of the defunct bank.
“Subsequently, after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law,” the statement added.
E-Financial
UBA Rewards 30 Customers with N17m in UBA @ 75 August Draw
United Bank for Africa Plc (UBA) has rewarded 30 customers with over N17m in its August draw, in celebration of its 75th anniversary.
In a statement on Monday, the lender said the event, held recently in Lagos, featured a draw overseen by representatives from the National Lottery Regulatory Commission (NLRC).
It stated that in the top tier, 10 winners received N1m each, adding that the recipients included Joshua Izenobor, Chigozie Abel, Cornelius Nwankwo, and others.
It added that the second tier awarded N500,000 each to another set of 10 customers, which were Elizabeth Warekoromor, Deborah Ijeoma Simon, and others.
According to the bank, in the third category, 10 account holders won N250,000 each.
The winners included Olusegun Oke, Salisu Adamu, and others.
Congratulating the winners, Shamsideen Fashola, group head of retail & digital banking, UBA, encouraged others to continue saving for a chance to win in future draws.
“This is just the beginning of our legacy promo draw. We plan to reward 75 winners in each category, with 195 more customers to be selected in the coming months. Our draws are transparent, and the next millionaire could be you,” Fashola stated.
Also, Alero Ladipo, group head of marketing and corporate communications, UBA, emphasised that the draw was part of the bank’s efforts to appreciate customers and promote a savings culture.
“This initiative reflects our commitment to giving back to society and ensuring our customers feel valued,” he said.
E-Financial
SEC Gives Reasons for Approving Digital Exchanges
The Securities and Exchange Commission (SEC) has clarified that its recent decision to grant approval-in-principle to two cryptocurrency exchanges, Busha Digital Limited and Quidax Technologies Limited, is aimed at encouraging youth participation in Nigeria’s capital market while ensuring adequate investor protection.
Emomotimi Agama, the Director-General of the SEC, highlighted that the move aligns with President Bola Tinubu’s commitment to engaging Nigeria’s youthful population. Agama explained that the approval will create a structure that enhances the participation of young Nigerians in the capital market, particularly in the digital asset space.
“A lot of young Nigerians are fully involved in digital assets, and we cannot shut the door against them,” Agama said. “Rather, the intention of Mr. President is to have them inclusive in the capital market, and that is why we are ensuring that there is regulation and no one is hurt at the end of the day. That’s our responsibility at the SEC, by protecting investors and developing the market.”
Agama emphasized that the commission’s approval is still at an incubation stage, describing it as a “controlled experiment.” He said the SEC will closely monitor the operations of the exchanges to assess the risks they pose to the economy, investors, and themselves as operators.
“It gives us an opportunity to know exactly what they are doing, the risks they pose to our economy, investors, and even to themselves,” he explained. “We are making sure they operate within regulations similar to what is obtainable in other jurisdictions.”
Agama explained SEC’s regulatory approach to digital exchanges is part of a broader strategy to embrace innovation without compromising market stability.
The commission’s Virtual Assets Service Providers (VASP) Regulation framework allows the SEC to fully understand crypto exchanges and virtual financial assets, safeguarding the financial ecosystem from potential risks.
“In our bid not to stifle innovation, we set up a ‘Sound Box’ to understand exactly what these companies are getting into, how it affects customers, the Nigerian public, and the economy,” Agama added. “It is important that they meet the necessary regulatory guidelines before full approval is granted.”
He noted that the SEC is committed to fostering trust and confidence in the capital market, particularly as it relates to integrating digital asset exchanges into the regulated environment.
The introduction of these exchanges, Agama said, opens up new opportunities for younger Nigerians who have shown growing interest in the digital asset space.
“By including these innovations within the broader capital market structure, we are ensuring a balance between fostering innovation and protecting investors,” Agama concluded.
E-Financial
Unity Bank Projects N27Bn in Q4 Earnings, Targets N4Bn Profit
Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.
Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.
An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.
Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis.
This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.
The lender said it expects to cover the milestones with consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.
The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.
Analysts are of the view that the Q4 forecast reflect a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.
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