Banking
Skye Bank grants N450bn loans to energy firms
LAGOS-DESPITE warnings over the rising incidence of non-performing loans, NPL, especially as it relates to exposure to the energy sector, Skye Bank Plc gave out N449.872 billion loans to energy firms in two years, between 2013 and 2014. Specifically, information obtained from the bank’s Annual Report and Financial Statement for the 2014 financial year, showed that the bank recorded total loans and advances of N651.261 billion in 2014, compared to N549.858 billion in 2013.
Out of these loans, the N240 billion issued in 2014, represented 36.97 per cent of the year’s total to energy firms, while in 2013, the N209.076 billion loans, represented 38.02 per cent of the year’s total to the firms.
A breakdown of the bank’s loans to the energy sector is as followed: In 2014 oil and gas downstream companies – N21.304 billion; oil and gas engineering services companies – N79.456 billion; oil and gas upstream companies – N120.678 billion, power sector companies – N19.358 billion.in 2013, oil and gas downstream customers – N20.554 billion; oil and gas engineering services companies – N70.656 billion; oil and gas upstream companies – N105.772 billion; and power sector customers – N12.094 billion.
Board executives related loans
Worthy of note are some insider-related loans granted to some directors of the bank. Specifically, two non-executive directors of the bank were significant beneficiaries of the bank’s loans to the energy sector.
According to the annual report, two companies — Newcross Explortation and Production, and Pan Ocean Oil Corporation, linked to Mr. Jason Fadeyi, a Non-Executive Director of the bank received N8.35 billion and N17.077 billion respectively from Skye Bank in 2014, compared to loans of N5.613 billion and N15.479 billion respectively, received by both companies in 2013.
Two other companies — PPP Fluid Mechanics Limited, and Integrated Energy, Distribution and Management Company, linked to Mr. Olatunde Ayeni, Chairman, Skye Bank, received N11.17 billion and N9.061 billion respectively as loans in 2014, compared to N1.59 billion and N8.122 billion received in 2013.
The bank also recorded off balance-sheet engagements in terms of loans granted to Newcross and PPP Fluids totalling N50 million and N233 million respectively.
The Central Bank of Nigeria, CBN, PriceWaterhouse Coopers, PWC, and other analysts had in the wake of the declining crude oil price warned that financial institutions in Nigeria risked erosion of their capital. Also, the financial sector and the economy are at risk of being plunged into another crisis over banks’ exposure to the energy sector.
Even Skye Bank’s Chairman, Mr. Olatunde Ayeni, confirmed this in his note to shareholders of the bank in its Annual report and Financial Statement for the 2014 financial year. He said: “The local and global environments within which your bank operated in 2014 was not different from 2013, but this time, it faced heightened threats on diverse fronts.
“The 2014 financial year was one in which the local economy, and by extension, commercial banks, endured significant decline in crude oil prices, elevated inflation owing to pre-election spending, uncertainty related to the political environment, continued monetary policy tightening by the banking, and a consistent depletion of external reserves.”
Ayeni further stated that the tough operating environment negatively affected the bank’s financial performance in the 2014 financial year. Specifically, the bank’s profit before tax and profit after tax declined by 46.7 per cent and 47.4 per cent to N10.47 billion and N9.74 billion respectively.
The decline in its bottom lines was in spite of a 6.4 per cent increase in its total revenue to N134.78 billion compared to N126.67 billion recorded in the 2013 financial year.
Banking
Millions of customers still stranded worldwide 24 hours after GT Bank online operations suffered attacks
By Yemie ADEOYE
GT Bank, one of Nigeria’s leading banks, with operations across Africa and the United kingdom, and with an asset base of about US$3.11 trillion is under a cyber attack which has left millions of its customers across the world stranded in the last 24 hours.
The bank which was renowned for its seamless online operations at inception has suffered dwindling online efficiency in recent years and this current attack didn’t come as a surprise to many of its numerous customers. However, it is becoming worrisome that over 24 hours after its online operations went down, the bank has not been able to arrest the situation and restore its online services.
Several customers of the bank took to their X (formerly known as twitter) handles to express their frustrations at the bank, as several of the customers in the diaspora are unable to access their accounts and carry on with their transactions. A customer , Jeff55 who lamented on his X handle about the development, stated that it is a thing of shock that a bank of this size couldn’t afford to have the necessary tools and experts to ensure a full protection of its online operations in this age and time.
Another customer Dimma stated that while Cybersecurity training may seem tedious, the recent #GTBank hack is a stark reminder that everyone is just a click away from a devastating attack.
Several media organisations had reported that hackers have stolen GT Bank website, and intercepted customers Data in massive phishing operation.
At the time of filing this report, Biztellers.com.ng checks on the banks website shows that it is still down and unaccessible, and neither GT Bank media and communications unit nor any of its agencies or surrogates have commented officially on the development.
Banking
Tinubu commends increased crude production to 1.61 mbpd
Says output surge buoyed by reforms he announced in May 2024 to address gaps in PIA
President Bola Ahmed Tinubu on Sunday declared a resurgence in the oil & gas industry, commending the increased crude production to 1.6 million barrels per day.
The president, who said this in a national broadcast, maintained that the resurgence was buoyed by the reforms he announced in May 2024 to address the gaps in the Petroleum Industry Act (PIA).
Nigeria’s crude oil output got a boost to 1.61 million barrels per day in July 2024 through the president’s directive and the industry leadership provided by the Nigerian National Petroleum Company Limited (NNPCL).
Acknowledging what he called a resurgence of the once-declining oil and gas industry in his Sunday-morning broadcast to the nation, President Tinubu said that oil investors are coming back to Nigeria.
He said; “Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then.
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“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy.
We were also using our hard-earned foreign exchange to pay for and subsidise its use. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down.
This will save over two trillion Naira a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education.
“To this end, we will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of the imported PMS and AGO.
“We have started the distribution of conversion kits and the setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.”
Banking
FBN Holdings On Course For AGM
Plans are in top gear for the 11th Annual General Meeting (AGM) of the FBN Holdings Plc.
The management made this disclosure in a notice it filed with the Nigerian Exchange Limited (NGX) on Thursday, where it averred that it has not been served with any court order against the proposed AGM.
According to notice, which was signed by the acting Company Secretary, Adewale Arogundade, FBN Holding said, “The attention of FBN Holdings Plc (the Company) has been drawn to recent media reports purporting that the Company has received a Court Order stopping it from holding the Annual General Meeting (AGM) scheduled for August 15, 2023.
“We confirm that this assertion is a false narrative as the Company has, as at the date hereof, not been served with any court order to stop the forthcoming AGM.
“Suffice to mention that the AGM is a statutory meeting of Shareholders that must be held in accordance with the law, further to which the Company will notify the regulators and the public as appropriate if there is any lawful order to restrain the Company from conducting same.
“We hereby assure our esteemed Shareholders that the AGM shall hold on August 15, 2023, as planned and we look forward to their attendance and active participation at the meeting.”
However, court orders published in national dailies showed that the Federal High Court in Lagos had issued an order against the financial institution, barring it from holding its 11th AGM.
The order was entered pursuant to a petition by Olusegun Onagoruwa, in suit No: FHC/L/CP/1271/2022. It was addressed to the bank and some other bank officials.
It read, “Take notice that unless you obey the directives in the judicial order contained in the order made on July 15, 2022, by the Federal High Court, Lagos, by refraining from proceeding with the 11th Annual General Meeting of FBN Holdings Limited proposed for August 15, 2023, from seeking approval to issue or raise share capital in any manner whatsoever, from appointing or confirming the appointment of new directors, or in any other manner taking any step towards implementing, actualising enforcing resolution of the 10th Annual General Meeting of FBN Holdings Plc held on June 20, 2022, or in any other manner overreaching, disobeying or undermining the said order of a court, you will be guilty of contempt of court and you will be liable to be committed to prison and to there imprisoned.”
Biztellers brought you a report that a segment of shareholders had staged a protest at the headquarters of the bank on Monday, calling for the AGM to be held, as well as soliciting regulatory interventions.
It is expected that at the AGM, FHN Holdings is poised to breathe life into plans to seek shareholders’ approval to raise N150bn fresh capital via a rights issue and elect new directors including billionaire, Femi Otedola and Samson Ariyibi among other resolutions.