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Nigeria Loses N197bn To Financial Services Fraud Annually —VP

Published

6 years ago

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By Lukman Amusa

The Vice President, Prof. Yemi Osinbajo  says Nigeria loses about N197 billion as cost of financial services fraud annually. The Vice President made the observation   at the stakeholders forum on financial fraud using telecoms platform organised by the Nigerian Communications Commission, NCC in collaboration with the Central Bank of Nigeria, CBN. Osinbajo, who was represented at the event by Barr. Bolaji Owoseye said the positive developments in the nation’s telecom sector attract new dangers  because fraudsters have also infiltrated the system to compromise telecom platforms, thus putting all these positive outlooks from mobile money and financial services at risk, leading to loss of huge amount of money to fraudsters every day.  Osinbajo  He noted that fake mobile money have proliferated with cloning of banks with fraudsters  to extract customers personal and financial information and other mischievous activities, insisting that we must continue to innovate to checkmate the cyber criminals. ‘‘The cost of financial services fraud to the country is a whooping 197bn annually.  Fake mobile money have proliferated with cloning of banks with fraudsters  to extract customers personal and financial information and other mischievous activities. ‘‘We can’t out of risk of fraudsters stop innovation.  We must continue to innovate. There are elderly people who do not have ATM cards.  They cannot associate with the risks associated with ATM cards. We must build confidence in the market to be able to bring in people who want to be within the platform. ‘‘One of the issues to resolve is who should have responsibility when fraud is committed. Sometimes you have four players: customers, bank, telecom, mobile service provider and nobody wants to take responsibility.  Historical, innovations have always brought progress and development to mankind but in the wake has always come the dark side. ‘‘The anticipation and unanticipated consequences of any invention is always available for evil minded to exploit to the detriment of the society. Nigeria has like otherwise has inevitable embrace the digital world through the use of telecommunications. ‘‘However, the tread off for greater efficiency and versatility in this new world is the increased negative application of innovation for criminal disposition. Without telecommunication, the originator of fake news has no capacity to spread falsehood so rapidly to such a wide spread audience without being quickly nipped in the bud. ‘‘ But in today’s world, fake news excuses the world to great danger. Each sector of the economy and society is exposed in different way to mouse of technology or any innovation.’’ On why we must retail mobile payment platforms, Osinbajo said, ‘‘They provide opportunity for personal and business anywhere. They remain an economical means of achieving financial conclusion. They are critical to bring ginger within the social safety net the most vulnerable members of the society. ‘‘All the vendors in the Home Grown School feeding programs are encouraged to register through digital platforms.  The Conditional Cash Transfer, though it is done in the rural areas, is done in cash but once a social register is done, effort is being made for all beneficiaries to get their stipends via mobile platform. ‘‘We must never out of fear refuse to innovate and be ahead of the fraudsters in the market. Right now there is no law that regulates Digital Currency in Nigeria.  Nigeria has no law but there are people that use crypto currency.  They are not waiting for law. But  yet, there will be problems and those problems have to be solved. We cannot refuse to create platforms to check fraudsters.’’ Continuing, the Vice President said, ‘‘The issue of today, the vulnerability of the financial sector to negative use of the technology is timely because no one can dispute the relevance of telecom to improve financial services. Indeed, the use of telecom services have helped to reduce banks’ operating cost and customers’ satisfaction.  Banks have obviously expanded their operational bases using these platform. ‘‘This proliferation of alternative banking channels through which banking transactions have performed. In this regard, the Nigerian banking industry has simply aligned itself with the global trend. However, it is this financial service delivery and opportunity for inclusion that is now threatened by fraud. Today, we are grabbing with new methods of fraud, such as Some card swaps, customer identity theft,  bank or customer base hark, BVN snatching and compromise of customer systems etc. Earlier in his  welcome address, the Executive Vice Chairman of NCC, Prof. Umar Danbatta said NCC has been collaborating with other agencies of government to not only achieve financial inclusion in the country but checkmate financial fraud courtesy of  its 8-Point Agenda. According to Danbatta, the idea is to be able to do those things that commission is mandated to do by government courtesy of the Act establishing the NCC. ‘‘We  realised early enough that it will be impossible to  accomplish the 25 functions assigned to NCC without close collaboration with other agencies of government and the federal government has given a directive to the effect that the agencies must collaborate to be able to achieve their mandates. ‘‘ We are collaborating very well in the area of mobile money and financial inclusion to the extent that the CBN is poised at giving license to telecomm operators to provide some kind of special service vehicle to operate in the financial sector with a view to driving mobile money penetration,  which stands at about only 1%, which is too low, compared to penetrations  in countries like Kenya 60%, Ghana 50%. ‘‘The reason for these high penetration these African countries is because mobile money service in those country are telecom driven, while in Nigeria it is bank driven. The CBN  has allowed the telecoms companies in Nigeria to go in and augment the  efforts being made by banks in order to drive mobile money service as well as ensure more inclusion. The target is that 80% of Nigerian should be included in the mobile money service, leaving only 20% which we hope in due course will be included.’’ ‘‘Another important area of collaboration now is  how  to check fraud in financial industry.  fraud that are being perpetrated by leveraging telecom infrastructure and the NCC is mandated to drive the deployment.  This is happening at a time when the level of financial fraud has reached N12.5billion. so something  needs to be done urgently to secure the confidence of Nigerians in the financial system as well as the telecom  system within the country. ‘‘Subscriber loose 12.5bn to service providers. If the deductions are illegal, they know what to do to bring it to a stop. There is s a complaint number, 622, they can loge their complaint through this number to see redress.  They can also lodge their numbers, nature of their complaints and we have seen instances where  complaints were resolved quickly. ‘‘ We insist that  where unfair deductions were made,   such deductions should be returned to the subscribers. NCC will not rest on its oars until all illegal deductions are paid back to the subscribers as well as ensuring that subscribers have confidence that when they are illegally deducted ,  they will be rest assured that these deductions will logically pursued until they are returned to them.’’ For the NCC boss, another area of collaboration is when the Commission intervened jointly  with CBN to stave off the take over of 9Mobile. This he said has been done successfully as they succeeded in protecting  three to four thousand Nigerian jobs in pay roll of 9Mbile and also ensuring services to close to 18 million Nigerian are not disrupted. ‘‘We have succeeded  in ensuring stability not only in the telecom sector  but as well as in the financial sector. And we have succeeded to improving the image of this country to the investors who may which to come in to invest.’’ On his part, Deputy Director, Payment Systems at CBN, Musa Jimoh, said  this particular stakeholders forum has afforded the CBN the opportunity to present some of the achievement  it made within the payment system in direct partnership with NCC to resolve some of the digital communication issues we have. ‘‘NCC has actually tried in terms of providing  effective platforms for financial services to thrive in Nigeria but there are still areas that we need to strengthened, which is why the stakeholders have come here to discus. ‘‘ One of the issues to be discussed is Sim Swap and how we can tame the incidences that are being committed as a result of Sim Card Swap. All tricks and methods had been applied but the fraudsters are still beating us down.  We will be able to come up  with resolution that will help us tame the fraud.’’

 

 

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Business

Access Holdings Records 88% Growth in Gross Earnings to N4.878 Trillion

Published

1 week ago

on

April 16, 2025

By

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Holdings PLC (“the Group”) (Bloomberg: ACCESSCO), a leading African financial services group, today, announced its audited financial results for the full year ended December 31, 2024.


The Group delivered 88% year-on-year growth in gross earnings, rising from N2.594 trillion in 2023 to N4.878 trillion in 2024. The strong performance was driven by diversified income streams, with interest income growing by 110% to N3.480 trillion and non-interest income increasing by 47.8% to N1.397 trillion, supported by robust retail banking activities, digital expansion, and a dynamic trading strategy.


Profit before tax (PBT) increased by 19% to N867.0 billion, while profit after tax (PAT) rose to N642.2 billion, despite inflationary and macroeconomic challenges. Total assets grew by 55.5% to N41.498 trillion, and customer deposits rose by 47% to N22.525 trillion. Shareholders’ funds also increased by 72%, reaching N3.760 trillion.

In 2024, the Group made significant social and environmental impact across the continent, touching millions of lives and earning multiple industry accolades. Through various corporate social investment initiatives in education, entrepreneurship, health, and the environment, the Group reached over 21 million individuals across Africa. Its employee wellness programmes also covered 28,000 staff across operating entities. Access Bank, the flagship subsidiary, through its W-Initiative, disbursed loans to over a million women-led SMEs, advancing financial inclusion and gender empowerment.
The Group’s efforts attracted prestigious recognition and awards, including three Euromoney Awards for Excellence (notably ‘Best Bank for ESG’); International Finance Award for ‘Most Innovative Bank for Community Development and Community Engagement’; and World Economic Magazine Award for ‘Most Sustainable Bank’.
In terms of economic sustainability, Access Bank recorded strong strides through its Economic, Social and Governance (ESG) programmes. It facilitated $437.42 million in DFI inflows to support MSMEs across Africa, disbursed 1.6 million digital loans to low-income individuals, and booked its first N1.4 billion diaspora mortgage loan.
The Group also achieved a 13.4% reduction in operational emissions, planted 57,302 trees, and enabled solar power adoption for 226 homes and businesses. Its headquarters was awarded the IFC EDGE (Excellence in Design for Greater Efficiencies) Green Building Certification for sustainable design and construction

standards.
In addition, Access employees contributed 228,500 volunteer hours to various community development programmes, reinforcing the Group’s commitment to inclusive and purpose-driven impact.
The Group is focused on delivering sustainable returns to shareholders, while reinvesting in innovation, infrastructure, and cross-border expansion. Its banking subsidiary launched operations in Hong Kong, received regulatory approval in Malta, and successfully integrated its operations in Zambia and Tanzania, expanding its global footprint.
Access Bank posted significant gains across all performance metrics, with interest income growing by 110% and fees and commissions rising by 81%. International subsidiaries contributed 48.5% to the banking segment’s PBT, demonstrating strong execution across key markets.
In 2024, Access Holdings also became the first institution to meet the Central Bank of Nigeria’s recapitalisation directive, raising ₦351 billion through a rights issue. The proceeds are being strategically deployed to strengthen digital infrastructure, enhance liquidity, and fuel long-term growth.
Looking ahead, Access Holdings remains committed to building a more inclusive, sustainable, and profitable future, delivering value not just to shareholders, but to society and the environment at large.

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About Access Holdings

Access Holdings Plc (‘the Company’) operates through a network of more than 700 branches and service outlets, spanning three continents, 23 countries and over 60 million customers. The Company serves its various markets through four subsidiaries across the banking, payment, pension administration and insurance sectors through four operating companies, viz: Access Bank Plc, Hydrogen Payment Services Company Limited, Access Pensions Limited, and Access Insurance Brokers Limited.

Access Bank Plc serves its various markets through four business segments – Retail Business, Commercial and Corporate, and has enjoyed what is Africa’s most successful banking growth trajectory in the last twenty years. Following its merger with Diamond Bank in March 2019, Access Bank Plc became one of Africa’s largest retail banks by customer base and the Nigeria’s largest bank by total assets.

Hydrogen Payment Services Company Limited, the payment company, leverages the strong suite of the Bank’s existing assets and customer base, creating a super fintech that will be Africa’s most powerful business services network. Hydrogen being a company of African heritage has a clear understanding of the unique payment challenges across the continent and is positioned to address these challenges with its offerings. Its range of products and services, such as InstantPay, Payment gateway, POS services, Card and Switch processing are gaining traction in the marketplace and addressing the unique needs of customers.

Access ARM Pensions Limited, formerly Access Pensions Limited, is one of Nigeria’s largest Pension Funds Administrator (‘PFA’) by customer base and Assets Under Management, with nearly ₦3 trillion in assets under management and serving over two million Retirement Savings Account holders.

Access ARM Pensions Limited is the product of separate entities. The erstwhile Access Pensions Limited first became a subsidiary of Access Holdings following the acquisitions of the former First Guarantee Pension Limited and Sigma Pensions Limited and their subsequent merger. Subsequently, Access Pensions Limited merged with ARM Pensions Managers Limited to then form Access ARM Pensions Limited. As one of Nigeria’s leading PFAs, Access ARM Pensions Limited will leverage key relationships and Access’ growing ecosystem across Africa to unlock greater opportunities for customers.

Access Insurance Brokers Limited is a company licensed by the National Insurance Commission that provides intelligent solutions that mitigate the unique risks faced by individuals and businesses in an ever-changing world using leading risk management tools and governance standards.

Access Holdings Plc strives to invest in businesses that are committed to sustainable practices and have a positive impact on the environment.

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Business

GTCO Plc Releases 2024 Full Year Audited Results

Published

4 weeks ago

on

March 28, 2025

By

…Pays Shareholders Record Dividend of N8.03k for 2024 Financial Year

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the year ended December 31, 2024, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The Group reported profit before tax of ₦1.266trilion, representing an increase of 107.8% over ₦609.3billion recorded in the corresponding year ended December 2023.

This performance reflects not just strong earnings but also the quality and sustainability of our earnings, underpinned by a well-diversified revenue base, robust risk management practice, and disciplined capital management. 

The Group recorded growth across all financial and non-financial metrics, and continues to maintain a well-structured, healthy, and diversified balance sheet.

The Group’s loan book (net) increased by 12.3% from ₦2.48trillion in December 2023 to ₦2.79trillion in December 2024, while deposit liabilities grew by 37.8% from ₦7.55trillion to ₦10.40trillion during the same period. Total assets and shareholders’ funds closed at ₦14.8trillion and ₦2.7trillion, respectively.

Capital Adequacy Ratio (CAR) remained very robust and strong, closing at 39.3%, likewise, asset quality was sustained as evidenced by IFRS 9 Stage 3 Loans which closed at 3.5% at Bank Level and 5.2% at Group in December 2024 (2023: Bank, 2.5%; Group, 4.2%) and cost of risk (COR) closed at 4.9% from 4.5% in December 2023. 

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said; “Our strong performance for 2024 underscores the resilience and depth of our business, driven by a well-diversified earnings base across our banking and non-banking subsidiaries, all of which are P&L positive.

Our capacity to generate sustainable high-quality earnings, maintain strong asset quality, and drive cost efficiencies reflects the soundness of our long-term strategy and disciplined execution.

We have also prudently provided for all our forbearance loans, well ahead of the June 2025 timeline, whilst fully accruing for the windfall tax, further strengthening our balance sheet and enhancing financial resilience.

He further added; “The total dividend of N8.03k for the 2024 FYE is underpinned by the quality of our earnings and is in line with our long tradition of increasing dividend pay-out year-on year.

Looking ahead, we remain committed to building a Financial Services Group that thrives on innovation, operational efficiency, and sustainable profitability.

We will continue to deepen our relationships with customers, leverage technology to deliver cutting-edge financial solutions, and accelerate the growth of all our business verticals—Banking, Funds Management, Pension, and Payments—to unlock new opportunities and create more value for our shareholders.”

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 60.5%, Pre-Tax Return on Assets (ROAA) of 10.3%, Capital Adequacy Ratio (CAR) of 39.3% and Cost to Income ratio of 24.1%.

Guaranty Trust Holding Company Plc (GTCO Plc) is a leading financial services group with operations across Africa and the United Kingdom.

Renowned for its strong corporate governance, innovative financial solutions, and customer-centric approach, GTCO Plc provides a wide range of banking and non-banking services, including payments, funds management, and pension fund administration.

The Group is committed to delivering long-term value to stakeholders while driving growth and development across its markets.

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Business

ZENITH BANK PAT SOARS ABOVE N1 TRILLION IN FULL YEAR 2024, PROPOSES N4.00 FINAL DIVIDEND

Published

4 weeks ago

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March 28, 2025

By

ZENITH BANK PAT SOARS ABOVE N1 TRILLION IN FULL YEAR 2024, PROPOSES N4.00 FINAL DIVIDEND

Zenith Bank Plc has announced its audited financial results for the year ended December 31, 2024, delivering significant growth across key performance indicators.

The Bank’s impressive performance reflects effective management and pricing of its risk assets, as well as an optimized treasury portfolio, reinforcing its position as a leader in Nigeria’s banking industry.

According to the audited financial results for the 2024 financial year presented to the Nigerian Exchange (NGX), the Bank recorded a double-digit year-on-year (YoY) growth of 86% in gross earnings, increasing from N2.13 trillion in 2023 to N3.97 trillion in 2024. This growth was driven by a 138% increase in interest income, supported by investment in high-yield government securities, and growth in the Bank’s loan book.

Commenting on the results, Dame Dr Adaora Umeoji OON, Group Managing Director/CEO, stated “This year’s performance underscores our unwavering commitment to innovation and customer-centric solutions.

We will also remain focused on deepening financial inclusion, enhancing service delivery, and creating value for our customers and stakeholders.

Zenith Bank’s profit before tax (PBT) rose by 67%, reaching N1.3 trillion in 2024 from N796 billion in 2023, driven by a combination of top-line expansion and efficient treasury portfolio management.

Net interest income increased by 135% from N736 billion in 2023 to N1.7 trillion, reinforcing the Bank’s strong core banking performance and ability to grow earnings despite macroeconomic headwinds. Non-interest income also grew by 20% from N919 billion to N1.1 trillion. 

The Bank’s total assets grew by 47% from N20 trillion in 2023 to N30 trillion in 2024, underpinned by a strong liquidity position and effective balance sheet management. Customer deposits surged by 45% from N15 trillion to N22 trillion in 2024, reflecting a historically strong corporate deposits portfolio and a sustained increase in retail deposits.

The increase in retail deposits was driven by customer acquisition and the Bank’s strategic focus on low-cost funding.

Return on Average Equity (ROAE) declined to 32.5% on the back of the injection of new capital, while Return on Average Assets (ROAA) remained unchanged at 4.1%.

The Bank’s cost-to-income increased slightly from 36.1% to 38.9%, despite inflationary pressures. Its Non-Performing Loan (NPL) ratio stood at 4.7%, with a coverage ratio of 223%, underscoring the Bank’s prudent risk management and commitment to maintaining a resilient loan book, ensuring stability and confidence in the Bank’s operations.

Given the good earnings performance, the Bank has proposed a final dividend of N4.00 per share, which brings the total dividend for the year to N5.00 per ordinary share. 

In a significant milestone, Zenith Bank successfully raised N350 billion in capital through a rights issue and public offer, with a subscription rate of 160%, demonstrating strong investor confidence in the Bank’s growth trajectory. The proceeds from this capital raise will be strategically deployed to enhance technology infrastructure, strengthen liquidity, and support the Bank’s expansion into key African markets, unlocking new growth opportunities. 

The bank remains focused on delivering sustainable growth, enhancing shareholder value, and driving financial inclusion through innovative banking solutions. With its solid capital base and innovative product offerings, the Bank is well-positioned to navigate evolving market conditions while continuing to strengthen its leadership in the Nigerian financial landscape.

Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards including being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine.

The Bank was also awarded the Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020, 2022 and 2024; and Best Bank in Nigeria for four times in five years, from 2020 to 2022 and in 2024, in the Global Finance World’s Best Banks Awards.

Further recognitions include Best Commercial Bank, Nigeria for four consecutive years from 2021 to 2024 in the World Finance Banking Awards and Most Sustainable Bank, Nigeria in the International Banker 2023 and 2024 Banking Awards.Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards for 2022, 2023 and 2024 and ‘Best in Corporate Governance’ Financial Services’ Africa for four consecutive years from 2020 to 2023 by the Ethical Boardroom.

The Bank’s commitment to excellence saw it being named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021, Bank of the Year 2023 and 2024 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards, and Retail Bank of the Year for three consecutive years from 2020 to 2022 and in 2024 at the BAFI Awards.

The Bank also received the accolades of Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria, in the International Banker 2022 Banking Awards.

Zenith Bank was also named Most Responsible Organisation in Africa, Best Company in Transparency and Reporting and Best Company in Gender Equality and Women Empowerment at the SERAS CSR Awards Africa 2024; Bank of the Year 2024 by ThisDay Newspaper; Bank of the Year 2024 by New Telegraph Newspaper; and Best in MSME Trade Finance, 2023 by Nairametrics.

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