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2009 Balance Sheets Show Losses For More Banks

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In what could be said to be a dismal performance from the banking sector, investigations have revealed that most of the banks have posted losses in their 2009 balance sheet.

Reasons for these losses, it has be identified is not because there were no improvements in fundamental performances like increase in gross earnings or deposits,  but because they are now forced to keep the records straight in the spirit of full disclosures and transparency.

Consequently their bottom line have caved in, making most of the banks to announce huge losses. Even those that did not make losses have their profit seriously reduced.

For instance, Access Bank has made loan provisioning to the tune of N30.89 billion while Citibank provided for N320 million. Other include Diamond Bank which provided for N24.6 billion, Ecobank N33.39 billion, while FCMB provided N21 billion.

Also Fidelity made provision for N1.9 billon, First Bank (N29.50 billon), GTB (N24.96 billion) Stanbic IBTC (5.90 billion) Skye Bank (N32 billion), Sterling Bank (10.80 billion), UBA (N41.64 billion) and Zenith (N24.14 billion).

Apparently because of these provisioning, Intercontinental Bank, Oceanic Bank, Afribank and Union Bank recorded losses of N328.4 billion respectively.

Also, Bank PHB, Spring Bank and Finbank made losses of N438.65 billion, N23.30 billion and N200.68 billion each.

The latest victim to the recent banking reform is Wema Bank, where in spite of 82 per cent growth in gross earnings, the bank posted a loss in its nine months financials.

It said recently that the previous challenges faced by the bank had no doubt impacted adversely on its businesses as shown by the weak financial performance reported in its published accounts. It disclosed further that a major challenge for the bank was the quantum of non-performing loans and advances to the sum of N116.355 billion, which have been provisioned in the accounts and led to erosion of its capital base.

Segun Oloketuji, the bank’s group managing director, revealed that despite the bank’s gross earning growth of N23.683 billion, which is about 82 per cent against to previous year, the increase could not be reflected on the bank’s nine months balance sheet.

Oloketuyi however, attributed this dismal performance to the previous challenges faced by the bank, said a major challenge for the bank was the level of non-performing loans and advances.

The group managing director recalled in a statement that the issues that the bank faced in the last two years had necessitated in the intervention of the Central Bank of Nigeria (CBN) to appoint an interim management board to oversee the operations of the bank, and that after 18 months the interim board would hand over responsibility for the management of the bank to current management team.

“The release of these results mark a fulfillment of the new management’s commitment to transparency adherence to regulations and sound corporate governance practices.

“However, in this challenge lies our greatest opportunity to recapitalise the bank through the bold initiatives that the board and management have taken to recover these non-performing loans. We are pleased by the result achieved so far.

A significant amount of recoveries have been made post September 30, 2009 balance sheet date.

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Navy Destroys 14 Illegal Refineries, Confiscates N2.7bn Refined Products

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Troops of the Nigerian Navy conducting Operation “Dakatar Da Barawo” confiscated crude oil and other illegally refined products worth N2.7billion in June.
This is contained in a statement issued by the Director of Information, Naval Headquarters, Commodore Adedotun Ayo-Vaughan in Abuja.
“The various NN platforms deployed for ‘Operation Dakatar Da Barawo, Calm Waters 11’ and Tripartite Joint Border Patrol, have continued to sustain aggressive patrols to curb the menace of crude oil theft and illegal oil bunkering.
“Accordingly, several Illegal Refining Sites (IRS), metal storage tanks, wooden boats, dugout pits and ovens were destroyed between June 13 and June 19”.
He said five suspects were and the operatives destroyed 14 Illegal refining sites.
The Navy also said that 80 storage tanks, 22 wooden boats, 40 ovens, two-speed boats, a tanker, truck, barge and a Toyota Sienna car were recovered during the various operations during the period.
Similarly, Navy ship VICTORY in Cross River intercepted and impounded three wooden boats laden with drums of suspected illegally Refined Petrol (PMS) around Ikang channel, suspected to be transported to Cameroon.
However, the Navy said, the boats, as well as the products, were taken into custody.
Ayo-Vaughan said,”Forward Operating Base (FOB) Bonny in Rivers” also intercepted two wooden boats laden with about 400,000 litres of suspected stolen crude oil at Iwokiri.
The wooden boats and products, he said, were destroyed.
Similarly, he said, the Navy ship SOROH in Bayelsa intercepted a wooden boat laden with about 60,000 litres of suspected illegally refined AGO.
Subsequently, the boat and contents, he added was destroyed.

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FAAC: Federal, States, LGs Share N680.780bn May Revenue Allocation

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The Federation Account Allocation Committee (FAAC) has shared May 2022 Federation Revenue Allocation to the federal, states and local government councils to the tune of N680.783billion.
This is contained in a communiqué issued at the end of June 2022 FAAC meeting held in Abuja.
According to the communiqué, the N680.783billion total distributable revenue comprised distributable statutory revenue of N385.004billion, distributable Value Added Tax (VAT) revenue of N198.512billion and Electronic Money Transfer Levy (EMTL) revenue of N97.267billion.
In May, 2022, the total deductions for cost of collection were N36.996billion and total deductions for transfers and refunds were N186.672billion.
The balance in the Excess Crude Account (ECA) was $35.377million.
The communiqué confirmed that from the total distributable revenue of N680.783billion; the Federal Government received N229.563billion, the state governments received N241.824billion and the local government councils received N175.942billion.
The sum of N33.454billion was shared to the relevant states as 13percent derivation revenue.
Gross statutory revenue of N589.952billion was received for the month of May, 2022.
This was lower than the N635.037billion received in the previous month by N45.085billion.
From the N385.004billion distributable statutory revenue, the Federal Government received N185.197billion, the state governments received N93.934billion and the local government councils received N72.419billion.
The sum of N33.454billion was shared to the relevant states as 13percent derivation revenue.
In the month of May, 2022, the gross revenue available from the Value Added Tax (VAT) was N213.179billion.
This was higher than the N178.825billion available in the month of April, 2022 by N34.354billion.
From the N198.512billion distributable Value Added Tax (VAT) revenue, the Federal Government received N29.777billion, the state governments received N99.256billion and the local government councils received N69.479billion.
The Federal Government received N14.590billion; the state governments received N48.634billion and the local government councils received N34.043billion from the N97.267billion Electronic Money Transfer Levy (EMTL).
According to the communiqué, in the month of May, 2022, Companies Income Tax (CIT) and Value Added Tax (VAT) recorded considerable increases, Import Duty increased marginally while Petroleum Profit Tax (PPT) and Excise Duties decreased marginally.
Oil and Gas Royalties decreased significantly.

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FG Hands Over Licences To 57 Marginal Oil Field Investors, ‘Morrow

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The Federal Government has announced that the successful investors in Nigeria’s 57 marginal oil fields for the 2022 bid round would get their various Petroleum Prospecting Licences, tomorrow.
On May 31, 2021, the defunct Department of Petroleum Resources (DPR) issued letters of award to investors for the production of crude oil from 57 marginal fields.
Last January, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that a total of 128 awardees emerged as successful bidders in the bid round and had made complete and part payments for signature bonuses in the oil fields.
It also disclosed at the time that 33 awardees did not make payments during the 45 days window given to successful bidders to pay the required signature bonuses for the oil fields and as such had lost their awards to suitably qualified reserve bidders.
Providing updates on the bid round in Abuja, last Saturday, the Chief Executive, NUPRC, Gbenga Komolafe, announced that the successful awardees would get their licences by Tuesday.
He said, “In fulfillment of the promise made early this year, the NUPRC will on Tuesday in Abuja, issue Petroleum Prospecting Licences to successful awardees of marginal fields in the 2020 bid round, pursuant to the provisions of the Petroleum Industry Act 2021.
“It will also unveil the implementation template for the host communities’ development trust for commencement of the provisions under Section 235 of the PIA, 2021, to positively impact against restiveness in the host communities.”
Komolafe said implementing the development trust would guarantee seamless operations, boost investors’ confidence and provide enabling environment for sustainable improvement of the country’s hydrocarbon resources.
“These will mark the conclusion of some of the most urgent and critical tasks inherited by the commission when it was inaugurated in October, 2021, after the signing into law of the PIA 2021,” he stated.
The commission had in March this year informed all participants in the 2020 marginal field bid round programme that it had put all necessary machinery in place to progress the bid round exercise to conclusion in line with the PIA 2021.
In furtherance of that resolution, the commission constituted an in-house work team to distill and address the concerns of awardees with a view to close out issues affecting multiple awardees per asset and formation of Special Purpose Vehicles by awardees in line with the respective letters of award.
“Awardees were therefore enjoined to avail themselves of the resolution mechanism provided by the commission in the overriding national interest,” Komolafe stated.
He added, “The successful coordination and resolution of the issues culminated in the emergence of the successful awardees that would be handed over licences on Tuesday.”

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