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Nigeria Freezes Accounts Of Sacked Bank Chiefs As Depositors Make Panic Withdrawals
The Nigerian anti-graft agency said Saturday it had frozen the accounts of the sacked directors of five ailing banks for running the institutions into insolvency.
“We have frozen the accounts of the former managing directors and executive directors of the five banks,” Economic and Financial Crimes Commission (EFCC) spokesman Femi Babafemi told our correspondent
He said the agency had also invited the auditors of the affected banks for questioning.
“The auditors have to tell us what they know about the financials of the banks. How they came about huge debts and non-performing loans without the auditors raising the alarm,” he said.
The heads of Afribank plc, Intercontinental Bank plc, Union Bank plc, Oceanic Bank plc and Finbank plc were removed on August 14 by the Central Bank of Nigeria governor, Sanusi Lamido Sanusi, for piling up billions of dollars in bad debts and inefficiency.
The CBN accused the banks’ management of granting loans to prominent Nigerian businessmen and companies without following best practice.
The total loan portfolio of these five banks came to N2,801.92 billion, according to CBN.
Margin loans amounted to N456.28 billion and exposure to oil and gas loans amounted to N487.02 billion while aggregate non-performing loans stood at N1,143 billion, it said.
The EFCC has given the debtors one week to pay up or face arrest and prosecution.
Meanwhile, panic withdrawals by depositors and a thick cloud of uncertainty are shaking Nigeria’s financial sector after the sacking of the directors of five key ailing banks, operators and analysts said.
Central Bank of Nigeria (CBN) governor Sanusi Lamido Sanusi earlier this month removed the heads of Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank for piling up billions of dollars in bad debts.
The books of about a dozen other banks are also currently under CBN scrutiny to determine their viability, debts and liquidity status.
“There are apprehensions in the industry on what will be the fate of the remaining banks because of CBN’s action,” a treasury manager in one of the nation’s banks, Sunday Adeola, told our correspondent.
The dismissals of the bank chiefs and the anti-graft agency’s threat to arrest, prosecute or seize property of the debtors of the banks if they failed to pay in a week has put the heat on the sector, analysts said.
“The… system has witnessed massive cash outflows in recent days. Depositors are jittery and they are withdrawing their money,” said analyst Joel Allison.
“Bank vaults are becoming empty and if the trend continues we may have another bank failure on our hands,” he said, recalling the liquidation of dozens of distressed banks in the 1990s after bad management and fraud.
Dozens of the owners and managers of those failed banks were prosecuted or jailed while others fled the country to evade arrest.
The CBN chief earlier this month accused the management of the five ailing banks of giving loans to prominent Nigerian businessmen and companies without adhering to good corporate governance and risk management practices.
He put the total loan portfolio of the ailing banks at N2.8 trillion.
The CBN has also published a list of dozens of prominent Nigerians businessmen as debtors to these banks.
The list includes tycoon Aliko Dangote, rated by US Forbes magazine as one of the world’s richest Africans with a net worth of around $3.3 billion.
Dangote, 52, who is also the new president of the Nigeria Stock Exchange (NSE) has denied managing the oil and gas company listed as owing Intercontinental Bank more than eight billion naira.
The Nigerian government has in the past days tried to calm the nerves of agitated bank depositors by assuring them that their money is safe and that it will not allow the debt-ridden banks to sink.
The government has already announced a N400 billion naira bailout for the affected banks.
Nigeria’s central labour movement NLC lauded Sanusi’s action, and urged the CBN to restore public confidence in the industry.
Rasheed Yusuf of the Association of Stockbroking Houses of Nigeria also called for proper management of the situation “in a way that the market will not be jeopardised.”
The confusion in this important sector of the Nigerian economy is further exacerbated by the fact that three key players — Dangote, NSE director general, Ndi Okereke-Onyiuke and International Bank’s ex-boss, Erastus Akingbola were listed by the CBN as bank debtors.
Okereke-Onyiuke is also a director in Transnational Corp, a failing conglomerate, which the CBN says owes Union Bank about N31 billion.
Five years ago, in a bid to shore up the capital base of these financial institutions, the number of banks was cut from more than 90 to 25 solid ones.
The figure later dropped to 24 when two of the banks merged.
But that early caution appears to have dissolved in more recent times and the global economic crisis has made the credit crunch that much tougher.
Mindful of the 1990s banking crisis, weary Nigerians are being cautious.
“Yesterday I took all my money from my bank to avoid possible unpleasant consequences,” said Femi Afolabi, a Lagos hotelier, who lost almost three million naira in 1995 when his bank failed.
News
FG approves 3 critical civil service policies
The Federal Government has approved three transformative policies aimed at boosting productivity and enhancing service delivery across the civil service. These are the Rewards and Recognition Policy, the Incentive and Consequence Management Policy, and the Civil Service Mentoring Policy.
The approval was granted during the Federal Executive Council meeting presided over by President Bola Tinubu.
The move marks a new era of performance-driven governance, strategic talent development, and enhanced accountability, with the policies designed to work in synergy to motivate staff, foster a culture of excellence, and significantly improve service delivery to Nigerians.
According to a statement signed by MrsEnoOlotu, Director of Information and Public Relations, the Head of the Civil Service of the Federation, MrsDidi Esther Walson-Jack, affirmed that the policies are central to staff welfare and the enhanced value proposition of civil servants and also align with the 2021 Public Service Rules (060101–060111).
She commended the President for his commitment to transforming the civil service and fostering a workplace culture that is efficient, productive, incorruptible, and citizen-friendly. The Head of Service noted that the approval demonstrates the government’s firm resolve to value public servants, reward excellence, and systematically groom the next generation of leaders.
The Rewards and Recognition Policy establishes a comprehensive framework designed to attract, nurture, develop, and retain top talent within the service. It seeks to promote excellence, innovation, and continuous improvement, thereby strengthening overall institutional performance.
The Incentive and Consequence Management Policy introduces a clear, transparent, and equitable system where exceptional performance is rewarded and under-performance is addressed through structured corrective measures. It aims to entrench fairness and accountability at all levels while providing developmental support to staff requiring improvement.
The Civil Service Mentoring Policy, described as a strategic investment in the future of the service, is intended to bridge experience gaps and ensure the systematic transfer of institutional knowledge.
“It will equip the next generation with the requisite skills, values, and ethical grounding for strategic leadership, while preserving invaluable institutional memory against the tide of retirements, thereby ensuring continuity and sustained excellence,” the statement added.
MrsWalson-Jack reiterated that the President’s approval for the implementation of these policies is not merely an administrative milestone, but the foundation upon which a modern, agile, and empowered civil service will be built. She assured civil servants that their dedication will be recognised, excellence rewarded, and personal growth supported.
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RSG CHARGES JOURNALISTS TO SHOWCASE GOVT PROGRAMMES
The Rivers State Government has charged journalists to serve as a bridge between the government and the people by reporting effectively on government’s policies, projects, programmes and achievements, thereby keeping the public informed on its activities.
The Secretary to the State Government, Dr. BeniboAnabraba, gave the charge during a courtesy visit by the Nigeria Union of Journalists (NUJ), Rivers State Council, led by the Chairman, Mr. Paul Bazia-Nsaneh, in Port Harcourt.
Dr. Anabraba emphasized that as the fourth estate of the realm, journalists owe the public a duty to provide a platform for constructive criticism of government and serve as watchdog of society.
He indicated that public opinion via the mass media is significant to help the government appreciate public perception, and also to create awareness on government initiatives, programmes and policies as they affect the citizenry.
“As a Government, we also appreciate the fact that you are our partner in conveying government policies and activities to the people, for their consumption, appreciation and review. We implore you to continue to publicise matters of importance in governance and encourage civic participation particularly on issues such as civil rights, voters’ registration, actions against gender-based violence, etc.
“You also have an obligation to promote morality and balanced criticism of government,” he stated
The chairman of the Rivers Council of NUJ, Mr. Paul Bazia-Nsaneh thanked the State Government for receiving them and intimated him of their desire to work with the government.
He explained that the union is poised to positively portray the State through an agenda of development communications, adding that the union has also outlined strategic projects to this effect.
“As a union, we need to change the narrative and to talk about development communications. If we don’t put out the opportunities that are available in River State, then we can not have people who will be interested in investing in the opportunities that are available to us. So we decided to put out some key areas that we need to focus on development communication trajectory,” he added.
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Police Arrest Sex Trafficking Syndicate, Rescue 15 Young Girls InOndo
The Police Command in Ondo State says it has dismantled a notorious sex trafficking syndicate exploiting young women under the guise of job recruitment and social media content creation.
This is contained in a statement signed and made available to newsmen, yesterday, in Akure by the command’s spokesperson, DSP OlusholaAyanlade.
Ayanlade said one Jayeola Joshua was arrested along with two others, while 15 young girls aged 20 to 26, accommodated in an apartment in Alagbaka, Akure, for illicit activities, were rescued.
The Police spokesperson, who said the sex syndicate was arrested by the command’s Special Weapons and Tactics (SWAT), explained that efforts were on to apprehend the remaining accomplices.
According to him, investigations revealed that the syndicate lured victims across the country with false promises of lucrative employment, including domestic work, ushering services, and overseas placements.
He said the syndicate’s arrangement not only facilitated exploitation but also highlighted how organised criminal elements prey on the vulnerability of unsuspecting young women seeking legitimate opportunities.
“Further inquiry uncovered that the victims were manipulated into sending nude images and videos, which were subsequently transmitted to clients procuring sexual services.
“The principal suspect reportedly received the largest share of the proceeds, while the operation was disguised as producing “relationship content” on social media, misleading the public and masking criminal intent.
“Following the rescue, the 15 victims were taken to the Police Hospital, Akure, for medical care, psychological evaluation, and counseling,” he said.
Ayanlade explained that evidence indicated the apartment was specifically rented to facilitate these activities, prompting the Commissioner of Police (CP) to direct the landlord’s invitation for questioning as part of the ongoing investigation.
He also stated that the CP directed the case be transferred to the command’s Gender Desk for further investigation, counseling, and the reintegration of the victims into society.
According to the spokesperson, the CP issued a marching order that all arrested suspects must be prosecuted to demonstrate the command’s zero-tolerance stance on human trafficking and sexual exploitation.
“This reaffirms the command’s determination to eradicate criminal and sex networks engaged in human trafficking and sexual exploitation,
“The CP has urged parents and guardians to verify job offers and recruitment agents before allowing their wards to travel.
“He also encouraged the public to remain vigilant and provide credible information that can aid in preventing and detecting crime across the state, underscoring the vital role of community partnership in maintaining public safety,” he said.
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