The Managing Director/Chief Executive Officer of FirstBank Nigeria Limited, Dr. Adesola Adeduntan, in this interview with THISDAY reviewed the performance of the global economy in 2022 and advised businesses and their bankers to approach 2023 with a partnership mindset to ensure that a win-win outcome is achieved despite the anticipated macroeconomic challenges. Excerpts:
What are your forecasts and anticipations for the global economy in 2023?
I would like to start by noting that 2022 was indeed a turbulent year for the global economy. In 2022, the global economy witnessed record-high inflation rates with the attendant high cost of living across several economies. The elevated inflationary rates were attributed to the aftereffects of the Covid-19 pandemic as well as the Russian-Ukraine crisis. In its last World Economic Outlook report, the IMF projected a 2.7 per cent global growth rate in 2023, lower than the 3.2 per cent in 2022. The 2023 projection will be the weakest global growth profile since 2001 except for the global financial crisis year and the acute phase of the Covid-19 pandemic in 2020. In my view, in 2023, we will likely witness slower growth across several global economies due to lingering trade tensions as the impact of the Russia-Ukraine crisis will still weigh heavily on global trade flows. However, we may witness a decline in commodity prices as more import-dependent countries explore alternative sourcing options for these commodities. Inflationary pressures will however reduce as the impact of rising monetary policy rates continues to yield expected outcomes. The removal of COVID-19 restrictions in China should lead to a boost in global economic output. Oil prices are expected to remain largely elevated as tensions between Russia and Ukraine linger, so energy prices will remain high. The transition to other sustainable forms of energy may also be accelerated by the prolonged crisis.
Given the tepid growth associated with the global economy in 2022, developing countries have been having difficulties in refinancing their foreign debt, do you see a gloomy impact on the economies of the developing countries in 2023 as a result?
With slowing growth and elevated inflation rates, the sustainability of foreign debts, especially for developing nations, is likely to call for a re-evaluation by lenders given the increased likelihood of default. When this is juxtaposed with the higher interest rate environment at which these debts are likely to be refinanced, you will observe a scenario where further strain is exerted on the debt repayment capacity of these economies. However, this situation does not necessarily translate to automatic economic doom for developing nations. The actual impact on each developing economy will depend on the economy’s level of fiscal discipline and revenue-generating capacity. Developing nations who are able, in the short term, to increase revenues either from taxes or the sale/refinancing of idle/sub-optimal assets will be able to negotiate reasonable refinancing terms from lenders and prevent further economic turmoil. Nonetheless, all concerned nations need to take the issue of debt sustainability more seriously by limiting fiscal wastages, reducing inefficiencies, growing revenues, and aggressively working down unsustainable debt-to-GDP levels that may worsen the impacts of external shocks.
Do you think that the corporate default and NPL would increase in 2023 due to the current economic headwinds?
Expectedly, the rising cost of debt and contracting demand will exacerbate the challenges that businesses will face in 2023, particularly for players operating in small-margin sectors of the economy. Locally, the surging inflation rate is sure to reduce the disposable income of most consumers, and demand for non-essential goods and services may dip. To prevent rising non-performing loans (NPLs), businesses and their bankers will have to collaborate more and ensure the timely flow of information to prevent surprises. Banks on their part will have to improve monitoring of their loan portfolio to quickly identify early warning signals for attention before a full-scale loan deterioration. Overall, businesses and their bankers must approach 2023 with a partnership mindset to ensure that a win-win outcome is achieved despite the anticipated macroeconomic challenges.
With the tightening financial conditions which have partly led to slow global economic growth, what opportunities do you think exist in 2023 for players in the financial services industry?
Despite the expected macroeconomic challenges in 2023, there are also emerging business and revenue opportunities that can be exploited by discerning players in the financial services industry. Specifically, the following areas will provide a significant opportunity to players in the financial services industry:
Payments: The Central Bank of Nigeria’s renewed drive for a cashless policy has provided an opportunity for players in the financial services industry to enhance existing digital product offerings and create more attractive product offerings that will further reduce friction in the payment process. This will help to reduce the financial exclusion gap, increase fees and commission revenues, and improve the overall viability and stability of the financial system.
Digital Security: Increasing adoption of digital payment platforms will necessitate increased requirements for the security of payment channels. Thus, opportunities exist for players in the financial services industry to leverage robotics and artificial intelligence to improve security protocols on digital payment channels.
M & A Opportunities: with the anticipated pressures on earnings, opportunities exist for big and liquid players to gain additional scale and market share through the outright acquisition of fringe players with the right strategic fit. There is also an opportunity for two or more small and/or medium size players to merge their operations/businesses to obtain scale advantage.
Partnerships across Segments: The growing number of Fintechs and licensed Payment Service Banks also presents an opportunity for improved partnerships across various categories of players in the financial services industry for both mutual and industry-wide benefits.
Consumer Lending: Tightening the financial conditions of the average household will create opportunities for consumer loans in several variants such as buy-now-pay-later (BNPL), salary advance, consumer asset finance, etc. The industry is already witnessing a rising trend in the creation of digital consumer loan product offerings. This is likely to intensify in 2023.
What are the key events that will shape the 2023 domestic economic outlook and how strategically positioned is FirstBank to manage the challenges and opportunities?
Three key events will shape the 2023 macroeconomic outlook of Nigeria: The outcome of the 2023 general elections and peaceful political power transition; the government’s ability to curb crude oil theft and increase production to meet the OPEC quota; and the successful removal of petrol subsidies. For us at FirstBank, we are strategically positioned to take advantage of and harness the opportunities that the three key events will bring as well as successfully ride the waves of any challenges that may arise. For over 128 years, FirstBank has built the capabilities and competencies required to succeed and thrive in any macroeconomic situation. As a Bank, our belief and commitment to the domestic economy are unwavering – FirstBank is truly woven into the fabric of society.
How will you define the trends we saw in the banking sector landscape in 2022?
2022 was quite an eventful year and some visible trends emerged. I would like to classify the trends as follows:
Financial System Trends: The Monetary Policy Committee (MPC) raised the monetary policy rate and the cash reserve ratio, cumulatively, by 500 basis points to 16.5 per cent and 32.5 per cent, respectively as a way of enforcing liquidity tightening measures to curb rising inflation. In the same vein, the interest rate on savings accounts was restored to the pre-pandemic levels of 30% of MPR within the year thereby increasing the interest expense profile of banks. In addition, the paucity of foreign exchange exerted considerable pressure on banks’ foreign currency (FCY) trade lines in the course of the year, forcing banks to explore alternative ways to meet customers’ foreign currency needs, including deliberate focus on supporting and promoting non-oil export businesses and transactions.
Technological Trends: The banking sector witnessed an increase in technological innovations, as the industry strived to meet the ever-evolving customer needs. In Nigeria, FirstBank was at the forefront of the technological trend, as we successfully launched a Digital Experience Center, a fully automated branch to meet our customer needs, while providing a unique and wholesome experience. FirstBank also launched a robotics process automation initiative, FirstRobotics, that uses artificial intelligence and machine learning to handle high-volume transactions The industry also witnessed increasing collaboration of banks and fintech in 2022; enhanced digital product offerings, especially the rise in digital loans and advances; and an overall increase in acceptance of digital product offerings by banks and other financial services players.
Customer Trends: In 2022, we witnessed an increasing shift in emphasis from consumer banking to lifestyle banking in a bid to capture more of the customer’s journey. This shift has been hugely supported by technology as customer trends can now be easily identified, and new product offerings developed to meet customer needs. The emigration trend witnessed in the past year also led to a boost in the industry’s diaspora customer base, leading to an increased focus on meeting the needs of this peculiar customer segment.
Employee Trends: The banking industry, probably like any other industry in Nigeria, has seen significant attrition in the number of employees due to increased relocation to other countries (popularly known as Japa) in 2022. This has impacted the industry’s skill base and execution capabilities, especially in critical areas of the industry. While this may be a national challenge, more creative ways must be explored to retain scarce talents for national development.
The Central Bank of Nigeria and the Federal Government have set a target of 95 per cent financial inclusion by 2024, how realistic is this target and what role will First Bank be playing to support the government achieves this target?
Financial inclusion is usually seen as the gateway to economic prosperity as it signals the first step in the journey to financial freedom. In 2012, the Central Bank of Nigeria (CBN) unveiled its National Financial Inclusion Strategy with the principal goal of reducing the nation’s financial exclusion rate to 20 per cent of the adult population by 2020. Although this goal was not achieved (as financial exclusion rate stood at 35.9 per cent at the end of that period), the nation had nonetheless made giant strides in raising financial inclusion levels from that take-off point. As such, while the CBN’s revised target of 95 per cent financial inclusion rate by 2024 may be audacious, it is achievable given the level of financial awareness that has already been created in previous years which has raised financial literacy among the average citizenry. In addition, in view of the additional investments and infrastructural base that is available in the country, more mileage can be made now than ever before. It should also be noted that the Central Bank of Nigeria has been deliberate in pursuing its financial inclusion agenda through the licensing of several players/operators in the financial services industry, including fintechs, mobile money operators, Payment Service Banks (PSBs), Microfinance Banks/institutions, new deposit money banks (DMBs), etc. As such, several players are making various attempts at solving the same problem which will significantly increase the likelihood of success. As the foremost financial institution in Nigeria, FirstBank has always collaborated with the Central Bank and the Nigerian government to push several national initiatives, particularly as it relates to the financial services industry. Specifically, FirstBank’s Firstmonie Agent Network is fully aligned with improving financial inclusion in Nigeria. With over 196,000 agents spread across 772 Local Government Areas (LGAs) in Nigeria and many of the agents operating from 512 LGAs without a FirstBank branch, the Bank has been a clear partner to the Central Bank of Nigeria in improving financial inclusion in the country. FirstBank’s USSD (*894#) product, which is demographically positioned for the unbanked, has over 14 million users with more than 261 million unique transactions, worth over NGN1.1 trillion processed on the platform. FirstBank has been at the forefront of increasing financial inclusion in Nigeria and will continue to play its part until every adult in Nigeria is adequately banked.
Dr. Adesola Adeduntan, Chief Executive Officer (CEO) FirstBank Limited.
What is your take on two recent policies of the CBN – the naira redesign and the cash withdrawal limits?
The CBN as the apex regulator of the financial services industry has overall responsibility to ensure the soundness of the nation’s financial systems. In discharging this responsibility, it develops policies that are meant to strengthen the monetary environment and stimulate further economic development of the country – the recent naira redesign and cash withdrawal limits policies are part of its core mandate. As noted by the CBN, the naira redesign will improve both the integrity of the local legal tender and the efficiency of its supply, thus addressing a situation where 80 per cent of currency in circulation is outside the banking system. To aid its implementation, the CBN has also suspended charges on cash deposits to encourage everyone to deposit old naira notes in the Banks. The new N200, N500 & N1000 notes which came into circulation on 15th December 2022 will co-exist with the old notes until 31st January 2023 when the old notes will cease to be legal tender in Nigeria.
Similarly, the cash withdrawal policy which will limit weekly cash withdrawals by individuals and companies to N500,000.00 and N5,000,000.00 respectively is expected to accelerate Nigeria’s transition to a digital economy. The policy which comes into effect from January 9, 2023, will present the added advantage of bringing more people into the banking system thus improving financial inclusion. At FirstBank, we view both policies as business enablers with bright prospects and we are poised to take maximum advantage of the opportunities they bring to improve our service offerings and the overall experience of our customers.
FirstBank has a lot of Firstmonie agents scattered around the country, how will the cash withdrawal limit affect their operations?
As of November 2022, FirstBank has over 196,000 Firstmonie agents spread across 772 Local Government Areas (LGAs) in Nigeria. These agents have also processed over 1.16 billion transactions valued at N26.52 trillion. About 45 per cent of our Firstmonie Agent network is in rural areas, 18 per cent is located in semi-urban areas and only 37 per cent is in urban areas. Beyond Cash-in-Cash-Out (CICO) transactions, these agents also render other services such as account opening, airtime purchase, bill payment, government-revenue collection, transfer and disbursement, mobile money (wallet creations, deposits, withdrawals), bank verification number (BVN) enrollment and other non-bank ecosystem value-added support services, in line with CBN’s guideline for Mobile Money and Agent Banking businesses. These services have helped to bring banking services closer to local communities thereby empowering them and facilitating their economic development. Through Firstmonie, FirstBank provides convenient low-cost financial access for millions of Nigerians in rural areas. Therefore, given the spread of our agent banking network and the scope of services they offer, the cash withdrawal limit is not likely to have an adverse effect on their operations. In reality, we see it as an enabler that will bring more people into the banking system. The new cash withdrawal limit will help to drive the penetration and uptake of digital/mobile wallet offerings in the industry.
FBN Holdings doubled its Q3 2022 profit to N105 billion and the performance by the bank was the major contributor, can you take us through the drivers of the impressive Q3 result?
FirstBank’s Q3 2022 results reflect the robustness of our business model and go-to-market approach even in a challenging business and operating environment. The impressive profitability performance was driven by the resilient execution of our strategy and transformation program. Specifically, FirstBank delivered a 42.4 per cent year-on-year (yoy) increase in interest income on the back of yield optimisation on existing assets and addition of about N700 billion to the risk asset portfolio. Also, the bank recorded a decent 6.8 per cent growth in fees and commissions within the period driven by significant improvements in LC commissions, account maintenance charges, etc. The bank also recorded over 47 per cent y-o-y increase in other operating income within the same period. Overall, I would say that the results are a clear outcome of the collective efforts and resilience of the entire staff and the Board of Directors of the FirstBank Group in deliberately executing our transformation agenda. We remain confident that our growth trajectory is sustainable, and we are focused on delivering on our 2020 – 2024 strategic ambition of accelerated growth in profitability through customer-led innovation and disciplined execution.
What is the level of non-performing loans and what has the bank been doing to reduce it?
FirstBank Group has achieved great strides in reducing its NPL from double-digit in 2016 to below the regulatory benchmark of five per cent in Q3 2022, which attests to the fact that the bank is strong and resilient. FirstBank has, in recent years, built an enduring risk culture and governance systems, as well as strengthened its risk management infrastructure through technology, process automation, and specialised training.
Few years ago, FirstBank embarked on a business expansion drive within the continent, can you take us through the performance of your subsidiaries in the continent?
FirstBank embarked on its African expansion in 2011. Today, the Bank is present in six other African markets namely: Ghana, Senegal, Sierra Leone, The Gambia, the Democratic Republic of Congo, and Guinea. As part of the 2020 – 2024 strategic plan, FirstBank refreshed its vision to be “Africa’s Bank of First Choice” to serve as an anchor for its renewed African expansion drive. As such, the Bank is exploring entry into additional high-impact African markets. While the growth journey of each African subsidiary is different, we are extremely proud of the investments that we have made in these markets and the positive contributions we are beginning to see from each subsidiary. Overall, I would like to note that all our African subsidiaries are making positive contributions to the Group in terms of profitability.
How is the bank positioning to take advantage of the AfCFTA?
The African Continental Free Trade Area (AfCFTA) agreement has created the largest free trade area in the world (measured by the number of participating countries) as it involves most of the 55-member countries of the African Union with a combined Gross Domestic Product (GDP) of $3.4 trillion and connects 1.3 billion people across the continent. According to the World Bank, the AfCFTA has the potentials to lift 30 million people out of extreme poverty and raise the incomes of 68 million others who live on less than $5.50 per day. It also has the potential to drive $292 billion in income gains for participating members. FirstBank is already actively playing in seven African countries with plans to enter additional high-impact African markets in the short to medium term. The bank has also institutionalised a collaboration framework across all operating jurisdictions to ensure clients operating in multiple African jurisdictions can be effectively served across the network. The bank has developed special products (known as First Global Transfer) to facilitate regional payments for our pan-African clients in addition to our online and digital platforms. On the part of the customers, FirstBank has conducted several non-oil export seminars to raise awareness levels on the opportunities presented by AfCFTA and equip our clients with the right knowledge to exploit these opportunities. As a bank, we view AfCFTA as an enabler of our corporate vision and we will continue to ensure the right investments are made to capture the opportunities it presents.
Your UK subsidiary recently marked its 40th anniversary, what was the journey like in that 40 years, and looking ahead, what should customers be expecting from FirstBank in the UK?
FirstBank’s foray into the United Kingdom (UK) forty years ago is a clear demonstration of uncommon foresight by the leadership of the Bank. Given the burgeoning trade relations between Nigeria and the then European Union (which included the UK) and the growing status of London as a leading global financial center, the decision to establish a subsidiary of FirstBank in the UK could not have been better made. Since the commencement of operations in the UK, FBNBank UK has provided a bridge for Nigerian firms with interests in the UK to achieve their financial goals and meet their banking needs. FBNBank UK has provided trade and correspondent banking relationships that have facilitated the achievements of several Nigerian and indeed other African entities’ trade objectives. This is in addition to offering other services such as advisory, mortgage, and investment products to its clientele base. FBNBank UK has also provided access to foreign capital markets to African firms and countries to raise much-needed capital that has contributed to the economic transformation of the African continent. As we look to the future, customers of FBNBank UK can be assured of the same excellent services they have become accustomed to with more innovative products that will help them solve their emerging needs.
We saw the licencing of a few banks in 2022 and the industry becoming more competitive, why should your customers continue to bank with FirstBank?
Indeed, the industry has changed and will continue to evolve at a faster pace with the competitive landscape becoming more challenging because of the interplay of several actors – new banks, fintech, etc. However, customers will continue to gravitate towards institutions that provide the best digital banking services that address their changing needs for convenience, speed, and security. With over 128 years of experience in this market, we believe that FirstBank is well-positioned to continue to deliver excellent customer experience and thrive. Our customers can bank on our commitment to continually re-invent our processes and products to meet both their present and future financial needs. The bank will intensify ongoing efforts to simplify banking for every customer segment leveraging cutting-edge digital capabilities and platforms that make banking more seamless. Combining our deep local knowledge of this market with our unmatched physical presence, FirstBank customers will always have an edge over their competitors. Our rich bouquet of products and service offerings also guarantees there will always be the right product for every customer, with each customer interaction constantly made better through data-driven insights. Our “You First” brand promise to our customers is a commitment that will always keep us on our toes until every customer’s financial needs are excellently satisfied. Overall, to the customers, we commit to providing the best value proposition and delivering exceptional customer experience.
FirstBank has made good progress in positively impacting the communities where it operates. Can you speak about some of these?
At FirstBank, we are committed to nation-building and have been driving sustainable social, economic, and environmental growth for over 128 years of our existence. Our community development initiatives are anchored on our strategic Education, Health, and Welfare pillars. Our engagement in sustainable business practices is based on our promise of enhancing social and economic development as well as contributing to environmental sustainability for the present and future generations.
Our key programs include the Infrastructure Development program; Endowment program; Future First (Financial Literacy, Entrepreneurship and Career Counseling); E-Learning Initiative; SPARK (Start Performing Acts of Random Kindness), and CRS Week. First Bank Infrastructural Development program is aimed at promoting infrastructure development under its identified areas of support. This includes providing infrastructure facilities in schools, hospitals, and environmental infrastructure projects. This is in recognition of the importance of these facilities in improving the quality of life. We have built over 16 infrastructure projects which include universities and secondary and primary schools. The FutureFirst program in partnership with Junior Achievement Nigeria has impacted Over 1,000,000 people across the regions of the country including Lagos, Port Harcourt, and Abuja with knowledge of financial literacy and entrepreneurship. Over 175,000 students have benefitted from the E-learning initiative thus far. This includes 20,000 indigent students that have received free low-end devices preloaded with accredited content. SPARK which was introduced in the maiden edition of the Corporate Responsibility & Sustainability (CR&S) week in 2017 espouses reigniting our values which appear to be eroding fast.
The initiative focuses on creating and reinforcing an attitude of going beyond just meeting the material needs of people who are unable to help themselves to show compassion, empathy, and affection. In 2022, over 8 million people were impacted including students underprivileged including widows in 8 countries including the United Kingdom, Ghana, DRC, Guinea, Sierra Lone, Senegal & Nigeria. We had partnerships with over 100 Charities / NGOs including LEAP Africa; International Women’s Society; UNGC; UN Women; Junior Achievement Nigeria. In addition, one of our long-term approaches to sustainability includes minimising the bank’s direct and indirect impact on the environment. So, beyond our education and health interventions, the bank has been employing international best practices tools to manage risks in the lending process in accordance with our subsisting Environmental Social, and Governance Management System. Over N6.2 trillion worth of transactions were screened for ESG risks. We are partnering at the moment with the National Conservation Foundation on Green Recovery Nigeria (GRN), as part of the Bank’s climate initiative which includes driving afforestation and reforestation.
In a move towards fostering gender equality, inclusiveness, and economic empowerment, Polaris Bank has announced the disbursement of business support loans to female-owned businesses in the first quarter of 2023.
This is part of the Bank’s commitment to supporting women and female-owned businesses through the provision of soft loans.
According to the Bank, the disbursement of the loans which impacted close to 20,000 beneficiaries across different sectors, is aimed at addressing the existing financing gap and providing a vital boost to female entrepreneurs. This is expected to help them to thrive, expand their operations, and contribute to the nation’s economic growth.
The sectors impacted include Transportation; Agriculture; Education; Construction; Engineering; General Commerce; Health; Hotel & Leisure; Manufacturing and Media.
Part of the major selling point for the loan at Polaris Bank is quick turnaround time, instant disbursement, Flexible Terms and Conditions, Competitive pricing, Financial Education, and Mentorship, amongst other value-adding features. Polaris Bank envisions a future where female-owned businesses play an increasingly influential role in driving economic progress, innovation, and job creation. The bank firmly believes that empowering women entrepreneurs will contribute to a more prosperous and equitable society.
Within the quarter, the Bank also celebrated International Women’s Day (IWD) with a well-attended webinar titled: Advancing Women’s Empowerment through the Adoption of Technological Innovation and Digital Education”. During the webinar, the availability of a single-digit interest loan was re-echoed to women entrepreneurs that meet the set criteria. This is in line with Polaris Bank’s commitment to the Nigerian Sustainable Banking Principles.
Speaking on the development, Polaris Bank’s Group Head, Brand Management and Corporate Communication, Nduneche Ezurike, said, “At Polaris Bank, we are dedicated to building an inclusive economy that fosters opportunities for all. We recognize the immense talent and potential of women entrepreneurs and understand the challenges they face. Through our women and female-owned business loan window, we aim to break down barriers and provide the financial support necessary for businesses being run by women to flourish.”
Women entrepreneurs interested in scaling their business to the next level are encouraged to visit Polaris Bank’s website, www.polarisbanklimited.com, or contact any of the Bank’s nearest branches to learn more about the application process and eligibility criteria.
Polaris Bank was adjudged Digital Bank of the Year in 2021 and 2022 in BusinessDay’s Banks And Other Financial Institutions Award (BAFI). It also emerged as the best MSME Bank because of its ability to use technology to enable bottom-up support to the MSME sector.
Shareholders of leading financial institution, Fidelity Bank Plc, have commended the board and management of the bank for delivering an exceptional performance in FY 2022. This was made known at the bank’s 35th Annual General Meeting (AGM) held virtually on Tuesday, May 23, 2023.
Speaking at the AGM, the Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu applauded the bank’s management for “listening to shareholders and declaring an interim dividend”.
On his own part, National Chairman of The Progressive Shareholders Association Mr. Okezie Boniface lauded the bank for coming to customers’ aid during the period of the Naira redesign policy, explaining that the bank’s branches and Automated Teller Machines (ATM) always provided customers with Naira notes. He also commended the bank’s leadership for prioritizing Corporate Social Responsibility (CSR) initiatives across its focus areas of youth empowerment, health, and social welfare, education, and environmental conservation and sustainability.
According to the bank’s 2022 annual report uploaded on its website and distributed to shareholders, the bank grew by double digits along all the major indicators. Customer deposits increased by 27.4% from N2.0 trillion in 2021FY to N2.6 trillion. Net Loans and Advances rose by 27.6% from N1.7 trillion in 2021FY to N2.1 trillion in 2022 FY. Total Assets grew by 21.6% from N3.3 trillion in 2021 FY to N4.0 trillion in the period under review.
Giving his remarks at the meeting, Mr. Mustafa Chike-Obi, Chairman, Board of Directors, Fidelity Bank Plc said, “When we set the audacious target of attaining Tier 1 status a few years ago, we did not expect a smooth ride due to the endemic challenges in our operating environment. However, we were able to weather the storm because our business is built on a foundation of good corporate governance, effective risk management, and shareholders’ value enhancement.
In response to a shareholder’s question on the deployment of capital raised during the recent private placement exercise, Mrs. Nneka Onyeali-Ikpe said, “The bank is growing in leaps and bounds and the capital would enhance our capacity to accommodate the business volumes coming our way. This is in addition to improving our technology, especially in light of the Cashless drive and creating more secure platforms that can handle the challenges posed by cybercrime.
Several resolutions were considered at the AGM including the declaration of a final dividend of 40kobo, the re-election of non-executive directors -Mrs. Amaka Onwughalu and Chief Nelson Nweke, election of an Executive Director -Mrs Pamela Shodipo; amongst others.
Fidelity Bank is a full-fledged customer commercial bank operating in Nigeria with over 8 million customers serviced across its 250 business offices and digital banking channels. The bank was recognized as the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
…reveals reason Nigerians shouldn’t trust LOTUS Bank
Rashidat Okunlade Writes
LOTUS Bank finds itself embroiled in controversy as a customer comes forward, alleging that the bank tampered with her account and failed to compensate her for an erroneous reversal of funds.
The customer claims that Lotus Bank deleted transaction records and invaded her privacy, raising serious concerns about the bank’s ethics and practices.
According to the customer, on March 12, 2023, she attempted to transfer twenty million naira (N20,000,000) from her account, but the transaction failed and the money was not reversed immediately. After contacting LOTUS Bank, she was assured that the reversal would be processed due to network issues. However, despite waiting for several days, the 20 million naira reversal did not occur, causing her distress and frustration.
Unexpectedly, on March 15, the customer began receiving multiple alerts of reversals, lasting for several hours. Astonishingly, Lotus Bank mistakenly reversed an exorbitant amount of one billion, eight hundred million naira (N1,800,000,000) into her account while attempting to reverse the initial twenty million naira (N20,000,000). Realizing the error, she promptly informed the bank of the erroneous reversal and the involved amount.
In response, Lotus Bank promised to compensate her but requested permission to withdraw the excess amount. The customer was granted permission, and for three days, the bank left the 1.8 billion naira in her account without completing their withdrawal. However, during this time, Lotus Bank allegedly tampered with her account and erased all records related to the reversal, including SMS alerts, email notifications, and even the statement of account showing the erroneous transaction. Furthermore, the bank deleted all other recent transaction records, including transfers and POS transactions.
Disturbed by the situation, the customer visited her bank to complain and request a statement of account. It was during this process that she discovered the extent of the tampering by Lotus Bank. The bank’s actions not only violated privacy and banking ethics but also left her without any record of recent transactions, including failed transfers. As a result, she was unable to provide sufficient evidence to support her claim.
LOTUS Bank has yet to provide any transaction history to refute the customer’s allegations, leaving her and others questioning the bank’s credibility. The customer is seeking redress for the failed transaction and the promised compensation that LOTUS Bank has seemingly reneged on. The incident has raised concerns about the bank’s practices and highlights the need for the Central Bank of Nigeria (@cenbank) to investigate the matter thoroughly.
As the situation unfolds, LOTUS Bank faces mounting pressure to address the customer’s claims and demonstrate transparency in their operations. The affected customer, supported by screenshots taken during the reversal process, hopes for a resolution to her ordeal and urges the bank to fulfill its responsibilities promptly. The involvement of the Central Bank of Nigeria is seen as vital to ensuring a fair and impartial investigation into the alleged misconduct by Lotus Bank.
