The Central Bank of Nigeria (CBN), in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020, hereby revokes the licence of Heritage Bank Plc with immediate effect.

This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline. Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired.

The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

We wish to assure the public that the Nigerian financial system remains on a solid footing.

The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system.

Hakama Sidi Ali (Mrs.)

Ag. Director, Corporate Communications

Yetunde Oni, Managing Director, Union Bank of Nigeria; (Centre) and other senior bank executives commemorating International Children’s Day with various kids at Union Bank’s Children’s Barnyard Fiesta held in Lagos recently.

Union Bank of Nigeria, as part of activities marking this year’s celebration of International Children’s Day and further to the financial institution’s support for the growth of the Nigerian child, recently hosted kids to a special Barnyard Fiesta at its multiple-purpose Sports complex in Lagos.

The Barnyard Children’s Fiesta, held on Saturday, May 25th, 2024, entertained kids of various ages with video games, face painting, dancing, and singing contests.

The program also organised a talent show that showcased the creativity of the children who were in attendance on the day.

The event, which was also well attended by parents and other fun seekers, played host to some of the Bank’s senior executive team, including Yetunde Oni, the Managing Director and Chief Executive Officer, who was on hand to cheer and interact with various children as they engaged in the different fun activities lined up for them.

Speaking on the sidelines of the fiesta, the Managing Director and Chief Executive Officer of Union Bank, Yetunde Oni, re-emphasised the bank’s commitment to empowering and supporting Nigerian Children.

She said: “As a responsible corporate organisation, we recognise our obligations to support the next generation of Nigerian youths, who are represented by our current set of intelligent and talented children, in achieving their full potential through effective and sustainable positive engagement, even at this early stage of their development. Our ultimate goal is to continue being lifelong partners in facilitating success for our future great Nigerian citizens, as well as advocates for empowering and encouraging positive growth in our communities all around.”

Over the years, Union Bank has consistently championed and advocated for the rights of children within the country through its special interventions, such as the Edu360 initiative, the Awarri Innovation programme, and various products and services that have equipped them with the necessary knowledge, skills, and tools to thrive in the present global environment.

Union Bank pledges to continue to assist Nigerian children in achieving and fulfilling their dreams.

About Union Bank Plc.

Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc is a household name and one of Nigeria’s long-standing and most respected financial institutions.

The Bank is a trusted and recognisable brand with an extensive network of over 300 branches across Nigeria

The Bank currently offers a variety of banking services to both individual and corporate clients including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance.

The Bank also offers its customers convenient electronic banking channels and products, including Online Banking, Mobile Banking, Debit Cards, ATMs and POS Systems.

Fidelity Bank Plc complies with the highest corporate governance standards as the leading commercial bank adheres promptly to all full disclosure requirements and global best practices.

Fidelity Bank is awarded CG+, the highest rank under the Corporate Governance Rating System (CGRS), which screens quoted companies against prescribed best practices and standards.

A review of the latest compliance report showed that Fidelity Bank sustains its highest-ranking rating of CG+, with shareholders and market pundits commending the high corporate standards of the bank.

Head, Listings Regulation Department, NGX Regulation (NGXRegco), Mr. Godstime Iwenekhai, explained that the CGRS was designed to strengthen the governance structures of listed companies and provide a valid basis for discerning investors to differentiate between listed companies on the basis of their compliance with acceptable standards of corporate governance.

“In our view, corporate governance promotes ethical business practices, transparency and fair competition,” Iwenekhai said.

He pointed out that the special character combination “CG+” underlined compliance with best practices and highest corporate governance standards, which entitle the rated companies to special privileges at the stock market.

Corporate governance compliance at the stock market includes prompt submission of detailed operational results from period to period as required by the market rules, full disclosures of all material and regulated information and accurate rendition of reports and accounts.

Also, compliance includes ensuring that the company’s shares are not encumbered in a way that impinges on free float or number of shares available to the general investing public for efficient price discovery, compliance with all investor-protection safeguards in communication with shareholders and organising statutory meetings as required among others.

The Nigerian Exchange (NGX) noted that compliance tracker was aimed at maintaining market integrity and protecting the investors, noting that listed companies are required to adhere to high disclosure standards.

“Financial information which is periodic disclosure and on-going material events disclosure should be released to NGX in a timely manner to enable it efficiently perform its function of maintaining an orderly market,” NGX stated, referencing some of the criteria for its corporate governance rating.

Market experts and shareholders agreed that corporate governance compliance is a major factor in deciding on investing in a public and the safety of such investment.

Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said corporate governance compliance rating is “extremely important” as it indicates to the investing public the quality of compliance of a company to listing requirements.

“As you know, stock prices are driven primarily by available information and the NGX has a minimum level of disclosure expected of quoted companies. This disclosure helps the public make qualitative decisions as to the state or performance of the companies they are seeking to invest in. These markers are therefore the initial indicators as to whether the companies are meeting their disclosures and other regulatory obligations or not,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said.

Managing Director, APT Securities & Funds, Mallam Garba Kurfi, said the corporate governance rating “shows the extent companies are in compliance with corporate governance”.

“High rating means very good in doing right thing timely while low rating discourages foreign investors from investing in such companies,” Kurfi, a leading market operator and member of the board of Securities and Exchange Commission (SEC) said.

Managing Director, HighCap Securities, Mr David Adonri, noted that “CG+ means excellent corporate governance rating”.

“When a company is organised and uphold good corporate governance, the benefit to stakeholders is maximized,” Adonri said.

Investors said its high corporate governance was one of the compelling reasons they chose to invest in Fidelity Bank.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar said Fidelity Bank has a very good corporate governance structure that reassures investors of the safety of their investments.

According to him, while the bank has good succession plan, the calibre of the independent non-executive directors on the board gives shareholders strong confidence of the kind of board oversight they will be expecting.

National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Bank’s impressive performance over the years had been built on good corporate governance.

“My appeal to the board is to continue to imbibe good corporate governance in order to sustain this growth,” Igbrude said.

National Co-ordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, said Fidelity Bank has created a “very excellent impression” in the minds of shareholders.

According to her, the bank has continually showcased exemplary leadership with continuous impressive results, with successive growths over the past five years.

“Fidelity Bank is a very good bank that shareholders are very happy with their investments and we have never regretted buying into Fidelity Bank,” Bakare said.

National Co-ordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie said good corporate governance was the cornerstone of Fidelity Bank’s sustained growth and impressive returns over the years.

“Fidelity Bank remains one of the best stocks that investors should look forward to invest in for better returns. I’m very optimistic of the bank’s healthy strong assets. With its good corporate governance and excellent customers’ service, there is every reason to hope for more promising future,” Okezie said.

The NGX tags defaulting companies for poor corporate governance and also applies various monetary and non-monetary sanctions, including fines ranging between N100,000 to N100 million, partial or full suspension of trading, naming and shaming with a red alert tag and compulsory delisting in extreme cases.

Right: Vice President, Nigeria Chess Federation, Prince Adeyinka Adewole; Managing Director/Regional Executive, Ecobank Nigeria, Bolaji Lawal with one of the winning schools.

University of Lagos (UNILAG), DaySpring School, Lagos and Marvelvine Montessori School, also in Lagos, have emerged winners in the tertiary, secondary and primary schools’ categories of the 2024 Ecobank National Schools’ Teams Chess Competition at the Pan African Centre in Lagos over the weekend.

The Chess Competition which has been described as the largest gathering of chess players in Africa attracted over 1200 players from over 250 schools across 18 states in Nigeria and the Federal Capital Territory (FCT).

Speaking at the closing ceremony, Vice President, Nigeria Chess Federation (NCF), Prince Adeyinka Adewole, expressed excitement that the Championship which was introduced last year when the International Chess Federation (ICF) started the World Schools Team Chess Championship has grown in leap and bounds. He noted that the 2024 edition attracted over 1200 participants, describing NCF’s partnership with Ecobank as a shining example of the public-private partnership needed for the advancement of sports in Nigeria.

“118 primary schools, 86 secondary schools, and 42 tertiary institutions participated and jostled for prizes of over N15 million at the three-day tournament which took place between Friday 24th and Sunday 26th at the Ecobank Pan African Centre (EPAC) in Victoria Lagos. At the end of the highly competitive tournament, University of Lagos came tops in the tertiary school category and was followed by University of Benin and Chess in Slums Africa (CISA) while DaySpring School, Platforms School, Ireti Senior Grammar School came first, second and third respectively in the secondary school category. For the Primary school category, Marvelvine Montessori School came first while Scholars Academy, Ibadan was second best and followed by Okikioluwa Junior in the third position.”

Further, he said: “When we introduced this Championship last year, only 15 schools participated but today we have over 250 schools. This is a remarkable accomplishment for us in the Nigeria Chess Federation, and we wouldn’t have been able to achieve this without the unwavering support of Ecobank. We’re deeply grateful for Ecobank’s generous support and unwavering commitment to empowering young minds and fostering intellectual growth. Your sponsorship has made this event possible, and your dedication to the development of chess among Nigerian youth is truly commendable.”

He reiterated the Federation’s delight in providing a platform for young participants to horn their skill and become world champion, stating that the championship is a celebration of strategic thinking, the relentless pursuit of excellence, and the future of Nigerian chess.

Managing Director/Regional Executive, Ecobank Nigeria, Bolaji Lawal, said the decision of the bank to sponsor the Chess competition was to further showcase Ecobank’s commitment to supporting intellectual and sports development in Nigeria, being part of Ecobank’s strategic human capital development drive.

“The winners here today are ‘rising stars. And I must say this is in line with our objective of supporting children and youths as the next-generation of changemakers. This sponsorship aligns with our overall long-term vision of building a world class Pan African bank that contributes to the economic and financial integration of the continent. We are also using the opportunity of this competition to introduce and empower them with convenient, affordable, and accessible digital financial services they can access anytime and anywhere they are.  Arrangements are in place to make our partnership an annual event, as it is exciting and fulfilling for both the children and undergraduate students”. He stated.

In his comment the Minister of Sports Senator John Owan Enoh, represented by the Director, Federal Ministry of Sports Liaison Office in Lagos, Ms. Ikana Mbora, said the ministry is proud of the NCF. He commended the students for their resilience and determination to win as “this represents the Nigerian can do spirit.”

It would be recalled that Platform Schools, Ikeja, Lagos emerged as the national champion at the first National Schools Team Chess Championship held last year earning the honor to represent Nigeria at the World Schools Team Chess Championship in Kazakhstan.

The Nigeria Chess Federation (NCF) is the national governing body for chess in Nigeria. It was established in 1975 and is responsible for promoting, regulating and developing chess in Nigeria.

The NCF is a federation under the Federal Ministry of Sport Development, and it is affiliated with the International Chess Federation (FIDE) and follows its rules and regulations.

The objectives of the NCF include organising national and international chess tournaments, training and selecting chess players to represent Nigeria in international competitions, and promoting the game of chess at all levels, from grassroots to elite.

The NCF organises various chess events throughout the year, and has also been successful in producing strong chess players who have represented Nigeria in international tournaments. These players have achieved notable successes, including winning medals in African Chess Championships and participating in Chess Olympiads.

Shareholders have expressed readiness to massively support and mobilise for the on-going recapitalisation of Fidelity Bank Plc amid commendations for the impressive performance of the bank over the years.

The shareholders were unanimous that Fidelity Bank has shown strong resilience over the years and demonstrated its investors’ friendliness with significant dividends and capital gains.

Shareholders, under the auspices of Nigeria’s leading shareholders’ associations, said they would buy into any share offering by Fidelity Bank as the bank holds exciting future for above-average returns.

The sundry shareholders’ endorsements underlined market pundits’ expectations that Fidelity Bank would easily raise additional funds and retain its status as one of Nigeria’s leading commercial banks with international authorisation.

With nearly 400,000 shareholders, Fidelity Bank has the most diversified retail shareholders’ base among Nigerian banks. No single shareholder held up to 5.0 per cent of the issued share capital of the bank. Five per cent and above are considered the material shareholding under extant laws and market regulations.

The highly diversified shareholding base, while it has its challenges of corporate register management and stock volatility, shows Fidelity Bank as a popular stock. Its huge free float also underscores the pricing efficiency of the stock at the stock market, ensuring that the share price is a reflection of the bank’s fundamental and investors’ expectation.

With average annual return of more than 81 per cent over the past five years, comparative analysis shows that Fidelity Bank outperforms all other major market indices with the bank’s average annual return for the period twice the average return by the overall market and almost four times of average return in the banking sector.

Shareholders said the performance of Fidelity Bank has endeared them to the bank, expressing optimism that the bank is poised for major leap in the emerging Nigerian financial services sector.

National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Bank has shown that shareholders can trust it for sustainable growth and returns.

“Fidelity Bank is a promising bank that is growing organically, it is servicing its niche and share of the market. My appeal to the board is to continue to imbibe good corporate governance in order to sustain this growth,” Igbrude said.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar said the performance of Fidelity Bank over the years has been very encouraging.

According to him, the bank has a very good corporate governance structure that reassures investors of the safety of their investments.

He pointed out that the successful acquisition of Union Bank UK was a testimony to the financial strength of the bank.

“The bank has since joined the league of banks paying interim dividend, which shareholders are happy with,” Umar said.

He commended the board and management of the bank “for the good results they have been posting”, noting that investors have confidence in the future of the bank.

“The appointment of Dr Nneka Onyeali-Ikpe as the Group Managing Director, after serving as Executive Director, indicates that the bank has a good succession planning in place. The calibre of the independent non-executive directors on the board gives shareholders strong confidence of the kind of board oversight they will be expecting.

“Now that the bank is coming out with a rights issue offer, we are very confident shareholders will take their rights, and we are sure the bank will meet the recapitalisation requirement set out by the Central Bank of Nigeria (CBN),” Umar said.

National Co-ordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, said Fidelity Bank has created a “very excellent impression” in the minds of shareholders.

According to her, the bank has continually showcased exemplary leadership with continuous impressive results, with successive growths over the past five years.

“Despite various challenges and economic uncertainty and other unforeseen occurrences, Fidelity Bank weathers the storm with strong performances,” Bakare said.

She cited the 2023 business year when the bank doubled its pre-tax profit by 131.5 per cent to N124.2 billion on the back of 64.9 per cent growth in gross earnings to N555.8 billion. The bank’s deposits increased by an impressive 56 per cent from N2.6 trillion in 2022 to N4.0 trillion while total assets grew by 56 per cent from N3.9 trillion to N6.2 trillion.

“Furthermore, Fidelity Bank paid a dividend of 85 kobo, including interim dividend of 25 kobo and final dividend of 60 kobo. Considering the share price of Fidelity Bank, their dividend policy is very robust.

“It is evident that our bank has not only weathered the storm of economic challenges but has also managed to thrive. Fidelity Bank is a very good bank that shareholders are very happy with their investments and we have never regretted buying into Fidelity Bank.

“I believe their right issue is going to be oversubscribed considering their past performances,” Bakare said.

National Co-ordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie said Fidelity Bank’s growth has been “very amazing as it has delivered good returns in terms of good dividends to shareholders”.

According to him, shareholders are proud of the bank’s balance sheet, which is something that gives shareholders hopes for better rewards in the years ahead.

“All that average investors look for in a company is the fundamental, and Fidelity Bank is very strong in this. They are poised to surpass what they have projected. I should say the sky is their limit despite the headwinds.

“Fidelity Bank remains one of the best stocks that investors should look forward to invest in for better returns. I’m very optimistic of the bank’s healthy strong assets. With its good corporate governance and excellent customers’ service, there is every reason to hope for more promising future,” Okezie said.

The interim report and account of the bank for the first quarter ended March 31, 2024 showed that the bank started the current business year on stronger footing with three-digit growths across key performance indicators.

The three-month report, released at the NGX, showed that gross earnings increased by 89.9 per cent to N192.1 billion in first quarter 2024. The bank’s top-line performance continued to be driven by broad-based growths across income lines with interest income rising by 90.7 per cent and non-interest income growing by 84 per cent in first quarter 2024.

Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, foreign exchange (forex)-related income, trade, banking services, and remittances, supported by increased customer transactions.

Profit before tax doubled by 120 per cent to N39.5 billion in first quarter 2024 as against N17.9 billion in first quarter 2023. The bank’s performance was driven by expanding market share with total deposit rising by 17 per cent within the three months to N4.7 trillion, compared with N4 trillion recorded at the end of 2023. The bank also increased its supports for national economic growth with net loans and advances rising by 21 per cent from N3.1 trillion at the end of 2023 to N3.7 trillion by March 2024.

L-R: Group Chairman, Mr. Tony O. Elumelu and Group Managing Director/CEO, Mr. Oliver Alawub, at the 62nd AGM of United Bank for Africa (UBA) held in Abuja.

Shareholders of Africa’s Global Bank, United Bank for Africa (UBA) Plc, have praised the board, management and staff of the Bank on the impressive performance recorded over the past years and especially in 2023, culminating in the payout of N78.7bn as final dividend for the 2023 financial year.

The shareholders took turns to express their delight during the bank’s 62nd Annual General Meeting which was held at the Congress Hall of Transcorp Hotels in Abuja on Friday.

The shareholders overwhelmingly approved the Board of Director’s proposal to raise additional capital through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments in the Nigerian and/or international capital market.

Addressing shareholders at the event, the Group Chairman, Mr. Tony Elumelu, appealed to shareholders to participate fully and re-invest their dividends in the bank’s recapitalisation drive as this will ensure that they continue to enjoy even higher returns from their investments.

He said, “I call on you shareholders to re-invest a substantial part of your dividends in our rights issues which will be announced soon, as we will be giving you the first opportunity to own a share in all the countries where we operate, I am advising shareholders, as you get your dividends, reinvest a significant part of it. As for my board members and I, we would be investing 100% of the dividends we get, because if we don’t do so, it means we would be leaving food on the table for others who did not labour for it,” Elumelu stated.

In the year under consideration, UBA had declared an interim dividend of N17.1bn representing a pay-out of 50kobo per share for the first half of 2023, thus bringing the total dividend for the 2023 financial year to N95.8bn, representing N2.80 per share.

Surprisingly and in another first, dividend payouts were received while the meeting was still on just seconds after the resolution on dividend payments were passed at the meeting by the shareholders, resulting in open excitement from the shareholders.

They also commended the bank’s management over the impressive performance for the 2023 financial year, which resulted in the large payout of dividend to its investors, and highlighted its thriving business in its African subsidiaries, which continues to contribute significantly to the Group’s total income.

Alhaji Mukhtar Mukhtar, one of the shareholders who spoke at the meeting, commended the Group Chairman, Tony Elumelu, and the Group Managing Director, Oliver Alawuba, for their concerted effort towards ensuring that the performance of the bank reached unprecedented heights in the year under consideration.

He said: “I want to specially commend the management and Board of UBA, especially the Chairman, Tony Elumelu and the GMD/CEO, Oliver Alawuba, who have been managing activities of this great institution over the past few years.

“We are impressed at the results that you have recorded so far, how you have managed to maintain a well-structured balance-sheet and diversified balance sheet with total Assets growing to over N20trn. The achievement that the bank has recorded under your leadership, especially the sterling contributions of our subsidiaries in Africa deserves accolades,” Muktar stated.

Another shareholder, Patrick Ajudo, also commended Elumelu for keeping the promise made to shareholders a few years ago to begin to pay increased dividend.

“Our Chairman, Tony Elumelu, promised shareholders a few years ago in this same hall, that he will move from ‘kobo-kobo’ dividends to naira dividends, and he has kept that promise. We are very excited, because, not only have you kept that promise, but you have backed it up by even matching the industry standards. Indeed, we are proud to be associated with such a brand that has integrity, and we highly commend you for this,” he stated.

Barrister (Mrs) Adetutu Siyanbola, another shareholder, took time to commend the bank’s management for its operations over the decades, especially as it celebrates its landmark 75th year anniversary, praising the gender balance and high female representation on the bank’s board, which according to her, is a feat worth emulating by other financial institutions in Africa.

While commending the GMD for wining several awards in the 2023 financial year, she expressed satisfaction that the bank did not incur any penalty in the year under consideration, which meant that UBA had zero infractions and didn’t run foul of any regulations.

At the end of the 2023 financial year, UBA recorded an impressive leap in gross earnings, as it grew from N853.2 billion recorded at the end of 2022 to close at N2.07tn; representing a strong 143 percent growth; total assets also rose remarkably by 90.22 percent, to close at N20.65 trillion up from N10.86 trillion in 2022.

Profit before tax, also grew exponentially by 277 percent, to close at N758billion, up from N200.88 billion recorded in 2022; while profit after tax (PAT) grew by 257 percent from N170.2 billion in 2022, to N607 billion.

The Group Managing Director/CEO, Mr. Oliver Alawuba, explained that despite being a year of significant geopolitical and economic challenges, UBA’s strength, the effort and dedication of the team, and its leadership in strategic areas such as innovation and sustainability, helped the bank to grow in a profitable and sustainable manner,

Looking ahead, he said, “The outlook is great because we are diversified. Our African subsidiaries contributed over 55% to the bank’s profit this year, and we will do more. Already, the Bank entered 2024 from a position of strength, with proven resiliency, a powerful brand and a strong capital position.

“As we begin 2024, “execution” will continue to be on the front burner, with an unrelenting focus on market leadership and excellent customer experience at all touch points,” Alawuba explained.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 35 million customers globally. Operating in twenty African countries and in the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.