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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
Fubara Attends PDPGF Meeting In Asaba …..Back Court Verdict On National Secretary Position
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Rivers State Governor, Sir Siminalayi Fubara, last Friday, attended the Peoples Democratic Party Governors’ Forum (PDP-GF) meeting in Asaba, the Delta State capital.
The Rivers State Governor, who is the Vice Chairman of the PDP Governors’ Forum, attended the meeting, alongside 10 other Governors of the party’s controlled states across the six geopolitical zones of the country.
The first PDPGF meeting in 2025, was held at the Government House in Asaba, at the end of which a seven-point resolution was reached.
Reading the communique at the end of the meeting, the Chairman of the Forum, and Governor of Bauchi State, Senator Bala Mohammed urged the National Working Committee (NWC) to put every machinery in place to ensure a hitch-free NEC meeting on March 13, 2025.
The communique stated:
“The Forum, having examined all the notices required by law to be given to validly convoke NEC, advised NWC to reschedule NEC to the thirteenth (13Th) of March 2025.”
The Forum further noted the Court of Appeal judgment affirming Udeh Okoye as the National Secretary of the party, saying that as a party that believes in the rule of law, it will respect the position of the Appellate Court on the matter.
“The Forum noted with delight the ongoing efforts at resolving the crisis in the National Working Committee, NWC, on the position of the National Secretary, and has reaffirmed its support for the Court of Appeal judgment; consequently, the Forum advised the NWC to set up the machinery for the effective implementation of the court judgment.
“While commending the country’s valiant and patriotic Armed Forces and Security Agencies for maintaining the frontline in securing the country and the gains of our gallant personnel against bandits in parts of the country, the Forum viewed with deep concern, the resurgence of brazen non-state actors. It, therefore, calls for the strengthening of the nation’s security architecture.”
Governors in attendance include: H.E Senator Bala Abdulkadir Mohammed (Bauchi State); H.E Sir Siminalayi Fubara (Rivers State) – Vice Chairman; H.E Rt. Hon. Sheriff Oborevwori (Delta State) – Host; H.E Dr. Agbu Kefas (Taraba State); H.E Rt. Hon. Ahmadu Umaru Fintiri (Adamawa State); and H.E Dr. Dauda Lawal (Zamfara State).
Others are H.E Senator Ademola Adeleke (Osun State); H.E Senator Douye Diri (Bayelsa State); H.E Pastor Umo Eno Ph.D (Akwa Ibom State); H.E Dr. Peter Mbah (Enugu State); H.E Barr. Caleb Mutfwang (Plateau State);
and H.E Bayo Lawal (Deputy Governor, Oyo State), who represented Governor Seyi Makinde.
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NGO Implants Free Pacemakers Into 22 Cardiac Patients In PH
A United States based Non Governmental Organisation, Cardiovascular Education Forum, in collaboration with the University of Port Harcourt Teaching Hospital (UPTH), has successfully implanted free pacemakers into 22 patients with different cardiac cases in Port Harcourt.
This is in a bid to save lives and encourage patients with low heartbeats to live longer.
The implantable device, which costs $20,000 each, was inserted free of charge on the selected patients.
Speaking during a Special Hospital Ground Rounds at the UPTH with its Theme, “Recent Advances in Cardiac Pacing,” a cardiac Physiologist, Dr Neil Grub, said the NGO was in Nigeria to improve training and learning on cardiac issues and help patients with cardiac problems.
Accompanied by a team of experts comprising a cardiologist and cardiac device implanter, Dr Jagdeep Siagh, and UPTH interventional cardiologist, Dr Edafe Emmanuel, Dr Grubb said pacemakers were inserted on patients with low heartbeats to boost their heart rates.
Earlier, the Chief Medical Director, UPTH, Prof Henry Arinze Ugboma, said each of the implantable devices cost over $20,000.
Ugboma, represented by the Chairman, Medical Advisory Committee, UPTH, Prof Datonye Alasia, said the partnership between UPTH and the foreign NGO was to build networks, and improve services in terms of healthcare delivery, training and learning.
According to him, there is now a ray of hope in terms of treatment of patients with cardiovascular cases in the hospital.
He said the UPTH started the collaboration with Cardiovascular Education Forum in 2018 to boost health, training and learning on cardiac health.
He assured that, “in coming years, the scale of our collaboration with the mission will be higher.”
Chinedu Wosu
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FG Unveils National Broadband Alliance To Drive Internet Access
The Federal Government has unveiled the National Broadband Alliance, a new initiative aimed at transforming the nation’s digital infrastructure and boosting connectivity across the country.
The initiative was unveiled yesterday in Lagos by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, who was represented by the Executive Vice Chairman of the Nigerian Communications Commission, Aminu Maida.
In his address, Tijani stated that NBAN would significantly enhance broadband penetration, which has grown from just six per cent in 2015 to approximately 42 per cent as of October 2024.
To support this agenda, he said the government was leveraging a Special Purpose Vehicle to deploy 90,000 km of fibre backbone across the nation, connecting underserved and rural communities to high-speed internet.
According to him, the initiative aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which prioritises innovation, technology, and collaboration as key drivers of national prosperity.
Tijani stated that the expansion would not only improve access to reliable broadband but also empower Nigerians, particularly in rural areas.
“While the progress made in broadband penetration is commendable, we recognise that much more needs to be done to ensure every Nigerian can enjoy the benefits of reliable, high-speed internet,” Tijani said.
The minister also emphasised the importance of strategic partnerships with donors, investors, and other key stakeholders in achieving the goals set out in the National Broadband Plan (2020–2025).
He said these collaborations would be essential in overcoming infrastructure development challenges and making broadband affordable and accessible for all Nigerians.
“These targets reflect our unwavering commitment to ensuring that broadband is accessible, affordable, and inclusive for all Nigerians. However, we are also aware of the challenges ahead,” he added.
Tijani stressed that achieving the government’s targets—70 per cent broadband penetration by 2025, a minimum internet speed of 25 Mbps in urban areas, and broadband access for 80 per cent of the population by 2027—will require sustained efforts.
“Achieving these goals will require more than just the efforts of the private sector. It will require a holistic approach that includes strategic partnerships with donors, investors, and other key stakeholders in accelerating the rollout of critical infrastructure,” he said.
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