26 Oct

Daily Watch – CBN goes tough over TSA, Oando posts largest loss in Nigerian history

  • The Central Bank of Nigeria (CBN) last Friday fined First Bank of Nigeria Limited (First Bank) and United Bank for Africa (UBA) Plc the sum of N4.819 billion for failing to remit government revenue from NNPC to the treasury single account (TSA). First Bank was fined N1.8 billion for holding back N37.5 billion of NNPC funds, while UBA was fined N2.9 billion for holding back N58.8 billion. The accounts of both banks with the CBN have been debited for the unremitted amounts and the penalties, which is estimated to be about 5 percent of the withheld funds.
  • Oando Plc on Friday posted its long-awaited 2014 Full Year results, along with its Half year 2015 results. The results show that Oando posted record after-tax losses of N183.9 billion in FY 2014, far worse than was estimated by analysts. Oando’s losses continued into 2015, with a N20.9 billion after tax loss in Q1 2015. FY 2014 total revenue fell by 5% to N424 billion from N449.8 billion, while Q1 2015 revenue increased by 83% to N33 billion, up from N18 billion in Q1 last year 2014. Oando’s 2014 FY losses are estimated to be the largest on record in corporate Nigeria.
  • NICON Insurance Limited and the National Association of Micro-finance Banks (NAMB) are looking to bail out 940 micro-finance banks and their over six million customers from bad loans estimated at over N80 billion. According to The National President of NAMB, Mr. Valentine Whensu, the association’s relationship with NICON Insurance would help reduce the bad debt in the industry, as the synergy would give NAMB the expertise to conduct proper background checks on prospective borrowers before giving out loans. Also with borrowers getting insurance, in the event of default going forward, NICON would pay.
    Whensu urged the Buhari Administration to give micro-finance operators the opportunity to publish the names of defaulters.