9 Nigerian Banks Publish Details of Board Of Directors, Employees Who Took Loans of Over N226bn
- Working as key management personnel in the banking sector comes with its perks and some directors of banks make use of the privilege
- Details have emerged that the board of directors of nine banks are currently owing their banks over N226bn
- As directors, specifically, privileges which include reducing interest rates, longer loan tenors are given to key management including their close family members
Nine Nigerian banks approved and granted a sum of N226.12billion loans and advances to entities controlled by key management personnel and related parties in 2021
This is according to the analysis of the banks’ 2021 financial accounts published on the Nigerian exchange and obtained by Legit.ng.
The banks are Unity Bank Plc, Wema Bank Plc, Access Holdings Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc, Guaranty Trust Hold Plc (GTCO), FCMB Group Plc, Fidelity Bank Plc and Sterling Bank Plc.
Source: Facebook
According to Investopedia, Key Management Personnel is defined as members of the Board of Directors of the bank, including their close members of the family and any entity over which they exercise control.
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Close members of the family are those who may be expected to influence or be influenced by that individual in dealings with the bank.
Breakdown of the loans granted
Details from Sterling Banks's 2021 full-year financials show that loans and advances transactions with key management personnel stood at N600million, an increase of 60.4 per cent from N374million in 2021.
The bank also published a full list of the Directors and some employees related entities' loans which are worth over N2.4billion.
According to Fidelity Bank's financials, the bank granted over N194.33 billion in loans and advances from related parties as of the end of 2021, up 20.7 percent from the N194.33 billion recorded in 2020.
Loans to entities controlled by key management personnel increased by 20.7 percent to N96.6 billion in 2021 from N80.02 billion in 2020, according to the breakdown, while loans to related parties increased by 20.6 percent to N97.73 billion in 2021 from N81.01 billion in the previous financial year.
Zenith Bank reported N1.69 billion loans & advances on insider-related transactions, an increase of 3.5% from N1.63billion in 2020.
Other loans insider trading directors, employees
- Unity Bank - N5.35billion in 2021
- Access Bank- N268.2million in 2021 from N2.23 trillion reported in 2020
- Wema Bank- N589 million insider-related loans & advances in 2021 from N2.02billion reported in 2020.
- Stanbic IBTC Holdings- N39.86billion
- FCMB Group- N1.15billion in 2021
Access Bank lead 8 banks in Nigeria to spend N23 billion in travel expenses in 2021
Legit.ng has reported that nine banks in Nigeria said they spent a total of N23 billion on business trips across the globe in 2021, according to data collated from financial resorts of the banks.
The amount includes the cost of travel, hotels, passages and other logistics which are connected to travelling within and out of Nigeria.
Access, Fidelity, Sterling, UBA, Zenith, GTB, Stanbic IBTC, First Bank and FCMB are the banks which spent the most on travel expenses.
Source: Legit.ng
