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Tag: Ecobank

  • Ecobank to Appeal Tribunal Judgment on Tax Liability

    Ecobank Nigeria Thursday disclosed that it has resolve to send an appeal to the Federal High Court, on the judgement of the Tax Appeal Tribunal (TAT), sitting in Lagos, in respect of a disputed tax liability between the bank and the Federal Inland Revenue Service (FIRS) for the 2015 financial year.

    The bank explained in a statement, that the decision of the TAT was, “for it to pay excess dividend tax on the dividend sum of N5,545,000,000 declared by the Bank from its 2015 financial accounts.”

    “Based on the decision of the TAT, the excess dividend tax liability is N1,311,673,367 and not N1.6 billion,” it stated.

    “The bank will be appealing to the Federal High Court against the decision of the TAT as it believes, based on advice from its professional consultants, that the dividend declared relates to income from sources which are statutorily exempt from tax by virtue of the Companies Income Tax ( Exemption of Bonds and Short Term Government Securities) Order, 2011.

    “Whilst the bank is always open to engagement, its position is based on the principle that income established to be exempt from companies income tax should not contrary to the intendment of the law, be subjected to the same tax it was intended to be exempt from,” it added.

  • Ecobank in tax avoidance trouble, ordered to pay N1.6b to FIRS

    Ecobank in tax avoidance trouble, ordered to pay N1.6b to FIRS

    The Tax Appeal Tribunal has declared as illegal, null and void the decision of EcoBank Nigeria Limited to pay N5, 545, 000,000 as dividends to its shareholders in 2016.

    That year, Ecobank had claimed it made no taxable profit and rather declared losses from its banking operations.

    A statement from the Federal Inland Revenue Service (FIRS) said the tribunal reached this decision in its judgment dated February 20, 2020, which it delivered in Appeal No. TAT/LZ/CIT/024/2018.

    Consequently, EcoBank must now pay at least N1, 663, 500, 000 to the FIRS as Company Income Tax for the year in dispute – 2016.

    EcoBank had dragged the FIRS to court over the insistence of the service that the bank must pay in full its excess dividend tax liability of N2, 079, 375, 000, inclusive of interest and penalty for the Year of Assessment (YOA) 2016.

    But Ecobank argued that the dividend it paid out was tax exempt as N4,372,244,556 out of the total sum was “profit from bonds and treasury bills”, which was not taxable based on the provisions of the Company Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011.

    Read Also: Ecobank forum for Lagos
    Admitting to only making N1,172755,444 “trading profits” from other business sources, EcoBank decided that it would only pay N351,826,663 tax to the FIRS, which it paid the Service after some months of delay.

    However, the FIRS “demanded for the immediate payment of the outstanding excess dividend tax liability of N1, 311, 673, 367” from the bank. The impasse led to the suit before the tax tribunal.

    In its argument before the court, EcoBank presented three issues for determination, namely whether the FIRS “was correct to assess the Appellant to tax under Section 19 of CITA” when the income earned was “from Bonds, Treasury Bills and other Government Securities”; whether the FIRS “misdirected itself by failing to take account the CIT paid by the Appellant”; and “whether by the rules of Interpretation of Statutes, the Respondent has erred in law in its application of Section 19 of CITA”.

    In its consideration of the three issues raised, the tax tribunal resolved them in favour of the FIRS. It held that “companies that invest in bonds will, by virtue of the tax exemption, become liable to pay excess dividend tax on their profits.”

    The court averred that “if the tax exemption granted by the order (Company Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011) creates an excess dividend situation” EcoBank or any other company “should be liable to pay excess dividend tax on the same income that otherwise would have been exempted from tax.”

    The tribunal stressed that “a liability to pay excess dividend tax arises where a company that seeks to pay dividend has no taxable profit as in the instant case but has distributable profit that is higher than the taxable profit.”

    The tribunal also held that the FIRS properly directed itself by not failing “to take into account the sum already settled by the Appellant” (EcoBank) in the Service’s “total assessment of N1,663,500,000.”

  • Ecobank adopts CBN’s reduced bank charges

    Ecobank Nigeria has complied with the Central Bank of Nigeria’s recent directive on the reduction of bank charges.

    The bank commended the CBN for taking bold steps to further strengthen the financial inclusion drive in the country.

    In October 2019, Ecobank announced the elimination of session charges on its USSD platform – *326#, months prior to the new CBN directive. Customers using *326# for their transactions such as inter and intra bank funds transfers, bill payments, airtime top-up, balance enquiry etc. can do so at zero session fees.

    Further to the removal of the session charges, Patrick Akinwuntan, Managing Director, Ecobank Nigeria, advocated stakeholder buy-in to make banking more affordable and accessible to all.

    He noted that lower charges would encourage the unbanked to adopt structured financial services, thereby driving financial inclusion and economic growth. Ecobank has been at the forefront of the campaign for inclusive, affordable banking. Anyone, regardless of their social class, can open the Ecobank Xpress Account with Zero Naira, from any phone type, simply by dialing *326#. The account opening process is fully “do it yourself” without any documentation or paperwork.

    The Managing Director, in his new year message to customers, stated that “Our removal of session charges on Ecobank *326# well ahead of the recent downward review of charges on digital transactions by the Central Bank of Nigeria further demonstrates our commitment to delivering more savings to our customers, making banking with Ecobank more delightful in the new year and beyond.”

  • Enjoy Pleasurable New Year Day Banking with *326#

    Enjoy Pleasurable New Year Day Banking with *326#

    Make your New Year Day a pleasure by banking at your fingertips, right on your mobile with *326#. It doesn’t matter what kind of phone you have; you can avoid crowded banking halls and bank on the go simply by dialing *326#. Perhaps you are holidaying in Nigeria and need to open an account, you can simply open an Ecobank Xpress Account in seconds with the code. The process straightforward, no need for forms, documentation or any paperwork whatsoever.

    Don’t miss any fun moment, sort out your utility and cable subscription from your mobile. Make friends and loved ones feel the merriment of this season, send them money with *326#. You can transfer money without hassles to any bank account in Nigeria. This is one season when you cannot afford to stay out of touch. Buying airtime for yourself and loved ones is a breeze. Dial *326*Amount# to buy airtime on your phone and *326*Amount*Phone number# to buy airtime for someone.

    With expenses piling up this season, we have you covered. Carry out transactions using *326# at zero session charges so even when you are out of airtime, you can still transact the merry and mobile way. Whatever you do this holiday, our mobile solutions are available to add tons of merriment to your season!

    Happy New Year from Ecobank!

  • Ecobank announces fresh appointments

    Ecobank Nigeria has announced the appointment of key Management Officers across various levels.

    Among those appointed are Kenneth Okere, who is now the Company Secretary & Chief Legal Counsel; Ibukunoluwa Oyedeji, Chief Financial Officer (CFO); Abiola Aderinola, Financial Controller; Adetokunbo Uko, Treasurer and Akintunde Dawodu, Chief Compliance Officer and Head, Compliance & Control.

    All the appointments have since been ratified by the Central Bank of Nigeria (CBN).

    Commenting, the Managing Director, Ecobank Nigeria, Patrick Akinwuntan, said the appointments are in line with the bank’s Roadmap to Leadership Transformation Programme. He also noted that Ecobank which also promoted over 950 staff early this year, is committed to meritocracy, providing exciting career opportunities to deserving staff in order to achieve improved profitability, cost efficiency, regulatory compliance and customer excellence.

    The new Company Secretary and Chief Legal Counsel, Kenneth Okere has over 26 years legal experience. He has held various senior roles within the Legal department in Ecobank Nigeria. He previously worked at Metropolitan Bank, Omega Bank and Bayo Osipitan & Co. (Legal Practitioners). Kenneth Okere holds an LL.B, B.L and LL.M in Law from the University of Jos and University of Lagos respectively. He is also a Member of both the Nigerian Bar Association (NBA) and International Bar Association (IBA).

    The Chief Financial Officer (CFO), Ibukunoluwa Oyedeji, has over 20 years’ experience in funds/assets management, credit analysis, treasury management and securities trading. She was until this appointment the country Head for the Securities, Wealth and Assets Management business of the Ecobank Group.

    She previously worked at the FBN Capital Assets Managements, Guaranty Trust Bank Plc, Goldman Sachs international, HSBC Global Market and Morgan Stanley international. Ibukun holds a Bachelors’ degree in Economics from the University of Ibadan and Master’s degree (MSc) in International Securities and Investment Banking from ISMA Center, University of Reading, UK.

    She is a CFA Charter holder, Fellow of the Institute of Chartered Accountants of Nigeria (FCA) and an Associate of the Chartered Institute of Stockbrokers (CIS) of Nigeria.

    Abiola Aderinola, the new Financial Controller, has over 19 years banking experience covering various aspects of financial control function & regulatory reporting, MIS, performance management, management & statutory reporting, and strategic planning. He started his banking career with metropolitan bank and later on in his career worked as the Chief Financial Officer (CFO) of Ecobank Zambia. Abiola holds, a BSc Degree in Banking & Finance from Olabisi Onabanjo University, an MBA from University of Lagos and a Diploma in International Financial Reporting.

    He is also an Associate Member of the Institute of Chartered Accountants of Nigeria (ACA) and an Associate Member, Accounting Technician (AAT).

    Adetokunbo Uko, the Treasurer, Ecobank Nigeria has 25 years banking experience covering Treasury and Financial institutions Marketing, Retail Banking, Public Sector, Credit & Marketing and Branch Operations.

    She began her banking career with Gulf Bank in 1994 working in Branch Operations, Sales/Marketing roles, and Treasury. She also worked at Oceanic Bank (now Ecobank) as Head, Treasury & Financial Institutions and Treasurer.

    Adetokunbo is a member of the Financial Markets Dealers Association (FMDA) and Chartered Institute of Bankers of Nigeria (CIBN). She holds an MBA from Obafemi Awolowo University and a B.A. in English from Ogun State University.

    Akintunde Dawodu, Chief Compliance Officer and Head, Compliance & Control started his banking career in 1996 with Guaranty Trust Bank where he worked in Branch Operations. He was until recently Managing Partner for BILD professional services.

    Tunde possesses over 18 years valuable banking experience. He holds a B.Sc. Degree in Finance from the University of Lagos, Nigeria. He is an Associate Member of the Institute of Chartered Accountants of Nigeria (ACA), Associate Member of the Chartered Institute of Bankers of Nigeria (ACIB), Associate Member of the Chartered Institute of Taxation of Nigeria (ACTI) and an Associate Member of the Nigeria Institute of Management (AMNIM).

  • Ecobank, NIRSAL sign MoU on agric financing

    Ecobank Nigeria Limited and Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL) has signed a Memorandum of Understanding (MoU) signalling the beginning of a collaboration between both institutions on agri-business financing and the development of products that will support lending to actors in the agricultural value chain in conformity with Ecobank’s risk acceptance criteria and credit process.

    Under the arrangement, Ecobank has committed a portfolio of N70 billion in series that has the bank immediately releasing a lump sum of N15 billion take off funding. Ecobank and NIRSAL would jointly select and develop projects that will meet the financing needs of actors in NIRSAL’s focal commodity value chains. These include maize, soybean, wheat, cassava and cotton for industrial commodities. The list also includes consumer commodities such as hibiscus, sesame, ginger and shea, rice; controlled environment agriculture commodities including sweet potato and beans, fresh fruits and vegetables and agriculture and integrated livestock commodity. The intent of the partnership is to ensure farmers get single digit interest rates to make agriculture attractive to both the elderly and the young population.

    In his comment at the MoU signing ceremony in Lagos, Patrick Akinwuntan, Managing Director, Ecobank Nigeria Limited said the bank is actively promoting agriculture as a strategic initiative to support national development which is critical to the wellbeing of Nigerians. According to Mr Akinwuntan, Ecobank is committed to working with NIRSAL to open up the vast opportunities that abound in agriculture and to ensure citizens benefit ultimately.

    “This is a collaboration. The Federal Government had made it clear that investing in the agriculture sector is very critical for Nigeria to succeed, especially taking into consideration the natural endowment God granted us in terms of population, land and weather. We have the opportunity to make agriculture the economic spinner for Nigeria. What we are doing is to fulfil this policy direction of the Federal Government and the Central Bank of Nigeria (CBN)” he noted.

    Further, Mr Akinwuntan reiterated that “in Nigeria, Ecobank hopes to contribute positively to move the economy forward, creating employment for the teeming population through agriculture. We found a natural partner in Nirsal, as they have the requisite intellectual and technical capacity to act as meeting point for the stakeholders in the sector. The de-risking participation of NIRSAL gives us the will to provide these facilities at single digit rates at a maximum of 9% to ensure that the users are able to make profit. When our customers make profit, we are also able to make profit. So it is a win – win business for everyone”.

    Also speaking, the Managing Director of NIRSAL, Mr. Aliyu Abdulhameed revealed that under the agreement, and in line with its Mapping to Markets (M2M) strategy, NIRSAL will identify and refer structured projects to Ecobank to support the Bank’s deal origination and financing operations in agribusiness. On its part, Ecobank will finance the projects leveraging NIRSAL’s Credit Risk Guarantee (CRG) which is a further comfort for lenders to agriculture and agribusiness.

    Shedding more light on the M2M, Abdulhameed noted that the strategy is “a closed loop financing system that mandatorily operates via one bank or a consortium of banks. He added that NIRSAL will refer input and service providers under the M2M to Ecobank for account opening, hence, driving the growth of the bank’s business.

    In addition to growing the bank’s business, Abdulhameed said that NIRSAL will develop a program for training Ecobank staff on Agribusiness Finance, with emphasis on how to channel customer applications and requests for effective and streamlined agribusiness lending.

    The MoU ceremony had in attendance top executives of both institutions including Akintayo Dada, Executive Director, Corporate & Investment Banking, Biyi Olagbami, Executive Director / Chief Risk Officer and Carol Oyedeji, Executive Director, Commercial Bank, all of Ecobank Nigeria and Babajide Arowosafe, Executive Director, Technical, Eze Nwakanma​, Assistant General Manager, Agricultural Value Chain Finance & Investment Services, Ernest Ihedigbo, Head, Balance Sheet Financing & Portfolio Managementand Michael Adeoye, Head, Credit Risk Guarantee Operations and Portfolio Management, from NIRSAL Plc

  • Labour dialogues Ecobank over mass sack of contract staff

    Members of the organized labour under the aegis of the Nigeria Labour Congress (NLC) have entered into dialogue with Ecobank over the Bank’s non-renewal of the contract of its third party recruitment agencies.
    The dialogue, which commenced yesterday is expected to be completed today. A source at the meeting confirmed that officials of both bodies had fruitful discussions and was optimistic that a deal would be sealed at the end of today meeting
    It would be recalled that officials of NLC in collaboration with its affiliate Nigeria Union of Banks, Insurance and Financial Institution Employees (NUBIFIE) had picketed the head office of Ecobank on Victoria Island on Thursday over what they called non consultation before Ecobank severed relationship with the contract workers, a development they said had thrown some of their members into the labour market.
    However, Ecobank management in a statement maintained that it did not disengage its staff, stressing that the bank decided not to renew the contract of its third party recruitment agencies which expired recently and as such returned this category of personnel back to these agencies who were their employers.
    The Bank had maintained that it was part its business strategy to invest in the employment of full time graduates, as over 300 graduates were currently undergoing training at the its state of the art Academy which was recently accredited by the Chartered Institute of Bankers of Nigeria (CIBN), adding that they were to be absorbed into the system at the end of their training as permanent staff.
    The statement pointed out that “as a demonstration of the Bank’s concern and compassion for the affected personnel of our contractors, palliative measures were put in place by the Bank to cushion the effect on them: These include payment of contract cessation packages of over half a billion Naira already paid through their employers as well as opportunity given to those with requisite qualification to apply to the Bank for permanent employment.”
    It added that the Bank also offered them the opportunity to become Xpress point agents of Ecobank as a way of further providing them entrepreneurial and financial empowerment.
    The Bank further reiterated that it would continue to align its people composition, development, recognition and rewards to position us as best practice service model in the industry, delivering superior customer service and experience across our network.

  • Retrenchment: We why didn't renew contracts of affected staff – Ecobank

    …says over N500m paid as severance packages and other palliative measures
    The management of Ecobank on Wednesday explained why it did not renew contracts of its Vendor Managed Personnel.
    Recall that TNG exclusively reported on Tuesday that over 1,500 staff were affected by the bank’s recent retrenchment exercise. However, the bank in a statement on Wednesday said it did not disengage its staff but decided not to renew the contract of its third party recruitment agencies which expired recently and as such returned this category of personnel back to these agencies who are their employers.

    Investigations by TNG revealed that Ecobank has working relationships with three outsourcing firms; ICS, VLA and L&B. Findings also showed that the bank is gradually winding down partnerships with the outsourcing firms with its recent launch of its academy to train fresh graduates for subsequent direct employment into the system. Hence, the massive termination of appointments of staff earlier recruited by the outsourcing firms.

    According to the bank, 332 graduates are currently undergoing intensive training at Ecobank Academy in preparation for full employment into Ecobank Nigeria. The programme combines the three categories of Entry Level, Graduate and Management Trainees with a program duration of 2months, 12months and 21months respectively.

    It however said the affected staff have been duly paid their severance package to the tune of over a billion naira through their respective recruitment agencies. The bank also said qualified affected staff can reapply for direct employment to the bank.
    Read the bank’s full statement below:

    Media Statement

    Cessation of Contract Engagement of Vendor Managed Personnel

    1. Ecobank Nigeria did not disengage its staff. The bank decided not to renew the contract of its third party recruitment agencies which expired recently and as such returned this category of personnel back to these agencies who are their employers.

    1. As a demonstration of the Bank’s concern and compassion for the affected personnel of our contractors, palliative measures were put in place by the Bank to cushion the effect on them: These include payment of contract cessation packages of over half a billion Naira already paid through their employers as well as opportunity given to those with requisite qualification to apply to the Bank for permanent employment.

    1. In addition, the Bank has offered them the opportunity to become Xpress point agents of Ecobank as a way of further providing them entrepreneurial and financial empowerment.

    1. May we state that Ecobank is not obligated to renew its contract with the service providers involved.

    1. As part of the Bank’s business strategy, the bank is investing in the employment of full time graduates and as such over 300 graduates are currently undergoing training at the Bank’s state of the art Academy which was recently accredited by the Chartered Institute of Bankers of Nigeria. They are to be absorbed into the system at the end their training as permanent staff.

    1. The Bank would continue to align its people composition, development, recognition and rewards to position us as best practice service model in the industry, delivering superior customer service and experience across our network

    Thank you

    Ecobank Management

     

  • EXCLUSIVE: Ecobank commences nationwide retrenchment exercise, over 1,500 staff affected

    …affected staff duly compensated – Ecobank insists

    The management of Ecobank Plc last week Friday laid off over 1,500 staff on its pay roll, TNG can authoritatively report.

    According to one of the affected staff who confided in TNG, the mass retrenchment started last Friday (July 5) across the bank’s branches nationwide and affected mostly tellers and cashiers.

    “I’m devastated as I speak to you. I came in via an outsourcing company some three years ago. I was posted to one of the branches in Abuja and things have been smooth until last week Friday. I have no inkling whatsoever that I will return home jobless when I left for work last Friday. There was no body language whatsoever or sign to show that the bank was going to embark on such retrenchment spree. We were served our disengagement letters shortly after close of work on Friday,” one of the affected staff in Abuja told TNG on phone.

    Another affected staff in Lagos who spoke with TNG on condition of anonymity said they received text messages from the bank notifying them of the impending sack: “I’ve read stories of how banks forcefully disengage staff and up till last week, I had stubbornly defended Ecobank as the only bank in Nigeria that does not engage in such abusive corporate ideologies. I didn’t know that my sack letter was already being typed and was ready for disbursement. On that fateful day, a non pre-informed message of contract termination was sent to every cashiers/tellers that have spent three years and above in the bank. I had just spent five years with the bank and was even hopeful of a promotion anytime soon. But to my greatest surprise, I got fired instead. However, the most painful part of the whole unlawful retrenchment was the obvious fraud perpetrated by the bank in connivance with the outsourcing firms. The severance package was an embarrassment compared to the years of hardwork we have put in. Contract staff who worked for 13 years received less than N600,000:00 while core staff who worked for less than six years were paid not less than two million naira and above. You can see the discrepancies. But the bank will soon hear from us. I heard the sack is nationwide. We won’t take it likely. We are already organising ourselves to protest and seek redress legally. If other banks did this and nothing happened, Ecobank won’t,” the lady said furiously.

    However, a senior staff of the bank who spoke on condition of anonymity because he was not in position to do so said the bank was professional in disengaging the affected staff. He noted that the severance package were duly paid to the outsourcing firms.

    Investigations by TNG revealed that Ecobank has working relationships with three outsourcing firms; ICS, VLA and L&B. Findings also showed that the bank is gradually winding down partnerships with the outsourcing firms with its recent launch of its academy to train fresh graduates for subsequent direct employment into the system. Hence, the massive termination of appointments of staff earlier recruited by the outsourcing firms.

    According to the bank, 332 graduates are currently undergoing intensive training at Ecobank Academy in preparation for full employment into Ecobank Nigeria. The programme combines the three categories of Entry Level, Graduate and Management Trainees with a program duration of 2months, 12months and 21months respectively.

    The Managing Director of the bank, Mr Patrick Akinwuntan during the graduation of one of the trainee batches said the trainee programme initiative is part of Ecobank’s transformation agenda to make the bank a most preferred financial institution in the country.

    “This programme is our own way as a bank to invest in creating future leaders for the Nigerian banking industry. We are investing in the people to accomplish our vision both as a bank and a country. A key success factor of any bank is capital; and we must therefore train those who will be empowered to oversee this capital and put it to good use in the interest of depositors and investors. Staff of banks must be well trained and knowledgeable so that they can ensure that funds in the banks are effectively deployed. For us at Ecobank, we must also ensure that we deliver on our promise as a financial institution of choice not only in Nigeria, but the whole of Africa. We therefore take the development of adequately trained manpower as a “must do” in striving to achieve our goals”.

  • Investors oversubscribe Ecobank $450m Eurobond

    Investors oversubscribe Ecobank $450m Eurobond

    The debut $450 million Eurobond recently issued by Ecobank Transnational Incorporated was oversubscribed by investors, the company has disclosed.

    The money was raised to assist the Lomé-based parent company of the Ecobank Group to meet its general corporate purposes and to refinance existing Holdco obligations.

    The Global Offering is a 5-year unsecured note (144A/RegS) listed on the main market of the London Stock Exchange (LSE) and the bond will mature in April 2024.

    The lender said it issued the notes with a coupon pricing of 9.5 percent with interest payable semi-annually in arrears.

    On Thursday renowned rating agency, Fitch, assigned a ‘B’ rating on the debt instrument.

    In a statement issued by Ecobank Thursday, it said subscriptions were received from investor across the globe, including United Kingdom, United States, Europe, the Middle East, Asia, and Africa.

    “This is another first for Ecobank and I’m very excited at the prospects for the Group as we continue the second phase of our 5-year ‘Roadmap to leadership’ strategy.

    “Our efforts toward greater operational and capital efficiency are paying off, and this offer is another example of the measures we are taking to strengthen our institution and deliver value for all of our stakeholders,” Group CEO of Ecobank, Mr Ade Ayeyemi, said.

    The Group Chief Financial Officer, Mr Greg Davis, noted that, “The success of this Eurobond reflects appetite from high quality and real money institutional investors globally and the trust that continues to be conferred on our institution and the markets we have chosen to participate in.”