TheNewsGuru

Tag: Fidelity Bank

  • Fidelity bank reacts to bankruptcy reports

    Fidelity bank reacts to bankruptcy reports

    Fidelity Bank, Nigeria’s commercial bank, has dismissed reports alleging that its financial standing was shaky and facing bankruptcy.

    TheNewsGuru reports that the bank’s dismissal comes after reports alleged that a court judgment against it would affect its financial standing.

    Reacting, the bank, in a statement assured its customers and investors that its financial standing poses no challenge.

    On the court judgement, the bank said its legal team is studying the judgement given. Fidelity assured its customers and investors that it remains capable of meeting its obligations.

    It read: “We would like to address recent misleading reports regarding a court judgment involving the defunct FSB International Bank, which have wrongly suggested that Fidelity Bank is facing bankruptcy. These claims are unfounded, and we want to assure our customers, investors, and the public that Fidelity Bank remains financially strong, profitable, and fully capable of meeting all its obligations.

    “The issue stems from a legacy transaction from 2002, in which FSB International Bank provided a loan to G. Cappa Plc. The case has undergone extensive legal processes, and we are currently seeking clarification on the judgment to ensure that the financial implications are correctly understood.

    “We take these malicious reports seriously and are committed to protecting our bank’s reputation and the interests of our stakeholders. Rest assured, Fidelity Bank continues to operate as one of Nigeria’s most capitalized financial institutions, with no risk of bankruptcy. Our Q1 2025 financial results clearly demonstrate our robust position.

    “We remain focused on our core values and are fully dedicated to supporting our customers and communities. Thank you for your continued trust in Fidelity Bank.

  • FG fines Fidelity Bank N555.8m

    FG fines Fidelity Bank N555.8m

    The Nigeria Data Protection Commission (NDPC) says the Federal Government has fined Fidelity Bank Plc. N555,800,000 for data breaches.

    National Commissioner of NDPC, Dr Vincent Olatunji, said this at the Nigeria Data Protection (NDP) Act General Application and Implementation Directive (GAID) validation workshop in Abuja.

    Olatunji recalled that President Bola Tinubu signed the NDP Act into law on June 12, 2023, thereby empowering the Commission to enforce compliance of data protection on organisations by way of fines and other means.

    He said that the commission commenced an investigation into Fidelity Bank in April 2023 and, upon conclusion, found that it defaulted.

    “The penalty is huge if you don’t comply; penalties can range from N10million to even up to two per cent of the organisation’s annual gross income for the previous year.

    “Most of the breaches we have treated, we look at the level of the breach, the impact, the number of data subjects affected and the level of cooperation that is involved.

    “Since we started, the only time we issued a major penalty was yesterday on Fidelity Bank; a fine of N555,800,000 after we observed some breaches.

    “We have been working with them since April 2023 on the investigation and, by the time we finalised, we decided to issue a full penalty on them, which is about 0.1 per cent of the gross earnings for 2023.”

    Olatunji also explained that the Commission was engaging with stakeholders across board and collating their input which would form the final guide document.

    He recalled that a similar workshop was held in Lagos on June 19 for about 70 per cent of data protection organisations in the private sector.

    “We want to ensure everyone is involved in what we are doing and, by the time the document is out, we will all see that we have been able to make our own input; it is just an extension of the law.

    “We will look at the relevance of the inputs and use them to develop a standard document that can be of global standard.”

    He said the commission was deploying a Public Private Partnership model to ensure compliance with data protection.

    “We have licenced about 194 professionals on data protection.

    “The licenced data protection professionals go round organisations and take them through compliance in terms of crafting their privacy policy.

    “They help in creating awareness within the organisations, letting them know their obligations under the law and carrying out data protection impact assessments.

    “They train the staff, register them with us and submit their annual report to the NDPC; with this, we will know the level of compliance.”

    The commissioner noted that the successful implementation of the NDP Act GAID required collaborative efforts among all relevant stakeholders, organisations, businesses and data protection professionals.

    He, therefore, called for constant dialogue and communication with the Commission in implementing the NDP Act GAID.

    “Collaborative efforts will foster a data ecosystem that respects privacy and protects personal data subjects,” Olatunji said.

  • Fidelity Bank gets $40m support to acquire Union Bank UK

    Fidelity Bank gets $40m support to acquire Union Bank UK

    Afreximbank said it has disbursed 40 million dollars Intra-African Investment Facility to Fidelity Bank Nigeria Plc to support Fidelity Bank’s acquisition and recapitalisation of Union Bank United Kingdom.

    A statement issued by Mr Vincent Musumba, Manager, Communications and Events, Afeximbank, on Monday said the acquisition was part of Fidelity Bank’s international expansion.

    Musumba said the facility was provided in two tranches of 20 million dollars each.

    He said the first tranche of the facility enabled Fidelity to part-refinance the acquisition of a 100 per cent equity stake in Union Bank UK.

    Musumba said the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator.

    “With this acquisition, Fidelity Bank can birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora.

    “The acquisition is expected to contribute to Africa’s economic growth and development by increasing intra- and extra-African trade finance and trade flows between Nigeria and the UK.

    “It will also support the integration of the African Diaspora into regional and continental supply chains and enable small and medium-sized enterprises across the continent to improve their export competitiveness and light export manufacturing capabilities.”

    Musumba quoted Kanayo Awani, Executive Vice-President, Intra-African Trade Bank and Export Development Bank, Afreximbank, as saying the disbursement of the facility was part of Afreximbank’s effort to promote African control and ownership of capital while improving intra-African trade and investments.

    “Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for the institutions, reinforcing African ownership and control within the global financial landscape.

    “By supporting this strategic transaction, we are not only bolstering Nigeria’s banking sector but also fostering greater financial integration between Africa and its Diaspora.”

    Awani said the initiative was a testament to Afreximbank’s commitment to enhancing intra-African trade, promoting economic stability and driving forward the objectives of Agenda 2063 for a prosperous and self-reliant Africa.

    She said Afreximbank’s bank acquisition strategy, empowered African entities to acquire financial assets, divested by foreign entities in Africa and the diaspora.

    “This is also in line with the bank’s Diaspora Strategy which seeks to promote and finance the integration of the African Diaspora with the rest of the continent.”

    Awani said through the facility, Fidelity was extending its services to the UK, in particular, to Africans and African-owned businesses in the UK, including products to support diaspora investments.

    Musumba quoted Dr Nneka Onyeali-Ikpe, Managing Director/CEO, as saying, we are very thankful to Afreximbank for supporting our expansionary initiatives for international growth.

    “It is, indeed, the result of a strong partnership between the two institutions over the years that has produced this good outcome.

    “The refinancing of the Union Bank (UK) acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will support trade businesses in Africa and diaspora banking.”

  • Alleged N6bn laundering: Fidelity bank staff testifies against Mompha

    Alleged N6bn laundering: Fidelity bank staff testifies against Mompha

    A Fidelity Bank  compliance officer, Mr Ezekoli Ozoemenam, on Monday testified  against a social media celebrity, Ismaila Mustapha (alias Mompha) charged with six billion Naira money laundering.

    Ozoemenam, the fourth prosecution witness, was led  in evidence by the Economic and Financial Crimes Commission (EFCC) counsel, Mr Suleiman Suleiman.

    The witness testified about the package of an account of the bank allegedly  linked to Mompha.

    The witness said that EFCC requested the account’s opening package and he responded to it.

    “This is the Fidelity Bank opening package of the account that I sent to EFCC.

    “It was printed from a perfectly working computer,” he said.

    The prosecution, thereafter, tendered the document and prayed the court to admit it in evidence.

    Defence counsel, Mr Kolawole Salami, told the court that he reserved his objection to the tendering of the document in evidence.

    During cross-examination of the witness, Salami asked the witness whether he knew the branch of the bank  in which the account was opened.

    Salami also asked the witness  if he was working at the bank’s headquarters at the time the account was opened in 2016.

    The witness replied in the negative, adding that he was not at the headquarters.

    “As at the time the account was opened, I was not at the headquarters.

    “I was part of the internal control, and I moved from branch to branch, but I cannot remember which branch I was at, when the account was opened.

    “Anomalies in bank accounts are reported to the Nigerian Financial Intelligence Unit (NFIU) and not EFCC but I do not know if the account was ever reported to  NFIU.

    “I cannot speak to the nature of the transactions conducted through the account as I am not the relationship manager,” the witness said.

    Counsel to EFCC, thereafter, appealed to the court for a witness summons to compel appearance of EFCC’s next witness.

    The counsel  said that he needed the witness summons because the witness complained of feeling unsafe and receiving threats to his life.

    Justice Mojisola Dada, however, said that it was the duty of prosecution to ensure appearance of its witnesses in court.

    Dada  said: “There is no special cause placed before the court to warrant a witness summons.

    “I do not know what position he is occupying that will make him feel threatened.

    “If EFCC cannot secure his protection, how does a witness summons guarantee his protection?” the judge asked.

    The News Agency of Nigeria (NAN)  reports that Mompha is currently at large.

    His trial in absentia started on June 3, 2023 when a compliance officer with Access Bank testified against him.

    The court, on Sept. 21 2022, ordered  commencement of Mompha’s trial in absentia after he failed to appear before it severally.

    EFCC had, on Jan. 22, 2022, arraigned Mustapha alongside his company, Ismalob Global Investment Ltd., on eight counts bordering on six billion Naira laundering.

    The court, on June 22, 2022, issued a bench warrant for his arrest following his absence in court.

    The court also revoked bail it granted the defendant.

    The social media celebrity was equally absent in court on June 26, 2022.

    On  July 10, EFCC accused him of flouting the court’s order by travelling to Dubai with a new international passport.

    The charges against Mompha include conspiracy to launder money obtained through unlawful activities and laundering of money obtained through unlawful activities.

    The others are retention of proceeds of criminal conduct, use of property derived from an unlawful act, possession of a document containing false pretences, and failure to disclose assets.

    The judge adjourned the case until July 1 for continuation of trial.

    NAN

  • SOLIDARITY: Labour Party presidential candidate, Peter Obi thanks “OBIdient Family” in Calabar

    SOLIDARITY: Labour Party presidential candidate, Peter Obi thanks “OBIdient Family” in Calabar

    The Labour Party presidential candidate, Peter Obi, has thanked the OBIdient Family in Calabar, Cross River State, for their show of love and solidarity during his visit.

     

    Obi, on Saturday visited Owerri, Imo state capital to commission a campaign house donated by a member of the party.

     

    He was received amidst cheers from the waiting crowd.

     

    In Calabar, the Cross River state capital, many Nigerians in unprecedented numbers marched around the city and created awareness of the labour movement.

     

    In a post on his Twitter page on Sunday, Obi wrote, “To the millions of young people in our country who have continued to advance the cause of our OBIdient Movement, I say Thank you.

     

    “To our OBIdient Family in Calabar, Cross River State; your show of love and solidarity to the movement yesterday have added so much courage and greater zeal to our common mission.

     

    “United together, we will take back our country from bad governance, and institute true and diligent leadership and sustainable development.

     

    “It is our journey, and we will never labour in vain. Nigeria’s Democracy must survive.  -PO”.

     

    He said the passion shown by the youths who are members of the movement was a source of inspiration for his presidential ambition.

     

    The former Anambra State Governor stated this in appreciation of the Saturday’s rally by his supporters in Calabar, Cross River State.

     

    He added that with the unity of purpose shown by his supporters behind the movement, they are poised to tack back the country from bad governance.

     

    Obi is a Nigerian businessman and politician who served as Governor of Anambra from March to November 2006, February to May 2007, and from June 2007 to March 2014. In May 2022, he became the Labour Party nominee for President of Nigeria in the 2023 presidential election.

     

    He was born in Onitsha and graduated from the University of Nigeria in 1984.

     

    Afterwards, he entered business and banking, eventually rising to hold several high-ranking executive positions at banks.

     

    By the early 2000s, Obi was the chairman of Fidelity Bank before leaving the position to enter politics. Obi ran for governor in 2003, as a member of the All Progressives Grand Alliance but his main opponent was unlawfully declared victor.

     

    After three years of legal battles, Obi was declared winner in 2006 and assumed office in March, 2006. He was then impeached that November before the impeachment was overturned and he returned to office in February 2007.

     

    Again, Obi was removed when a new election was held in April 2007 but the judiciary intervened again and ruled that he should be allowed to complete a full four-year term. In 2010, he won re-election to a second term.

     

     

  • We’ll ensure changes in DisCos don’t disrupt service – FG

    We’ll ensure changes in DisCos don’t disrupt service – FG

    The Minister of Power, Mr Abubakar Aliyu says the ministry will ensure that the changes in corporate governance do not impact on the service and stability of the  Distribution Companies (DisCos).

    Mal Isa’ Sanusi, Special Adviser  on Media to the Minister of Power,  made this known in a statement in Abuja on Wednesday.

    Sanusi said that the minister had reassured electricity consumers that the recent changes in the governance of the DisCos would not adversely impact on the ongoing reform initiatives including the National Mass Metering Programme.

    He  said that the minister had been briefed by the Nigerian Electricity Regulatory Commission (NERC) and Bureau of Public Enterprise(BPE)
    on the recent events relating to
    corporate governance in Kano, Benin, Kaduna, lbadan and Port Harcourt   DisCos.

    Sanusi said that the event had necessitated a change in the respective Board of Directors and Management of the DisCos.

    According to him, the changes announced was as a result of the receivership of the core investors in Kano, Benin, Kaduna and lbadan DisCos.

    ”Whereas the actions in Port Harcourt DisCo are sought to provide much needed liquidity and prevent the insolvency and risk of collapse of the utility in implementing the changes.

    Sanusi affirmed  that while the  Government continue to hold a 40 per cent equity stake in all the DisCos.

    “The utilities are still private sector led “going concerns” falling under the
    provisions of the COMPANIES AND ALLIED MATTERS ACT (CAMA) and subject to regulation by the Nigerian Electricity Regulatory Commission (NERC).

    ”The ministry had received a confirmation from the Bureau of Public Enterprise (BPE) and the Central Bank of Nigeria that in exercising the rights of lenders to the core investors.

    ”The financial institutions do not retain the ownership of the shares and management of the DisCos in perpetuity.

    ‘It is therefore expected that clear timelines for exit of the banks would be prescribed by the regulators as and when appropriate,” he said.

    Recall that Fidelity Bank said it planned to take over the boards of Kano, Benin and Kaduna Distribution Companies (DISCOs) and to collateralize their shares.

    The Director-General of  BPE, Alex Okoh, and the Executive Chairman, Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba said this in a joint statement on Wednesday in Abuja.

    “Today, we were informed by Fidelity Bank that they have activated the call on the collateralised shares of Kano, Benin and Kaduna (Fidelity and AFREXIM) DISCOs.

    “They have also initiated action to take over the Boards of these DISCOs and exercise the rights on the shares.

  • Fidelity bank set to take over boards of Kano, Benin, Kaduna DISCOs

    Fidelity bank set to take over boards of Kano, Benin, Kaduna DISCOs

    Fidelity Bank said it planned to take over the boards of Kano, Benin and Kaduna Distribution Companies (DISCOs) and to collateralise their shares.

    The Director-General, Bureau of Public Enterprise (BPE), Alex Okoh, and the Executive Chairman, Nigerian Electricity Regulatory Commission (NERC), Sanusi Garba said this in a joint statement on Wednesday in Abuja.

    “Today, we were informed by Fidelity Bank that they have activated the call on the collateralised shares of Kano, Benin and Kaduna (Fidelity and AFREXIM) DISCOs.

    “They have also initiated action to take over the Boards of these DISCOs and exercise the rights on the shares.

    “Fidelity Bank’s action is a contractual and commercial intervention and is between the Core Investors in the DISCOs and the lender.

    “BPE is involved because of the 40 per cent shareholding of the government in the DISCOs.’’

    According to the statement, the new board members of the affected Kano DISCO are, Hasan Tukur, as Chairman, Nelson Ahaneku, and Engr. Rabiu Suleiman as members.

    It said Benin DISCO would have K.C. Akuma, as the Chairman, Adeola Ijose and Charles Onwera as members.

    The statement said Kaduna DISCO would have Abbas Jega as Chairman, Ameenu Abubakar and Marlene Ngoyi as members.

    It said BPE had nominated Bashir Gwandu (Kano), Yomi Adeyemi (Benin), and Umar Abdullahi (Kaduna) as independent directors to represent the government’s 40 per cent interest in the three DISCOs respectively during the transition.

    “We are engaging with the Central Bank of Nigeria (as the banking sector regulator) to ensure an orderly transition and to ensure that Fidelity Bank does not hold the DISCOs’ shares in perpetuity.

    “It is envisaged that the majority interest in the entities would be sold to capable private sector investors willing and able to re-capitalise and manage the entities efficiently.

    “We have also received assurances that Fidelity Bank will participate fully in all the ongoing market initiatives aimed at improving the sector (National Mass Metering Programme).’’

    The statement said in the interim, NERC and BPE met on an emergency basis and activated the Business Continuity Process and appointed interim Managing Directors in the affected DISCOs.

    They are Ahmad Dangana, Kano Disco, Henry Ajagbawa, Benin Disco, and Yusuf Yahaya, Kaduna Disco.

    “Also, with the takeover of Ibadan DISCO by AMCON, the BPE has obtained approval from NERC to appoint Kingsley Achife as the interim managing director.

    “In a temporary capacity, the leadership of AMCON will be a placeholder board for the Ibadan franchise.

    “Ahmed Kuru will chair the board, Eberechukwu Uneze and Aminu Ismail as members, while Oluwaseyi Akinwale will represent the interest of the government on the board alongside the director-general of BPE.

    “Lastly, we are re-structuring the Management and Board of Port Harcourt DISCO to forestall the imminent insolvency of the entity.

    “As a condition for support to the entity to meet its market obligations, Iboroma Akpana will take over as the Chairman of the Board. Emmanuel Okotete, Eyo Ekpo, Ismaila Shuaibu and the director-general of BPE will form the interim Board. ‘’

    It said Mr Benson Uwheru would take over as the Managing Director of PHEDC as part of the changes.

    According to the statement, the government will support the activation of emergency funds through the Nigerian Electricity Market Stabilisation Facility.

    This according to the statement is to support the entity, while it goes through restructuring and repositioning to serve the citizens of the franchise area better.

    “We are working with the Minister of Power to ensure no service disruptions during these transitions.

    “We remain committed to supporting the Nigerian Electricity Supply Industry to serve Nigerians better,’’ it said.

  • UPDATE: Further evidence reveals how 4 staff compromised Fidelity Bank database

    UPDATE: Further evidence reveals how 4 staff compromised Fidelity Bank database

    Further evidence has revealed how four (4) staff of Fidelity Bank Plc, Olusegun Babasola, Abisola Ahmed, Uchechukwu Uma, Jude Aphaeus compromised the database of the bank to steal N874 million.

    TheNewsGuru.com (TNG) reports the four staff connived with a non-staff of the bank identified as Omidiji Joseph to steal the N874 million belonging to five corporate customers of the bank.

    They hacked into the database of Fidelity Bank and cloned more than 22 ATM cards used to steal and divert the N874 million for personal use.

    Presenting a third witness against the 4 Fidelity Bank staff in the ongoing trial, the Economic and Financial Crimes Commission (EFCC) tendered a DVD of the CCTV footage of the bank as evidence.

    Babasola, Ahmed, Uma, Aphaeus, and Joseph are being prosecuted for the alleged N874 million fraud before Justice Oluwatoyin Taiwo of a Special Offences Court sitting in Ikeja, Lagos State.

    The defendants are being prosecuted by the EFCC on two counts for their various roles in the hacking of the bank’s database and cloning of more than 22 ATM cards used to steal and divert to personal use about N874 million belonging to American International Insurance Company Limited (AIICO), Interswitch, OVH Energy Marketing Ltd, Fidelity Bank sinking fund account and FSL Securities Ltd.

    They had pleaded “not guilty” to the charges, prompting their full-blown trial.

    At today’s proceeding, the third prosecution witness, Chimdinma Peter, an operative of the EFCC narrated to the Court the findings of the EFCC’s investigation into the alleged fraud.

  • How Fidelity Bank’s database was hacked with N870 million stolen in 3 days

    How Fidelity Bank’s database was hacked with N870 million stolen in 3 days

    Four staff of a commercial bank in Nigeria known as Fidelity Bank have compromised the database of the bank, stealing a total of N870 million in three (3) days.

    TheNewsGuru.com (TNG) reports a witness presented by the Economic and Financial Crimes Commission (EFCC) made this known in the prosecution of the four staff at the Special Offences Court sitting in Ikeja, Lagos on Wednesday.

    The four staff of Fidelity Bank Nigeria being prosecuted for the alleged N874m fraud before Justice Oluwatoyin Taiwo are Olusegun Babasola, Abisola Ahmed, Uchechukwu Uma and Jude Aphaeus, who are the defendants in the case.

    The defendants alongside one Omidiji Joseph are facing a two-count charge for their various roles in the hacking of the bank’s database and cloning of more than 22 ATM cards used to steal and divert to personal use about N874 million belonging to five corporate customers.

    TNG reports the five corporate customers are American International Insurance Company Limited (AIICO); Interswitch; OVH Energy Marketing Ltd.; Fidelity Bank Sinking Fund Account and FSL Securities Ltd.

    The fraud was allegedly perpetrated within three days, according to the second prosecution witness (PW2), Peter Ige, an Information System Auditor with Fidelity Bank.

    However, the defendants pleaded “not guilty” to the charges, prompting their full-blown trial.

    At Wednesday’s proceedings, Ige narrated how his Department had been called upon to investigate the “massive fraud”.

    Led in evidence by the prosecuting counsel, Nnaemeka Omewa, the witness identified the four staff of the bank in the dock and gave details of the findings of the internal investigation carried out by his team.

    “On 15 July, 2019, as a System Auditor, my team was called upon to look at an instant of ATM fraud reported to the Internal Audit and to investigate same,” Ige said.

    The witness further told the court that the team reviewed the systems, the affected accounts as well as those who must have carried out the activities on the accounts.

    He also told the court that “We observed that the accounts were linked to a set of ATM cards, with their daily withdrawal limits increased from N150,000 to about N150million.”

    He further told the court that the permitted frequency of withdrawal was also increased, adding that “This was very abnormal; and so, it aided the commission of the fraud.”

    The PW2 also stated that the investigation focused on the members of staff who had authorised privilege and login details to view the accounts of customers and also increase such frequency and limits on withdrawals.

    According to him, “Normally, there should be a request either from the customer or another department requesting the services.

    “In this case, from our investigation conducted, there was no evidence provided by the defendants to go into these accounts.”

    He told the court that after the investigation by his Department, an activity log was compiled, which formed part of the internal investigation.

    TNG reports the trial of the case continues today.

  • Diezani: EFCC uncovers additional $72.87m in Fidelity Bank

    Diezani: EFCC uncovers additional $72.87m in Fidelity Bank

    The Economic and Financial Crimes Commission (EFCC), said it has has uncovered additional $72.87 million linked to former petroleum minister Diezani Allison-Madueke.

    Mr Wilson Uwujaren, spokesperson for the commission, said on Wednesday in Abuja that a former Managing Director of Fidelity Bank Plc, Mr Nnamdi Okonkwo, has been arrested in connection with the money.

    Uwujaren who said that the money was lodged in the coffers of the bank, added that Okonkwo’s arrest was part of ongoing investigations on the former minister.

    According to him, Okonkwo, who is currently the Chairman of First Bank Holding, alongside others, had earlier been grilled over $153 million and $115 million by the commission.

    “While all the $153 million were recovered by the EFCC, the cases involving $115 million, as it relates with the Independent National Electoral Commission (INEC) bribery matter, are in various courts.

    “Okonkwo and Charles Onyedibe are currently being detained by the EFCC over the whereabout of the new $72.87 million, ” he added.