The Central Bank of Nigeria (CBN) yesterday made good its threat to publish names of non-performing debts – owed mostly by politicians, entrepreneurs, and shareholders/directors – whose companies secured loans totaling N450 billion from five banks. View the latest list.
The banks – Bank PHB Plc, Equitorial Trust Bank (ETB), Spring Bank Plc, Wema Bank Plc, and Unity Bank Plc – were those found wanting in the last round of the audit exercise embarked on by the Central Bank of Nigeria (CBN).
This culminated in the sacking and replacement of the managing directors and executive directors of the first three banks said to be in “grave situation” two weeks ago.
The Central Bank of Nigeria (CBN) asked the two other banks to recapitalize by June 2010.
The chief executives of the five banks are said to be having challenges in their debt recovery drive. Consequently, the bank CEOs pressurized the CBN into publishing the latest list in a bid to compel the bank debtors to pay up.
On August 19th, 2009, the Central Bank of Nigeria (CBN) published the names of debtors (who owed N747 billion) of the initial five banks (Afribank, Oceanic Bank, FinBank, Intercontinental Bank and Union Bank) which had their CEOs sacked on August 14.
Over N100 billion has since been recovered from the debtors of these banks.
A breakdown of the loans, which are classified as non-performing in the latest list, is as follows: Bank PHB, N170 billion; Spring Bank, N95 billion; Equitorial Trust Bank (ETB), N46 billion; Unity Bank, N37 billion; and Wema Bank, N101 billion.
Some of the biggest debtors to Bank PHB are one of its subsidiaries – Platinum Capital, which secured N11 billion; Akara Overseas Development owned by Prince Oyedele – N10 billion; N6.3 billion by Hometrust Savings and Loans owned by Yomi Disu, Funmi Ademosun, and Tony Ubogu, while N16.7 billion is owed by Falcon Securities owned by Peter Okolo, currently on trial over his company’s N88 billion exposure to three other banks (Afribank, FinBank and Union Bank). Okolo’s other company – Peterson Oil and Gas also owes N4.5 billion. Also included is Femi Otedola’s Zenon Oil, which owes N5.2 billion.
At Equitorial Trust Bank (ETB), Conoil owes N19.8 billion; Bayelsa state – N5.97 billion; Globe Motors, which has Williams Anumudu as one of its directors – owes N3.032 billion; Premium Seafoods, which has Sunil Vaswani as a director, owes N3.321 billion, while Dangote Group owes N1.96 billion.
Prominent among the debtors of Spring Bank are three companies, National Sports Lottery – N4.12 billion; NSL Lotteries Management Ltd – N3.32 billion and Victoria Construction International Ltd – N1.58 billion.
Also indebted to Spring Bank to the tune of N7.874 billion are two companies, Netlink Digital TV and Mofas Shipping Line, owned by Otunba Oyewole Fasawe, while Metro Energy & Gas Ltd in which prominent politician – Tony Anenih – is a director owes N2.06 billion.
Major debtors to Unity Bank are Alpha Property Development Company, which owes N1.8 billion. Alhaji Kashim Ibrahim is a director of Alpha Property Development Company. Kola Abiola is also said to be owing Unity Bank N1.4 billion, while Albarka Air Services, which has Mohammed Buba Marwa, as one of its directors, is indebted to the tune of N1.1 billion.
Plateau and Bauchi states also owe Unity Bank N865 million and N676 million respectively.
Some of the principal debtors to Wema Bank include some of its subsidiaries – Independent Securities Ltd – N25 billion; Wema Asset Management – N10 billion; and Wema Securities – N2.2 billion. Additional Wema Bank debtors are Transcorp – N16.6 billion; Suffolk Engineering & Construction, owned by Admac Industry Ltd and Henry Macpepple, owes N4.6 billion. Odua Investment – N1.7 billion; and Jimoh Ibrahim’s Global Fleet – N3 billion.
View the complete list (PDF) | Read more on Banking in Nigeria
Central Bank of Nigeria (CBN) | Bank PHB | Spring Bank | Equitorial Trust Bank | Wema Bank | Unity Bank
Source(s): Central Bank of Nigeria (CBN) | Proshare News
