Business
Shareholders seek return of nationalised banks, call for thorough investigation
… Nationalised banks characterised by corruption
.. No due process was followed
… Keystone Bank sale to take effect October/Nov
Ahead of the sale of the last nationalised bank (Keystone Bank Limited ) by Assets Management Corporation of Nigeria (AMCON), fresh facts seem to have emerged as shareholders have called on the incoming government led by President elect, General Mohammadu Buhari to revisit the issue of the three nationalized banks, stating that the exercise was not transparent and characterized by corruption.
Meanwhile, AMCON’s spokesperson, Mr. Kayode Lambo confided in Vanguard that the sale of Keystone Bank will commence this year, 2015 contrary to earlier 2014 being speculated. The corporation will start the process of selling the bank with the appointment of financial advisers and will be fast tracked. So it is likely that the sale may be completed between October and November 2015.”
Meanwhile, AMCON has so far sold Mainstreet Bank and Enterprise Bank to Skye Bank and Heritage Bank respectively.
In an exclusive chat with Vanguard, the Chairman, Progressive Shareholders Association of Nigeria, PSAN, Mr. Boniface Okezie , who spoke the minds of his members said “ We thank God that Keystone Bank, whose case is still in court over nationalisation has not been sold yet . We have more facts on this issue and we want proper investigation on it by the new government. Also, investigation had shown that one of the reasons why retail investors had shown apathy to the Nigerian stock market since the meltdown in 2009 was because of the issue of nationalized banks. The retail investors suffered for the loss of their investment in these banks. If the new government wants increased participation of local investors in the market, then it should investigate the issue of the nationalized banks. “
Continuing, he said “If the issue is investigated properly, the government will discover discrepancies in the handling of the issue and it will be proper if the banks are returned to their former shareholders or in the worst situation compensation be made to the shareholders. This step, if carried out would enhance confidence and engender the participation of local investors in the capital market. So we are using this opportunity to call on the incoming government to revisit the nationalisation of the three banks whose licences were revoked by the Central Bank of Nigeria, CBN and acquired by Nigeria Deposit Insurance Corporation, NDIC and then finally taken over by AMCON .
He contended that due process was not followed as the exercise was characterized by corruption, adding “The nationalization of these banks amounted to unlawful compulsory acquisition of our investment and is therefore unconstitutional, arbitrary, null and void. We have fresh facts at our disposal and we would like the new government to investigate this issue. Thank God, Keystone Bank has not yet been sold.”
Speaking as well on the issue of nationalized banks, Chairman of Nigeria Shareholders Solidarity Association, NSSA, Chief Timothy Adesiyan said “ Nationalisation of these banks is a big fraud and need to be revisited for true justice to prevail.
According to him “Shareholders are not happy with the CBN when it forcefully nationalized three banks belonging to us .The question is, are the three banks doing well since they were taken over by AMCON ? The answer is no. Then, what is the essence of nationalizing them. We the shareholders of these banks were shortchanged and we would like the issue to be revisited and investigated because we like justice to prevail. When two elephants are fighting it is the grass that suffers.”
Speaking on the issue, the National Co-ordinator, Independent Shareholders Association of Nigeria, Sir Sunny Nwoasu said “The establishment of AMCON was intended abinitio to re-rationalise banks and rape shareholders, the idea was an “empty boast geared towards shortchanging shareholders, to enable them give the banks to their friends. The revocation of the operating licences of the banks was an illegal policy that had clearly showcased Nigeria as an unfriendly polity for sustainable business.”
In his comment, National Co-ordinator, Proactive Shareholders Association of Nigeria, PROSAN, Mr. Taiwo Oderinde said “ It is a welcome development if the issue of the three nationalised banks is revisited. “ The shareholders have been crying and calling on the government to compensate the shareholders who were not carried along when it nationalised the banks. We cannot be responsible for the inactiveness of others.
In his response, Mr. Adebayo Adeleke, General Secretary, Independent Shareholders Association of Nigeria (ISAN) said “ The previous CBN governor should be investigated by the Economic and Financial Crimes Commission (EFCC). He should be asked to account for how the three banks were nationalised without following due process. The former CBN Governor, Mallam Lamido Sanusi never follow due process to nationalize these banks. The CBN had given September 30 for the banks to recapitalise but the investing public woke up on Friday to hear that the three banks have been acquired. Worse still, the following Monday, managements, boards and new names were announced for the banks. When will Nigeria’s public officials learn to obey the rule of law?” Why the rush to nationalise, especially for banks that are publicly quoted on the Nigerian Stock Exchange, NSE.”
It will be recalled that Keystone Bank , Enterprise Bank and Mainstreet bank, were totally restructured after a CBN audit showed their poor financial standing.
The Asset Management Company of Nigeria, AMCON, has said it would be selling off, Keystone, Enterprise and Mainstreet banks, in 2014.
The three banks, formerly known as Bank PHB, Spring Bank, and AfriBank were among the banks with infractions after the Central Bank’s audit in 2009.
Their situations were beyond mere bailouts and they had to be totally restructured, refunded and nationalised, to save depositors funds.
The AMCON was setup to revive and stabilise Nigeria’s banking industry through the purchase of Non-Performing Loans, NPLs, of the nation’s banking industry.
The 2009 banking crisis in the country, which coincided with the global asset bubble, was huge, when compared to previous industry crises, according to finance experts. The crisis of solvency liquidity and confidence affected approximately 40 per cent of the total banking system. Financial firm’s reports reveal the financial cost of the intervention is now in excess of N5trn, aside shareholder values destroyed.
It will recalled that some shareholders had taken AMCON to court and the case has not yet been finalized. At the last ruling, a Federal High Court in Lagos has refused to dismiss a suit filed by some shareholders of the defunct Bank PHB Plc (now Keystone Bank) against the CBN, AMCON and three others over the forced acquisition of their shares.
While ruling on a preliminary objections filed by the defendants to challenge the jurisdiction of the court, Justice Mohammed Yunusa held that as shareholders, the plaintiffs have a say in the bank and that no arm of government can take away a citizen’s right to acquire or hold property; therefore, there can be no compulsory acquisition of the shares.
The plaintiffs are challenging the alleged illegal transfer of their shares to Keystone Bank without compensation.
They are also demanding the sum of N38.6billion from the defendants being “fair compensation” to them for the value of their investment in Bank PHB Plc.
The shareholders are further asking the court for an order setting aside the alleged unlawful nationalisation, compulsory acquisition and expropriation of their investments in Bank PHB, and are seeking N20billion as damages for the loss of value of their investments in Bank PHB.
The defendants in the suit are CBN, Keystone Bank, Attorney-General of the Federation, Nigeria Deposit Insurance Corporation (NDIC).
The plaintiffs claimed that NDIC on August 5, 2011, wrote Bank PHB’s Managing Director informing him that the bank’s assets and liabilities has been transferred to Keystone Bank without any form of adequate compensation to the shareholders.
The plaintiffs are praying the court to declare that the action amounted to unlawful compulsory acquisition of their investment and is therefore unconstitutional, arbitrary, null and void.
But the defendants in their preliminary objections to the suit, urging the court to strike it out for lack of jurisdiction.
According to their lawyer, Kola Awodein the shareholders did not bring the action properly before the court thereby robbing the court of the jurisdiction to hear it.Ruling, Justice Yunusa held that the plaintiffs were right to exercise their right to sue. “Section 114 of the Companies and allied Matters Act provides for the rights and liabilities attached to shares of a company…In essence, the shareholder has a legal right to approach the Court. Section 610 of the Companies and Allied Matters Act gives the Federal High Court jurisdiction to hear such matters,” the judge said.
The judge also held that the plaintiffs have the locus standi to institute the action and seek redress pursuant to Section 46(1) of the 1999 Constitution, adding that the court has exclusive jurisdiction relating to the agencies who are the defendants.
“The mode of commencement is not material and by virtue of Order 3 Rule 1 of the Fundamental Human Rights Enforcement Procedure Rules, 2009 there is no limitation on the time to bring a fundamental human right matter. Also, there is no requirement of compliance with the statutory pre-action notices when it involves fundamental human rights issues,” the court held.
The verdict may affect AMCON’s planned sale of Keystone Bank in the third quarter or last quarter of 2015
National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.
The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.
The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.
According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.
This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.
Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.
On the flip side, some sectors experienced sharp declines in company income tax remittances.
Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.
The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.
In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.
Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.
Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.
At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.
Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.
Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”
Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.
“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.
The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.
This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN
Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.
Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.
Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.
Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.
Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.
In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.
“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”
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