Business
Banks shut doors on Bureaux De Change, politically exposed persons
Indications emerged weekend that banks have started to close the accounts of suspected Bureaux de Change and some politically exposed persons to avoid Economic and Financial Crime Commission raid on them. Top bankers said that in some of the banks both registered and unregistered Bureaux de Change are facing the risk of having their accounts closed by banks.
Financial Vanguard learnt that banks internal investigation has shown that money that the EFCC is after have either passed into the system through Bureau de Change or through politically exposed persons. It was learnt that banks managements are do a cleansing of their operations to rid their system of unwanted funds. Investigation also revealed that bankers who have in one form or the other compromised the “Know Your Customer” (KYC) policy of banks have been silently relieved of their duties.
Some of the sacked staff in recent times for which the government has asked banks to halt further retrenchment are among those found to have compromised the “Know Your Customer” policy of the banks. In one of the banks last week a senior manager was sacked for foreign exchange deals that was detected to be connected to money laundering.
Bankers also said that banks are now very sensitive to sources of funds. In one of the top banks, it was gathered that every fund transfer received by banks now are being carefully scrutinised and those found suspicious are rejected and returned to senders.
A marketing staff of one of the banks said “It is no longer about getting funds now but what kind of fund it is. Marketers worry now is how to identify a clean fund that will not land you in trouble”.
It was learnt that most of the funds laundered by politicians were mostly through Bureau de Change. It will be recalled that the recent discovery of N12 billion in the bank accounts of two directors in the Federal Civil Service, allegedly diverted from the pension funds, the Economic and Financial Crimes Commission, EFCC, raided some banks. The commission was searching to fish out top bank officials who aided corrupt government officials to launder funds stolen from the public purse.
It was gathered that then that the seven banks involved in the practice, which names were not disclosed, were on top of the commission’s list of notorious banks whose top managers were already under the radar of the anti-graft agency.
A senior EFCC source had told Vanguard that “the inquiry into the banking sector was connected with the recent discovery of the looting of pension funds by two senior officials of the federal civil service.” The source added: “The Pension Fund scam which saw the diversion of over N12 billion every year by some handlers of the scheme was an inter-bank arrangement where the affected top managers working in a syndicate filtered the money with the connivance of the government officials who have been talking with EFCC officials since the investigation took shape.
“No financial crime can take place without the support of the banks. Most of the banks in one way or the other are involved in such acts, but seven banks are fully involved and their managers are in the know of it.”
In the last three or four weeks operatives of the Economic and Financial Crimes Commission (EFCC) have raided several banks. The operatives have raided Access Bank, Sterling Banks and interrogated their managing directors, have quizzed an executive director in First Bank and arrested the Managing Director of Fidelity Bank.
The visit of the anti-graft agency is connected to ongoing investigations into alleged bribery of election officials ahead of the 2015 presidential elections, to the tune of N2.3 billion.
The Central Bank of Nigeria (CBN), has justified the raids being carried out on some banks by the Economic and Financial Crimes Commission (EFCC).
Deputy Governor of the apex bank, Dr. Obadiah Mailafia, said in Kaduna that the EFCC has the right to investigate any organization or persons suspected of engaging in fraudulent activities. He said such raids were justified as long as there were sufficient reasons to believe that the affected banks were engaging in questionable dealings. The EFCC recently raided the head office of Equitorial Trust Bank (ETB), in Lagos, allegedly in search of documents relating to certain questionable transactions.
If banks carry through their ongoing internal reforms on funds transfer and deposit, it may become very difficult for politicians to use banking service to launder funds.
Former Central Bank Governor now Emir of Kano, Sanusi Lamido Sanusi had said that corruption in the build-up to Nigeria’s 2015 election was partly responsible for the increase in the number of bureau de change in the country adding that it is “absolutely wrong” for bureaux de changes to buy hundreds of millions of dollars without accountability.
“We have seen evidence of huge demand for dollars by bureaux de changes, huge purchases of cash that are not accounted for and that signals money laundering and we’ve got to deal with it,” Sanusi had said. “It is a small class of people that has access to huge rents, and that rent has been dollarised,” he said, adding that the bank had been monitoring portfolio outflows and imports and found that neither could explain the surge in dollar demand. Politicians in Nigeria often spend heavily on patronage to secure seats or pay off rivals, with at least some of this money acquired through corruption or links to crimes such as oil theft or kidnapping.
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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