Finance
Stench from Access Bank, Afribank, NSITF Deal
By Jonathan Elendu
Saturday, 04 November 2006
Agent denies transactions after billions of naira is paid
In 2004, when the Federal Government wanted to divest from financial institutions, the Delta State Government bought 16% shares in Afribank Nig Plc. Two months ago, Delta State Government advertised, in accordance with the law, the sale of its stake in Afribank. Security Swaps Ltd, a member of the Nigerian Stock Exchange did this on behalf of Delta State Government. Many banks and financial institutions, including, Ecobank, FCMB, and Vetiva Capital Management Ltd bid for the Delta Government shares in Afribank. This was an open bidding.
On the afternoon of Friday, August 11, 2006, Vetiva Capital was informed through a letter signed by Folabi Owolabi, managing director of Security Swaps Ltd, that they had won the bid. Chuka Eseka, the managing director of Vetiva Capital Management Ltd was invited to meet with Owolabi on Monday, August 14th 2006. Owolabi, in the letter, a copy of which we have in our possession, offered Vetiva Capital Management Ltd the seven hundred and seventy-two million shares (772,000,000) at ten naira, fifty kobo (N10.50) per unit. At the meeting Vetiva Capital Management Ltd was given a time frame for the payment of the shares. According to sources close to both companies, this was a trap. They were counting on Vetiva not being able to raise the money within the stipulated time.
Before the end of the next business day, Vetiva Capital Management Ltd paid about eight billion naira, being the value of the seven hundred and seventy-two million (772,000,000) shares into an escrow account at First Bank as requested by Security Swaps Ltd, agents of Delta State Government. The Vetiva executives sat back at their offices to wait for the transfer of the shares. They are still waiting, two months after buying Afribank shares owned by the Delta State Government.
Elendureports.com contacted Security Swaps Ltd and spoke with Folabi Owolabi, the company managing director. We wanted to know why shares bought by Vetiva Capital Management Ltd were yet to be transferred to them two months after they made the necessary payments. Owolabi denied selling any Afribank shares to Vetiva Capital Management Ltd. He said he had never dealt in any Afribank shares. Informed that we have a copy of the letter he wrote to Vetiva Capital Management Ltd dated August 11, 2006, he denied writing the letter. “I am not aware of such a letter,” Owolabi said. “Are you saying the signature on this letter we have in our possession is not yours?” we asked. “I am not aware of this transaction. I have never dealt in Afribank shares,” he insisted. “So what happened to the money paid by Vetiva Capital Management which is in an escrow account at First Bank?” “I am not aware of it,” said Owolabi.
Sources informed Elendureports.com that Gov. James Ibori is claiming that he did not authorize anybody to sell the shares of Afribank belonging to Delta State. Our investigations indicate that this denial is coming for a few reasons. We are reliably informed that Gov. James Ibori wanted these shares to go to Access Bank. He is said to be heavily invested in Access Bank using one D. Otubu as front and had pledged that these shares would be sold to the bank to facilitate its bid to acquire Afribank. The other reason, according to sources, is that Owolabi, allegedly, had been promised some largesse if he disowns the transactions which he initiated and completed. Folabi Owolabi and his company Security Swaps Ltd may also be in trouble for the sale of these shares as the conduct of the transactions may be fraudulent. According to sources, the other banks that participated in the bidding may be planning to make public the letters written to them by Owolabi on behalf of Security Swaps Ltd as the matter has been referred to the Economic and Financial Crimes Commission (EFCC) by an aggrieved party.
However, a senior law enforcement officer, who participates in investigations of the financial sector confirmed to us that Access Bank and their directors were being backed by some people at the Presidency. He confirmed the rumored relationship between Evelyn Brume and the President. Evelyn Broom is the managing director of Bank of Industry and the mother-in-law of Aig-Imoukhuede, the managing director of Access Bank. We spoke to people who have known Ms. Brume for a very long time. They all described her as beautiful, smart and powerful. They also confirmed her close and friendly relationship to the President and her antecedents at another bank. One of the people we spoke to said, “Evelyn is still very pretty, even at her age. She is super smart and would go for, and get whatever she needs. She is not a woman to be played with. She is very powerful in this country.”
A member of the board of directors of Afribank got a very disturbing call one afternoon. He was told that Access Bank had acquired Afribank and that he should prepare his handover notes. This call came from a member of the board of directors of Access bank. What gave them the confidence? They had acquired the 14.7% shares of Afribank which was held by the Nigerian Social Insurance Trust Fund (NSITF) and had been assured of the 16% shares of Delta State Government.
The acquisition of the NSITF shares by Access Bank has raised more questions than anybody, at least those who know, are willing to answer. Also the staff unions of Afribank are angry about the manner the shares were sold and those who bought them. They have publicly voiced their displeasure at the “lack of transparency that attended the sell of the NSITF shares.” They have also petitioned the Presidency and the EFCC.
There is also a whispering campaign going on as to how Access Bank was able to pay for the NSITF shares. Yet these questions do not have easy answers. According to a top intelligence source who discussed the shares acquisition with Elendureports.com, “these are very complicated transactions bothering on illegalities.”
Some Presidency sources suggested to this reporter that the money used in paying for the NSITF shares may have come from NNPC. “We know they got a lot of assistance from here (Presidency) and this is Nigeria. There is nothing anybody can do about it.” We insisted on the name of the person at the Presidency who assisted Access Bank in their acquisition of the NSITF shares. The source responded, “If Atiku or his people had done it, Aig-Imoukhuede would have been smelling rod now. Go and ask Mike Adenuga. Who do you think can give such instructions here?” A former managing director of a bank told Elendureports.com: “Some members of Access Bank top management are known for their business practice. They are known for converting corporate deposits to equity.”
In an open letter to Pres. Olusegun Obasanjo and published as an advertorial in the Guardian, the two labor unions representing Afribank staffers, ASSBIFI and NUBIFIE, implored the President to intervene in the matter of the sale of NSITF shares. Part of the open letter to the President and signed by Comrades Otio Nathaniel and Dayo Afolabi, reads, “…NSITF shares were to be surreptitiously negotiated and purportedly sold to Access Bank in complete violation of section 2d(i) and(ii) of the Banks and Other Financial Institutions ACT (BOFIA,1991) as well as Rules 235(i)a and b and 238(i) of Regulation of Take-over; since by law no bank can acquire controlling shares in another bank without approval of the regulatory authorities.”
The letter also pointed that this “singular regulation by the Government obstructed STB (now fused with UBA Plc) from exercising their intent of acquiring the BIAO shares then warehoused by BPE.” And they asked, “Why then is the case of Access Bank different?” This is the question many people in the financial sector have been asking: Why is Access Bank being treated differently?
A top law enforcement officer who has knowledge of this transaction told Elendureports.com, “It is not fair to say Access Bank and Aig-Imoukhuede are being treated differently. There are a group of Nigerians in the banking, oil and gas sector, trading and other areas of business that are given preferential treatment by this Administration. They can never do wrong as far as this President is concerned. Imoukhuede just happens to be one of them.”
While there may not be an official investigation of Access Bank going on now, Elendureports.com is aware that different groups are scrutinizing Access Bank and their dealings. This, eventually, may form the critical mass that may push the EFCC to act on petitions written to it by several people. “Don’t hold your breathe for this one,” said a source.
Finance
Afreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
African Export-Import Bank said it has successfully closed its second Samurai bond transaction, securing a total of JPY 81.8 billion (approx. USD 527 million) through Regular and Retail Samurai Bonds offerings.
The execution surpasses the Bank’s 2024 debut issuance size, attracting orders from more than 100 institutional and retail investors, marking a renewed demonstration of strong Japanese investor confidence in the Bank’s credit and its growing presence in the yen capital markets.
On 18 November, Afreximbank priced a JPY 45.8 billion 3-year tranche in the Regular Samurai market following a comprehensive sequence of investor engagement activities leveraging Tokyo International Conference on African Development (TICAD9), including Non-Deal Roadshows (NDRs) in Tokyo, Kanazawa, Kyoto, Shiga and Osaka, a Global Investor Call, and a two-day soft-sounding process which tested investor appetite across 2.5-, 3-, 5-, 7-, and 10-year maturities.
With market expectations of a Bank of Japan interest rate increase, investor demand concentrated in shorter tenors, resulting in a focused 3-year tranche during official marketing.
The tranche attracted strong participation from asset managers (22.3%), life insurers (15.3%), regional corporates, and high-net-worth investors (39.7%).
Concurrently, Afreximbank priced its second Retail Samurai bond on 18 November, a JPY 36.0 billion 3-year tranche, more than double the inaugural JPY 14.1 billion Retail Samurai issuance completed in November 2024.
The 2025 Retail Samurai bond also marks the first Retail Samurai bond issued in Japan in 2025.
Following the amendment to Afreximbank’s shelf registration on 7 November 2025, SMBC Nikko conducted an extensive seven-business-day demand survey through its nationwide branch network, followed by a six-business-day bond offering period.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the Bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce Multinational Development Bank’s mandate in Africa and its credit profile to key Japanese institutional investors.
MBC Nikko Securities Inc. acted as Sole Lead Manager and Bookrunner for both the Regular and Retail Samurai transactions. Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury & Markets and Group Treasurer, commented:
“We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors.
The strong demand, both in the Regular and Retail offerings, demonstrates sustained confidence in Afreximbank’s credit and mandate.
We remain committed to deepening our engagement in the Samurai market through regular investor activities and continued collaboration with our Japanese partners.”
Ecobank Nigeria, a member of Africa’s leading pan-African banking group, has announced the launch of the Ecobank SME Bazaar—a two-weekend festive marketplace designed to celebrate local creativity, empower entrepreneurs, and give Lagos residents a premium shopping experience this Detty December. The Bazaar will hold on 29–30 November and 6–7 December at the Ecobank Pan African Centre (EPAC), Ozumba Mbadiwe Road, Victoria Island, Lagos. Speaking ahead of the event, Omoboye Odu, Head of SMEs, Ecobank Nigeria, reaffirmed the bank’s commitment to supporting small and medium-sized businesses, describing them as the heartbeat of Nigeria’s economy. She explained that the Ecobank SME Bazaar was created to enhance visibility for entrepreneurs, expand market access, and support sustainable business growth.
According to her, “This isn’t just a market—it’s a vibrant hub of culture, commerce, and connection. From fresh farm produce to trendy fashion, handcrafted pieces, lifestyle products, and delicious food and drinks, the Ecobank SME Bazaar promises an unforgettable experience for both shoppers and participating SMEs. Whether you’re shopping for festive gifts, hunting for unique finds, or soaking in the Detty December energy, this is the place to be.” Ms. Odu added that participating businesses will enjoy increased brand exposure, deeper customer engagement, and meaningful networking opportunities—making the Bazaar a strong platform for both festive-season sales and long-term business growth. The event is powered by Ecobank in partnership with TKD Farms, Eko Marche, Leyyow, and other SME-focused organisations committed to building sustainable enterprises.
The Central Bank of Nigeria (CBN) has said that16 banks have so far met the new capital requirements for their various licences, some four months before the March 31, 2026 deadline. The apex bank also indicated that 27 other banks have raised capital through various methods in one of the most extensive financial sector reforms since 2004. Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Mr Olayemi Cardoso said the banking recapitalisation was going on orderly, consistent with the regulator’s expectations. He said, “We are monitoring developments, and indications show the process is moving in the right direction.” Nigeria has 44 deposit-taking banks, including seven commercial banks with international authorisation, 15 with national authorisation, four with regional authorisation, four non-interest banks, six merchant banks, seven financial holding companies and one representative office.
Cardoso explained that eight commercial banks had met the N500 billion capital requirement as of July 22, 2024, rising to 14 by September of the same year. The number has now increased to 16 as the industry continues to race toward full compliance. He said that the reforms would reinforce the resilience of Nigerian banks both within the country and across the continent. “We are building a financial system that will be fit for purpose for the years ahead. Many Nigerian banks now operate across Africa and have been innovative across different markets. These new buffers will better equip them to manage risks in the multiple jurisdictions where they operate,” Cardoso said. According to him, the reforms would strengthen the financial sector’s capability to support households and businesses. He said, “Ultimately, this benefits Nigerians—our traders, our businesses and our citizens—who operate across those regions. “It should give everyone comfort to know that Nigerian banks with deep local understanding are present to support them. Commercial banks are also creating their own buffers through the ongoing recapitalisation.”
He added that the apex bank considered several factors in determining the new capital thresholds, including prevailing macroeconomic conditions, stress test results and the need for stronger risk buffers. He reassured on the regulator’s commitment to strict oversight as the consolidation progresses. “We will rigorously enforce our ‘fit and proper’ criteria for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso said. He said the CBN remained confident that the banking system would emerge stronger at the conclusion of the recapitalization exercise, with institutions better prepared to support Nigeria’s economic transformation Banks have up till March 31, 2026 to beef up their minimum capital base to the new standard set by the apex bank. Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.
While most banks have shareholders’ funds in excess of the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition. The CBN had in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion. Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. Under the guidelines for the recapitalisation exercise, banks are expected to subject their new equity funds to capital verification before the clearance of the allotment proposal and release of the funds to the bank for onwards completion of the offer process and addition of the new capital to its capital base. The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC). The committee is saddled with scrutinising new funds being raised by banks under the ongoing banking sector recapitalisation exercise.
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