Elumelu’s Heirs Holdings owed UBA N43.4bn by December 2023

Heirs Holdings owned by Mr Tony Elumelu owed the United Bank for Africa the sum of N43.383 billion by December 2023, according to the bank’s full-year 2023 financial statement released to the Nigerian Exchange Limited on April 8.

This represents a 3.7 percent rise from N41.823 billion reported by the bank as Heirs Holdings’ total loan in the first six months of 2023. On year-on-year basis, the 43.383 billion loan represents 222.74 percent increase from N13.442 billion reported by UBA as Heirs Holdings’ total debt in December 2022.

READ ALSO : How Elumelu’s Heirs Holdings borrowed N41.8bn from UBA at 15% – far lower than market interest rate

Unlike the half-year 2023 report where the interest rate at which the loan was obtained was clearly stated (15 percent), the interest rate for the loan was not written in the full-year 2023 report. Economy Post had reported the 15 percent interest rate as seen in the half-year 2023 financial statement of the bank.

The UBA financial statement shows that the term loan is performing and it was secured over real estate. It was good business for the bank which earned N3.314 billion interest income from it. The Corporate Finance Institute, which teaches finance-related courses, defines interest income as “money earned by an individual or company for lending their funds.”

Half-year 2023 copy of UBA financial statement where Heirs Holdings loan was captured

Unresolved complaints soar

READ ALSO: Rivers State earns N55bn from transport tax but less than 1% goes into government purse

Meanwhile, the number of unresolved complaints pending with the bank soared to 643,719 by December 2023. Total number of complaints received by UBA from its customers stood at 2.962 million. But about 2.318 million complaints were resolved by the bank, representing 78.25 percent of the total complaints. Amount claimed by customers is N59.139 billion.

Eighty of the complaints were escalated to the Central Bank of Nigeria (CBN) for intervention. In 2022, the lender received a total of 1.408 million complaints from its customers and resolved 1.388 million, representing 98.6 percent success rate. Only 43 cases were escalated to the CBN for intervention. The total number of unresolved complaints was 15,375. Amount claimed by customers in 2022 was N1.551 billion.

Yakubu Ibrahim
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