ZENITH BANK directors walked away with emoluments totalling N6.78 billion in 15 months, Economy Post has found.
According to Zenith Bank’s first quarter (Q1) 2024 financial statement posted on the Nigerian Exchange Limited, the period covered the whole of 2023 and the first quarter (Q1) of 2024, totalling a period of 15 months.
The directors are: Jim Ovia, Chuks Emma Okoh, Mustafa Bello, Juliet Ehimuan, Gabriel Ukpeh, Omobola Ibidapo-Obe Ogunfowora, and Peter Olatunde Bamkole. Others are: Al-Mujtaba Abubakar, Henry Oroh, Ebenezer Onyeagwu, Adaora Umeoji, Temitope Fasoranti, Akindele Ogunranti, and Adobi Nwapa.
However, Adaora Umeoji exited from the board on February 24, 2023. She was re-appointed to the board on August 2, 2023 following approval by the Central Bank of Nigeria (CBN). Similarly, Juliet Ehimuan was appointed to the board on August 29, 2023, but Temitope Fasoranti retired from it effective December 29, 2023.
READ ALSO: Again, managers take loans from Zenith Bank at 4% interest despite rising benchmark rate
The N6.78 billion is their entitlements as approved by the board.
The directors pocketed N5.989 billion 12 months to December 2023 as well as N791 million in Q1 of 2024, Economy Post found.
The Q1 2024 figure of N791 million represents a 91 percent rise from N414 million pocketed by Zenith Bank’s directors in the corresponding period of 2023.
It was further found that the tier-1 bank paid N89 million as fine for undisclosed breaches in Q1 of 2024 as against zero fees in the corresponding period of 2023. The bank paid only N21 million fine in the whole of 2023.
Auditors took N1.337 billion as fees in 2023 and another N736 million in Q1 2024. The fees collected by auditors represents 247 percent increase from N212 million taken as professional fees in the corresponding period of 2023.
As for travel and hotels, the bank spent N5.155 billion in 2023 and N2.281 billion in Q1 of 2024.
Legal issues
Zenith Bank is also embroiled in several legal issues. The group said the total amount claimed in the cases against the group in Q1 of 2024 was N954 billion as against N705 billion in the same period of 2023.
READ ALSO: In 6 months, Zenith Bank lends only 7% of N311bn intervention fund
Legal issues often arise from breach of agreements by either party, disagreements, fraud, among others, lawyers say.
“The actions are being contested and the Directors are of the opinion that none of the aforementioned cases is likely to have a material adverse effect on the Group and are not aware of any other pending or threatened claims and litigations,” Zenith Bank further said.
Unrepentant on 4% loans to managers
Zenith Bank is still unrepentant on offering loans at 4 percent to key management personnel of the financial institution.
For other customers, banks consider the monetary policy rate (MPR), which is the benchmark interest rate, while lending to them. The MPR in the Q1 of 2024 stood between 22.75 percent and 24.75 percent.
READ ALSO: Zenith Bank lends to insiders at 4% interest rate, but SMEs pay 27%
No bank in Nigeria lent to any customer below these rates over the period. However, Zenith Bank and other banks gave their staff preferential loan treatments even though the money they managed was a liability and belonged to depositors.
Zenith Bank loans hover between 30 percent and 40 percent.
“Loans to key management personnel include mortgage loans and other personal loans. The loans are repayable from various repayment cycles, ranging from monthly to annually over the tenor and have an average interest rate of
4%. Loans granted to key management personnel are performing,” Zenith Bank said.
MSMEs kick
Operators of MSMEs have criticised Zenith Bank for lending depositors’ fund to its management staff at four percent interest rate when they could only get loans at rates above 30 percent.
Chief Executive Officer of Lagos-based Jasen Fashions, Ms Jane Idemudia, said the situation only reflected the state of Nigeria’s financial system.
“It is a laughable situation that a bank pays more attention to its senior staff than those without which it cannot be in business. As an entrepreneur, we hardly have access to cheap loans. Even when government intervention loans were available, we could not access them unless we knew someone in banks. So, this situation is just a reflection of what the country’s banking system has become,” she said.
READ ALSO: Outrage as Zenith Bank lends 7% of N311bn intervention fund in six months
An Abuja-based operator of food business, Ms Vivian Emodi, said she was not surprised. According to the 33-year-old entrepreneur, she went to a bank seeking some funds in 2021 but could not get due to a high interest rate.
“I went to a bank to get some loan in 2021, but I was told I could only get it at N23 percent. I could not even get any of the CBN loans,” she said.
But a former staff member of a tier-1 bank, Mr Otienne Maxwell, said this was a normal practice in deposit money banks.
“It is nothing strange in banks and it is just normal. If a bank decides four percent is good for its staff, it is no problem. However, it is absolutely wrong to give out depositors’ money at four percent rate when the repo or benchmark rate is far above 20 percent. It is often meant to compensate staff for their efforts, but is it fair?” he asked.
