Revealed! How Five Nigerian Banks Spend N4.2 Billion On Their Directors In Six Months
Are banks in Nigeria really making so much money? Well this report from Business Day Newspaper seems to say so, as the five banks, namely, Zenith Bank, Access Bank, Guaranty Trust Bank (GTBank), United Bank for Africa (UBA), and First Bank, all termed as ZAGUF Banks have spent a total of N4.182 Billion on their directors between January and June 2019.
The banks, who are operating in the tier-one category in the banking sector, were investigated by Business Day, which reports that Zenith Bank spent a total of N1.6 Billion on its 12 directors in the first six months. This amount was 138.1 percent more than the N672 Million they paid as emoluments in the same period in 2018.
The figures were gotten from the half year audited financial statements of the banks in the period under review.
The reports showed that the sum of N1.325 Billion was used as executive compensation in H1 2019, which was higher than the N539 Million in H1 2018, while N275 Million was used as fees and sitting allowances for the Zenith Bank directors, higher than the N133 Million in the corresponding period of last year.
Guaranty Trust Bank, spent a total of N424.7 Million on its directors from January to June 2019, 16.0 percent higher than HY 2018 figures of N366.2 Million.
The financial statements of First Bank Plc, says the bank paid a total of N1.377 Billion to its directors in the same period under review, this was an increase by 21.5 percent from N1.133 Billion it used on the executives of the bank in the first half year of 2018. The bank was the second highest payer to it’s directors after Zenith Bank.
Access Bank, which merged with the defunct Diamond Bank Plc early 2019, spent a total of N762.2 Million in H1 2019, which it called directors expenses against the N641.5 Million it spent for same purpose in H1 2018, this was an increase by 18.8 percent or N120.7 Million.
The United Bank for Africa (UBA) Plc’s financial statements indicated that the sum of N18 Million was spent as directors’ fees, 38.5 percent higher than the N13 Million they used in the first six months of 2018.
Further probe of the bank’s books showed that the sum of N2.757 Billion, was used for business travels, lower than the N4.110 Billion spent in the same period of 2018.
A total of the sums spent by these five tier-one ZAGUF banks in Nigeria on their directors are N4.2 Billion in the first half of 2019, higher than the N2.8 Billion that did in the same period of 2018, which showed a 50 percent increase.
What do you think of this story?