The bank stated in response to an allegation made in the House of Representatives Ad Hoc committee report on the assets and liabilities of the Nigerian National Petroleum Company Limited.

The committee had reportedly claimed that “Standard Chartered Bank is closing all its Nigerian branches,” expressing concerns over the substantial funds held by the bank on behalf of NAPIMS and NNPC.

However, the bank, through Dayo Aderugbo, Head of Corporate Affairs, Brand and Marketing, has refuted these allegations, stating that they are entirely false.

The bank emphasized its unwavering commitment to Nigeria and confirmed that it continues to operate branches in Lagos, Port Harcourt, and Abuja.

It reiterated its dedication to providing exceptional financial services and solutions to all customers.

Given that the matter is currently undergoing legislative review involving the Federal Government, the NNPC, and other relevant parties, the bank expressed its inability to provide additional information at this time.

Ahmad shared this information during a live interview on Channels Television’s Sunrise Daily.

However, Ahmad expressed his belief that the current loan would not be utilized by the current administration.

He suggested that the incoming government might adopt a different approach to utilize the funds. Ahmad stated, “The $800 million—there were extensive discussions within the loan committee, and we advised them.

‘First, leave this matter to the incoming government.’ But since the loan has been granted, we can accept it. If we cannot utilize it, perhaps the incoming government will have a different strategy.”

He also hinted at a potential change in the government’s approach, as there were rumors circulating on social media about the incoming government’s intentions not to retain any of President Buhari’s ministers, citing underperformance.

Ahmad clarified that although the loan has been approved, it will not be utilized by the current administration. The utilization of the loan will depend on the incoming government and their plans.

Recall President Buhari had previously written to the Senate seeking permission to secure an $800 million loan from the World Bank, aimed at mitigating the impact of subsidy removal.

The loan is part of the government’s subsidy palliative measures, which aims to assist 50 million vulnerable Nigerians or 10 million households.

The House of Representatives ruled that the suspension should last until the Asset Management Corporation of Nigeria (AMCON) and the Nigeria Deposit Insurance Corporation (NDIC) had completed all procedures for an open, transparent, and competitive bid process.

The house stated that it should follow best practices and protocols for this kind of divestment.

This came after Henry Nwauba (APGA-Imo) won approval for a resolution on Wednesday during the plenary that was deemed to be of urgent public concern.

He claimed that a contemporary social media trend had brought the sale of Polaris Bank for N40 billion to the public’s attention.

He added that the divestment should be done most transparently following the required due process.

He said that this was necessary to avert public outcry and untoward reaction from critical stakeholders in the economy, foreign business partners, the banking community, depositors, and correspondent banks.

He added that it was crucial to avoid the shortcomings of a previous similar exercise undertaken in the past.

According to him, Polaris Bank was created as a result of the Skye Bank Plc rescue. Skye Bank Plc failed as a result of bad corporate governance and non-performing loans.

He said that this was the reason why over a trillion naira in public money was devoted to saving the bank.

He claimed that the proposed transaction was cloaked in secrecy and was unclear and that it had to be carried out with accountability and transparency to dispel rumors of corruption.

He claimed that the now-defunct Skye Bank was a bank of systemic importance with a sizable population of staff, clients, and other stakeholders.

Without a rescue, the bank, according to him, would have had a negative ripple impact on the economy and reputation worldwide.

According to the News Agency of Nigeria, the House, therefore, set up an ad hoc committee to review, within 20 days, the total outlay by the Federal Government of Nigeria in Polaris Bank and account for the entire financial input into the bank by the Federal Government.

The House said this should be done through CBN, NDIC, and AMCON to determine whether the conditions and terms of sale were likely to ensure a positive return on public funds thus far committed to the bank, whether as bailout funds or other investments.

The House then urged the committee to take any action necessary to ensure that the public funds committed to Polaris Bank were appropriately documented and accounted for.

At a hearing of the House of Representatives special ad hoc committee on Petroleum Products Subsidy Regime in Nigeria from 2017 to 2021, Governor Godwin Emefiele disclosed the information.

The CBN Governor informed the legislators before the probe hearing even started that he could only respond to inquiries about technical aspects of subsidy payments.

I’ll be able to answer these questions here. He said that if they fall outside of the technical parameters of the subsidized transactions, I won’t be able to answer.

Recall that Finance Minister Zainab Ahmed said Nigeria could spend up to N6.72 trillion ($16.2 billion) next year if it keeps a fuel subsidy in place, a nearly 70% jump from this year’s budget.

TechEconomy understands that lawmakers in April approved a 4 trillion naira petrol subsidy for 2022 when President Muhammadu Buhari asked for additional funds to offset higher global oil prices driven by the conflict in Ukraine.

Hussein Kagara, the top bank’s Deputy Director of Banking Services, spoke for Emeifele when he informed the legislators that the regulator was unable to print out the subsidy payment paperwork due to its size.

His justification was not well received by the committee, however, as Mark Gbilah (NNPP Benue) claimed that N6.7 trillion had been spent on subsidies in less than a year and demanded that the CBN Governor personally appear to address the matter alongside the Executive Chairman of the Federal Inland Revenue Service (FIRS).

In order to conduct further hearings, the committee subpoenaed witnesses to appear on August 18.

Although Nigerian banks have been investing heavily in payment infrastructure to mitigate some of these hassles experienced by customers – It has recorded many successes in recent times, however, the challenge still remains recurrent. 

In 2019, the Central Bank of Nigeria (CBN) had to issue a circular to all the banks saying that any failed instant payment transaction not reversed into the customer’s account within 24 hours after a complaint by the sender will attract a fine of N10,000. 

Now, lawmakers are looking into the issue. On Wednesday, the members of the House of Representatives urged the CBN to address delays arising from instant (Inter-Bank) Electronic Funds Transfer Services in Nigeria.

Mohammed Bello, Lawmaker, All Progressives Congress (APC) from Kano at plenary moved a motion pursuant to Sections 2(d), 33(I)b), and 47(2) of the CBN Act, 2007, that the CBN is saddled with the duty and responsibility of promoting a sound financial system in Nigeria.

The Rep said that customers of financial institutions across the country have no adequate means of filing complaints and getting immediate resolutions on failed E-Funds transactions that occur on weekends and public holidays.

According to him, the CBN via a circular dated Sept. 13, 2018, issued a regulation on instant (Inter-Bank) Electronic Funds Transfer Services targeted at various payment platforms that seek to provide the service in Nigeria.

“The circular was directed at all Deposit Money Banks, Micro Finance Banks, Other Financial Institutions, Mobile Money Operators, Development Financial Institutions, Payment Service Providers, and other stakeholders within the financial institutions.

“The said circular was initiated to curb issues regarding delayed or failed transfer of funds, and the regulation also stipulated sanctions against banks and other financial institutions in the event of a failed or delayed electronic fund transfer.

“Concerned that the regulations are not being complied with by banks and other financial institutions as issues regarding failed and delayed transfers are still very pronounced in Nigeria.

“Also concerned that the delays occasioned by sending and receiving entities with respect to E-Funds Transfer Services have resulted in untold misery to bank customers who depend on it for emergencies,” he said.