HemHay Creations

HemHay Creations
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Monday, October 26, 2015

See How First Bank, UBA Landed in Big Trouble With CBN

Two major first generation banks First Bank, UBA have entered the black book of the Central Bank of Nigeria, which has led to the imposition of heavy fines on the banks. 


 
On Friday, October 23, the Central Bank of Nigeria (CBN) fined First Bank of Nigeria Limited (FirstBank) and United Bank for Africa (UBA) Plc the sum of N4.819 billion for failure to comply with the treasury single account directive.
 According to a circular obtained from banking industry sources, while the apex bank slammed a fine of N1,877,409,905.12 on FirstBank, UBA was fined N2,942,189,651.45 for its failure to comply with the federal government’s policy.
 
 
It was gathered that N37,548,198,102.41 belonging to the Nigerian National Petroleum Corporation’s (NNPC) instead of remitting it to the TSA as directed.
 
On the other hand, UBA concealed N58,843,793,029.05 of NNPC funds, which attracted the penalty.
 
The source explained that the penalty was the equivalent of five per cent of the funds they failed to remit respectively.
 
“The accounts of both banks with the CBN have been debited for the unremitted amounts and the penalties,” the source said.