₦airaland Forum

mikeapollo:
I have told you:
E lo 'fokan ba'le
Only the patient can ''eat'' from Wale's ''pot'' because he is slow in ''preparing the meal''

The same way you were scared about LASACO.....but it has delivered 81.5% growth in profits now.

He is slow in preparing meal indeed. It should be he is siphoning the ingredients/ materials to cook the meal hence why the meal is taking forever to be done

pluto09:
lol.
That would have been a good idea if the managers could be trusted

but the target (10% of SHF) is actually a moving target depending on how fast the subsidiaries grows. that is where the dilema actually is

megawealth01:
OANDO suppose do below 40 naira before wale go wake up

The guy man no care.

what he cares about now is the RI @ 50, and how he is going to corner everything (or nearly all) of which price at sub 40 will even help him achieve better.

The only time there will be sustainable appreciation above 50 will be after the RI

I have said this before

BabsO2:
I am saying, I hope it's not arbitrary.
That I hope it's an evolution of learning and safeguarding against risks from toxic assets.

That I get all what you are saying that I agree more slack needs to be given to reduce risk to ALL stakeholders including ACCESS.

Asset disposal is not a piece of cake. Neither is gathering of more equity investment funds. ACCESS should please be given more time and more options to mitigate perceived risks.

ok then.

BabsO2:
Total Equity of Access to Total Assets is only 8% in the Audited 2025. That is even thinner than the Nigerian Bank Average. I am just speculating that CBN is trying to save ALL stakeholders from toxic assets. Raising more liabilities and equities comes at costs that could even worsen profitability.

Oga Babs

i have heard you but you are not paying attention to my concern "arbitrariness".

i agree that the 8% you stated above is quite low per the average within the Nigerian banking industry and should be worked on by Access (Notwithstanding the fact that the figure is within Basle requirement)

my point is why the focus on selling of subsidiaries as a means to achieve that aim. when the ratio has two other components?

In terms of liquidity (i.e. easy to achieve/sell/realised) the most liquid component of the ratio is the "liability" several of which will expure within twelve months (e.g. fixed deposits/ CP/ Bonds e.t.c) why not forbade the bank from taking fresh liabilities when those ones matured towars achieving the desired ratio?

another reasoning is that the equity part of the ratio has several other components apart from "sale of subsidiaries" which are easier to achieve than the desired "sale" e.g. retaining profit. so why not this route other than the sale of subsidiaries? are the subsidiaries making a loss (i.e. leaking capital)

BabsO2:
Regulations need to be updated as new knowledge or risks emerge. However as it’s a new regulation CBN should give more time for compliance.

Equity + Liabilities = Assets

Equity is about 13% of Assets for the average Nigerian Bank. That’s a thin cover.
10 being a round number may be what is pushing CBN to bring that 10% restriction. To preserve depositors and the banking industry from risky acquisitions.

I dont see how what you stated correlates to closing down subsidiaries.

For sake of argument, lets agree that it does. To the best of my knowledge the equation you portray has 3 components and any of the 3 could be worked on to bring the ratio desired by the sheriff. So why insistence on just a variable impacting only one of the components

Sunrisepebble:
There is a new Sheriff in town

The sherrif is not new (50% of his first term gone already)

I am positive one or two of the acquisition will have passed through the sheriff for approvals (which was not decline)

The sheriff should avoid arbitrariness otherwise how does he want to portray an higher moral grounds than the players he is policing

Sunrisepebble:
I agree.

i beg to disagree

while i am also not in sync with Access aggressive expansion of late. However, the treatment being meted by the regulator look very arbitrary and might not pass a test of logic

1. Didnt the regulator approved each of the buying in the first place? (because such buying are subject to regulatory approvals)

2. if so what had changed between the approvals and now to warrant a rollback?

3. for the sake of argument let accept a rollback is justified, how was the 12 month deadline (for sale) arrived at?

4. Does precedent (of mergers & acquisition) support the 12 months (when most of the buying took more than 12 months)

5. how was the 10 of SHF arrived at? what are the metrics driving the limit set?

6. is the regulator leaving the realm of regulation to dictate how a private coy deploy its capital


n.b i have very minimal and inconsequential units in Access but only concern about regulatory overreach

mikeapollo:
It is a miracle to me that you are praising Wale! Or is it defending?
Am I dreaming?

i am not defending or praising OJT or Ote$. I am just stating historical fact.

all this info are in public domain

mikeapollo:
Wale must make sure this does not happen in Oando!
Serious warning to him!

It had happened already just before covid and right after covid (during the low price oil era sub $40)

but he was able to sit down with the banks to restructure and service the restructured loan.

even i think in 2022/2023 he further had to restructure the restructured loan (everything is in the AFS)

At least we should give him kudos. all through that period he lived low profile and was servicing the loan to the best of his cashflow which was not hidden from the consortium of banks.

That is how an upright person should behave.

Recall that something similar also happen to Otedola when the price of diesel moved heavily against him and he was nearly bankrupt (he mentioned everything in his book). the only issue he had then was with Wiwgwe and it was not about the veracity of the loan but about the exchange rate to be use for the conversion of the loan (because they were in FX) which in itself was also amicable settled later

My point is bizmen shld make it sacrosanct that bank loans are repaid because in the actual sense the money does not belong to the banks but to ordinary citizens who kept such money with banks

robobo:
what do you want to say

is it politics that is not making him to pay his debt or find an amicable settlement way out with the banks

pleaseeeeeeeeeeeeeeeeeeeeeee

that is how these same warped mindset businessmen ran up bad debt prior to 2009 which later became AMCON baby which the whole banking industry has been paying for since then till now

go and check any bank AFS. Annual AMCON levy is one of the biggest (if not biggest) expense line in the OPEX of banks

in some cases even higher than total salary paid by some banks to ALL their staff for a year

Habaaaaaa

megawealth01:
I no go say anything about nestoil before here will turn to politics thread

what do you want to say

is it politics that is not making him to pay his debt or find an amicable settlement way out with the banks

pleaseeeeeeeeeeeeeeeeeeeeeee

GeneralDae:
Cardoso is very strict on these things. He wants the banks to have a clean book and not pretend all is well when they have issues like this.

From the above this is actually not a Cardoso problem. The problem is actually the wrong mindset of an average Nigerian big man. Get bank loans, live lavishly and dont repay.

Abi, is it not the same O&G industry that this borrower is operating in that the like of some other indigenous players doing well for themselves because they were disciplined.

The alternative is for the banks to shun financing such indigenous initiative (like GT and other multinational banks does) but which will be to the detriment of building local capacity (think how Dangote grew in the last 25-30 years starting out with borrowing in local market or the growth of other local indigenious O&G players e.g. Aradel e.t.c.)

smasher1:
https://www.thecable.ng/concerns-mount-over-banking-stability-as-nestoils-bad-debts-implicated-in-three-banks-failure-to-pay-dividends/

https://nairametrics.com/2026/05/03/nestoils-bad-debt-triggers-dividend-freeze-for-3-major-nigerian-banks/


Dem say na Nestoil no make UBA/ ACCESS pay dividend ooooooooo

total exposure of 2.16 trillion to the industry

na wa oooooooo

mikeapollo:
My legs go dislocate for your hand one day. And you go buy me milk, Milo, eggs, bread, mayonnaise, custard, malt, FIRST so that I can recover BEFORE you take me to hospital and buy Panadol, Rub, embrocation, etc. because I have fallen sick for your hand.
If you like, continue. I don talk my own.

i beg no kill me oooo

mikeapollo:
I am really getting tired of how you take EVERYTHING PERSONAL! C'mon!
There may be various opinions on an issue. In your case, once someone has a different opinion, you take it personal and start saying the person is DEFENDING! Defending who, for what?
All you needed to say is that you are referring to a different thing, simple.!
Why bring in ''defending''?

Oga Mike, make u no vex for me. I just dey pull your leg, the reason there was a long laugh out loud at the end of my statement

That said i will still say that everything Oando shld not be taken at face value but rather should be interrogated properly.

mikeapollo:
The RI is technically done with, as the qualifying date was fixed as 13th Feb. Wale and his men would take up any outstanding Rights units.
Institutional investors and directors are the ones to get shares from a successful debt-equity conversion, so those shares would likely not be part of free float in the market

Oga Mike no be everything Oando you must defend. lollllllllllllllllllllllllllllllllll

The "dilutive" i am refering to has nothing to do with free - float but its effect on the valuation metric os the shares going forward.

Yemy3m:
.debt2eqwity news is coming

hmmmmmmmmmmm.

I thougt it will come after the RI has been concluded.

if it comes now it will be very dilutive, thereby limiting the upside when the cleaning of books is done

megawealth01:
Almost 190m offer... Una no get joy at all for UBA because of common dividends

But seriously UBA should be punished more than this just like MTN was punished 2 years ago so they can sit up

Thank you

which platform is this?

Someone shld please help me with the total offer nits for UBA as at now. Morgan is presently showing about 72.5 million but i am sure that is not the full count.

mikeapollo:
Those stakeholders whose share priced have fallen drastically would take it as possible sign of ''distress''. Not every stakeholder with huge stake in the bank is ready for all the technical jargons that you may know. All they ''see'' and ''know'' is the stock price.

Hmmmmmm. There is some fact in this submission. Particularly for those just entering the market.

pluto09:
I don't think Tony really cares about the market price of some of his companies.
TRANSCORP did not make any significant price movement until Ote came to shake him. The same TRANSCORP has been stagnant again for almost 2 years

Very true. He only care when he wants to raise money. Its a relics from his distant past. He was able to build up his substantial holding in both UBA and Transcorp keeping the shares low while he mops up.

megawealth01:
The beautiful thing about this time extension is that it helps me prepare well... Na now I ready to monitor the market this morning

Just imagine they remove the 10% thing... By now Tony for don hold 20 conference meetings and 100 press briefs and 17 board meetings this weekend into today Monday

You are a wicked somebody. U wan make Tony dey shit for body

Yemy3m:
.im out .ill enter zenit or gt

Congratulations

L

Panadee:
Over 200m shares on offer

It is not even much just N10 billiion

I was thinking we will have over 1 billion shares on offer

Makeuna wake me up when the thing don reach 1 billion shares full offer

I want to do hostile take over from Tony

SonofElElyonRet:
@Agbalowomeri don meet pessimist wey pass am

Lolllllll

Dupeodus:
Where is UBA getting more than ₦300 billion foreign currency revaluation loss from at a time naira is relatively stable and I do not see a huge foreign currency position on the balance sheet. Back this out or if you position that this will not repeat going forward, then the first quarter result is fantastic.

My thinking is that is coming from subsidiaries from outside nigeria. There shld be translation loss from the assets of the subs considering the naira moved within the last one year 1450-1600 last year to 1300-1400 this year. That is moving from the reporting currencies of the subs to naira. My thinking i might be wrong tho.

Mankind2024:
Calm down. E jẹ́ ká fi ọkàn balẹ̀.
and take a moment to read with an open mind.
UBA Plc remains a very strong and resilient financial institution. I recommend you carefully review pages 64 to 96 of the 206-page report, where it is clearly shown that the bank has successfully passed its internal stress tests.
The institution has cleaned up its balance sheet to ensure long-term sustainability and prosperity. It now holds full banking licenses across 24 African countries, with all foreign branches having returned to profitability.
UBA is undoubtedly one of the best and most solid banks in Africa.
The position is clear and unambiguous. Kindly read and digest the entire report rather than zeroing in solely on pages 204–205.

If they have truly passed the CBN mandated stress testing that is a good thing and can be a reprieve for the upcoming beating if properly packaged as a PR

J

Agbalowomeri:
Are whyning? They have made the provisions
Sope Oti lor😂
That is Tony's logo

Uncle Agba i understand your perspective judging by the past of the players. my take is that current CBN wld not condone such (looking to Oba of Firstbank as clue) plus the fact that from the books, those provisioned loans are still performing but to defer to you anything is possible in this clime.

The upside to the whole thing is that the provisioning is one off ( they cant provision it again this year even if they are still carrying the loan except they make a new one, which then shld be the fault of CBN because given the current stand i dont expect CBN to allow them make new loan to same entities). Additionally if the loan are paid iff or sold to other banks which Tony does not have influence over UBA then will have a substantial write back to profit.

The downside is the immediate sting of non payment of dividend which can be quite painful.

BabsO2:
Indeed. It’s a good thing if UBA can loan money to TOE’s connected businesses. Restricting such corporate loans will be wrong. Especially the listed companies. For non listed companies restrictions should be in place. Perhaps the restrictions is related to personal loans and not corporate loans. Will be good to know which one. And provisions for personal loans look one kind as that money can vanish.

Unfortunately Nigerian banks AFS does not show insider loan (i believe FRC should make this mandatory as it is in some other climes) at least stating thier holdings is presently mandatory, this shld also be the same thing for insider related credit.

That said. I dont think the loans are personal. I have a strong beleif they are to his other related companies