Connect with us

Headline

Ecobank Reacts “We Did Not Cook Our Books”

Published

on

The attention of the ETI Group has been drawn to recent publications in some online media alleging overstatement of ETI’s balance sheet and income statements emanating from incorrect exchange rates in translating the financial statements of our affiliate entities, especially Nigeria.

We want to use this medium to allay the fears of any of our shareholders, creditors, and other stakeholders resulting from the unfounded allegation contained in the said publications.

Ecobank complies with IAS 21 requirements

The deterioration of the Naira in 2016 led to the creation of different windows for various segments of the economy leading to foreign currencies being traded in these markets/windows at different rates and thus leading to a multiple exchange rate system in Nigeria.

The existence of multiple FX markets with different exchange rates as well as the accessibility to such markets necessitates the review of the appropriate exchange rates that entities should use in accounting for and reporting its foreign currency transactions as well as foreign investments into Nigeria under International Financial Reporting Standards (IFRSs). IAS 21 ‘The effects of changes in foreign exchange rates’, requires that a foreign currency transaction should be recorded at initial recognition in the functional currency using the spot exchange rate at the date of transaction (IAS 21, paragraph 21). IAS 21 paragraph 8 defines the spot exchange rate as the exchange rate for immediate delivery. Where a country has multiple exchange rates, an official quoted rate should be used as the spot rate.

Nigeria currently has multiple exchange rates and judgment is required to determine which exchange rate qualifies as a spot rate that can be used for translation under IAS 21. In determining whether a rate is a spot rate, an entity is required to consider whether the currency is available at an official quoted rate and whether the quoted rate is available for immediate delivery. The CBN official rate, Nigeria Inter-bank Foreign Exchange Fixing (NIFEX) rates and the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rates are all quoted and can be used to convert or translate foreign currency transactions. Thus, the CBN official, NIFEX or NAFEX rates all technically comply with the requirements of IAS 21.

As a policy within Ecobank Group, we use the official rate in the respective jurisdictions in which we operate to translate the results and balances of our affiliates into the Group’s reporting currency, the US Dollar. As a result, and in exercising the judgment allowed for within IAS 21, the Group currently uses the CBN official rate which is one of the 3 quoted rates and the official exchange rate according to the CBN. The use of this rate complies with IAS 21 and has been publicly disclosed to the market in all our press releases along with the impact of using the other available rates. This is done so that users of our financial statements can easily quantify and adjust for the use of the other exchange rates if necessary. Most of our peers in Nigeria used the CBN rate in 2017, before switching to NIFEX towards the end of the year. In 2018, they have gradually settled at a blend of both NIFEX and NAFEX.

The use of the CBN rate is in accordance with the group’s policy which is to apply the official rates. This policy and its application are compliant with IFRS and specifically IAS 21. To enable comparison and to ensure that the user of the group’s financial statements is not prejudiced in any way, we have adequately disclosed in our various press releases and investor presentations the fact that we have used the CBN official rate in addition to disclosing the expected impact on our results of using alternative available rates.

At its November board meeting, the Board of ETI approved the adoption of the NAFEX rate as the rate to be used for the translation of our operations in Nigeria. The change has been necessitated and approved in response to developments in the industry especially with the ETI’s peers moving away from the use of the CBN official rate.

Ecobank complies with IFRS 9 requirements

Ecobank Group adopted IFRS 9 as issued by the IASB in July 2014 with a date of transition of 1 January 2018, which resulted in changes in accounting policies and adjustments to the amounts previously recognised in the financial statements. Similarly to our peers in Nigeria, as well as other African and global banks, and, as permitted by the transitional provisions of IFRS 9, the Group has elected not to restate comparative figures. Adjustments to the carrying amounts of financial assets and liabilities at the date of transition were recognised in the opening retained earnings and other reserves of the current period. Overall, the adoption of the standard resulted in the group recording higher impairment allowance than that recognised under IAS 39. This had a negative impact on the group equity by $299m.

The main drivers for the significant increase in IFRS 9 impairment figures when compared to IAS 39 impairment figures are:

• Replacement of the emergency period under IAS 39 with 12 months ECL on all exposures under IFRS 9.

• IFRS 9 introduces the stage 2 bucket where higher impairment (Lifetime losses) is recognised for facilities with significant increase in credit risk. Under IAS 39, same assets were classified as performing with minimal impairment recognised.

• Off balance sheet exposure & undrawn balances: Under IAS 39, impairment was not required to be recognised on these items, however, IFRS 9 requires that impairment provision on these items is calculated.

• Other financial instruments: Historically very little or no impairment has been held on non-customer loans/ instruments such as placements with other banks, government treasury bills and bonds, corporate bonds, items in the course of clearing and other debtors. These are now clearly within the scope of IFRS 9 and impairment has been computed on these.

IFRS 9 2014 does not require restatement of comparative period financial statements except in limited circumstances related to hedge accounting (not applicable to Ecobank Group) or when an entity chooses to restate (the Group has not, nor have most of its peers). The standard requires that where comparative periods are not restated, the difference between the previous carrying amounts and the new carrying amounts be recorded in opening retained earnings or other components of equity, as appropriate. This is the approach that has been followed by the Group and as a result the transition impact of $299m has been recognised in equity.

In conclusion, we can confirm to all stakeholders that there were no misstatements in our financial statements as alleged in our financial statement for the year ended 31 December 2017 nor in our three quarterly reports released during the 2018 year. We also note that this unfounded allegation was made by a former employee of the Group who is currently in court claiming payment of 13 years’ salary for an alleged unlawful termination of his employment contract.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headline

Akpabio Lashes Out at Tinubu’s Critics, Says Nigeria Safe Despite Insecurity

Published

on

By

The Senate President, Godswill Akpabio, has urged Nigerians to be careful of those trying to kidnap for ransom.

Akpabio argued on Tuesday that those behind kidnapping are perpetuating the activity to create an impression that Nigeria is not safe.

Speaking in Abuja during the commissioning of road projects to mark President Bola Tinubu’s third year anniversary, Akpabio said some of the president’s critics have resorted to paying youths to cause mayhem.

Akpabio accused Tinubu’s critics of focusing on insecurity instead of policy and infrastructure.

“Minister you said that people claimed that nothing is happening in Nigeria under the administration of President Tinubu. If they did not say that, how will they go for election? he asked rhetorically.

“If you realize what is happening recently, when they realized that they can’t talk about projects, performance, good laws, transformation in the Petroleum industry, subsidy removal that have been promised Nigerians for decades, they can no longer talk about the high-rise buildings in Abuja such as the NRS building, they resorted to paying young people and recruiting them to cause mayhem in the country.

“Be very vigilant and be careful about people trying to kidnap for ransom. They are kidnapping in order to give the impression that Nigeria is not safe.

“Our men and women in uniform have done tremendously well but many people will not know and that is why I keep saying that the devil you see today, you will soon see them no more.

“Elections will come and go; elections will never be our end; we will see the end of elections; it will never see our end,” he said.

Continue Reading

Headline

The Search for Justice: ADC vs Tsoho

Published

on

By

By Eric Elezuo

From the first day the African Democratic Congress (ADC) took a new shape in July, 2025, in readiness to wrest power from the government of the day, crises, allegedly engineered by the President Bola Tinubu-led All Progressives Congress (APC), have remained its lot.

From the struggle for leadership positions to the fight to save itself from deregistration, the hitherto coalition and main opposition party, has remained in a battle for its life and existence. And has not relented in the search for lasting justice. This time, it has taken the law itself to court to ensure that justice is not only done, but seen to have been done.

It would be recalled that shortly after the the party ratified the election of Senator David Mark and Ogbeni Rauf Aregbesola as Chairman and Secretary of the party respectively, skirmishes were noticed among the rank and file of the party as a supposedly former deputy national chairman of the party, Nafiu Bala Gombe, claimed chairmanship of party, saying that since the founding chairman had resigned, it is constitutionally incumbent upon him to automatically assume the chairmanship role.

Gombe’s claims came on the heels of his ‘resignation’ from office, which paved the way for a new national executive of the party to be constituted. But his claims did not deter the party from carrying on with the formation and running of the party, including holding a keenly contested presidential primary election, which produced His Excellency, the former Vice President Atiku Abubakar. So Gombe went to court. Yet, Mark and Aregbesola carried on the running of the party.

As a result, Gombe had approached a court for an order restraining Mark leadership from parading themselves as leaders of the ADC pending the hearing and determination of his suit challenging their leadership.

He had also asked the court to issue another order against the Independent National Electoral Commission (INEC), restraining it from recognizing the Mark leadership.

But in his ruling in the interlocutory application, Justice Emeka Nwite ordered Gombe to put the defendants on notice so that they appear before the court to show cause, why the application should not be granted.

Rather than appearing before the trial court to show cause, the defendant appealed to the Abuja division of the Court of Appeal, challenging the jurisdiction of the trial court to dabble into the matter they described as internal matters of the ADC.

The appellate court in dismissing the appeal for lacking in merit, ordered accelerated hearing in the suit and further ordered all parties to maintain status quo ante bellum.

Dissatisfied, Mark had approached the appellate court but, his appeal was dismissed and the matter returned to the trial court.

With the to and from nature of the cases involving the ADC leadership crisis, the party has accused judges of bias in favoring party detractors and disobedience to court rules among other malice, the party has taken a new route to obtain the much eluded justice, and that involves charging the custodians of the law to court.

Consequently, the ADC has filed a lawsuit before a High Court in Abuja involving the Chief Judge of the Federal High Court, Justice John Tsoho, over concerns arising from the ongoing leadership dispute within the party.

Also joined in the suit is the National Judicial Council (NJC), which the party said had not addressed issues it raised regarding the handling of a case challenging the leadership of former Senate President, Senator David Mark, within the ADC.

The lawsuit, dated June 4, 2026, was filed by the National Welfare Secretary of the ADC, Nkemakolam Ukandu, who is seeking to be joined in Suit No: FHC/ABJ/CS/1819/2025 instituted by Nafiu Bala Gombe against the Mark-led leadership of the party.

According to the suit, Ukandu expressed concerns about the handling of the matter and alleged that the actions of both Justice Tsoho and Justice Peter Lifu, the judge assigned to hear the case, could affect confidence in the proceedings.

The lawsuit further stated that the assignment of the case to Justice Lifu stirred concerns among some members of the party, who believe the process may not guarantee a fair hearing.

The legal action marks a fresh twist in the leadership dispute within the ADC, which has attracted significant political attention ahead of the 2027 general elections.

 

 

Aside Justice John Tsoho, other defendants are the National Judicial Council (NJC), and Justice Peter Lifu, a judge newly assigned to hear the suit challenging the Senator David Mark-led leadership of ADC.

The plaintiff, who was seeking to be joined in the Suit No: FHC/ABJ/CS/1819/2025, brought by Nafiu Bala Gombe against the Mark-led leadership, accused the chief judge and Lifu of manifest bias, and willingness to do the biddings of persons against the interest of the party.

Ukandu, in the suit he personally filed at the Federal High Court, Abuja, faulted the chief judge for reassigning the suit to Lifu, in alleged disregard of the orders of the Supreme Court as well as Justice Emeka Nwite of the Abuja division of the Federal High Court, who initially heard the suit brought by Gombe against the party.

The plaintiff, in the suit marked FHC/ ABJ/ CS/ 1165/2026, recalled that an appeal from an interlocutory decision of Nwite rose to the Supreme Court, wherein the apex court on April 30, 2026, “made an order of remittance of Suit No: FHC/ABJ/CS/1819/2025: Nafiu Bala Gombe VS. ADC & 4 ORS back to Justice Emeka Nwite for continuation of hearing of pending applications challenging the jurisdiction of the trial court.”

He stated that upon resumption of hearing before Nwite, the plaintiff wrote to the chief judge praying for a reassignment of the matter to another judge of the Honourable Court.

Ukandu stated, “All the defendants’ counsel, including counsel to the applicants seeking to be joined in this matter, opposed the said application by the plaintiff’s counsel and Hon. Justice Emeka Nwite thereafter adjourned the matter sine die pending the service of the said letter by the plaintiff’s on all the parties in the matter, outcome of the letter by the 2nd defendant and the furnishing of the CTC of the judgement of the Supreme Court to the court.

“Without complying with the orders of the Supreme Court and Hon. Justice Emeka Nwite, the 2nd Defendant in abuse of his judicial powers reassigned this matter,” to Lifu.

He added that the third defendant, on his part, pretending not to see the order of Nwite, went ahead and fixed the matter for hearing for June 3, 2026.

Ukandu further recalled that ADC had on May 7 informed the public through a press release that the chief judge had planned to reassign the case to another judge favourable to the plaintiff.

He said the party had “warned against such unethical practice but the 2nd Defendant despite the public outcry reassigned the suit to the 3rd Defendant who have been nick-named as ‘Wike Judges’.”

He stated that the third defendant had started presiding over the matter, despite taking judicial notice of the orders of the Supreme Court and Nwite, and that the matter came up for hearing before the third defendant.

Though neither the Federal High Court nor the National Judicial Council had publicly responded to the issues raised so far, it is imperative to to state that the ADC appears to have lost interest in both the judiciary,  which it believe is kowtowing to the dictates of Gombe, and by extension the body language of the Federal Government.

The ADC appears to have managed to draw the sympathy of the public as a group known as the Grassroots Mobilization Network (GMN), has lent their voice to the supposed injustice leveled against the Mark-led ADC, raising concerns about the handling of the matter, and calling for transparency in the judicial process.

The group alleged that the judiciary was being used to target opposition parties.

The group expressed concern over what it described as growing public distrust in the judiciary and called on relevant authorities to ensure fairness and transparency in the handling of politically sensitive cases.

While Nigerians await the outcome of the litigation, and other resolution of other sundry issues arising from the ADC and the judiciary, the party is going ahead making last minute transparent efforts to nominate a suitable running mate to bear the presidential flag with the presidential candidate, Atiku Abubakar.

Among the party’s shortlists are the first runner-up in the presidential primary, Rotimi Chibuike Amaechi, Mrs. Ngozi Okonjo-Iweala, Akinwumi Adesina, Emeka Ihedioha, Emeka Nwajiuba and Chief Dele Momodu.

Continue Reading

Headline

Gunmen Abduct Ex-Power Minister Adelabu’s Sister, Her Two Sons in Ibadan

Published

on

By

Suspected gunmen have abducted the sister of a former Minister of Power, Adebayo Adelabu, in Ibadan, the Oyo State capital.

The family of former minister and chieftain of the All Progressives Congress (APC) confirmed the abduction, disclosing that Mrs. Olaide John-Paul and her 12-year-old twin sons were kidnapped by the gunmen on Wednesday, June 3, 2026.

According to a statement issued by Adelabu’s media aide, Femi Awogboro, the victims were kidnapped at about 7:30am while Mrs. John-Paul was taking her children to school.

Mrs. John-Paul, the youngest of five children of Mrs. Olufunmilayo Aduke Adegoke Adelabu, reportedly retired voluntarily from her career at First Bank Pension Custodian in 2025 before relocating to Ibadan with her children.

She was said to be making arrangements to join her husband, who had earlier relocated to the US.

The family expressed deep concern over the development but stated that security agencies had already commenced efforts to rescue the victims and apprehend those responsible.

“We are pleased to confirm that security operatives have swung into action and preliminary investigations have commenced in earnest,” the statement partly read.

While appealing for calm, the family urged members of the public to refrain from spreading unverified information that could undermine ongoing rescue operations.

“We are deeply distressed by this unfortunate incident, but remain hopeful that the victims will be rescued safely. We appeal to the public to remain calm, avoid speculation and support ongoing efforts with prayers,” the statement added.

The family also called on anyone with useful information that could aid the rescue operation to promptly share such intelligence with security agencies through the appropriate channels.

It assured that it would continue to cooperate fully with law enforcement authorities and provide updates as investigations and rescue efforts progress.

Continue Reading

Trending