Recap: Top bank executives resign as shareholders position to cash out amid dividend payouts

Hello and welcome to Nairametrics Corporate News Roundup.

There were lots of fascinating developments in Corporate Nigeria last week. But out of the many, one stood out. We are talking about the new directive by the Central Bank of Nigeria (CBN) which rattled commercial banks and led to “forced” resignations of some top executives. 

Meanwhile, it was also an exciting week for Nigerian equity investors, many of whom are set to cash, following dividend payout announcements by some NGX-listed companies.

Let’s now bring you up to speed on these stories. As always, this newsletter is brought to you courtesy of Quidax. 

Executive resignations: It was a tough week for some top bank executives who had to resign following a recent directive from the CBN capping the tenures of bank Managing Directors, Deputy Managing Directors, Executive Directors and Non-Executive Directors. Basically, the new directive capped the tenures of bank MDs, Deputy MDs, Executive Directors and Non-Executive Directors to ten years and twelve years, respectively. 

One of the first people that were affected by this development is Gbenga Shobo, the now former Deputy Managing Director of First Bank Limited. Gbenga, who has some 30 years of cognate experience in banking, joined First Bank in 2012 and exceeded his tenure limit as an executive director. 

Adaora Umeoji’s resignation: Another notable bank executive that was affected by the development is Adaora Umeoji, the now former Deputy Managing Director of Zenith Bank Plc. A corporate action seen by Nairametrics noted that Umeoji’s resignation took effect on February 24, 2023.

Umeoji, who holds a doctorate in Business Administration from US-based Apollos University, has more than 20 years of banking experience, many of which were at Zenith Bank where she rose through the ranks. 

Zenith Bank’s HoldCo: Meanwhile, an interesting turn of events saw Zenith Bank obtaining the approval of the CBN to transition into a non-operating financial holding company structure. A regulatory filing by the company disclosed that the restructuring would see the bank’s founder and current Chairman, Jim Ovia, function as the Chairman of the Holdco upon completion of the restructuring. 

Do note that a holding company is a parent business entity that holds the controlling stock. Over the past years, top Nigerian banks have been transitioning into a HoldCo structure to enable them to venture into new businesses outside of core banking. Also, CBN’s recent tenure limit does not apply to the executives of financial holding companies. Zenith Bank is the latest Nigerian bank to transition into a Holdco. 

GTBank debunks allegation: Still in banking news, GTBank said it did not give N500 million worth of new naira notes to any politician. The bank stated this in a press statement it issued to refute claims made by a Twitter user. 

GTBank said the claim was completely false and was designed to paint it in a bad image. It also said it had taken action to uncover the identity of the Twitter user who made the damning accusation.

DLM Capital’s commercial paper: DLM Capital Group said it raised N5.3 billion through its Series 10 and 11 commercial paper notes. The notes were issued under DLM Capital’s N20 billion commercial paper issuance programme and were over-subscribed by 106%.

Do note that money realised from the commercial paper issuance would go towards bolstering the company’s treasury whilst providing a solid financial foundation for growth.

Let’s talk dividends: Nestle Nigeria Plc announced a final dividend payout of N36.50 per 50 kobo ordinary shares. It will be payable to shareholders whose names appear in the register of members as of April 21, 2023. The dividend payout is subject to appropriate withholding tax and will be paid to 

The leading consumer goods maker reported a profit of N49 billion, representing a 22.3% increase from N40 billion reported in 2021.

More dividend payout: Lafarge Africa Plc also announced a final dividend of 200 kobo per unit of 50 Kobo ordinary shares. A corporate disclosure seen by Nairametrics said the dividend would be paid from its Pioneer Reserve to shareholders whose names are registered in the Register of Members as of the 6th of April 2023. 

The company’s profit for the full-year 2022 rose by 5.18% to N53.6 billion, up from the amount it reported in 2021. 

Dangote Cement’s dividend: Dangote Cement Plc announced a final dividend of N20 per share following the release of its 2022 financial report which showed a profit of a whooping N382.311 billion.

The company said the payout is subject to the appropriate withholding tax and will be disbursed to shareholders whose names appear in the Register of Members at the close of business on March 30, 2023.

NB’s N13.87 billion dividend: Nigerian Breweries Plc announced a total dividend of N13.87 billion for its shareholders for the financial year ending 31st December 2022. 

The dividend payout translates to 143 kobo per ordinary share of 50 kobo each. It is still subject to the approval of the company’s shareholders.

Koosum Kalyan’s appointment: Finally, Seplat Energy Plc appointed Koosum P. Kalyan as an Independent Non-Executive Director of the company. A statement seen by Nairametrics said she joined the board effective February 28, 2023. 

Koosum Kalyan is a South African businesswoman and economist whose and she is expected to bring her experience to bear at Seplat Energy.