Home Business First Bank’s Shares Drop to 10-Year Low after CBN Fine

First Bank’s Shares Drop to 10-Year Low after CBN Fine

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“The management of First Bank is still engaging in conversations with the Central Bank of Nigeria on this regulatory decision,” Tijjani Borodo, secretary of parent FBN Holdings Plc, said in a statement on the Nigerian Stock Exchange’s website. FBN fell 3.9 percent to 5 naira by 11:55 a.m. in Lagos, its lowest since April 2005.

President Muhammadu Buhari and Governor Godwin Emefiele gave banks until Sept. 15 to move funds for state-owned bodies to the Treasury Single Account at the central bank in a move designed to clamp down on corruption and financial waste in the public sector. Interbank rates jumped before the deadline as banks sought cash. Fewer than half the deposits had been transferred to the central bank a week later, according to Chibuike Uche, a member of the Monetary Policy Committee.

The Nigerian telecommunications regulator this week imposed a fine of $5.2 billion on the local subsidiary of South Africa’s MTN Group Ltd. for failing to disconnect customers with unregistered SIM cards.

A separate financial regulator ordered the suspension of the chief executive officer and chairman of Stanbic IBTC Holdings Plc, the Nigerian subsidiary of Standard Bank Group Ltd., after accusing the company of posting misleading statements over two years. Stanbic denies the allegations and says its directors remain in their jobs.

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