Lazyyouth4u:
How many Nigerian companies will pay your salary into a foreign account? If you get paid in Naira and live in Nigeria and transfer all your money to a foreign account, do you know the challenges of constantly moving your money to Nigerian accounts when you need to spend and back abroad when you want to save? By the time fees and devaluation chop all your money, you go start to praise Emefiele.

By the way, it’s not that easy for the average Nigerian to open an account in a country that you are not a resident of. Most times you will need to show proof of residency to open an account abroad. In the olden days, it was very easy. Not today.

Banks may be helping businesses to open offshore accounts for business purposes but it is very doubtful that the common man can benefit from these products.

Even Nigerian investors who bought shares of Seplat, Airtel Africa and ETI even though their financial accounts, profits, revenues, expenses were stated in dollars. Nigerian investors, who bought the shares in Naira, were paid dividends in Naira using the official rates.

The CEO of Seplat was to earn dividend of $4 million but was paid in Naira using $1 to N380 or thereabout.

Foreign investors who imported capital into the country were allowed to be paid in dollars.

Nigerian investors who bought the GDR of GTB have not been able to earn their dividends 6 months after because of the current crisis. GDR is a dollar denominated Investment a GDR is equivalent to 10 shares of GTB and it is traded on the London Stock Exchange

emmanuelewumi:
The holding structure of GTB is just a strategy by the guy at the top to elongate his stay as the boss. His tenure will expire this year after serving as the CEO for 10 years.


Who does that, you sold your Investment banking and asset management subsidiaries which is now known as Investment One Financial Services, sold your Insurance subsidiary which is now known as Axa Mansard Insurance, the CEO sold them because he wanted to focus solely on banking.

First Bank, FCMB and Stanbic IBTC adopted the holding structure

7 years after the sale of those subsidiaries, you are now looking for Insurance companies, Investment banking firms, asset management firms, pension fund management companies to buy.

GTB will definitely buy such businesses at a very huge premium, because they won't want to start another one a fresh it will be better to buy existing ones

Maybe they will buy back Investment One.

I do not know why the CEO is trying to use the HoldCo to do sit tight.

NL1960:


Maybe they will buy back Investment One.

I do not know why the CEO is trying to use the HoldCo to do sit tight.

I wonder oo.

As bad as First Bank is during their AGM or corporate events all the living CEOs and directors are invited and honoured.


I have attended 2 AGMs of GTB, the current CEO has never invited the co-founder and founding CEO of the bank in person of Mr Fola Adeola even though the man is still alive.


Investment One was a management buy out by the management and staff of the defunct GTB Asset Management Company. This is the time for them to cash out big time if GTB should signify interest in buying back the company

Lazyyouth4u:
How many Nigerian companies will pay your salary into a foreign account? If you get paid in Naira and live in Nigeria and transfer all your money to a foreign account, do you know the challenges of constantly moving your money to Nigerian accounts when you need to spend and back abroad when you want to save? By the time fees and devaluation chop all your money, you go start to praise Emefiele.

By the way, it’s not that easy for the average Nigerian to open an account in a country that you are not a resident of. Most times you will need to show proof of residency to open an account abroad. In the olden days, it was very easy. Not today.

Banks may be helping businesses to open offshore accounts for business purposes but it is very doubtful that the common man can benefit from these products.

Okay
You just watch and see

Lazyyouth4u:

On Naira bonds? Very unlikely. Worst case they will just over tax Nigerians and print more money. I would be more worried about how inflation and devaluation will eat into the returns and principal.

Oga Emmanuel what are your thoughts?

Thanks for your response

One thing we can't take away from FBNH is the fact that they have been in business for over 100 years. I respect them for that and I doubt if other banks will be able to survive next 100 years because the plan of an average bank Ceo in Nigeria is to take over the bank by any means.
They intentionally do not cut waste since they are not major shareholders. Only the GMD has sizeable units

Most Nigerian CEOs are just high budget typical Nigerians. Their major interest is always to take as much as they can from a business and not really how to add value.

shalomblue:
One thing we can't take away from FBNH is the fact that they have been in business for over 100 years. I respect them for that and I doubt if other banks will be able to survive next 100 years because the plan of an average bank Ceo in Nigeria is to take over the bank by any means.
They intentionally do not cut waste since they are not major shareholders. Only the GMD has sizeable units

ojesymsym:
Most Nigerian CEOs are just high budget typical Nigerians. Their major interest is always to take as much as they can from a business and not really how to add value.

These CEOs have a huge chunk of their compensation in stocks (mainly stock options) that they can only cash out when the share price increases to a set price. Why will they not want to reduce wastage and create value to be able to sell those shares and make money?

When Wigwe wanted to cut costs by reducing the size of the workforce at Access, Nigerians made a lot of noise about it. Human beings can be complicated.

I think you are mixing a CEO up with majority shareholders or chairman.
I was talking about the management team of many organizations. Although I know where you are coming from since the example I initially quoted is slightly different from what I am describing.

Lazyyouth4u:

These CEOs have a huge chunk of their compensation in stocks (mainly stock options) that they can only cash out when the share price increases to a set price. Why will they not want to reduce wastage and create value to be able to sell those shares and make money?

When Wigwe wanted to cut costs by reducing the size of the workforce at Access, Nigerians made a lot of noise about it. Human beings can be complicated.

ojesymsym:
I think you are mixing a CEO up with majority shareholders or chairman.
I was talking about the management team of many organizations. Although I know where you are coming from since the example I initially quoted is slightly different from what I am describing.

I am not mixing it up sir. CEOs are given lots of shares as part of their compensation. They can only cash out when the company’s stock reaches an agreed strike price. When you look at annual reports and see shares owned by CEOs, they didn’t buy those shares. They are stock options or shares granted as incentives to the CEOs.

That’s why you sometimes see CEOs selling huge blocks of shares. In many cases, they are only exercising their stock options or selling the shares granted to them.

This is one reason why a government run organization will remain unproductive because of governments inability to reduce workforce when the business case no longer supports their employment.

Lazyyouth4u:


When Wigwe wanted to cut costs by reducing the size of the workforce at Access, Nigerians made a lot of noise about it. Human beings can be complicated.

Hmmmm. Okay. Maybe Ema can help me out here. I think there a few examples to buttress the point I am making. Oando is an example, I have had reference also made to uac mgt.
I am talking about those CEOs who allocate large enumeration to themselves even when they know the business is struggling.

Lazyyouth4u:

I am not mixing it up sir. CEOs are given lots of shares as part of their compensation. They can only cash out when the company’s stock reaches an agreed strike price. When you look at annual reports and see shares owned by CEOs, they didn’t buy those shares. They are stock options.

ojesymsym:
Hmmmm. Okay. Maybe Ema can help me out here. I think there a few examples to buttress the point I am making. Oando is an example, I have had reference also made to uac mgt.
I am talking about those CEOs who allocate large enumeration to themselves even when they know the business is struggling.

Okay I see what you are saying. But quick question for you sir. If you were Wale Tinubu, wouldn’t you demand a huge remuneration for a company you built?

In any case, these huge CEO salaries are approved by shareholders so it’s not like the CEOs just pay themselves without following due processes.

Bdc smiling to the bank ..........20k dollars weekly.....at 399 sold 475 ................

ahiboilandgas:
Bdc smiling to the bank ..........20k dollars weekly.....at 399 sold 475 ................

495 sir... As in ehhn....

Pls could you share a link to any of these reps - perhaps a website or something?

DexterousOne:

We even have some reps from some of these island countries here as well.
The process is simplified to open the accounts

And you can operate this fron offshore without even stepping foot there (maybe you need to do so one time, but that's about it )
Does the goat at the CBN understand the consequence of this?
To make matters worse
We dont have our equivalent of the US FATCA
So these banks are under NO OBLIGATION to reveal their customers who are Nigerian citizens to the Nigerian government
And even if we hurriedly put something up like that, the banks will ignore because Nigeria is a weak country and a nuisance, who has zero power in penalizing them
Long story short
Nigeria is not the USA.

So more Nigerians having foreign accounts
And lodging their earnings there
Wouldn't that worsen our already bad position?
I keep saying that this man knows nothing
But people keep defending him

As regards safety...I think personal due dilligence checks will need to be done.

To open one, just reach out to your Account officer at Stanbic and ask that you want to Open an offshore account(Isle of Man)

ojesymsym:
How does this work? What's the minimum investment? How safe?

ojesymsym:
I think you are mixing a CEO up with majority shareholders or chairman.
I was talking about the management team of many organizations. Although I know where you are coming from since the example I initially quoted is slightly different from what I am describing.

Shareholding structure of First Bank is diverse and uncoordinated, nobody owns up to 5% of the bank that is about 1.6 billion shares. This has made it easy for management to ruin the bank.

Nigeria is a total mess, our problems boils down to our absurd mentality. In the next 20yrs, we are still going to be fighting same problems as today, because we are not ready to pay a price or inconvenient ourselves for future gains. I was so ashamed to hear our VP Osinbajo saying that FG will now be patronising Naija made cars, are you not wondering why the thoughts to start patronising Naija made cars just occurred to them now that we are already in a deep recession with lots of bad economical policies? Why didn't they start patronising made in Naija cars and other local products at the very beginning of their administration as they promised during their campaigns?

Nigeria will always be a joke among nations, we always wait for everything to get so bad or collapse before acting with fire-brigade approach. We prefer to solve problems under duress than prevent that problem from happening in the first place.

To all Nigerians in diaspora, you guys should try to invest in your resident country abroad, Nigeria is a total waste and killer of dreams.

Home cannot always be home, when home is a threat to our future and that of our children.

Our leaders are not feeling the economical heat or recession. Naira devaluation doesn't affect them because their money is in dollars and Pounds. ASUU strike will never affect them because all their kids are schooling abroad.

I used to be very hopeful about the future of Nigeria, but those willing to destroy the country are far more than those willing to rebuild it. Virtually every Nigerian is like a cancer to the country, greed, corruption, mismanagement, rent seeking and entitlement mentality had finally buried Nigeria.

Lazyyouth4u:

These CEOs have a huge chunk of their compensation in stocks (mainly stock options) that they can only cash out when the share price increases to a set price. Why will they not want to reduce wastage and create value to be able to sell those shares and make money?

When Wigwe wanted to cut costs by reducing the size of the workforce at Access, Nigerians made a lot of noise about it. Human beings can be complicated.

It is just that our labour law is weak or non-existent. Laying off staff only to replace them with contract staff and casual while declaring bumper returns is wicked. Over 60% of their workforce are casual receiving peanuts as salary.
Zenith is even worse, over 80% of their IT staff are contract staff managed by one of thier big man wife (this is modern day slavery). If the banking industry had reduced workforce for via automation/ RPA there won't be noise about that.

Lazyyouth4u:

I am not mixing it up sir. CEOs are given lots of shares as part of their compensation. They can only cash out when the company’s stock reaches an agreed strike price. When you look at annual reports and see shares owned by CEOs, they didn’t buy those shares. They are stock options.

That’s why you sometimes see CEOs selling huge blocks of shares. They are only exercising their stock options.

Nothing like that with First Bank, Access bank, Zenith bank and UBA.

GTB has something registered with SEC and managed by a Trustee, whereby about 200 million shares will be used as part of employees and management compensation, there are terms and conditions guiding this The 200 million shares is less than 1% outstanding shares of GTB

ojesymsym:
Hmmmm. Okay. Maybe Ema can help me out here. I think there a few examples to buttress the point I am making. Oando is an example, I have had reference also made to uac mgt.
I am talking about those CEOs who allocate large enumeration to themselves even when they know the business is struggling.

Eg UACN, the CEO salary excluding certain benefits and allowances increased from about N50 million to N120 million in 2019 at a time when the company about 50% drop in profitability.


As highly indebted as Oando is, the CEO of the company still earns N600 million per annum. Higher than what the CEO of Zenith, Access Bank, UBA, First Bank and other companies making billions of Naira profit earned. The only exception are Dangote cement, MTN, Seplat whose CEOs earned more than that

Lazyyouth4u:

Oh okay I see what you are saying. But quick question for you sir. If you were Wale Tinubu and built a company from scratch, wouldn’t you demand a huge remuneration?

In any case, these huge CEO salaries are approved by shareholders so it’s not like the CEOs just pay themselves without following due processes.

Wale Tinubu never built Oando. He is one of the emergency billionaires created by Obasanjo. He took a leverage position to buy 60% shares in Unipetrol even though he was the least qualified for the acquisition.

Immediately he bought FG shares, he embarked on asset stripping of the company. Unipetrol that created wealth for investors in the past started destroying wealth when the wolves took over and renamed the company Oando.

Oando has not been able to pay dividends in the last 6 years or more.

He took a highly leveraged and speculative position, when he bought the asset of Conoco for over $1 billion about 7 years ago, he made the purchase when crude oil was selling around $100.

We should be cautiously optimistic and sober when things are going on fine, and should be optimistic and keep hope alive whenever the reverse is the case.

Donbrig:
Nigeria is a total mess, our problems boils down to our absurd mentality. In the next 20yrs, we are still going to be fighting same problems as today, because we are not ready to pay a price or inconvenient ourselves for future gains. I was so ashamed to hear our VP Osinbajo saying that FG will now be patronising Naija made cars, are you not wondering why the thoughts to start patronising Naija made cars just occurred to them now that we are already in a deep recession with lots of bad economical policies? Why didn't they start patronising made in Naija cars and other local products at the very beginning of their administration as they promised during their campaigns?

Nigeria will always be a joke among nations, we always wait for everything to get so bad or collapse before acting with fire-brigade approach. We prefer to solve problems under duress than prevent that problem from happening in the first place.

As late as this policy directive might have been, can they truly walk the talk?
I don't trust this government a bit ,especially the VP and lai Muhammed. This govt rose to power through propaganda, falsehoods & make believe.
If they can at least practice what they spit out for once, this recession might not last more than 2 - 3 quarter

Bakosokoto:

It is just that our labour law is weak or non-existent. Laying off staff only to replace them with contract staff and casual while declaring bumper returns is wicked. Over 60% of their workforce are casual receiving peanuts as salary.
Zenith is even worse, over 80% of their IT staff are contract staff managed by one of thier big man wife (this is modern day slavery). If the banking industry had reduced workforce for via automation/ RPA there won't be noise about that.

Banks need CBN approval before they can sack their workers, some bank branches were burnt during the last end SARS this has given excuse to sack the workers in those branches because they are no longer operating and they don't plan rebuilding some of the affected branches

emmanuelewumi:



Nothing like that with First Bank, Access bank, Zenith bank and UBA.

GTB has something registered with SEC and managed by a Trustee, whereby about 200 million shares will be used as part of employees and management compensation, there are terms and conditions guiding this The 200 million shares is less than 1% outstanding shares of GTB

The CEOs of listed companies are issued stock options as part of their compensation. That’s how they are incentivized to create value for shareholders.

emmanuelewumi:



Eg UACN, the CEO salary excluding certain benefits and allowances increased from about N50 million to N120 million in 2019 at a time when the company about 50% drop in profitability.


As highly indebted as Oando is, the CEO of the company still earns N600 million per annum. Higher than what the CEO of Zenith, Access Bank, UBA, First Bank and other companies making billions of Naira profit earned. The only exception are Dangote cement, MTN, Seplat whose CEOs earned more than that

So why are the shareholders approving his salary sir?

Lazyyouth4u:

So why are the shareholders approving his salary sir?

Corporate governance in Oando is zero, they have selected shareholders who are called to move motions at AGMs

Donbrig:
Nigeria is a total mess, our problems boils down to our absurd mentality. In the next 20yrs, we are still going to be fighting same problems as today, because we are not ready to pay a price or inconvenient ourselves for future gains. I was so ashamed to hear our VP Osinbajo saying that FG will now be patronising Naija made cars, are you not wondering why the thoughts to start patronising Naija made cars just occurred to them now that we are already in a deep recession with lots of bad economical policies? Why didn't they start patronising made in Naija cars and other local products at the very beginning of their administration as they promised during their campaigns?

Nigeria will always be a joke among nations, we always wait for everything to get so bad or collapse before acting with fire-brigade approach. We prefer to solve problems under duress than prevent that problem from happening in the first place.

To all Nigerians in diaspora, you guys should try to invest in your resident country abroad, Nigeria is a total waste and killer of dreams.

Home cannot always be home, when home is a threat to our future and that of our children.

Our leaders are not feeling the economical heat or recession. Naira devaluation doesn't affect them because their money is in dollars and Pounds. ASUU strike will never affect them because all their kids are schooling abroad.

I used to be very hopeful about the future of Nigeria, but those willing to destroy the country are far more than those willing to rebuild it. Virtually every Nigerian is like a cancer to the country, greed, corruption, mismanagement, rent seeking and entitlement mentality had finally buried Nigeria.

I will believe what the VP said when the FG actually starts buying the vehicles for all the ministries and parastatals. At the height of the pandemic, NASS ordered for 2020 Toyota Camry.

Lazyyouth4u:


The CEOs of every listed company are issued stock options as part of their compensation. All of them sir. That’s how they are incentivized to create value for shareholders.

Not all listed companies in Nigeria, very few listed companies do that in Nigeria.They are well paid and they have the resources to buy more shares if they are interested.

Zenith has 32 billion, GTB has 31 billion outstanding shares. I will share the list of others when I get to my library at home.

Stock options incentives are included in the annual report for those who have such. Currently about 200 million shares of GTB are warehoused, registered with SEC and currently managed by a Trustee.

The staff cooperative of UBA, used to have about 1 billion shares of the bank which they bought during one of the public offers of the company. UBA bought back these shares last year in a buy back scheme and the shares were cancelled from the outstanding shares of the company.

Dangote cement is currently planning a share buy back

emmanuelewumi:



Wale Tinubu never built Oando. He is one of the emergency billionaires created by Obasanjo. He took a leverage position to buy 60% shares in Unipetrol even though he was the least qualified for the acquisition.

Immediately he bought FG shares, he embarked on asset stripping of the company. Unipetrol that created wealth for investors in the past started destroying wealth when the wolves took over and renamed the company Oando.

Oando has not been able to pay dividends in the last 6 years or more.

He took a highly leveraged and speculative position, when he bought the asset of Conoco for over $1 billion about 7 years ago, he made the purchase when crude oil was selling around $100.

We should be cautiously optimistic and sober when things are going on fine, and should be optimistic and keep hope alive whenever the reverse is the case.

This is interesting. But to be fair to him, if oil prices never fell, that Conoco acquisition would have taken Oando to another level. Nobody saw the drop in oil prices coming and it could have happened to anyone. I actually like the guy.

Lazyyouth4u:

This is interesting. But to be fair to him, if oil prices never fell, that Conoco acquisition would have taken Oando to another level. Nobody saw the drop in oil prices coming and it could have happened to anyone. I actually like the guy

The risk management of the company was weak. Wale and his goons had a capital of 5% of the company Unipetrol which they bought. The first thing they did when they took over was to sell their controlling shares in the headquarters building and became a tenant in their own property.

Sold a lot of juicy assets and Investments of Unipetrol, had faulty corporate governance issues and mismanagement.

I wrote a petition to SEC. I wrote an article concerning Oando to all the major newspaper but it was not published, until I posted it on Nairaland and Stockmarketnigeria .


Look for my old moniker to see the article


I have learnt to avoid any company whose CEO is lawyer eg Oando