As the Central Bank of Nigeria’s (CBN) push for Nigerian banks’ recapitalisation gains momentum, Sunrise News reports that Moruf Oseni led Wema Bank PLC’s chance for recapitalisation may not sail through.
Reason, the bank is being threatened by over N9 Billion debt incurred on court cases as at December 2023.
This was contained in the bank’s full year financial report for 2023 which was released recently.
Sunrise News findings showed that litigation claims for the year was a little above N8 Billion, indicating that the bank had more legal issues to deal with in 2023.
As at September 2023, the total litigation costs was N8.067 Billion,but within three months, there was an exponential increase in legal damages.
Although litigations are unavoidable in businesses but a continued increase could be dangerous for businesses due to its financial burden.
This also has a lot to do with Wema Bank’s reputation, as an increase in litigations could damage the Bank’s integrity which could in turn lead to loss of customers or partners.
Sunrise News recall that the bank flouted seven Nigerian laws which resulted in more than N60 million fine.