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First Bank’s bad loans hit N13.2bn in three months
First Bank of Nigeria’s provisions for ‘bad loans’ impairments increased by 35.7 per cent to N13.2 billion in the first quarter of this year, a new report by the bank has revealed.
The impairment charges technically imply losses which usually have top-down negative effect on the organisation’s profit.
The provisions for non-performing loans (bad loans) in the first quarter depressed the group’s net bottom-line by 39.3 per cent or N10.1 billion, the report also showed.
These were part of the highlights of the latest operational reports of FBN Holdings Plc, the holding company for First Bank of Nigeria and its former subsidiaries.
The release of the scheduled three-month report for the quarter ended March 31, 2021, came at the time the Central Bank of Nigeria (CBN) cited bad loans as a major challenge facing the first generation bank.
Analysts’ report on the first quarter results of FBN Holdings showed that impairment charges increase depressed the group’s core banking net interest income by 21.6 per cent to N39.6 billion in first quarter 2021 as against N50.5 billion recorded in comparable period of 2020.
The report showed double-digit declines across key performance indicators. These were attributed to drag-on effects of non-performing loans, among others.
Analysts’ report by FSDH Group, a leading investment banking group, noted that the “company continues to lose the market share as it has been focusing on resolving a spike in NPLs over the past few years”.
FBN’s NPLs are still about 2.9 percentage points above the industry threshold of 5.0 per cent of gross loans and advances. The NPLs/Gross loans ratio however dropped from 9.2 per cent in first quarter 2020 to 7.9 per cent in first quarter 2021. The bank increased its provisions for non-performing loans with a NPL coverage of 54.5 per cent in first quarter 2021 compared with 46.4 per cent in corresponding period of 2020. Impairment charges rose from N9.71 billion in first quarter 2020 to N13.18 billion in first quarter 2021.
Gross earnings dropped from N159.68 billion in first quarter 2020 to N136.58 billion in first quarter 2021. Profit before tax declined from N28.68 billion to N18.91 billion. After taxes, net profit dropped from N25.70 billion in first quarter 2020 to N15.6 billion in first quarter 2021.
“It is worth noting that the weak results in this quarter are on the back of lacklustre results in financial year 2020,” FSDH stated.
The bank’s interest income fell by 25.3 per cent from N104.9 billion in first quarter 2020 to N78.4 billion in first quarter 2021. This fall in interest income was offset by more than a proportionate decline in interest expense that fell 42.7 per cent to N25.6 billion in first quarter 2021. The impairment charges further increased by 35.7 per cent to N13.2 billion in first quarter 2021. As a result, the net interest income after Impairment sank 21.6 per cent to N39.6 billion from N50.5 billion in first quarter 2020.
The review showed that net fee and commission income jumped 36.8 per cent to N28.4 billion, driven by a 31.8 per cent spurt in fee and commission income, supported by a less than proportionate 11.2 per cent rise in fee and commission expense. The fee and commission income increased mainly on the back of growth in credit-related fees, letters of credit commissions and fees and electronic banking fees.
The bank’s foreign exchange income inched 1.8 per cent higher to N2.7 billion. The gains on the sale of investment securities also continued to perform well as it climbed 32.3 per cent to N17.9 billion in first quarter 2021. However, the gains from the fair value of financial assets reported at fair value through profit or loss (FVTPL) continued to drag with a 62.6 per cent fall to N3.1 billion. Dividend income tumbled 99.4 per cent to a mere N26 million in first quarter 2021, from N4.0 billion in first quarter 2020.
The bank’s personnel cost increased 3.5 per cent to N24.8 billion in first quarter 2021, and the depreciation charges bumped up 13.7 per cent. However, the company managed to keep the operating expenses in check with a mere 0.2 per cent rise to N42.0 billion.
With these, operating profit fell by 34.1 per cent to N18.9 billion in first quarter 2021. The bank’s earnings per share dropped by 36.8 per cent from 68 kobo in first quarter 2020 to 43 kobo in first quarter 2021.
In segmental breakdown, commercial banking and business group’s revenue fell by 15.2 per cent as it faced varying degrees of challenges in the operating environment. Merchant banking and asset management business group declined marginally by 1.5 per cent while other revenue fell by 16.2 per cent.
Central Bank of Nigeria (CBN) Governor Godwin Emefiele had last week cited bad loans, especially insider loans, as major challenges facing Nigeria’s oldest bank
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News
VIDEO: Resident Raises Alarm Over Sighting of Armed Street Boys in Lekki
VIDEO: Resident Raises Alarm Over Sighting of Armed Street Boys in Lekki
A resident of Lekki has expressed concern after spotting a group of suspected street boys moving around with machetes in the area, raising fresh fears over public safety in Lagos.
The incident, which was shared online, showed the individuals allegedly carrying cutlasses while walking through parts of the Lekki axis, a development that has sparked anxiety among residents and commuters.
According to the resident, the sighting occurred in broad daylight, prompting worries about the increasing presence of armed street gangs in Lagos communities. The individual called on authorities to urgently intervene and ensure the safety of lives and property in the area.
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The development has triggered reactions on social media, with many users expressing concern over the rising cases of youth violence, street gang activity, and insecurity in Lagos State. Some residents said such sightings have become more frequent, especially in rapidly developing urban areas.
As of the time of reporting, there has been no official statement from the Lagos State Police Command regarding the incident. However, security experts say visible patrols and rapid response measures are critical to preventing escalation.
Residents have been advised to remain vigilant, avoid confrontations, and report suspicious movements to security agencies.
The incident adds to ongoing concerns about urban safety and the need for stronger enforcement against illegal weapons possession and street violence in Lagos.
Resident Raises Alarm Over Sighting of Armed Street Boys in Lekki
Victor Moses | Black Axe | #PastorJerryEze | Wike | Michael Eneramo | Homophobic pic.twitter.com/swzLyPwaZ7
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VIDEO: Resident Raises Alarm Over Sighting of Armed Street Boys in Lekki
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Boko Haram Ultimatum Expires as 404 Abducted Residents Remain Missing
Boko Haram Ultimatum Expires as 404 Abducted Residents Remain Missing
The 72-hour ultimatum reportedly issued by Boko Haram-linked insurgents to the Nigerian government over the abduction of 416 residents in Borno State has expired without any official response, heightening fears over the fate of hundreds still in captivity.
The incident is linked to the March attack on Ngoshe community in Gwoza Local Government Area, where armed fighters stormed villages and a nearby military position, abducting civilians and displacing several others in one of the latest mass kidnapping incidents in the North-East.
Security sources and local community representatives confirmed that 12 abducted residents have escaped captivity, with reports indicating that the breakthrough occurred during a military operation in the area. According to accounts from one of the freed victims, Nigerian troops launched an offensive that forced the insurgents to flee, creating confusion that allowed some captives to escape while others were moved deeper into the forest.

404 Abducted Residents
Community groups, including the Borno South Youth Alliance, confirmed that the escapees consist of 10 women and two men, who are now receiving support in a safer location. Despite this development, at least 404 abducted persons remain missing, with growing concern among families over their safety and condition.
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Sources say the insurgents had demanded a ₦5 billion ransom, warning that failure to comply would lead to the permanent disappearance of the captives. The group also reportedly threatened to scatter victims across multiple hideouts if any military rescue attempt was launched, complicating ongoing security operations.
While efforts continue to trace the missing persons, insecurity in the region has worsened. At least 18 farmers and firewood collectors were killed in a separate ambush on the outskirts of Gwoza, with attackers targeting civilians working on their farms ahead of the rainy season. Senator Mohammed Ali Ndume confirmed the killings, describing the attack as deeply disturbing and calling for stronger protection of rural communities. Local officials warned that additional victims may still be unaccounted for.
Troops under Operation Hadin Kai have intensified counter-terrorism operations across the North-East, killing 24 insurgents in Kukareta during a separate encounter. Military authorities said the latest operations bring the total number of insurgents killed in recent days to 54, following earlier engagements around the Lake Chad region. Recovered weapons include rifles, machine guns, rocket-propelled launchers, and ammunition, while two soldiers were injured and an armoured vehicle sustained damage.
The worsening security situation has drawn political reactions from lawmakers and public officials. Senator Abdul Ahmed Ningi blamed the ongoing insecurity on governance failures, calling for urgent national measures focused solely on restoring peace. He warned that Nigeria risks deeper instability if security is not prioritised above political activities.
In Adamawa State, Governor Ahmadu Umaru Fintiri visited communities affected by a separate attack in Hong Local Government Area, where at least nine people were killed. He pledged continued government support and security reinforcement for affected communities.
At the federal level, the House of Representatives has called for the deployment of additional security personnel to Borno and Kaduna States, warning that continued attacks could escalate into a wider humanitarian crisis in the North-East.
Humanitarian organisations say repeated attacks, mass abductions, and ongoing military operations are worsening displacement and food insecurity across the region. They warn that rural communities remain highly vulnerable as farming activities are disrupted and access to affected areas remains limited due to insecurity.
Boko Haram Ultimatum Expires as 404 Abducted Residents Remain Missing
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News
BREAKING : President Tinubu Seeks Fresh $516m Loan
BREAKING : President Tinubu Seeks Fresh $516m Loan
President Bola Ahmed Tinubu has formally requested Senate approval for a $516,333,007 external loan to finance key sections of the ambitious Sokoto–Badagry Superhighway project, a flagship infrastructure initiative aimed at boosting national connectivity.
The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read during Thursday’s plenary session.
According to the President, the proposed funding will support the execution of Section 1, Phase 1a and 1b, covering about 120 kilometres of the planned 1,000km highway corridor linking Nigeria’s Northwest to the Southwest.
Tinubu explained that the highway will originate from Illela in Sokoto State and pass through Kebbi, Niger, Kwara, Oyo, and Ogun states before terminating in Badagry, Lagos State—creating a strategic economic route connecting inland production zones to coastal trade hubs.
The financing arrangement, the President noted, is structured as a syndicated loan from Deutsche Bank, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank Group.
He added that the Federal Government will provide counterpart funding of ₦265.54 billion to cover land acquisition, compensation, and other ancillary infrastructure tied to the project.
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Details of the loan show a nine-year tenor, including a grace period of up to three years, with an interest rate capped at the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent annually.
Tinubu informed lawmakers that the Federal Executive Council (FEC) has already approved the financing structure and urged the Senate to incorporate the loan into Nigeria’s rolling borrowing plan.
The President emphasized that the Sokoto–Badagry Superhighway is expected to significantly enhance North-South connectivity, improve road safety, and reduce logistics and transportation costs across the country. He added that the project would strengthen trade, boost food security, and promote national cohesion by linking agricultural production zones to markets and ports.
The design also includes provisions for future development, with the central median reserved for rail integration and utility corridors, positioning the route as a multi-modal transport backbone.
Following the presentation, Akpabio referred the request to the Senate Committee on Foreign and Local Debts for further legislative scrutiny, with a report expected within one week.
Speaking in support of the project, Senator Mohammed Adamu Aliero (Kebbi Central) described the highway as a long-awaited development, noting that it had been under consideration for over five decades.
Aliero said he had personally inspected ongoing work and expressed satisfaction with the progress, revealing that sections of the road are being constructed using both concrete and asphalt, alongside modern features such as solar-powered streetlights.
He projected that upon completion, travel time between Sokoto and Lagos could be reduced by more than 70 percent, cutting a typical 13-hour journey to about six hours.
The proposed loan forms part of the Tinubu administration’s broader strategy to leverage external financing for large-scale infrastructure projects considered critical to Nigeria’s economic growth and regional integration.
BREAKING : President Tinubu Seeks Fresh $516m Loan
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