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Directors of Zenith Bank PLC have collectively earned emoluments amounting to N6.78 billion over a span of 15 months, according to financial data obtained by TNDOnline News.
The financial statement released on the Nigerian Exchange Limited, encompassing the entire year of 2023 and the first quarter (Q1) of 2024, highlights the significant remuneration enjoyed by the bank’s leadership.
The board members during this period included Jim Ovia, Chuks Emma Okoh, Mustafa Bello, Juliet Ehimuan, Gabriel Ukpeh, Omobola Ibidapo-Obe Ogunfowora, Peter Olatunde Bamkole, Al-Mujtaba Abubakar, Henry Oroh, Ebenezer Onyeagwu, Adaora Umeoji, Temitope Fasoranti, Akindele Ogunranti, and Adobi Nwapa.
Adaora Umeoji resigned from the board on February 24, 2023, but was reappointed on August 2, 2023, following the Central Bank of Nigeria’s (CBN) approval. Similarly, Juliet Ehimuan joined the board on August 29, 2023, while Temitope Fasoranti retired on December 29, 2023.
The directors received N5.989 billion in emoluments for the 12 months ending December 2023, and an additional N791 million in Q1 of 2024. The Q1 2024 figure represents a 91% increase from the N414 million earned in the same period of the previous year.
Additionally, Zenith Bank incurred N89 million in fines for undisclosed breaches in Q1 2024, up from zero in the corresponding period of 2023, and only N21 million for the whole of 2023. Auditor fees also saw a substantial increase, with the bank paying N1.337 billion in 2023 and another N736 million in Q1 2024. This marks a 247% rise from the N212 million paid in professional fees during Q1 2023.
Travel and hotel expenses totaled N5.155 billion in 2023 and N2.281 billion in Q1 2024, reflecting the bank’s operational expenditures.
The bank is currently involved in several legal disputes, with claims against the group amounting to N954 billion in Q1 2024, compared to N705 billion in the same period of 2023. Despite these legal challenges, Zenith Bank maintains that these cases are unlikely to have a material adverse effect on the group.
Regarding loans to key management personnel, Zenith Bank continues to offer preferential rates of 4%, significantly lower than the prevailing market rates based on the Monetary Policy Rate (MPR), which ranged from 22.75% to 24.75% in Q1 2024. Loans to general customers were not offered below these rates, with most hovering between 30% and 40%.
“Loans to key management personnel include mortgage loans and other personal loans, repayable from various cycles, and have an average interest rate of 4%. These loans are performing,” the bank stated.
This preferential treatment has sparked criticism from industry observers. An Abuja-based food business operator, Ms. Vivian Emodi, recounted her difficulty in obtaining a loan at reasonable rates in 2021, highlighting the disparity between staff and customer treatment.
Former tier-1 bank staff member, Mr. Otienne Maxwell, described the practice as common but questioned its fairness. “It is often meant to compensate staff for their efforts, but is it fair to give out depositors’ money at a 4% rate when the benchmark rate is far above 20%?” he asked.
Zenith Bank’s financial practices and remuneration policies continue to draw scrutiny and debate within the financial sector and beyond.
