Wema Bank Plc has noted with concern recent media publications containing false, misleading, and wholly unsubstantiated allegations regarding the sale of certain Banana Island properties purportedly linked to the defunct Gulf Bank Plc. We unequivocally reject these claims, which are inaccurate, malicious, and clearly intended to distort the true position. For the benefit of our stakeholders—shareholders, customers, regulators, and the general public—we set out below the factual background to the transaction.

The Original Exposure and Default
In 2002, Wema Bank Plc (the Bank) made an inter-bank placement with Gulf Bank Plc in the sum of ₦4.6 billion. By August 2004, that exposure had been reduced to approximately ₦1.2 billion, after which the outstanding obligation became delinquent. In seeking to recover depositors’ and shareholders’ funds, Wema Bank pursued lawful recovery steps, which ultimately dovetailed into a criminal investigation of the then Managing Director of Gulf Bank Plc.

Based on the investigation of the Economic and Financial Crimes Commission (EFCC), the funds were found to have been diverted and used to acquire properties in Banana Island, Lagos, through two separate companies Bacad Finance & Investment Company Ltd (now known as Supra Commercial Trust Limited) and Euston Wenberg Eng Ltd. It is important to note that neither Bacad Finance & Investment Company Ltd (nor its successor, Supra Commercial Trust Limited) nor Euston Wenberg Eng Ltd is one and the same as Gulf Bank Plc. They are separate and distinct entities with no identity or equivalence to Gulf Bank. And the two companies are not subject to NDIC supervision.

In the course of its investigation, the EFCC conducted asset-tracing exercises that uncovered significant underlying fraud on a substantial scale. Following the EFCC’s findings, Bacad Finance & Investment Company Ltd and Euston Wenberg Eng Ltd voluntarily relinquished their proprietary interests in the Banana Island properties towards the satisfaction of Gulf Bank Indebtedness to Wema Bank. That process formed part of Wema Bank’s lawful recovery efforts and underscores the legitimacy of its actions against Gulf Bank.

NDIC’s Acknowledgment, Admission of Indebtedness, and Payment of Shortfall.
Critically, following the liquidation of Gulf Bank, Nigeria Deposit Insurance Corporation (NDIC) admitted Gulf Bank’s indebtedness to Wema Bank in two separate letters:
A letter dated September 26, 2007, addressed to the Federal Land Registry;

and

A letter dated June 10, 2009, addressed directly to Wema Bank Plc.
These letters constitute clear and formal recognition by the NDIC of the validity of Wema Bank’s claim against the defunct Gulf Bank and its interest over the property in question. Fortunately, both letters form part of the documents frontloaded by NDIC lawyer Dr. Dada Awosika SAN in court in the ongoing proceedings before Justice Allagoa of the Federal High Court Lagos.

Furthermore, after the sale of the properties, the NDIC in fact paid to Wema Bank, the shortfall of what was due to the Bank. These facts demonstrate that the NDIC was not only aware of the transaction but actively participated in settling the outstanding balance following the sale.

In light of the foregoing:
the voluntary relinquishment by Bacad (now Supra Commercial Trust Limited) and Euston Wenberg (distinct entities not constituting Gulf Bank), of the properties in Banana Island for the settlement of the indebtedness of the defunct Gulf Bank

the NDIC’s formal admission of Gulf Bank’s indebtedness to Wema Bank via its letters of September 26, 2007 (to the Federal Land Registry) and June 10, 2009 (to Wema Bank), both of which have been frontloaded in court by NDIC itself, and the acknowledgement of the relinquishment of the Banana Island properties, and

the NDIC’s own payment of the shortfall to Wema Bank,

NDIC is precluded from and cannot in good faith contest the relinquishment of those interests or the appropriateness of Wema Bank’s recovery efforts.

While we acknowledge that the NDIC has recently commenced two separate actions against Wema Bank at the Federal High Court, Lagos, purportedly in its capacity as liquidator of Gulf Bank Plc pursuant to a winding-up order, those proceedings do not alter the material facts stated above. As these matters are currently before the court and therefore sub judice, Wema Bank will refrain from commenting further on issues that fall for judicial determination. The Bank is taking all necessary steps to contest the suits filed in court and will explore all legal and legitimate means to protect its rights and interests.

Conclusion

Wema Bank Plc remains steadfast in its commitment to the highest standards of corporate governance, regulatory compliance, and transparency. We reaffirm our dedication to ethical and prudent banking practices and assure our shareholders, customers, regulators, and all relevant stakeholders that the Bank will continue to act responsibly, lawfully, and in the best interests of all parties it serves. The Bank will continue to exert its rights and will not succumb to the shenanigans of unscrupulous individuals who want to reap where they did not sow.

FOR FURTHER INFORMATION:

For further information, please contact:

Johnson Lebile
General Counsel/Legal Adviser
[email protected]

About WEMA Bank Plc

Wema Bank Plc (NGX: WEMA BANK) is the pioneer of Africa’s first fully digital bank, ALAT, and one of Nigeria’s most resilient banks. With decades of experience in the business of banking, the Bank has remained innovative in delivering value to its stakeholders. Wema Bank operates a network of over 150 branches and service stations backed by a robust ICT platform. The publicly quoted Nigerian company has successfully built a legacy of trust and resilience that has won it the loyalty of its customers. The Bank is constantly introducing products and services tailored to the needs of its customers at every stage of their lives. It is a proud partner to more than one million individuals, families and businesses across Nigeria, helping them achieve their personal and financial goals.

More information can be found at https://www.wemabank.com/about-us/

The All Farmers Association of Nigeria (AFAN) says food prices may decline by the next harvest season if governments improve security and reduce production costs for farmers.

The Deputy Chairman of AFAN, Lagos State Chapter, Mr Shakin Agbayewa, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos

Agbayewa said staple foods such as rice, yam, cassava and Garri would become more affordable if farmers could cultivate safely and access farm inputs at lower costs.

According to him, insecurity, high fertiliser prices, rising fuel costs and expensive farm operations are the major drivers of current food inflation.

“The government must be intentional and deliberate.

“Input costs are high. Fertiliser is expensive, while tractor operations cost more because of rising fuel prices. All these affect production,” he said.

Agbayewa said the high cost of cultivation, transportation and security was ultimately passed on to consumers.

He urged governments at all levels to support farmers with subsidised inputs, improved rural roads, irrigation facilities and affordable credit.

He also called for stronger collaboration with farmers’ associations to identify practical solutions tailored to the needs of each state.

According to him, increased agricultural production in the coming farming season will naturally ease pressure on market prices.

Agbayewa said Nigeria has sufficient land and manpower to feed itself if the right policies are implemented.

He added that supporting farmers remains the most sustainable path to lower food prices and economic stability.

Against the backdrop of rising costs of living and declining purchasing power, brewing companies have recorded sharp rise in revenues.

Filings by the companies to Nigeria Exchange Limited, NGX, indicate that leading brewers, Nigerian Breweries Plc, Guinness Nigeria Plc, International Breweries Plc, and Champion Breweries Plc recorded combined revenue of over N2.8 trillion from the sale of mainly beer and spirits, in addition to their non-alcoholic beverages in the year ended December 31, 2025, up from N1.89 trillion recorded in the corresponding period of 2024, representing an increase of 48.1%.

Analysts noted that the figure underscores the scale of beer and other alcoholic beverage consumption in Nigeria despite prevailing economic pressures.

According to the financial statements of the four major brewers profit was even more impressive with Profit Before Tax (PBT) rising 117.2 percent to N317.213 billion, up from N146.050 billion in 2024.

Meanwhile, the growth rate in revenue and profit were far higher than their cost of doing business despite the inflationary pressures in the economy.

The companies’ cost of sales rose 36.5% to N1.8 trillion from N1.3trillion, while administrative expenses rose by 17.6%, to N639.8billion from N544.04 billion.

Revenue generated

Nigerian Breweries Plc, the largest brewer, recorded revenue of N1.467 trillion for the period, up from N1.084 trillion in the corresponding period of 2024, indicating a 35.3% increase.

Guinness Nigeria followed as the second-largest revenue generator in absolute terms, posting N730.808 billion, up by 144.0% from N299.489 billion in 2024. International Breweries ranked third, posting N620.149 billion, up by 26.8% from N488.955 billion in 2024, while Champion Breweries recorded the least revenue of N29.797 billion, up by 42.6% from N20.890 billion in 2024.

Profit Before Tax

A breakdown of industry profit shows that Nigerian Breweries also topped the chart in absolute terms, posting N161.062 billion, though down by 11.9% from N182.917 billion in 2024.

Trailing Nigerian Breweries is International Breweries, which recorded N85.108 billion, improving from a loss of N111.820 billion in 2024.

Guinness Nigeria ranked third with N68.392 billion, declining by 7.2% from N73.679 billion in 2024, while Champion Breweries recorded N2.651 billion, up from N1.274 billion, representing a 108.1% increase.

Cost of sales/Operating expenses

Breakdown of cost of sales shows that Nigerian Breweries recorded the highest in absolute terms at N902.239 billion, compared to N764.520 billion in 2024.

Guinness Nigeria followed with N500.326 billion against N208.031 billion in 2024; International Breweries recorded N415.707 billion from N357.605 billion, while Champion Breweries posted N14.427 billion from N12.172 billion.

Similarly, operating and administrative expenses showed that Nigerian Breweries rose by 44.7% to N361.782 billion from N249.993 billion. Guinness increased by 104.2% to N141.496 billion from N69.288 billion. International Breweries recorded N131.649 billion, down from N222.428 billion in 2024, representing a 40.8% decline, while Champion Breweries rose to N4.829 billion from N2.328 billion, up by 107.4%.