Wema Bank investors engage in sell off, amid risk of N1.8bn fine – Ripples Nigeria

Iranian President refuses interview with CNN’s Amanpour after her refusal to use Hijab
Iran Revolutionary Guards seeks clampdown on fake news after protests over woman’s death
At UN Assembly new British PM, Liz Truss, slams Russia’s President Putin
EU prepares fresh sanctions against Russia, pledges more military support to Ukraine
Congo DR president tackles Rwanda for backing rebels
PDP cannot do without me in Rivers State —Gov Wike
Disregard for zoning root cause of PDP crisis —Wike
APC, PDP agenda harmful to Nigeria’s progress —LP Leader, Osuntokun
JUST IN… Ayu: I’m not afraid of being suspended from PDP, I have options —Wike
Ayu: PDP showing Nigerians that it cannot be trusted ahead of 2023 elections —Wike
CBN threatens to deduct money from loan debtors’ accounts
Oil theft killing economy, as 265 illegal refineries uncovered in SPDC corridor
AfDB’s Akinwumi Adesina says Nigeria needs help
NGX: Investors lose N124.9bn to sell-off in BUA Cement, Guinness
Ibukun Awosika, nine others get new positions at cryptocurrency firm, Binance
INVESTIGATION: How Kano SUBEB awarded contracts to inactive contractors, non-existent schools
SPECIAL REPORT: Hike in gas price forces more Nigerians to use coal, sawdust, as smoke kills 93,300 yearly
INVESTIGATION: How roadside foods endanger consumers’ life with trans fat in northern Nigeria
INVESTIGATION: Untold story of Ondo oil producing communities battling poor health system
FEATURE: Ogun residents, waste collectors trade blames, as refuse litter environment
FACT-CHECK: Is Angolan currency stronger than naira, dollar as claimed by a Twitter user?
FACT-CHECK: Is this viral image from wedding of footballer, Sadio Mane?
FACT-CHECK: Omokri compares Nigeria’s ranking on terrorism under Jonathan and Buhari. How correct is he?
FACT-CHECK: Did Court of Appeal affirm Segun Showunmi as PDP guber candidate in Ogun?
FACT-CHECK: Did Tinubu promise to extend sharia rule to Southern Nigeria?
Full house in Super Eagles camp ahead Algeria friendly
More players expected in Super Eagles camp as training begins ahead Algeria friendly
Amusan’s 100mH record ratified by World Athletics
S’Africa to bid for FIFA Women’s World Cup hosting rights
SportsBusiness: Barcelona report £86m profit for last fiscal year
Ghana’s SecondSTAX secures $1.6m pre-seed funding. 2 other stories and a trivia
Amazon, Microsoft, Google under probe for alleged anticompetitive behaviour
Nigerian fintech startup, Bamboo, expands operations into Ghana. 2 other stories and a trivia
YouTube rolls out 45% ad incentive to win TikTok market. 2 other stories and a trivia
Nigerian health-tech startup, Remedial Health, secures $4.4M seed funding. 2 other stories and a trivia
Naira remains stable at official, parallel markets
Naira reverses gain, weakens at official market
Naira gains marginally as CBN goes after vendors of new notes
Naira starts new week on a low, as FX supply drops further
Naira falls to N707/$1 at black market, as forex scarcity persists
Investors in the capital market are selling off their shares in Wema Bank to exit their investment in the financial institution amid allegation of illegal practice involving the company.
The illegal banking practice attract a fine of N1.8 billion.
Ripples Nigeria had reported agents of Wema Bank were abusing personal data of Nigerians, in order to profit from it, against the regulation of the National Information Technology Development Agency (NITDA).
The bank had been opening accounts in the names of persons, whose personal information Wema Bank was in possession of, without approval. The data was believed to consist of the firm’s former customers and persons not banking with the lender.
In an email shared with Ripples Nigeria by one of the affected individuals, it was discovered that the unauthorised accounts were opened in a bid to achieve one million new accounts within one day, to celebrate ALAT, its digital platform, which clocked 5 years on May 2, 2022.
Read also :Wema Bank to probe firm’s marketers amid allegations of illegal banking practice
Checks showed that NITDA regulation frowns against the abuse of personal information or usage of private data without consent from owners of the information. This action is sanctionable by the deduction of 2% in annual turnover from the firm involved or fine of N10 million, depending on which is higher, and if the data in their possession is above 10,000.
Ripples Nigeria understands from findings, that Wema Bank reported N93.63 billion as revenue for twelve months of last year, which translate to the company risking N1.87 billion, if the NITDA probes the data breach allegation.
The regulation clearly states, “Breach of the privacy rights of any Data Subject under the NITDA Regulation shall, apart from other criminal liability, attract, with respect to Data Controllers dealing with more than 10,000 Data Subjects, payment of a fine of 2% of annual gross revenue of the preceding year or payment of N10 million, whichever is greater, with respect to Data Controllers dealing with less than 10,000 Data Subjects, a fine of 1% of the annual gross revenue of the preceding year or payment of N2 million, whichever is greater.”
Amid this N1.8 billion fine looming, investors are exiting their investment by selling off Wema Bank shares in a massive way that has caused the stock to fall 12.3% within two weeks of the Ripples Nigeria report from N3.65kobo per share to N3.2kobo per share as of Friday.
Demand for the share has dropped, as the capital market’s confidence in Wema Bank turned bearish, reflecting fear of further share depreciation, which has wiped off N5.78 billion from the value of investment held by current shareholders.
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
Donate Now
Airtel Africa pays $42m for DRC’s 4G spectrum, after losing out on Nigeria’s 5G bid
Nigeria Air set to receive operating licence today
INDUSTRY REVIEW: Five best performing Nigerian banks for Q2 2022
Wema Bank records increased revenue, generates N59.59bn in H1 2022
FBN Holdings, GTCO, Ardova and Wema Bank make list of stocks to watch this week
BANK REPORTS: Five best performing Nigerian bank stocks in H1 2022
Wema Bank launches Leadership School to re-skill and groom leaders
Wema Bank drums support for female inclusion in tech
Your email address will not be published.

15 + three =

In an effort to address issues hindering quality education, the Kano State Government in 2020 awarded N88,406,667.10 for the construction…
In the build-up to the 27th Conference of Party (COP 27), Nigeria recently launched its energy transition plan (ETP) as one of…
With an estimated 854,000 deaths in Nigeria, and 3,229 attributed to trans fatty acids (TFA) -related cardiovascular deaths, ADESOLA IKULAJOLU visited Nigeria’s…
Access to quality healthcare is one of the nightmares of communities in Ilaje local government area of Ondo State. Despite…
TIJANI ABDULKABEER, a journalist from the University of Ibadan, during a recent trip to Sango Otta, Ogun State took a look…
Copyright © 2021 Ripples Nigeria. All rights reserved.


Leave a Comment