A recent private investigation report has raised serious allegations of unethical practices at Guaranty Trust Bank (GTB), particularly regarding unsolicited account openings and misleading financial disclosures.
The report, presented by the Group for Integrity in the Nigerian Banking Sector (GICN), claims that GTB engaged in the unauthorized opening of customer accounts, gathering personal information without consent in a bid to artificially inflate its customer base
This practice, according to GICN, not only compromises customer privacy but also exposes innocent account holders to potential financial crimes.
Founded in 1990, GTB has been accused of declaring inflated profits, including a reported N1 trillion in profit for the fiscal year ending June 30, 2024.
GICN at a press conference in Abuja on Thursday, presided over by its President Edward Omaga, argued that these figures lack substantial evidence and may involve fraudulent accounting practices, including round-tripping, where funds are moved between accounts to create a false impression of legitimate transactions.
The report particularly implicated Segun Julius Agbaje, the Group Chief Executive Officer of the bank, stating that under his leadership, GTB has faced scrutiny for deceptive accounting practices and has received financial penalties from regulatory bodies in the UK, including the Financial Conduct Authority (FCA).
GICN called for an urgent investigation by Nigerian regulatory agencies such as the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). They have urged legislative committees to convene public hearings to address these allegations.
The organisation also demanded international cooperation to investigate potential financial crimes committed by GTB in foreign jurisdictions. They proposed that the UK’s National Crime Agency and the U.S. Department of Justice take legal action against Agbaje and seize any assets acquired through illicit means.
“There is no gainsaying the fact that Guaranty Trust Bank Limited has become notorious over the years for engaging in deceptive accounting practices to artificially inflate profit figures. For instance, no substantial piece of evidence has been presented by Segun Julius Agbaje to support the assertion that GTB made over N1 trillion in profit as of June 30, 2024. Even then, it is very possible that the figures were generated through round-tripping, a process where funds are moved in and out of the bank through different accounts to create an illusion of legitimate transactions.
The combination of this process and other unethical business practices within the bank points toward systemic corruption, fraud, and money laundering, which warrant investigation by the relevant agencies. It is feared that such a troubling situation, if not properly checked, could undermine customers’ and investors’ confidence in the bank and pose significant risks to the stability of the Nigerian financial sector.
“We wish to let you know that the struggle to sanitize the banking sector of the Nigerian economy has begun, and GICN will remain at the forefront to ensure that customers and investors are liberated from hardship, losses, and pains. Copies of the Private Investigation Report will be distributed for your study and further inquiry. In the coming days, we will embark on additional civil actions. We hope you will continue to support us in this journey.
“We sincerely thank you for honoring the invitation to be here today. As you return to work for the good of the fatherland, we pray that Almighty God will continue to strengthen and enrich you with wisdom.”
