FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, on Thursday confirmed to the Securities and Exchange Commission that it had paid the sum of N1.877bn as fine to the Central Bank of Nigeria for violating the Federal Government’s Treasury Single Account policy.

FBN Holdings, in a letter addressed to the Director-General, SEC, Mr. Mounir Gwarzo, said the confirmation was in response to media reports on the fine.

The CBN had a few days ago reportedly fined First Bank and United Bank for Africa Plc a total sum of N4.819bn for allegedly concealing funds belonging to the Nigerian National Petroleum Corporation.

The government had directed all Deposit Money Banks to remit the government revenue to the CBN Treasury Single Account.

While the CBN imposed a penalty of N1,877,409,905.12 on First Bank, UBA was reportedly fined N2,942,189,651.45 for its failure to comply with the government’s policy.

FBN Holdings, in the letter to SEC confirming payment of the fine to the CBN, however, said it was still in discussion with the central bank management over the decision.

The letter, a copy of which was obtained by our correspondent on Thursday, was signed by the Company Secretary, FBN Holdings, Mr. Tijani Borodo.

The letter, dated October 27, 2015, and titled, ‘Treasury Single Account: Imposition of penalty of N1.877bn by the Central Bank of Nigeria on First Bank of Nigeria Limited’, read, “In response to the widespread media reports on the above, we wish to confirm and acknowledge the imposition of a fine of the sum of N1.877bn by the Central Bank of Nigeria on our subsidiary, First Bank of Nigeria Limited, and declare that the fine has since been paid.

“However, the management of First Bank is still engaging in conversations with the CBN on this regulatory decision.

“Kindly be assured that the bank and the entire FBN Group as responsible corporate citizens remain committed to values epitomised by strict compliance to the highest standards of ethics and corporate governance. This is for your information and further action.”

It is yet to be ascertained if UBA has paid the alleged fine. Officials of the UBA could not readily comment on the issue on Thursday when our correspondent sought to get an update on the matter.

First Bank reportedly concealed N37,548,198,102.41 belonging to the NNPC instead of remitting it to the TSA as directed.

On the other hand, UBA allegedly concealed N58,843,793,029.05 of the NNPC funds, which attracted the penalty.

It was further reported that the penalty was the equivalent of five per cent of the funds they failed to remit.

Source: Punch