Stakeholder denies that Togo’s Ecobank faces Nigerian investigation

Ecobank will not be under investigation in Nigeria, the chief operating officer of?South?Africa’s Nedbank, which owns 21% within the Togo-based lender, said on Friday.

A newspaper propose that Nedbank’s West?African associate was be subject to an investigation by Nigeria’s accountancy regulator spooked investors understanding of any prospect of costly fines in the united kingdom, driving down Nedbank’s share price by above 4%.

At the amount of time from the report last month, both Ecobank and Nedbank said that you had not been notified of a typical inquiry. On Friday Nedbank COO Mfundo Nkuhlu said Ecobank’s discussions while using the regulator consequently suggested there’s no investigation.

“[Ecobank Transnational Incorporated] management have advised, based upon their interaction while using Financial Reporting Council of Nigeria, there’s no investigation arrived to the previous reporting of ETI’s annual fiscal reports,” he explained within an emailed statement.

The newspaper report said the analysis in connection with allegations that Ecobank had overstated its balance sheet and income statement by utilizing incorrect fx rates.

Nedbank’s relationship with Ecobank is only now starting to be worth it after a slide in commodity prices and unfavourable currency swings in Nigeria drove Ecobank to a $131.3 million pretax loss in 2016.

The information mill particularly understanding of news of Nigerian corporate investigations once the MTN saga, where the?South?African telecoms giant ended up being threatened by using a multibillion-dollar fine by Nigerian regulators.

Nigeria’s Financial Reporting Council cannot be reached by telephone on Friday. An agent previously told Reuters how the council failed to discuss its investigations.

 

 

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