Wema Bank reports N105 million insider loan linked to gaming tycoon Kessington Adebutu

Wema Bank Plc has disclosed a N105.84 million ($78,647) insider-related loan to Diamed Centre Limited, a company linked to its director Kessington Adebutu, in its 2025 audited financial statements, highlighting ongoing related-party exposures within the lender’s portfolio.

The facility, classified as a term loan, remained performing as of Dec. 31, 2025, with no impairment recorded, signaling that the bank considers the credit risk minimal. The exposure rose slightly from N90.71 million ($67,410) reported a year earlier.

Deepening financial ties with related entity

Filings show Diamed Centre maintained significantly higher deposits with the bank, which climbed by 133.3% to N406.2 million ($301,874) in 2025 from N125.3 million ($93,057) in 2024, pointing to a strengthening financial relationship between both parties. Interest income earned on the loan edged up to N2.18 million ($1,619) during the period.

Wema Bank noted that all insider-related loans are secured with real estate and other assets, reinforcing their credit quality. Total loans to related parties stood at N1.05 billion ($779,757) at year-end, with no lifetime impairment recorded across the portfolio.

Ownership structure and insider links

According to filings, Adebutu’s stake, held through Neemtree, has been restructured under representatives Abolanle Matel-Okoh and Yewande Zaccheaus, accounting for a combined 29.59% stake, equivalent to 11.87 billion shares.

Zaccheaus, a non-executive director, also had an indirect interest in a contract with the bank during the period through her role as chairman of Eventful Limited, underscoring the breadth of related-party dealings disclosed in the accounts.

For Wema Bank, the performing status of these exposures alongside the absence of impairments indicates no immediate credit concerns, as such disclosures, standard in audited reports, provide transparency into insider transactions, which are often closely monitored for potential conflicts of interest. 

Market value crosses $725 million

Wema Bank has continued to strengthen its market position, driven in part by its digital banking platform, ALAT, and sustained growth in retail banking. Shares of the lender on the Nigerian Exchange have surged 165.38%  in 2026, lifting its market capitalization above N1 trillion ($725 million).

The rally has significantly boosted Adebutu’s stake, which climbed from N146.84 billion ($106.47 million) at the start of the year to N351.07 billion ($254.56 million). The holding also positions him to receive N14.84 billion ($11.02 million) from the proposed N1.25 dividend for the 2025 fiscal year.

Strong earnings and deposit growth

The bank delivered a robust financial performance in 2025, with net profit rising 125.36% to N194.46 billion ($141 million), up from N86.29 billion ($62.57 million) in the prior year.

Total deposits expanded by 30.34% to ₦3.29 trillion ($2.39 billion), compared to N2.52 trillion ($1.83 billion) in 2024, reflecting continued traction in its retail deposit mobilization strategy and reinforcing its position among Nigeria’s fast-growing financial institutions.