Banking
How Wema Bank Paid Dividend After Rethinking Digital Strategy
On May 8, 2019, shareholders of Nigeria’s oldest indigenous lender, Wema Bank Plc, agreed to the proposed N0.03 dividend payment proposed by the management of the bank, amid celebration, as the shares of the bank listed on the Nigeria Stock Exchange (NSE) traded at N0.73 each.
The shareholders celebrated the proposed N0.03 per share dividend payout, not just because of a payout ratio of 34.79 percent but also because it was the first time they were getting any return from Wema Bank in 15 years.
The bank, founded in 1945, had survived different reforms and restructuring in the country’s economy and financial services industry.
Following the 2008 banking crisis in Nigeria which saw the collapse of many banks, Wema Bank had negative capital in excess of N66 billion and was declared a bank in grave financial situation by the banking industry regulator in Nigeria, but years of effective leadership have turned around the fortunes of the financial institution.
While the work to rebuild the lender was ongoing, shareholders had to forfeit their annual dividend as the bank was in no position to do so. However, following its capital reconstruction, a major constraint to Wema Bank’s dividend payment ability was lifted.
The journey to recapitalize Wema Bank, return it to profitability and consistently grow has been an arduous one for the management of the company and the shareholders alike, who year after year had to put up with the bank’s reasons for not paying dividend. Nevertheless, they were strong in their belief of the path the Bank has chosen to ensure growth.
For the management of Wema Bank, it was going to be difficult to get the kind of results needed for exponential growth with the traditional banking methods, which every lender in the industry already use to serve their customers.
Chances of getting bank customers to choose a new bank are getting slimmer as it was becoming very difficult to present any unique proposition.
Therefore, any bank that was keen about growth had to, either run after the unbanked and hope that would be enough, or think up something new altogether. That was what Wema Bank did.
After years of research, the management of Wema Bank concluded that the only way to achieve the kind of growth needed to deliver value to all its stakeholders was to build a bank of the future today.
In 2017, Wema Bank launched ALAT, which offers branchless banking services. It is Africa’s first digital bank and it changed everything that banking was all about in Nigeria before its arrival. It got other financial services providers thinking, with many introducing similar products/services and retooling existing infrastructure to deliver more value to customers.
While ALAT might not have been able to corner the millennial/digitally savvy consumer market for itself, it got some who did not join ALAT to start asking their banks for more.
With more than a million active customers who are enjoying the digital bank that is fast becoming part of their lifestyle, Wema Bank has through a rethink of its digital strategy which birthed ALAT, changed the game in the Nigerian banking industry and achieved its quest for exponential growth.
In 2018, the bank’s profit after tax grew 47.5 percent to N3.3 billion from N2.3 billion in 2017. Its gross earnings went up by 9.6 percent to N71.53 billion in 2018 from N65.27 billion in 2017.
ALAT played a huge role in seeing savings deposit grow by 26.2 percent to N62.89 billion in 2018 from N49.83 billion in 2017. Current account deposit also grew by 46.80 percent from N12.47 billion in 2017 to N18.30 billion.
Wema Bank’s Chairman, Mr Babatunde Kasali, said the bank remained highly committed to using it “technological edge to drive and deliver on our goals for the year”.
He added that the bank would also deepen its focus on the commercial and corporate business while it continues to leverage technology to get ahead of competitors, even in the retail space.
By Modupe Gbadeyanka
About N2 billion is expected to be used to finance renewable energy products for customers by the end of 2026 in an effort to accelerate Nigeria’s clean energy transition.
To meet this goal, Sterling Bank is launching Sterling Solar Financing Hubs inside StarTimes retail outlets to embed on-the-spot solar financing at the point of purchase.
From the N2 billion earmarked for this initiative, N600 million has already been used up.
Under this programme, customers can now walk into participating outlets, select their preferred solar solution, receive financial guidance from dedicated Sterling Solar Financing Advisors, and begin the financing process immediately, subject to the bank’s credit assessment.
The first phase of the rollout commenced this July with five Solar Financing Hubs across Lagos, located in Lekki, Ikeja, Festac, Surulere, and Victoria Island.
The network will expand rapidly to 46 StarTimes outlets nationwide before the end of the third quarter of 2026, with a view to extending the model to more than 200 StarTimes locations nationwide.
Both parties have promised to continue working together to democratise access to clean energy financing, empowering more Nigerians to solarise their homes and businesses while contributing to a greener future.
“Sterling exists to enrich lives, and we believe that access to clean, reliable energy should be within everyone’s reach. Through this partnership with StarTimes, we are democratising access to solar by bringing financing directly to the point of need, enabling more families and businesses to transition to sustainable energy without the burden of prohibitive upfront costs. This is about unlocking opportunity, improving livelihoods, and powering Nigeria’s future,” the Divisional Head of Renewable Energy and Mobility at Sterling Bank, Mr Darlington Nwankwo, said.
Also commenting, the Vice President of StarTimes Nigeria, Mr Eric Xiao, said, “With the rollout of the Sterling Solar Financing Hubs, we are doing more than just selling solar products; we are building a sustainable energy ecosystem. By integrating StarTimes’ extensive service network with Sterling Bank’s professional financial services, we are significantly lowering the barrier for Nigerian households and small businesses to access clean energy.
“Moving forward, we will continue to deepen this partnership, ensuring that more Nigerians can enjoy reliable, affordable, and smart energy solutions, ultimately turning our vision of energy accessibility into a reality for all.”
By Modupe Gbadeyanka
The Nigeria Business Summit Regional Tour of Stanbic IBTC Bank made a detour to Jogor Centre, Ibadan, Oyo State, on Wednesday, July 15, 2026, to empower Micro, Small, and Medium Enterprises (MSMEs).
The event brought together business leaders, development partners and government representatives to discuss pathways for sustainable enterprise development across the South-West.
Participants engaged in practical masterclasses on export opportunities; access to finance and business growth strategies; gaining actionable insights into market expansion; trade documentation; credit readiness; financial record-keeping; and structured financing solutions designed to support long-term business success.
The Head of Enterprise Banking at Stanbic IBTC Bank, Ms Olajumoke Bello, informed participants that the programme is part of the lender’s commitments to supporting MSMEs through practical business education, strategic partnerships and improved access to growth opportunities.
The Executive Director of Business and Commercial Banking at Stanbic IBTC Bank, Mr Remy Osuagwu, on his part, said, “Our ambition is to be more than a financial institution to Nigerian businesses. We want to be a trusted growth partner, providing the financing, business insights and advisory support entrepreneurs need to build sustainable enterprises and unlock new opportunities.”
Similarly, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who reinforced the company’s commitment to enterprise development, highlighted the importance of providing businesses with the right support structures to enable sustainable growth and long-term competitiveness.
“At Stanbic IBTC, we believe that sustainable economic growth depends on the success of small and growing businesses. That is why we are focused on providing access to finance, practical advisory support and the connections businesses need to move from ambition to scale,” he stated.
The Oyo State Commissioner for Investment, Trade, Cooperatives, and Industry, Professor Soliu Adelabu, said the initiative was designed to support businesses and strengthen the state’s entrepreneurship ecosystem, praising the bank for its support for traders, entrepreneurs, and artisans in the state.
The Permanent Secretary in the Oyo State Ministry of Women Affairs and Social Inclusion, Mrs O.M. Shotonwa-Roagess, highlighted the importance of strategic partnerships in expanding economic opportunities for women and vulnerable groups across Oyo State. She noted that the ministry remains open to collaborating with organisations such as Stanbic IBTC, development partners and the private sector to drive financial inclusion, entrepreneurship and sustainable economic empowerment.
The Nigeria Business Summit Regional Tour forms part of Stanbic IBTC’s broader commitment to empowering entrepreneurs through capacity building, financial inclusion and strategic business support, helping enterprises unlock new opportunities for growth and long-term success.
The Ibadan leg built on the momentum of previous tour stops in Katsina and Aba.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria anticipates remittances from citizens living abroad to increase by two-thirds in 2026 as it seeks to bolster its foreign-exchange reserves to $1 billion monthly.
“We are expecting that by the end of the year, we will hit about a billion Dollars a month from diaspora remittances,” he said at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, themed From Stability to Shared Prosperity.
Mr Cardoso said remittances are expected to be boosted from more than $600 million currently, banking on the CBN’s deliberate target at remittances to diversify reserve sources beyond oil earnings.
According to him, the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He said the lender subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Mr Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped double diaspora inflows within one year and exceeded initial expectations, also projecting annual remittances could reach about $8 billion if the current momentum was sustained, adding that the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Mr Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors’ confidence.
He identified exchange rate unification as one of the central bank’s major achievements under the reforms programme.
According to him, replacing multiple exchange rate windows with a market-driven system eliminated distortions and improved transparency.
Mr Cardoso said improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently, noting that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
According to him, the reserves are designed to shield the economy from external shocks and excessive market volatility.
He said the reserves were not meant for routine interventions or day-to-day exchange rate management.
