Banking
Diamond-Access Bank Merger: What’s in it for Stakeholders?
By May 31 this year, technical details of Diamond-Access Banks’ merger would have been finalised, all things being equal.
Subsequently, the process for integration of both banks would commence in earnest leading to a rebranding of what will eventually emerge by end of September or beginning of October as Nigeria’s biggest, and perhaps one of Africa’s largest lender by capitalisation and geographical spread.
Anxiety of some shareholders and other stakeholders in some quarters is understood given the fact that many are wondering how the merger can squeeze value and guarantee competitive returns on equity (ROE). In fact, the underlying interest of an average investor is returns on equity, ultimately profit.
Therefore, the question on the lips of a cross section of stakeholders has been: What will this merger deal offer? The single straight answer lies in the theory of economies of larger scale.
Information gathered from recent interactions with key management staff of both deposit money banks spearheading the business combination processes indicate that over N150 billion could be saved as direct result of economies of large scale which will translate to returns on equity to shareholders.
According to the business combination experts, the synergy will yield over N62 billion savings on the revenue side. They said that N40.9 billion would come from extended product offering while N8.4 billion from expanded digital channels.
They also hope that N6.7 billion is going to be saved from the extension of market share in corporate and retail banking markets, and another N6.2 billion to be dug from treasury sales.
That is not all the good side to what could be eked out from the merger. On the expenditure side, the managers believe that savings of N88.1 billion would be made; and from procurement and facility management a whopping N40.5 billion or about half of the savings is expected to come while N21 billion will accrue from cost of funds reduction through lower deposit pricing.
More savings of N12.6 billion from IT integration; N13.5 billion from branch consolidation; and another N500 million to be squeezed from support functions integration, bringing envisaged total integration savings to about N150.1 billion.
The merger managers were of the opinion that going forward the savings would improve investor’s equity returns as the merger would allow for both economies of scale and of scope as fixed costs would be shared over a much larger depositor and borrower base.
How realistic are the permutations?
As to how this permutation will be realized and ultimately translate into good returns to shareholders, financial analysts at Proshare said they believed the merger would yield good returns to shareholders but cannot say for certainty how much returns.
Proshare Managing Director and Chief Executive Officer, Mr Femi Awoyemi, told Nigerian Tribune that integration of the two banks is one of the best deals ever in Nigeria’s financial industry, stressing that the adoption of cutting edge technology platform of Diamond Bank and the ability to deliver seamless services to generations of customers would be of competitive advantage for Access Bank which he said is being run efficiently.
As to what place the integrated Diamond-Access Bank will occupy in Africa financial markets, the financial analyst said technology and efficient service delivery makes all the difference in competitive financial markets of today.
He said: “Let us just concentrate on building and integrating the bank. I have been to Access Bank in Kigali, Rwanda. Access Bank in Kigali is as efficient as anything. In fact, services they offer there are far better than what they offer in Nigeria.
So, being a big bank in Africa is about services, it is about customers, it is about integrating regions. That is why I am keen about what they do with technology. Generally, the bank will do well because it is being run efficiently,” Mr Awoyemi concluded.
Former Chief Economist/Group Head, Research & Economic Intelligence Group at Zenith Bank Plc, Mr Marcel Okeke, said it is going to be a good deal for all stakeholders.
For the shareholders of Diamond Bank, he noted, a mark-up in the share price at the Nigerian Stock Exchange (NSE) already guarantees them instant returns compared to what the value had been pre-merger talks.
Besides, for those of them who may choose to remain shareholders post-merger, they are going to be part of the bigger financial institution, probably the biggest in Africa in terms of customer base.
He said that the role cutting edge technology and size can play in the banking market of today is tremendous, adding that going by the credibility of Access Bank, stakeholders are in for impressive returns.
“So, they are going to operate as the biggest in Nigeria if not the African sub-region. This implies that they are going to become more profitable even though there are significant liabilities outstanding which I believe would be resolved,” said the financial analyst.
Customer-client savvy as driving motive
But of greater importance in the merger scheme are customers of the bank who stand the chance of achieving a lot more through the combination of Access Bank and Diamond Bank.
“The products and services that Diamond Bank’s clients enjoy, including its commitment to digital innovation, will continue unchanged and will be strengthened by Access Bank’s extra-ordinary commitment to customers, financial inclusion and sustainability, bolstered by the bank’s corporate expertise and strong balance sheet.
“Together, we will bring the power of banking to millions across Nigeria, focused on speed, service and security. We are determined to ensure that both Access Bank and Diamond Bank customers will experience no disruption to normal banking services while we join forces to create Nigeria and Africa’s largest retail bank by customers,” a source at Diamond stated.
With 3100 automated teller machines (ATMs), over 600 branches, supported by Diamond Bank’s bouquet of technology-driven products offerings including Diamondxtra and XclusivePlus, over 29 million customers of Diamond Bank and Access Bank, more than 13 million mobile customers are going to enjoy some reward scheme for using Diamond or Access Bank POS terminal, as well as same day clearing of cheques for Diamond and Access customers in both banks.
Of greater comparative advantage to customers of both banks is the AccessAfrica initiative which guarantees service in all Access Bank subsidiaries – Nigeria, Ghana, The Gambia, Democratic Republic of Congo, Rwanda, Zambia and Sierra Leone.
“The AccessAfrica service is available in all Access Bank subsidiaries – Nigeria, Ghana, The Gambia, Democratic Republic of Congo, Rwanda, Zambia and Sierra Leone. Our customers can now enjoy instant borderless banking from any access bank branch.
“When they walk into any Access Bank branch and initiate payment in their local currency, the beneficiary will receive an instant direct credit to their account or cash in their local currency,” said senior management staffers of Access and Diamond spearheading the merger processes.
By Adedapo Adesanya
The Senate has demanded detailed explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus.
The Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mr Tokunbo Abiru, opened its statutory briefing with a firm call for transparency at the apex bank, noting that the Auditor-General’s query on the unremitted funds required a full, clear and documented response, insisting that public trust in monetary governance depended on strict accountability.
While acknowledging the CBN’s achievements in stabilising the foreign exchange market and reducing inflation, Mr Abiru underscored that such progress must be accompanied by institutional responsibility.
He stated the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective steps taken and reveal safeguards against future lapses.
This came as the Governor of the central bank, Mr Yemi Cardoso, appeared before the senate committee and offered an extensive review of economic conditions, asserting that Nigeria was experiencing renewed macroeconomic stability across major indicators.
Mr Cardoso attributed the progress to bold monetary reforms, foreign-exchange liberalisation and disciplined liquidity management implemented since mid-2025.
According to him, headline inflation had declined for seven consecutive months, from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking the steepest and longest disinflation trend in over a decade.
Food inflation accruing to him also slowed to 13.12 per cent, supported by improved supply conditions and exchange-rate predictability.
The CBN governor described the foreign-exchange market as fundamentally transformed, adding that speculative attacks and arbitrage opportunities had largely disappeared.
According to him, the premium between the official and parallel markets had fallen to below two per cent, compared to over 60 per cent a year earlier. As of November 26, the naira traded at N1,442.92 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average recorded in the first half of 2025.
He also announced a sharp rise in external reserves to $46.7 billion, the highest in nearly seven years and sufficient to cover over ten months of imports.
Diaspora remittances, he noted, had tripled to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025, 70 per cent higher than in 2024 and more than four times the 2023 figure.
Cardoso further confirmed that the CBN had fully cleared the $7 billion verified FX backlog, restoring investor confidence and strengthening Nigeria’s balance-of-payments position.
On banking-sector stability, he reported that recapitalisation efforts were progressing smoothly. Twenty-seven banks had already raised new capital, with sixteen meeting or surpassing the new regulatory thresholds ahead of the March 31, 2026 deadline, highlighting improvements in ATM cash availability, digital-payments oversight and cybersecurity compliance.
Despite the positive indicators, the Senate sought clarity on several policy decisions.
Mr Abiru pressed for explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR applied to non-Treasury Single Account public-sector deposits, FX forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also requested an update on the activities of the Financial Services Regulatory Coordinating Committee, arguing that stronger inter-agency cooperation was necessary to maintain public confidence.
The session later moved into a closed-door meeting.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
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