Banking
Two Major Battles Ahead of Tier-2 Nigerian Banks
Dipo Olowookere
Last month, Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, announced at a media briefing that he would likely force deposit money banks in the country to increase their minimum capital base from its present level within the next five years.
The last recapitalisation of the banking sector was in 2004 under the leadership of Mr Charles Soludo as CBN Governor.
During the exercise, the central bank raised the capital base from N2 billion to N25 billion and for those who could not meet this requirement on their own, they had to merge with others or were acquired by bigger financial institutions.
Since the announcement by Mr Emefiele on June 24, 2019, shareholders of some banks, especially the tier-two and three, have been wondering what could happen next to their companies.
In fact, there was a recent report that Access Bank, which merged with Diamond Bank in March 2019, was planning to acquire Union Bank of Nigeria Plc. But both banks have denied the rumour, saying there was no iota of truth in it.
Though the CBN is yet to announce what the new minimum capital base would be, there are indications that it could be raise by over 100 percent and for some struggling banks, this might be the end of the road for them.
For shareholders of the banks in this category, this is one of the major challenges that might prove too difficult to surmount.
At the last recapitalisation, some financial institutions had to approach the stock market to raise funds to meet the new CBN requirement.
It is not certain if some banks having their share value badly damaged would attract sympathy of their shareholders in raising fresh capital via rights issue or any other means available this time around.
Another critical issue identified by Business Post facing some mid-level banks at the moment is the recent pronouncement by the CBN that deposit money banks in the country should give out 60 percent of their deposits to customers as loan.
Since the apex bank said financial institutions must have a loan-to-deposit ratio of 60 percent by September 30, 2019, many lenders have been devising ways to meet the requirements.
It is however, important to note that four of the five tier-one banks have LDR less than 60 percent.
But these big players in the sector have the capacity to pay for the sanctions stipulated by the central bank for failing to meet up by September 2019.
This may not be the same with these struggling tier-two banks, who are still finding it hard to remain in business because of their Capital Adequacy Ratio (CAR).
Apart from Access Bank Plc, which has an LDR of 69.9 percent, every other banks in its peer are below the 60 percent requirement of the CBN.
GTBank has an LDR of 53.1 percent, First Bank has an LDR of 47.4 percent, UBA has an LDR of 47.9 percent, while Zenith Bank has an LDR of 50.1 percent.
How some tier-two banks will solve the two aforementioned challenges is what some observers would be waiting to see with keen interest. Will their shareholders come to the rescue? Only time will definitely tell.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
