Banking
Access Bank Eyes Lower Impaired Loans Ratio, Gets Fitch Ratings
By Modupe Gbadeyanka
One of the leading financial institutions in Nigeria, Access Bank Plc, is anticipating to have a reduction in its impaired loans/gross loans ratio to low single digits by end-2020, Business Post has learned.
At the moment, Access Bank has impaired loans/gross loans ratio above the 8 percent average reported by more highly rated domestic peers like Zenith Bank, Guaranty Trust Bank (GTBank) and United Bank for Africa (UBA), all listed on the Nigerian Stock Exchange (NSE).
In March 2019, Access Bank completed its merger with a local tier two lender, Diamond Bank and this resulted in an increase in its consolidated assets of around 30 percent and created Nigeria’s largest bank, with a 23 percent share of deposits (previously 11 percent).
The bank’s franchise is now stronger and Access Bank’s traditional corporate business model is more balanced across retail and SME segments, areas of expertise at Diamond Bank.
In a statement recently, Fitch Ratings, which affirmed the bank’s Long-Term Issuer Default Rating (IDR) at ‘B’ and Viability Rating (VR) at ‘b’, emphasised that the ability of Access Bank to finalise the transaction in a short period of time demonstrated its strong execution skills.
The rating agency stressed that financial profile metrics, particularly in areas such as asset quality and capitalisation, have a higher influence on Access Bank’s ratings and would be monitoring trends in impaired loan write-offs, recoveries and internal capital generation.
“We assess Access’ risk culture as strong compared with domestic peers’ and this framework has proved to be robust over different economic cycles.
“Access Bank’s risk management tools, culture and controls are being implemented across the Diamond network, which we view positively,” it said in the statement obtained by Business Post.
Fitch noted that consolidation of Diamond Bank drove up the stock of impaired loans to N297 billion (end-2018: N55 billion), equivalent to 10.4 percent of total loans at end-March 2019, with only moderate coverage of about 49 percent by specific loan loss allowance.
“Impaired loans are highly concentrated, with the top 20 impaired loans representing around 80 percent of the total stock.
“Management is confident that a number of large impaired loans will be written off in the short- to medium-term and envisages a reduction in the impaired loans/gross loans ratio to low single digits by end-2020,” Fitch said in the statement.
Fitch said it observes that good progress in achieving write-offs, loan repayment and recoveries has already been made, suggesting that asset quality targets may be achieved.
“Currently, Access Bank’s impaired loans/gross loans ratio is above the 8 percent average reported by more highly rated Nigerian banks, namely Zenith Bank, Guaranty Trust Bank and United Bank for Africa.
“Capitalisation was negatively impacted by the Diamond Bank acquisition, which generated N22.7 billion of goodwill. Access Bank’s Fitch Core Capital (FCC)/risk weighed assets ratio fell to 16 percent at end-March 2019 (end-2018: 18.4 percent), well below the 26 percent average for the abovementioned more highly rated Nigerian banks.
“Net impaired loans/FCC ratio increased to 28 percent at end-1Q19 from a negative value at end-2018, albeit we view this level as manageable given Access Bank’s capacity to fully provide for existing impaired loans from annual pre-impairment profits.
“Access Bank’s ability to generate earnings is considerable and management plans to boost core capitalisation through retention of earnings.
“Regulatory capital ratios are being strengthened through subordinated debt issuance but this is not included in our calculation of FCC.
“Access Bank’s loans/deposits ratio improved considerably following the acquisition of Diamond Bank and the deposit mix is more balanced towards low-cost retail and SME deposits, which are proving to be highly stable.
“Access Bank’s higher cost funding base was a rating weakness and the ability to improve the overall funding profile is credit-positive.
“Diamond Bank’s $200 million bond was repaid at end-May 2019 and sufficient foreign currency (FC) liquidity has been earmarked to ensure repayment of additional FC borrowing maturing in 2H19,” the rating firm stated.
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.
