Banking
Access Bank Will Remain Profitable in 2020—Fitch
By Dipo Olowookere
One of the respected global rating organisations, Fitch Ratings, has expressed confidence that tier-one Nigerian lender, Access Bank Plc, will remain profitable in 2020.
Since the beginning of this year, the world has been battling with a global health pandemic called coronavirus.
The disease has forced many countries to lockdown, causing a global economic crisis and recession, with many businesses losing billions of Dollars.
But in a statement last week, Fitch said it sees Access Bank remaining “profitable in 2020 due to strong margins (including further improvement in its cost of funding), robust non-interest income and lower operating expenses post-merger.”
However, Fitch said Access Bank will face material pressures from a weaker operating environment over the next few months given the oil price crash, potential further devaluation of the Nigerian naira and the impact of the coronavirus pandemic on individuals and businesses.
Last Thursday, the rating agency maintained Access Bank’s ‘A+(nga)’ National Long-Term Rating and ‘F1(nga) National Short-Term Rating on Rating Watch Negative (RWN).
Business Post reports that the action followed a review of the bank’s creditworthiness relative to other Nigerian issuers. Fitch recalibrated the Nigerian National Ratings scale following the sovereign downgrade on April 6.
It noted that resolution of the RWN will depend on the fallout from the oil price crash and the impact of the coronavirus pandemic on the bank’s credit profile.
Fitch said it will focus on Access Bank’s asset quality and capital metrics as these have been pressured by the acquisition of troubled Diamond Bank in April 2019.
In the first quarter of 2020, Access Bank reported an impaired (Stage 3)/gross loans ratio of 5.9 percent and loan loss allowances/impaired loan ratio of 108 percent.
While the impaired loan ratio is in line with peers, its Stage 2 loans/gross loans ratio remains high at 28.0 percent in Q1 2020 compared with 30.7 percent in December 2019.
The majority of Stage 2 loans were inherited from Diamond Bank and these may not migrate to Stage 3 due to pre-emptive and regular restructuring which commenced in 2019.
According to Fitch, 67 percent of the Stage 2 book is in Naira, protecting Access Bank from asset quality and devaluation risks to some extent.
Furthermore, the financial institution made some progress in the first three months of the year in reducing Stage 2 oil and gas loans to 13.8 percent of the total at Q1’20 versus 16.5 percent in FY’19.
“Of the stage 2 loans, the oil and gas related loans are the ones we view as potentially risky given the current low oil prices,” Fitch said in the statement.
It further said Access Bank’s Tier 1 and total capital ratios rose to 17.3 percent and 20.9 percent at end-1Q20.
“Access Bank plans to enhance regulatory capital ratios in 2020 through higher retained earnings, thanks to its solid revenue generating capacity that has been boosted by the acquisition, notwithstanding the pandemic,” the rating firm said.
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.
