Banking
AU Lambasts Fitch For Downgrading Afreximbank
By Adedapo Adesanya
The credit review body of the African Union (AU), African Peer Review Mechanism (APRM), and Fitch ratings agency have engaged in a mild row following the latter’s recent downgrade of the Africa Export-Import Bank (Afreximbank).
Last Wednesday, Fitch downgraded the Cairo-based lender’s credit rating to BBB-, one notch above junk ratings, from BBB, citing high credit risks and weak risk management policies.
Fitch calculated that the ratio of Afreximbank’s non-performing loans (NPLs) exceeded the 6 per cent high-risk threshold outlined in the ratings agency’s criteria.
For Afreximbank, it said in its first quarter operating results ending March 31, the NPLs ratio stood at 2.44 per cent.
APRM in response said the rating was based on a “flawed” categorisation of loans and calling for the decision to be reconsidered.
APRM, a body established by the African Union to do the groundwork for the launch of an African credit ratings agency later this year, contested Fitch’s calculations and called for talks between Fitch, Afreximbank, and other African institutions.
“The APRM notes with concern Fitch Ratings’ misclassification of Afreximbank’s sovereign exposures to the Governments of Ghana, South Sudan and Zambia as NPLs,” APRM said in a statement published recently.
“This classification raises critical legal, institutional and analytical issues which the APRM strongly contests.”
Meanwhile, Fitch defended its rating decision, saying it operates on the basis of independent and timely analysis.
“All Fitch’s supranational rating decisions are taken solely in accordance with one globally consistent and publicly available rating criteria, with rating drivers and sensitivities clearly identified in our ongoing public rating commentary,” the ratings agency said.
The row over the rating, which determines the cost of credit for a financial institution, comes as Afreximbank seeks to protect its loans from restructuring in Ghana, Zambia and Malawi, saying that as a multilateral lender it has preferred creditor status.
“The assumption that Ghana, South Sudan and Zambia would default on their loans to Afreximbank is inconsistent with the 1993 Treaty establishing the Bank to which Ghana and Zambia are both founding members, shareholders and signatories,” APRM said.
The founding treaty of the lender, whose mandate is to promote intra-Africa and extra-Africa trade, is legally binding on all members, APRM said, placing legal obligations on the bank’s financial operations.
Afreximbank has not commented on the downgrade by Fitch, but it has previously said it is not in debt restructuring talks with any of its member states.
Afreximbank’s loans to its member states are governed by “a framework of intergovernmental cooperation and mutual commitment, rather than typical commercial risk principles”, shielding its loans from sliding into non-performance realm, APRM said.
“Fitch’s unilateral treatment of these sovereign exposures -as comparable to market-based commercial loans – despite their backing by treaty obligations and shareholder equity stakes, is flawed,” APRM said.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has issued an alert about the spread of fraudulent messages, emails, and online communications falsely bearing the identity of the bank, to scam unsuspecting members of the public.
The apex bank warned that the fake materials are designed to hack personal accounts and mislead Nigerians on matters of bank leadership, licensing, and policy.
In a notice signed by Mrs Hakama Sidi-Ali, the Acting Director of Corporate Communications, the lender said the fraudulent communications are already in circulation and are prompting recipients to click embedded links, which is the primary mechanism through which the attackers seek to gain unauthorised access to private accounts and personal data.
The bank laid out three clear directives for members of the public. First, Nigerians are advised to refrain from clicking links or providing personal information on any website they cannot confirm as legitimate.
Second, it stated that all communications purporting to come from the CBN must be verified through the bank’s sole official website — www.cbn.gov.ng — or through recognised media organisations.
Thirdly, it warned that anyone who encounters a suspected fraudulent site, email, or message is urged to report it to law enforcement authorities without delay.
“The CBN remains fully committed to safeguarding the Nigerian financial system and continues to strengthen its cybersecurity frameworks in collaboration with relevant agencies to protect the public against digital fraud.”
By Modupe Gbadeyanka
In a bid to ensure consumer safety across the telecommunications and financial services sectors, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have decided to work together.
On Monday, both organisations sealed a Memorandum of Understanding (MoU) for the establishment of joint committees for the protection of consumers against fraud in the sectors.
The two teams set up by the CBN and the NCC include the Joint Committee on Payment Systems and Consumer Protection, and the Joint Committee on Telecoms Identity Risk Management System (TIRMS) Portal.
Through the TIRMS portal, which aggregates data on churned (recycled) phone numbers, as well as numbers flagged within the financial services sector, it will now have enhanced visibility into the status of phone numbers, one of the most widely utilised resources in the sector, although regulated by the NCC.
With this, according to the chief executive of NCC, Mr Aminu Maida, financial institutions will be able to determine when a line is active, when it has been swapped, when it has been disconnected due to inactivity and reassigned to a new subscriber, and when it has been flagged for suspicious or fraudulent activity. “This ensures that our financial services industry is better equipped with timely and relevant information to effectively combat e-fraud, particularly those perpetuated using phone numbers, in the country,” he stated.
It was stated that the partnership between the two parties will reduce electronic fraud, which has become increasingly pervasive, with significant implications for the integrity of the digital economy.
In his remarks, the Governor of the CBN, Mr Yemi Cardoso, said the MoU will strengthen coordination on approvals, technical standards, and innovation trials, including sandbox testing that supports market-led solutions, while safeguarding stability.
“Going forward, the CBN remains fully committed to working with the NCC to deliver a safer, more resilient, and more inclusive digital financial system that supports national productivity, protects consumers, and strengthens trust in Nigeria’s digital economy,” the central bank chief said.
By Aduragbemi Omiyale
Mid-level Nigerian lender, Wema Bank Plc, has set its eyes on expanding its market presence and supporting the government in achieving its $1 trillion economy by 2030.
In a statement, the financial institution said it hopes to achieve these and others through its recently recapitalisation exercise, which saw its capital base rise to about N265 billion, well above the N200 billion-threshold set by the Central Bank of Nigeria (CBN) for its category of licence.
Wema Bank operates with a national licence, and based on the regulator’s requirement, the capital base must be at least N200 billion.
Before the March 31, 2026-deadline set be the CBN, banks were required to have at least N25 billion, but to meet up with the 2030 target of the federal government, this threshold was raised, with banks operating branches out the country asked to have at least N500 billion, while regional banks were told to have a minimum of N50 billion.
To comply with the new directive, Wema Bank embarked on a strategic capital raise through the stock market, successfully strengthening its shareholder base and securing the required capital through strong participation from existing investors.
Its N150 billion rights issue, which opened on April 14, 2025, and closed on May 21, 2025, marked a significant step in this journey. This was subsequently complemented by a N50 billion special placement later in the year, ensuring the bank not only met but exceeded the regulatory threshold well ahead of schedule.
“The successful completion of our recapitalisation exercise is a defining moment for Wema Bank. It is a strong validation of our strategy, our performance, and the enduring confidence our shareholders and stakeholders have in our vision.
“We have not only met the CBN’s requirements; we have exceeded them, reinforcing our position as a National Bank with the scale, strength, and stability to compete and lead,” the chief executive of Wema Bank, Mr Moruf Oseni, stated.
“Looking ahead, we remain focused on deepening our market presence, driving customer-centric innovation, and strengthening our role as a catalyst for growth across retail, SME, and corporate segments.
“This is not just about retaining our license; it is about building a bigger, stronger, and more impactful Wema Bank,” the bank executive further stated.
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