By Dipo Olowookere

The national scale long rating of Wema Bank Plc has been upgraded by GCR Ratings to BBB+(NG) from BBB(NG) as its short-term issuer rating was also moved higher to A2(NG) from A3(NG).

In a statement obtained by Business Post, the rating firm also disclosed that it has raised the national scale long-term issue rating on Wema Funding SPV’s N17.675 billion Series 2 Fixed Rate Unsubordinated Bonds to BBB(NG) from BBB-(NG).

It was stated that the lender, which retained a stable outlook, achieved this rating upliftment because of its “strengthened capitalisation driven by equity injection, and improved earnings generation and retention.”

“The ratings also balance the bank’s stable funding structure, sound liquidity, modest competitive position, and weakening asset quality metrics, exacerbated by the macroeconomic challenges,” it added.

GCR noted that it kept the bank’s outlook stable due to expectations that the core capital ratio should range above 20 per cent over the next 12-18 months, underpinned by the successful capital injection.

“We expect the bank’s asset quality metrics to be contained within the regulatory minimum and industry average. The bank’s funding structure and liquidity profile is expected to remain strong,” a part of the statement said.

However, it was emphasised that Wema Bank’s risk position remains pressured by the macroeconomic challenges, potentially increasing credit and market risks.

“Positively, we note that the bank has implemented loan recovery efforts, remedial actions, and a cautious lending strategy,” it stated.

Wema Bank’s competitive position is largely enhanced by its strong digital presence, which continues to support a growing customer base of over 5 million and increased transaction volumes.

With a balance sheet size of N3.6 trillion as of December 31, 2024, the financial institution accounted for about 2.0 per cent of the Nigerian banking industry’s total assets, customer deposits, and gross loans.

Operating revenue grew by 48 per cent to N255.8 billion last year, with the relatively stable net-interest income contributing a sizeable 69.2 per cent of the total operating revenue.

“Looking ahead, Wema Bank’s expansion drive, increased deployment of technology, and strategic partnerships could support its operational scale and earnings generation capacity over the next 12-18 months,” GCR stated.

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) has reaffirming its strong financial position, rigorous risk management framework, and adherence to international reporting standards following issues around Fitch Ratings report.

Recall that Fitch Ratings, in its June 4, 2025, assessment, downgraded the bank’s credit rating one place above junk, as well as its substantial provisions on sovereign exposures, which reduce potential financial risks.

However, Fitch acknowledged Afreximbank’s strong capitalization, including its strong equity to assets and guarantees ratio and excellent internal capital generation.

The issue has led to a mild row between the African Union and the agency, with plans to launch an Africa-focused credit rating agency now in focus.

In the statement on Tuesday, Afreximbank emphasized that its financial reporting strictly follows International Financial Reporting Standards (IFRS), including IFRS 9, which governs loan classification and non-performing loan (NPL) assessments.

The bank clarified that while Fitch’s NPL definition differs from its forward-looking approach, its methodology is fully detailed in its 2024 Financial Statements and independently verified by external auditors.

Fitch’s negative outlook was attributed to concerns over potential sovereign debt restructuring involving Afreximbank’s member states.

However, the bank firmly stated that its establishment treaty—signed by all 53 participating African states—prohibits it from engaging in sovereign debt restructuring negotiations.

“Afreximbank would like to reaffirm that it is not participating in debt restructuring negotiations related to any of its member countries,” the statement read. “To do so would be inconsistent with the bank establishment treaty, which governs our operations.”

Fitch also recognized Afreximbank’s low concentration risk and strong liquidity position, rating its treasury assets as high quality, with the lender reiterating that its risk management framework remains robust, supported by its solid capitalization and prudent financial policies.

“Afreximbank remains steadfast in its mission to drive trade-led growth, economic development, and macroeconomic stability across Africa.

“Despite external assessments, the Bank expressed confidence in its financial resilience, governance standards, and unwavering commitment to its member states,” it added.

“Our financial strength, governance, and dedication to Africa’s prosperity remain unshaken,” the statement concluded. “We will continue to support our member countries in overcoming economic challenges while advancing sustainable development.”

By Modupe Gbadeyanka

Three start-ups have won the Union Bank Business Pitch competition held at recently during the Women and Youth Entrepreneurship Development Centre (WYEDC) Cohort 2 Programme of the Nigerian British Chamber of Commerce (NBCC).

The first place was clinched by Evelyn Ekene Ani of Evani.Ng, the first runner-up was Martha Padonu of Beyond Photography and the second runner-up was Therietta Vershima of La Teriz.

They emerged winners of the competition organised under the alpher initiative of Union Bank of Nigeria. They were rewarded with funding for their businesses.

Speaking at the event, the chief executive of Union Bank, Mrs Yetunde Oni, represented by the company’s Head of Retail and SME Business, Mrs Vivian Imoh-Ita, appreciated NBCC for the life-transforming training they are providing to the youth and women entrepreneurs.

“As a bank, we understand that when we invest in women and youth entrepreneurs, we are investing in the most powerful catalysts of economic transformation.

“Through the bank’s alpher initiative, we have enabled success for women-led businesses. In a volatile economy like Nigeria, the challenges facing entrepreneurs are dynamic and significant. As a Bank, we intend to prove that these barriers are not unconquerable and are growth opportunities,” she stated.

Business Post reports that 125 entrepreneurs graduated from the training, benefitting from firsthand entrepreneurship training and business grants.

Small and medium-sized enterprises (SMEs) in Nigeria account for more than 50 per cent of industrial employment and contribute approximately 48 per cent to the country’s Gross Domestic Product (GDP), making entrepreneurship one of the economy’s building blocks.

The Director General of NBCC, Ms Ebere Njoku, reiterated the organisation’s commitment to supporting entrepreneurship, women’s empowerment, and youth empowerment, citing these as catalysts for economic development and sustainability, appreciating the sponsors, partners and facilitators who devoted their resources and time to upskilling the participants.

The entrepreneurship initiative stemmed from the visionary goal of the president and chairman of the council of NBCC, Mr Ray Atelly, to provide entrepreneurship and grant opportunities to Nigerian women and youths.

“This is your chance, make sure you take it. Don’t let any obstacle stop you because there will be many; if you let it stop you, your dreams are not strong enough. You need to keep pushing, someday you will sit at the top of a conglomerate and people will aspire to be like you,” he stated.

“I encourage all of you not to take the training you have received for granted. Use it as a landmark opportunity to be a beacon of hope to others who look up to you,” the patron of NBCC, Mr Akin Odunsi, said.