Banking
Diamond-Access Bank Merger: What’s in it for Stakeholders?
By May 31 this year, technical details of Diamond-Access Banks’ merger would have been finalised, all things being equal.
Subsequently, the process for integration of both banks would commence in earnest leading to a rebranding of what will eventually emerge by end of September or beginning of October as Nigeria’s biggest, and perhaps one of Africa’s largest lender by capitalisation and geographical spread.
Anxiety of some shareholders and other stakeholders in some quarters is understood given the fact that many are wondering how the merger can squeeze value and guarantee competitive returns on equity (ROE). In fact, the underlying interest of an average investor is returns on equity, ultimately profit.
Therefore, the question on the lips of a cross section of stakeholders has been: What will this merger deal offer? The single straight answer lies in the theory of economies of larger scale.
Information gathered from recent interactions with key management staff of both deposit money banks spearheading the business combination processes indicate that over N150 billion could be saved as direct result of economies of large scale which will translate to returns on equity to shareholders.
According to the business combination experts, the synergy will yield over N62 billion savings on the revenue side. They said that N40.9 billion would come from extended product offering while N8.4 billion from expanded digital channels.
They also hope that N6.7 billion is going to be saved from the extension of market share in corporate and retail banking markets, and another N6.2 billion to be dug from treasury sales.
That is not all the good side to what could be eked out from the merger. On the expenditure side, the managers believe that savings of N88.1 billion would be made; and from procurement and facility management a whopping N40.5 billion or about half of the savings is expected to come while N21 billion will accrue from cost of funds reduction through lower deposit pricing.
More savings of N12.6 billion from IT integration; N13.5 billion from branch consolidation; and another N500 million to be squeezed from support functions integration, bringing envisaged total integration savings to about N150.1 billion.
The merger managers were of the opinion that going forward the savings would improve investor’s equity returns as the merger would allow for both economies of scale and of scope as fixed costs would be shared over a much larger depositor and borrower base.
How realistic are the permutations?
As to how this permutation will be realized and ultimately translate into good returns to shareholders, financial analysts at Proshare said they believed the merger would yield good returns to shareholders but cannot say for certainty how much returns.
Proshare Managing Director and Chief Executive Officer, Mr Femi Awoyemi, told Nigerian Tribune that integration of the two banks is one of the best deals ever in Nigeria’s financial industry, stressing that the adoption of cutting edge technology platform of Diamond Bank and the ability to deliver seamless services to generations of customers would be of competitive advantage for Access Bank which he said is being run efficiently.
As to what place the integrated Diamond-Access Bank will occupy in Africa financial markets, the financial analyst said technology and efficient service delivery makes all the difference in competitive financial markets of today.
He said: “Let us just concentrate on building and integrating the bank. I have been to Access Bank in Kigali, Rwanda. Access Bank in Kigali is as efficient as anything. In fact, services they offer there are far better than what they offer in Nigeria.
So, being a big bank in Africa is about services, it is about customers, it is about integrating regions. That is why I am keen about what they do with technology. Generally, the bank will do well because it is being run efficiently,” Mr Awoyemi concluded.
Former Chief Economist/Group Head, Research & Economic Intelligence Group at Zenith Bank Plc, Mr Marcel Okeke, said it is going to be a good deal for all stakeholders.
For the shareholders of Diamond Bank, he noted, a mark-up in the share price at the Nigerian Stock Exchange (NSE) already guarantees them instant returns compared to what the value had been pre-merger talks.
Besides, for those of them who may choose to remain shareholders post-merger, they are going to be part of the bigger financial institution, probably the biggest in Africa in terms of customer base.
He said that the role cutting edge technology and size can play in the banking market of today is tremendous, adding that going by the credibility of Access Bank, stakeholders are in for impressive returns.
“So, they are going to operate as the biggest in Nigeria if not the African sub-region. This implies that they are going to become more profitable even though there are significant liabilities outstanding which I believe would be resolved,” said the financial analyst.
Customer-client savvy as driving motive
But of greater importance in the merger scheme are customers of the bank who stand the chance of achieving a lot more through the combination of Access Bank and Diamond Bank.
“The products and services that Diamond Bank’s clients enjoy, including its commitment to digital innovation, will continue unchanged and will be strengthened by Access Bank’s extra-ordinary commitment to customers, financial inclusion and sustainability, bolstered by the bank’s corporate expertise and strong balance sheet.
“Together, we will bring the power of banking to millions across Nigeria, focused on speed, service and security. We are determined to ensure that both Access Bank and Diamond Bank customers will experience no disruption to normal banking services while we join forces to create Nigeria and Africa’s largest retail bank by customers,” a source at Diamond stated.
With 3100 automated teller machines (ATMs), over 600 branches, supported by Diamond Bank’s bouquet of technology-driven products offerings including Diamondxtra and XclusivePlus, over 29 million customers of Diamond Bank and Access Bank, more than 13 million mobile customers are going to enjoy some reward scheme for using Diamond or Access Bank POS terminal, as well as same day clearing of cheques for Diamond and Access customers in both banks.
Of greater comparative advantage to customers of both banks is the AccessAfrica initiative which guarantees service in all Access Bank subsidiaries – Nigeria, Ghana, The Gambia, Democratic Republic of Congo, Rwanda, Zambia and Sierra Leone.
“The AccessAfrica service is available in all Access Bank subsidiaries – Nigeria, Ghana, The Gambia, Democratic Republic of Congo, Rwanda, Zambia and Sierra Leone. Our customers can now enjoy instant borderless banking from any access bank branch.
“When they walk into any Access Bank branch and initiate payment in their local currency, the beneficiary will receive an instant direct credit to their account or cash in their local currency,” said senior management staffers of Access and Diamond spearheading the merger processes.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has selected cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack for the initial phase of its pilot supervision programme for virtual asset service providers (VASPs).
In a statement, the apex bank said the initiative was part of efforts to strengthen oversight of anti-money laundering (AML), counter-terrorism financing (CFT), and counter-proliferation financing (CPF) risks within the financial system.
The CBN explained that the move aligns with its enhanced AML/CFT/CPF framework and is backed by key legislations, including the Money Laundering (Prevention and Prohibition) Act 2022, the CBN Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020.
“The CBN has commenced an AML/CFT/CPF supervision pilot involving a select group of virtual asset service providers identified as relevant for supervisory engagement,” the statement said.
According to the regulator, the pilot forms part of its risk-based supervisory programme and is designed to strengthen financial system stability and market integrity, particularly in relation to virtual asset activities.
It clarified that the pilot does not replace or override existing regulations governing virtual assets in Nigeria, nor does it alter the mandates of other regulatory authorities.
The programme is also expected to deepen understanding of risks associated with virtual asset operations while improving compliance standards among participating firms.
“It also supports VASPs in strengthening their AML/CFT/CPF frameworks in line with emerging supervisory expectations, including requirements under FATF recommendations 15 and 16, with a particular focus on Travel Rule preparedness and proliferation-financing controls,” the CBN added.
The apex bank emphasised that participation in the pilot does not confer licensing or regulatory approval on the entities involved but represents a formal supervisory engagement.
Under the scheme, participating firms are required to submit monthly AML/CFT/CPF supervisory key performance indicators (KPIs), engage with the CBN and the Nigeria Financial Intelligence Unit, and undergo reviews covering governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activities.
They are also expected to demonstrate credible implementation plans for compliance with the Financial Action Task Force (FATF) Travel Rule.
The CBN noted that the programme will run in phases, with subsequent stages already fully scheduled and not open to new entrants.
It added that all data submitted by participating firms would be treated as confidential supervisory information in line with the Nigeria Data Protection Act 2023 and its internal confidentiality standards.
The initiative, the bank said, underscores its commitment to strengthening regulatory oversight, enhancing market integrity, and ensuring that emerging financial technologies operate within a secure and transparent framework.
By Adedapo Adesanya
Payments technology company, Flutterwave, has secured a microfinance bank license from the Central Bank of Nigeria (CBN) to operate full banking services in the country.
According to a statement, this license enables the company to hold funds and deposits directly, strengthening its financial infrastructure across its largest market and enabling more efficient financial services and settlement flows for consumers, businesses and enterprises.
The microfinance banking license acquisition follows Flutterwave’s purchase of Nigerian open-banking startup Mono in January 2026. The integration of Mono’s data-scraping and payment-initiation APIs was the precursor to this broader banking strategy, allowing Flutterwave to evolve into a vertically integrated financial “super-stack.”
Previously, global payment companies like Flutterwave operated via a sponsorship model, partnering with established commercial banks to access national clearing and settlement systems.
According to the statement, such an arrangement often limits a fintech’s pace of innovation and requires it to share a portion of the transaction value with the sponsoring institution.
By securing this banking license, Flutterwave gains greater control over how funds move within its ecosystem, including the ability to hold deposits and manage financial flows across its platform.
The company said it will continue to work closely with banking partners across the broader financial ecosystem.
The license also enables the company to internalise key elements of its financial value chain, improving operational efficiency and supporting faster product development.
This shift strengthens operational autonomy and allows Flutterwave to capture more value from the transactions processed within its ecosystem.
By operating more directly within the regulated financial system, Flutterwave can further optimise how money moves across its platform and improve settlement efficiency across its network of merchants, businesses and consumers.
“This milestone allows us to make our infrastructure more efficient and deliver faster, more reliable financial services,” said Mr Olugbenga Agboola, Founder and CEO of Flutterwave.
“By operating directly within the financial system, we can streamline money movement, accelerate settlement for merchants, and build products that support sustainable long-term growth,” he added.
Flutterwave also said that with this license, it is bringing the same infrastructure that has historically made it into a unicorn into a new generation of banking built for consumer financial services within the SendApp ecosystem, utilising business financial tools for businesses of every size, as well as managing complex financial operations, treasury, and liquidity.
Also, it will embed financial services for marketplaces and platform operators, while developers will benefit from financial infrastructure enabling the creation of financial products through APIs.
By Modupe Gbadeyanka
A building operated by Access Bank Plc in the Oniru area of Lagos State has been sealed by officials of the Lagos State Wastewater Management Office (LSWMO).
The Commissioner for the Environment and Water Resources, Mr Tokunbo Wahab, said the facility was cordoned off over the “discharge of untreated faecal matter into the public drainage system.”
Mr Wahab said this causes “severe damage to the environment,” because the financial institution failed to use its wastewater treatment plant to process the faecal waste.
In a post on Thursday, the Commissioner said the state government was tipped off about the improper discharge, and it was discovered that the treatment plant was not working at the time officials of the agency arrived at the building.
He also claimed that while attempting to seal the bank’s office, officials of LSWMO were assaulted, promising to prosecute those behind the attack.
“Following a whistleblower complaint, I directed the Lagos State Wastewater Management Office team to visit the Access Bank Plc @myaccessbank building at Oniru, Victoria Island, where it was discovered that the wastewater treatment plant at the facility was non-functional, resulting in the discharge of untreated faecal matter into the public drainage system and causing severe damage to the environment.
“During the enforcement visit, officials of LSWMO were denied access to seal the facility. Security personnel and management representatives of the bank resisted our officers and, in the process, attacked members of the enforcement team.
“Consequently, the LSWMO team has taken samples of the effluent being discharged from the premises for laboratory analysis, and the results of the test came back positive.
“The state will also proceed to court to obtain the necessary orders for the arrest and prosecution of individuals involved in the attack on government officials carrying out their lawful duties.
“Meanwhile, enforcement officers will be reinforced to return and seal off the property tonight in line with the Lagos State Environmental Laws.
“There will be no sacred cows in the enforcement of environmental regulations. Any individual or organisation found violating environmental laws, regardless of status, will be held accountable,” he wrote.
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