Banking
Educating Nigeria, One Community at a Time: Inside Union Bank of Nigeria’s Approach to Corporate Responsibility
Nigeria’s economic ambitions, whether higher productivity, a more competitive private sector, or stronger household resilience, all eventually run through the same bottleneck: the quality of the country’s human capital. For a bank, that fact carries a quiet implication. The customers, entrepreneurs, and employees of the next two decades are sitting in classrooms today, and many of those classrooms are under-resourced.
It is in that context that Union Bank of Nigeria has built its corporate social responsibility agenda around one of its major pillars – education. The thinking is not that a bank can fix Nigerian education, but that a bank has both the reach and the long-term interest to contribute meaningfully to it.
The Scope of the Work
Union Bank’s education work runs through Edu360, a platform that gathers the Bank’s various school, teacher, and youth interventions under one roof. Three threads run through it.
The first is teacher development, anchored by the Bank’s partnership with the Maltina Teacher of the Year (MTOTY) programme, which recognises and rewards classroom excellence. Teachers are the highest-leverage point in any education system, and supporting the people who already do the work well tends to produce more durable gains than one-off interventions with students alone.
The second is practical, future-facing learning. School hackathons supported by the Bank give students the chance to work in teams, tackle real problems, and encounter technology as something they can build with rather than simply consume. For young people who may otherwise meet computing only as a subject on a timetable, that shift in posture matters.
The third is financial literacy, delivered through outreach tied to globally recognised events like World Savings Day and Financial Literacy Day. The premise is straightforward: habits formed early outlast lessons learned late. A student who understands saving, budgeting, and the basic mechanics of a bank account at fourteen carries that understanding into adulthood, regardless of which institution they eventually bank with.
Beyond these threads, Edu360 has anchored long-running partnerships with educational institutions outside the Bank. One of the most established was with Greensprings School in Lagos, where Union Bank sponsored eleven consecutive editions of an annual football academy that pairs sport with leadership development for children aged five to seventeen, run alongside coaches from West Bromwich Albion Football Club. Reflecting on the partnership at the close of the 2025 edition, the school’s founder and chief executive, Mrs Lai Koiki, put it plainly:
“We are being future-ready, we are preparing the youth for the future.”
It is the kind of unadorned framing that the Edu360 intervention tends to invite from the people closest to it.
The work is mapped to Sustainable Development Goals 4 and 8, which deal with quality education and decent work, but the more useful test is whether the interventions show up in the lives of the people they are meant to serve.
A Morning at Ebutte Elefun
That test is easier to apply at the level of a single school.
As part of its back-to-school programme this year, Union Bank visited Ebutte Elefun High School in the Lafiaji Ward community on Lagos Island, distributing school bags and learning materials to hundreds of students. The contribution was funded and delivered by the Bank.
Present at the school that day was the Bank’s Chief Financial Officer, Oluwagbenga Adeoye, who attended the school as a boy. His role during the visit was personal, rather than operational. He spoke to the students about his own journey from those classrooms to the office he now holds, took their questions, and stayed to meet teachers. For students who rarely encounter senior professionals in person, the conversation was as much a part of the day as the supplies.
Outreaches of this kind are modest in scale. Distributing hundreds of bags does not transform a school system, and Union Bank does not claim that they do. What they do is reduce friction at a moment – the start of a school year, when small financial pressures can quietly push children out of consistent attendance. They also send a signal, both to the students and to the teachers around them, that someone outside the school gates is paying attention.
Why a Bank, and Why Education
There is a reasonable question about why a financial institution should be in this work at all, and it deserves a direct answer rather than a sentimental one.
A bank’s long-term performance is bound up with the financial health of the households and small businesses around it. Children who stay in school longer earn more, save more, and are more likely to use formal financial services when they do. Teachers who feel supported produce students who can read a contract, manage a budget, and start a business. None of this is altruism dressed up as strategy; it is simply the recognition that a bank’s commercial future and the country’s educational present are connected.
That recognition shapes how Union Bank approaches the work. Programmes are run with partner organisations that have deeper roots in the communities than any bank can claim on its own. Interventions are chosen for whether they address a real constraint, not whether they photograph well, and inclusion is treated as a discipline rather than a slogan, with specific work supporting girls, underserved learners, and students with disabilities.
The Honest Limits
It is worth naming what corporate education work cannot do. It cannot replace public investment, fix curriculum gaps, or compensate for the structural challenges facing Nigerian schools. A back-to-school outreach addresses access at a moment; it does not address learning outcomes over a year. A hackathon introduces students to technology; it does not, on its own, build a pipeline into the digital economy. Financial literacy sessions plant seeds; whether those seeds grow depends on what happens in the years that follow.
Union Bank of Nigeria is candid about this internally, and the structure of Edu360 reflects it.
The platform is designed to keep the Bank engaged with the same schools and communities over time, rather than rotating through one-off events. Whether that consistency translates into measurable shifts in attendance, completion, and downstream economic participation is the question the Bank itself is most interested in answering, and the next phase of the work is increasingly oriented around tracking it.
A Quieter Kind of Corporate Citizenship
There is a tendency, in Nigerian corporate communications, to describe CSR interventions in language larger than the work itself. Union Bank’s education programme is not transformational in any single year. It is steady, locally grounded, and built on the recognition that education is a long game in which banks are one of many players.
Ebutte Elefun is a useful illustration of the posture.
A school on Lagos Island. Hundreds of students started the year with what they needed. A senior executive who walked back into the corridors he once knew, not to take credit but to remind a room full of teenagers that the distance between where they sit and where he sits is shorter than it looks.
That, more than any platform name or programme title, is what corporate responsibility in education looks like when it is taken seriously.
Show up. Stay. Build the systems that let the showing-up scale, and measure honestly in years, rather than headlines, whether it worked.
By Adedapo Adesanya
Nigerian businessman Femi Otedola has strengthened his position as the largest shareholder in First Holdco Plc, increasing his stake to 26 per cent through the acquisition of additional shares worth N222.21 billion on the Nigerian Exchange (NGX) Limited.
According to a disclosure on the NGX on Thursday, the chairman of First Holdco acquired further 1,779,094,976 shares of the group at N124.90 per share.
The transaction on the Nigerian main bourse takes Mr Otedola’s position to 11,763,018,192 shares from 9,277,792,037 as of June 30 2026, as per the company’s unaudited results, making him the largest shareholder of the oldest financial institution in Nigeria.
The acquisition also has implications under Nigeria’s takeover rules, which require any shareholder that acquires 30 per cent or more of a listed company to make a mandatory offer to the remaining shareholders.
With an estimated 26 per cent stake in First Holdco, which is equivalent to nearly 12 billion shares out of the company’s 45.48 billion outstanding shares, Mr Otedola is now nearing the regulatory threshold.
The gap to the mandatory takeover threshold is about 2.49 billion shares, fewer than the block Otedola acquired in July 2026 alone. A further purchase of a similar scale would trigger Nigeria’s mandatory takeover rules, requiring him to make an offer for all the remaining shares of First Holdco Plc, the parent company of First Bank of Nigeria Limited.
As of now, the billionaire has given no indication that he intends to trigger a mandatory takeover, consistently describing his share purchases as a long-term investment rather than a path to outright control of the group.
Mr Otedola’s stake-building has been years in the making but gathered significant pace in 2026. He held 6.68 billion shares, representing 15.95 per cent of First Holdco, at the end of June 2025, when the company had 41.88 billion shares outstanding.
By March 31, 2026, his holding had risen to 8.06 billion shares against an expanded share capital of 44.45 billion. Three months later, his stake increased to 9.28 billion shares after he acquired about 1.22 billion shares in a single quarter, largely through indirect holdings. A further acquisition through his investment vehicle, Calvados Global Services, this month pushed his holdings above the 10 billion-share mark for the first time.
He has also reiterated that the money committed is his own rather than borrowed.
In recent months, Mr Otedola has also made other high-profile investment moves beyond the banking sector, including acquiring a luxury residence in London’s exclusive Mayfair district, underscoring his growing international real estate portfolio.
He is believed to have participated in a financing arrangement involving the Dangote Refinery, placing funds with the facility as it secured working capital to support the scale-up of operations.
With the 30 per cent threshold now within reach, is a First Holdco takeover Mr Otedola’s next move?
By Aduragbemi Omiyale
In the first six months of this year, Sterling Financial Holdings Company Plc, the parent company of Sterling Bank Limited, grew its gross earnings by 31.5 per cent to N279.6 billion.
This was buoyed by a 33.7 per cent jump in interest income to N223.6 billion as the loan book expanded and asset yields improved, with non-interest income rising by 23.3 per cent to N56.0 billion, supported by notable increases in fee income and other operating income lines. As of June 30, 2026, the organisation’s net interest income climbed by 41.0 per cent to N137.4 billion.
The unaudited results for the half-year ended June 30 showed that the firm recorded a 21.9 per cent surge in profit before tax (PBT) to N55.5 billion, and a 20.4 per cent leap in profit after tax (PAT) to N50.3 billion.
The broad-based growth across key performance indices extended to the balance sheet, with total assets expanding by 19.3 per cent to N4.67 trillion, supported by a 21.1 per cent growth in customer deposits to N3.62 trillion and disciplined expansion in the loan portfolio.
Shareholders’ funds increased in the period under review by 27.8 per cent to N547.7 billion, primarily reflecting the N96.6 billion raised through a public offer of 13.8 billion ordinary shares.
Also, return on average equity stood at 20.6 per cent and return on average assets improved to 2.35 per cent from 2.05 per cent.
The performance by Sterling Holdings was anchored by the ongoing modernisation of its technology stack and operating model across its commercial (Sterling Bank), non-interest (AltBank), and wealth management (SterlingFI) arms.
That work is showing up in faster service turnaround, tighter unit economics, and greater headroom to absorb rising customer activity without loosening its risk posture.
The combination of a reinforced capital base, expanding deposit franchise, and broader earnings mix leaves Sterling Holdings positioned to compound growth in the second half of the year, channelling capital where it earns most and continuing to lend into the real economy.
Zenith Bank Plc has spent 2026 collecting the kind of hardware that separates a good regional lender from a genuine African champion.
Fresh off a sweep of Euromoney’s most coveted awards, a completed acquisition in Kenya, a newly opened subsidiary in Francophone West Africa, and plans for a London Stock Exchange listing in 2027, Nigeria’s most profitable bank is now making the case that it is also the best-run one.
A close read of its unaudited first-quarter 2026 financial statements — its net interest income, fee income, capital buffers and loan book all expanding faster than the industry average — backs that case up with numbers.
The Lagos-based lender’s Group profit before tax rose 3% year-on-year to ₦361 billion in the three months to March 31, 2026, the highest absolute pre-tax profit among Nigeria’s seven largest banks and the only one of the group to combine top-line profitability with double-digit growth in net interest income, fee income and shareholders’ equity simultaneously.
Layer on a historic Euromoney double and an accelerating Pan-African build-out, and the numbers tell a story that goes well beyond one good quarter.
Balance Sheet Scale: Bigger, Cleaner, Better Capitalised
Zenith closed the first quarter of 2026 with total assets of ₦32.01 trillion, up 1.8% from ₦31.46 trillion at the end of December 2025, even as the balance sheet held broadly flat year-on-year against the ₦32.42 trillion reported in March 2025 — a sign of a bank actively re-shaping its asset mix rather than simply expanding its footprint.
Customer deposits, the cheapest and stickiest source of funding for any lender, climbed 7.9% year-on-year to ₦24.47 trillion, while total shareholders’ equity surged 16.3% to ₦5.17 trillion — a rate of capital accretion that outpaces balance-sheet growth and signals a bank retaining and compounding earnings rather than chasing volume.
That equity build has real consequences for market standing. Zenith Bank’s shares have gained more than 104% year-to-date through July 23, 2026, pushing its market capitalisation to roughly ₦5.18 trillion.
The top three banks by market capitalisation are now separated by less than 2% of market value — but Zenith is the only one of the trio backing its valuation with the industry’s fastest brand-value growth, up 33.6% on the continent, according to the latest report by Brand Finance.
While Access Holdings’ aggressively acquisitive strategy has made it Nigeria’s largest bank by sheer balance-sheet size — ₦51.56 trillion in total assets as of 2025 — Zenith’s smaller, more capital-efficient balance sheet is generating disproportionately more profit per naira of assets deployed, a theme that recurs throughout its results.
Loan Book: Growing Faster Than the Balance Sheet, Cleaner Than a Year Ago
Zenith’s credit expansion in the first quarter outpaced every other line on the balance sheet. Gross loans and advances to customers rose 8.6% year-on-year to ₦12.04 trillion, while net loans — after impairment allowances — jumped a sharper 13.2% year-on-year to ₦11.38 trillion, reflecting both fresh credit extension and an improving quality of the existing book.
That improvement in quality is the more important story for analysts and investors skeptical of loan growth achieved by lowering underwriting standards.
Zenith’s non-performing loan ratio — Stage-3, credit-impaired loans as a share of gross loans — stood at 3.79% at the end of March 2026, essentially flat against 3.82% at the end of 2025 but down sharply from 4.70% at the end of 2024, continuing a multi-year de-risking trend even as the loan book itself expanded.
Independent disclosures from full-year 2025 put Zenith’s loan-loss coverage ratio at 172.6% — meaning provisions held against bad loans exceed the value of the impaired loans themselves by more than 70%, a comfortable buffer well above what regulators require.
Growing the loan book faster than the balance sheet while simultaneously cutting the bad-loan ratio is a combination few Tier-1 African lenders can claim in the same quarter.
Interest and Fee Income: A Diversifying Revenue Engine
Zenith’s income statement shows a bank successfully diversifying away from pure interest-rate carry. Gross earnings for the quarter rose 6.1% year-on-year to ₦1.01 trillion, but the composition of that growth is the more telling detail.
Net interest income — the core spread between what the bank earns on loans and investments and what it pays on deposits — climbed 7.3% to ₦634.1 billion, the largest net interest income of any Nigerian bank in the quarter.
The standout, however, is fee income. Net fee and commission income surged 44.6% year-on-year to ₦81.0 billion, up from ₦56.0 billion a year earlier — a growth rate more than six times faster than net interest income and a clear signal that Zenith is successfully monetising transaction banking, digital channels and card services rather than relying solely on its loan book for growth.
For full-year 2025, the bank’s net interest margin stood at 13.7%, one of the widest among Nigerian Tier-1 banks and a reflection of disciplined asset-liability pricing through a high-rate environment.
Return on Equity: Profitability That Outruns Balance-Sheet Growth
Return on average equity is where Zenith’s capital discipline shows up most clearly. The bank closed full-year 2025 with a return on average equity of 23.2% and a return on average assets of 3.4%, both figures independently disclosed alongside its FY2025 results.
That profitability was rewarded directly at the shareholder level: Zenith’s board doubled its total dividend for 2025 to ₦10.00 per share — split between a ₦1.25 interim payout and a ₦8.75 final dividend — from ₦5.00 the previous year, distributing roughly ₦410.7 billion to shareholders, one of the largest dividend payouts in Nigerian corporate history.
Cost discipline underpins the returns: full-year 2025 cost-to-income ratio came in at 45.2%, while the bank’s own Q1 2026 figures point to further improvement, with operating expenses absorbing roughly 47.15% of operating income for the quarter — a leaner ratio than the FY2025 run rate.
Against peers, the ROE story favours Zenith on a risk-adjusted basis.
Capital Adequacy: A Fortress Balance Sheet
Regulators and rating agencies alike have flagged Zenith’s capital position as a standout. The bank’s capital adequacy ratio stood at roughly 25% at the end of full-year 2025 and its liquidity ratio at 71%, both comfortably clear of the Central Bank of Nigeria’s regulatory minimums for systemically important banks. Fitch Ratings’ most recent update pegs Zenith’s standalone total capital ratio even higher, at 25.8% at end-2025, against a fully-loaded core capital ratio of 28% — a buffer Fitch frames as well in excess of regulatory requirements.
Equity research from CardinalStone projects that buffer widening further, forecasting a capital adequacy ratio of 28.7% for 2026 and 30.8% for 2027 as retained earnings continue to compound. A capital position this deep gives Zenith room to absorb credit shocks, fund loan growth internally, and — as its international ambitions make clear — write bigger cross-border checks without straining its own solvency.
A Historic Euromoney Double
The market recognition arrived in force this month. At the Euromoney Awards for Excellence 2026, presented July 16 at The Peninsula London Hotel against a record field of more than 770 entries, Zenith Bank was named both “Africa’s Best Bank” and “Nigeria’s Best Bank” — the latter for the second consecutive year, having also won the national title in 2025.
Zenith Bank Group Managing Director Dr Adaora Umeoji called the double “a reflection of the trust of our customers, the dedication of our unicorn workforce, and our unwavering commitment to building a truly African global financial institution.”
The Euromoney sweep sits atop an already crowded trophy shelf: Zenith has been ranked the Number One Bank in Nigeria by Tier-1 Capital for 17 consecutive years in The Banker’s Top 1000 World Banks Ranking, and has separately been named Bank of the Year (Nigeria) by The Banker in 2020, 2022 and 2024, and Best Bank in Nigeria by Global Finance’s World’s Best Banks Awards in 2020, 2021, 2022, 2024 and 2025.
Pan-African Expansion: Kenya, Côte d’Ivoire and a London Listing
Zenith’s ambitions have moved decisively past Nigeria’s borders in 2026, on three fronts simultaneously.
East Africa: In April 2026, Zenith completed its acquisition of 100% of the issued share capital of Paramount Bank Kenya Limited, following regulatory approvals from both the Central Bank of Kenya and Nigerian authorities — a deal first disclosed in November 2025.
Paramount is a modest player — ranked 33rd of Kenya’s 39 licensed banks with roughly 0.2% market share — but the acquisition hands Zenith a regulated foothold in East Africa’s largest and most stable economy, with GDP exceeding $136 billion, giving it a platform to build out corporate and trade-finance relationships beyond West Africa.
Francophone West Africa: On April 29, 2026, Zenith formally launched its Côte d’Ivoire subsidiary at SCI Wall Street in Abidjan’s Plateau business district — its first entry into Francophone West Africa after securing a license from the Ivorian Ministry of Finance and Budget in December 2025 and regulatory clearance from the UMOA Banking Commission.
The subsidiary, led by Cédric Tano, gives Zenith direct access to the eight-nation WAEMU currency bloc — Senegal, Mali, Burkina Faso, Niger, Guinea-Bissau, Togo, Benin and Côte d’Ivoire — and comes as the bank simultaneously moves into Cameroon and the Central African Economic and Monetary Community.
“We are proud to establish Zenith Bank’s presence in Côte d’Ivoire at a time of strong economic growth in the country and increasing regional integration,” Tano said at the launch. GMD Adaora Umeoji framed the move as fulfilling founder Jim Ovia’s founding vision: “to build a truly global brand with a strong presence across Africa and key international markets.”
The Ivorian entry follows a ₦350.5 billion (roughly $231 million) capital raise disclosed in 2025, of which 40% was earmarked specifically for overseas expansion, alongside a newly secured Paris branch license to support the broader Francophone Africa push.
London: Perhaps the most consequential long-term move is Zenith’s stated intent to list on the London Stock Exchange in 2027. Bloomberg first reported the plan on March 17, 2026, describing Zenith as seeking to “broaden access to capital and strengthen client services.”
A bank spokesperson told Bloomberg the rationale is explicitly deal-driven: “There are a lot of deals we have on the table to finance across the UK and other countries, for which we need to raise more capital.”
The plan builds on Zenith’s existing UK subsidiary and Manchester branch network, and would give the bank direct access to deeper international capital pools to fund the very cross-border pipeline its Kenyan and Ivorian expansions are now generating.
Taken together, the Kenya deal, the Côte d’Ivoire launch and the LSE listing plan describe a bank building simultaneously outward in three directions — East Africa, Francophone West Africa, and international capital markets — rather than defending Nigerian market share alone.
The Bottom Line
No single data point confirms Zenith Bank’s case as Nigeria’s Best-in-Class Lender — it is the accumulation of them. A balance sheet growing its loan book faster than its total assets while cutting bad debt. A revenue mix diversifying into fee income at a 44.6% annual clip. A capital position deep enough that rating agencies and equity researchers alike see room for it to widen further through 2027. A shareholder payout that doubled in a single year. And now, external validation from the industry’s most competitive award program, layered on top of simultaneous expansion into Kenya, Côte d’Ivoire and — pending 2027 — the London Stock Exchange.
Rivals can point to faster growth in isolated quarters, but none combine Zenith’s scale, capital strength and cross-border momentum in the same reporting period. That combination, more than any single metric, is what underpins the “best-in-class” label Euromoney’s judges affixed to Zenith Bank this July.
NOTE: This analysis draws on Zenith Bank Plc’s unaudited consolidated financial statements for the three months ended March 31, 2026, supplemented by independent research and data from MoneyCentral, Bloomberg, ThisDay, Nairametrics, Euromoney, Fitch Ratings, CardinalStone Research, Brand Finance and other sources. All figures are in Nigerian naira unless otherwise stated. Market capitalisation and share-price data reflect trading as of the cited publication dates (July 23, 2026) and are subject to change.
