Banking
Fidelity Bank Expects Lower FX Income, NIM in H1 2020
By Dipo Olowookere
Fidelity Bank Plc has said it is not expecting to get higher foreign exchange (FX) income in the second half of 2020.
This disclosure was made by the financial institution during its analyst call last week in Lagos, where the MD/CEO of the company, Mr Nnamdi Okonkwo, also stated that much is not anticipated from the net interest margin (NIM) for the rest of the financial year.
Business Post reports that the NIM measures the difference between the interest income generated by a bank and the amount paid as interest to other banks. The NIM mainly shows how well a lender utilises its assets to produce profit.
“We do not expect to have the same level of FX income coming through in Q3 and Q4,” the bank executive informed participants at the conference monitored by Business Post.
According to the audited results of Fidelity Bank for the first half of the year ended June 30, 2020, the FX income grew significantly by 84.8 per cent to N4.5 billion from N8.3 billion.
This was due to the significant 223.4 per cent increase in the FX income recorded in the second quarter of the year; N6.4 billion in Q2 2020 versus N2.0 billion in Q1 2020 and the second quarter rise was largely due to the currency devaluation by the Central Bank of Nigeria (CBN).
It was observed that between April 2020 and June 2020, the significant growth in the FX income of Fidelity Bank contributed largely to the 120.6 per cent growth in its net fee income of N12.6 billion versus N5.7 billion recorded in Q1 2020.
Speaking on the NIM, the Chief Operations and Information Officer of Fidelity Bank, Mr Gbolahan Joshua, stated that though there was an improvement to 6.4 per cent in H1 2020 from 6.2 per cent in FY 2019, the lender is not expecting this to go higher for the rest of the year.
However, he said the management expects the recent downward review of savings rate to have about 0.20 per cent positive impact on the bank’s NIM.
He attributed the 6.4 per cent improvement in the H1 2020 NIM to the 2 per cent decline in “average funding cost despite a drop in yields on earnings assets.”
It was stated that during the first half of the year, the drop in average funding cost was due to a combination of 2.7 per cent decline in the average cost of deposits to 4.0 per cent and 0.40 per cent drop in average borrowing cost to 5.1 per cent.
“The NIM is still strong at 6.4 per cent as at H1 but we think it is still going to go down slightly as we get into H2,” Mr Joshua said at the call.
In terms of its expenses, the bank said it expects a lower OPEX because, according to the CEO, Mr Okonkwo, “we have taken the AMCON cost in full in H1. This means we will be free of any AMCON charge for the rest of the year.”
By December 2020, Mr Okonkwo will be retiring as the MD/CEO of Fidelity Bank, while Mrs Nneka Onyeali-Ikpe is expected to take over from January 2021.
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.
