Banking
Fitch Affirms Fidelity Bank at ‘B-‘; Outlook Stable
By Dipo Olowookere
Fidelity Bank Plc’s Long-Term Issuer Default Rating (IDR) has been affirmed at ‘B-‘ by Fitch Ratings with the Outlook Stable. A statement yesterday from Fitch said it also affirmed Fidelity Bank’s National Long-Term Rating at ‘BBB(nga)’.
According to Fitch, the IDRs of Fidelity Bank are driven by its standalone creditworthiness, as defined by its Viability Rating (VR) as with that of other Nigerian banks, which are highly conditioned by Nigeria’s operating environment, with the fragile economic recovery restraining banks’ growth prospects and asset quality.
The statement said Fidelity Bank’s VR further reflects a moderate franchise, weak profitability, potentially vulnerable asset quality, some weaknesses in the bank’s funding and liquidity profile as well as adequate capitalisation.
It added that the stable outlook reflects Fitch’s base case expectation that Fidelity Bank’s credit profile is unlikely to change significantly over a one-to-two year period. Fidelity Bank operates exclusively in Nigeria, accounting for 4 percent of banking system assets at end-2017.
The bank’s impaired loans (stage 3 loans under IFRS 9) ratio (7.5% at end-1H18) is slightly lower than the sector average. However, Stage 2 loans are high, measuring at 21% of gross loans at end-1H18, as is the case for many Nigerian banks. Reserve coverage of impaired loans (88% at end-1H18) increased significantly following the implementation of IFRS 9, which we view positively.
Fidelity Bank is exposed to large credit concentrations. The 20-largest loans represented 53% of gross loans and 252% of Fitch Core Capital (FCC) at end-1H18. Fidelity Bank is also exposed to the oil sector, which accounted for 23% of gross loans at end-1H18.
Profitability is weak, but in line with most similarly-sized peers’. Fidelity Bank’s operating profit/risk-weighted assets ratio was 1.8% in 2017, which is weak by emerging markets standards. Weak profitability metrics reflect a low net interest margin, given a high cost of funding that is reflective of Fidelity Bank’s more expensive deposit base. Weak profitability also reflects a high cost-income ratio (68% in 2017) and loan impairment charges that have eroded around 30%-40% of pre-impairment operating profit in recent years.
“We view Fidelity’s capital position as no more than adequate with a FCC ratio of 16.8% at end-1H18. Capital, in our view, is vulnerable to deterioration in asset quality,” Fitch said.
It noted that Fidelity Bank’s loans/customer deposits ratio (92% at end-1H18) is higher than peers’, explained by a higher proportion of non-deposit funding.
In 2017, Fidelity Bank issued a five-year senior unsecured $400 million bond, easing its foreign currency liquidity position. Of this, $256 million was used to repay a $300 million Eurobond in May 2018. Near-term debt repayments are limited, with the next large repayment being in 2022 when the Eurobond becomes due.
Fitch said single-depositor concentration is in line with peers’, with the 20 largest customer deposits accounting for 20% of the total at end-1H18.
It added that Fidelity Bank’s senior unsecured debt is rated in line with the bank’s Long-Term IDR and, therefore, has been affirmed at ‘B-‘.
In Fitch’s view, the likelihood of default on these instruments reflects the likelihood of default of the bank. The Recovery Rating (RR) of ‘RR4’ indicates average recovery prospects in case of default.
Fitch said it believes that sovereign support to Nigerian banks cannot be relied upon given Nigeria’s weak ability to provide support, particularly in foreign currency.
In addition, there are no clear messages of support from the authorities regarding their willingness to support the banking system. Therefore, the Support Rating (SR) and Support Rating Floor (SRF) are ‘5’ and ‘No Floor’, respectively.
“This reflects our view that senior creditors cannot rely on receiving full and timely extraordinary support from the Nigerian sovereign if any of the banks become non-viable,” the rating agency said.
It said Fidelity Bank’s Long-Term IDR is sensitive to a change in its VR, pointing out that downside pressure is most likely to result from a material weakening of loan credit quality, including the migration of stage 2 loans to stage 3, putting pressure on capital adequacy.
By Aduragbemi Omiyale
Children and teens interested in participating in becoming the chief executive of Wema Bank for one day have till Wednesday, May 20, 2026, to submit their entries.
The One-Day MD/CEO initiative was introduced by Wema Bank in 2025 to commemorate Children’s Day in a uniquely unprecedented manner.
The winner of the maiden edition was a 12-year-old Chiderije Mbah, inspiring children across the country to put in the work towards a successful future.
Inspired by the bank’s 80th anniversary theme, 80 Years of Impact, A Future of Possibilities, the Wema Bank One-Day MD/CEO initiative served as a bridge between past and future, giving children across Nigeria the once-in-a-lifetime opportunity to become the MD/CEO of Wema Bank for one day—Children’s Day.
For the 2026 Children’s Day celebration, Wema Bank will give another child or teenager [ages 0-16] a chance to step into the shoes of the chief executive of the bank, Mr Moruf Oseni, for a day.
The child will get to oversee board meetings, make tactical decisions, and experience firsthand the demands and responsibilities that come with the office of MD/CEO, especially for an institution like Wema Bank, Nigeria’s oldest indigenous national bank, most innovative and pioneer of Africa’s first fully digital bank, ALAT.
To participate, children/teens are expected to record a 60-second video detailing what their ideal role in banking would be and what they hope to achieve. This video is to be posted on any social media platform using #EvolutionOfPossibilities and tagging @wemabank on the post. The post with the highest number of likes emerges as the winner, and the winner gets to become MD/CEO of Wema Bank on Monday, May 25, 2026, in celebration of Children’s Day, with parents and teens encouraged to hurry and make their submissions before the deadline.
By Adedapo Adesanya
Nigerian tier-1 lender, First Bank, has announced the introduction of its Naira Visa Debit Card in partnership with the global payments giant to extend accessible, reliable electronic payment capabilities to a broader segment of the Nigerian population.
The card is targeted at everyday consumers who require a dependable payment instrument for routine domestic and international transactions. Accepted across POS terminals, ATMs, and online platforms through Visa’s payments network, the Naira Visa Debit Card is designed to reduce friction for customers transitioning from cash to electronic payments across retail, utilities, and digital commerce.
According to the bank, the partnership aligns with Nigeria’s ongoing drive toward a cashless economy, a policy direction that has gained significant momentum following successive Central Bank of Nigeria directives encouraging the adoption of electronic payment channels, adding that the card is intended to serve customers across the country’s diverse economic segments.
The Naira Visa Debit Card is available to all eligible FirstBank account holders through any of the bank’s branches nationwide.
Speaking on the launch, Mr Chuma Ezirim, Group Executive, eBusiness & Retail Products, FirstBank, said: “Everyday transactions should be simple, secure, and rewarding. The Naira Visa Debit Card is designed to make life easier for our customers, whether they are paying for groceries, settling utility bills, or shopping online.
“By extending reliable electronic payment access across Nigeria, we are helping more people transition confidently from cash to digital payments, supporting the nation’s cashless policy and empowering communities with greater financial inclusion.”
Commenting on the strategic importance of the partnership, Mr Andrew Uaboi, Vice President and Cluster Head, West Africa, Visa, noted: “A strong payments ecosystem works for everyone. The Naira Visa Debit Card extends reliable electronic payment access to everyday Nigerian consumers, and this in addition to the cards in our portfolio, continues to demonstrate what a truly comprehensive card portfolio looks like for the Nigerian market. Visa is proud to power this offering with FirstBank.”
The launch of the Naira Visa Debit Card broadens Visa’s card portfolio at FirstBank, which already includes products spanning credit cards and High-end premium lifestyle spending cards. The addition completes its offering across customer segments, ensuring that cardholders at every income level have access to a product suited to their needs.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has unveiled the fourth edition of its Foreign Exchange Manual as part of efforts to deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
Speaking at the launch of the revised manual in Abuja on Friday, the Governor of the apex bank, Mr Yemi Cardoso, said the document will take effect from June 1, 2026.
He said it was developed after extensive consultations with banks, exporters, importers, corporates, regulators and development partners.
He said the new framework reflects the apex bank’s commitment to modernising the country’s foreign exchange administration in line with international best practices.
Mr Cardoso described the foreign exchange market as a critical pillar of any open economy, noting that effective governance of the sector is essential for sustaining macroeconomic stability and investor confidence.
“Foreign exchange is more than a financial instrument. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” he said.
The CBN governor stressed that the revised manual became necessary due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework.
According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Mr Cardoso disclosed that Nigeria’s foreign exchange market has witnessed significant improvement in liquidity since the current administration began reforms in the sector.
He added that daily turnover in the FX market increased from an average of about $100 million in the early days of the administration to between $400 million and $600 million daily.
The CBN Governor added that the market had also recorded transactions of up to $1 billion per day on several occasions in recent months.
“We have gone from a situation where it was more or less a one-way market, where the central bank came in, intervened and went away, to a much more dynamic market,” he stated.
The apex bank boss noted that the reforms were gradually restoring confidence among investors and market participants, encouraging freer entry and exit in the market without unnecessary restrictions.
He also maintained that the nation’s foreign reserves should not be used as the primary tool for funding the foreign exchange market.
“Reserves are reserves. They are not what you look to fund a market,” he said.
The CBN Governor assured stakeholders that the revised manual would be distributed free of charge to authorised dealers while the bank strengthens monitoring mechanisms to ensure compliance, fairness and accountability across the foreign exchange market.
On his part, the Deputy Governor for Economic Policy, Mr Muhammad Abdullahi, said the review formed part of broader reforms initiated by Mr Cardoso to restore confidence, improve transparency and deepen liquidity in the foreign exchange market.
Mr Abdullahi explained that the revised manual introduces several changes aimed at improving ease of doing business and reducing transaction bottlenecks.
Among the notable changes, he noted, are provisions allowing unfettered access to export proceeds, the introduction of non-resident investment accounts and operational guidelines for Pan-African Payment and Settlement System (PAPSS) transactions to support regional trade.
Mr Abdullahi added that the manual also contains new provisions on service exports, revised documentation requirements and updated operational procedures designed to align Nigeria’s FX market with global standards.
He said the apex bank deliberately adopted an ease of doing business approach during the review process to eliminate inefficiencies and ambiguities identified by stakeholders.
“The revised manual is not a stand-alone exercise but part of a broader institutional reform effort designed to strengthen the integrity, credibility and effectiveness of Nigeria’s foreign exchange system,” he said.
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