Banking
Fitch Affirms GTBank at ‘B+’ With Negative Outlook
By Modupe Gbadeyanka
The Guaranty Trust Bank Plc’s (GTB) Long-Term Issuer Default Rating (IDR) has been affirmed at ‘B+’ with Negative Outlook by Fitch Ratings.
In a statement issued on Wednesday in London, Fitch Ratings noted that all other ratings of GTB have also been affirmed.
It noted that the bank’s IDRs are driven by the bank’s intrinsic creditworthiness as defined by its Viability Rating (VR). GTB’s VR is constrained by the Nigerian sovereign rating (B+/Negative) and the Negative Outlook on the Long-Term IDR mirrors that on the sovereign rating.
GTB’s VR also considers solid financial metrics that compare well with other large Nigerian banks. Earnings metrics are especially strong and we consider GTB to be the most profitable bank in the sector, consistently achieving an operating return on average assets of at least 5% annually. Strong profitability reflects strong margins and a structurally lower cost base than peers. Non-interest expense as percentage of average assets is consistently below 4%, with most peers touching 5% or higher.
Strong earnings support capitalisation. GTB’s Fitch Core Capital (FCC) ratio of 26.7% is extremely high, although this considers capitalisation of interim earnings without the payment of a year end-dividend. Nevertheless, we expect GTB’s FCC ratio to remain well above 20% following the distribution of dividends. Regulatory capital is also sound with a bank-solo Tier 1 ratio of 22.9%. We consider both foreign and local currency liquidity to be sound.
Asset quality metrics are in line with peers, with a ratio of non-performing loans (NPLs) to gross loans of 3.9% at end-September 2017. NPLs have gradually ticked up as borrowers have faced escalating challenges in Nigeria. However, NPLs have remained well contained. Restructuring of the loan book is common, but not as widespread as we have seen in many other banks, at around 10% of gross loans, while past due but not impaired loans are minimal.
GTB’s National Ratings are a reflection of its relative creditworthiness to the best credits in Nigeria. GTB’s National Ratings consider stronger financial metrics than almost all peers.
The long- and short-term ratings on GTB Finance B.V.’s senior unsecured programme have been affirmed at ‘B+’. The long-term rating of senior debt issued by GTB has also been affirmed at ‘B+’ with a Recovery Rating of ‘RR4’ indicating average recovery prospects.
SUPPORT RATING AND SUPPORT RATING FLOOR
Fitch believes that sovereign support to Nigerian banks cannot be relied on given Nigeria’s weak ability to provide support, particularly in foreign currency. In addition, there are no clear messages from the authorities regarding their willingness to support the banking system. Therefore, the Support Rating Floor of all Nigerian banks is ‘No Floor’ and all Support Ratings are ‘5’. 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.
GTB’s IDRs are sensitive to a rating action on its VR. GTB’s VR is sensitive to a material deterioration in asset quality, which may result from restructured loans in the oil sector not performing under the restructured terms. An upgrade of the bank’s IDRs would require a sovereign upgrade as GTB’s ratings are capped at ‘B+’. However, this is unlikely given the Negative Outlook on the Long-term IDRs of GTB and the Nigerian sovereign.
GTB’s National Ratings are sensitive to a change in its creditworthiness relative to other Nigerian banks.
The long- and short-term ratings on GTB Finance B.V.’s senior unsecured programme and the long-term rating on senior unsecured debt issued by GTB are sensitive to any change in GTB’s IDRs.
SUPPORT RATING AND SUPPORT RATING FLOOR
The SR is potentially sensitive to any change in assumptions around the propensity or ability of the sovereign to provide timely support to the bank.
The rating actions are as follows:
Guaranty Trust Bank Plc
Long-Term IDR affirmed at ‘B+’; Outlook Negative
Short-Term IDR affirmed at ‘B’
Viability Rating affirmed at ‘b+’
Support Rating affirmed at ‘5’
Support Rating Floor affirmed at ‘No Floor’
National Long-Term Rating affirmed at ‘AA-(nga)’
National Short-Term Rating affirmed at ‘F1+(nga)’
Senior unsecured long-term rating affirmed at ‘B+’/’RR4’
Senior unsecured programme long- and short-term ratings of GTB Finance B.V. affirmed at ‘B+/B’/’RR4’
By Modupe Gbadeyanka
The Nigeria Revenue Service (NRS) has denied reports that customers performing financial transactions would pay a Value Added Tax (VAT) of 7.5 per cent from January 19, 2026.
Information about this emanated from messages sent out to customers of a financial institution, informing them of the new development in compliance of Nigeria’s new tax laws, especially the Nigeria Tax Act 2025.
It was claimed that Nigerians, as part of efforts of the government to generate more funds from taxes, would begin to pay VAT for the use of banking services like USSD and others.
But reacting in a statement signed by its management on Thursday, January 15, 2026, the tax collecting agency emphasised that the VAT collection for such services was not new.
It stressed that customers have always paid taxes for electronic money transfers and others, as this is charged on the fee, not from the main amount of the transaction.
“The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax (VAT has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect.
“VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime. The Nigeria Tax Act did not introduce VAT on banking charges, nor (sic) did it impose new tax obligation on customers in this regard.
“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information,” the statement read.
Business Post reports that what this basically means is that if a customer sends N10,000 and the bank charges N50 for the service, a 7.5 per cent VAT on the N50, which is N3.75, would be paid by the sender, not N750, which is 7.5 per cent of N10,000.
By Adedapo Adesanya
Nigerian-born payments company, Paystack, has announced its entry into the banking sector with the launch of Paystack Microfinance Bank (Paystack MFB) after the acquisition of Ladder Microfinance Bank.
The bank continues Paystack’s push into consumer products and adds a banking layer to its business-focused payment product, coming ten years after the company was founded with the goal of simplifying payments for businesses using modern technology.
In Nigeria alone, the company says its systems process trillions of Naira every month, supporting more than 300,000 businesses and millions of customers. According to Paystack, this growth highlighted a broader need beyond payments, prompting the decision to build a more comprehensive financial offering.
Paystack MFB will begin lending to businesses before expanding to consumers. It will also offer banking-as-a-service (BaaS) products to companies building financial products and treasury management products.
The company explained that while payments are a critical part of the financial journey, businesses and individuals increasingly require a full financial operating system. This includes the ability to store money securely, move funds easily, gain clarity from financial data, and access tools that support long-term growth. Developers, Paystack added, also need reliable, secure, and compliant infrastructure to build new financial solutions efficiently.
To address these needs, Paystack said it has established Paystack Microfinance Bank as a separate and independent entity from Paystack Payments Limited.
The new microfinance bank operates with its own license, governance structure, and product roadmap, although it will work closely with its sister company.
“By adding Paystack MFB to our family of brands, we’re finding the right balance through combining the rapid innovation of a tech-first platform with the stability of traditional banking,” said Ms Amandine Lobelle, Paystack’s chief operating officer.
Last year, it launched its controversial consumer payments app Zap, and now it is taking a step further with the company securing regulatory backing to become a deposit-taking institution. According to a statement, the bank will be guided by the same principles that shaped Paystack’s early success, including reliability, simplicity, transparency, and trust.
Paystack MFB has begun operations with a small group of early members and plans a gradual rollout to more businesses and individuals. The company also announced the opening of a waitlist for interested users and confirmed it is recruiting a dedicated team to help build its long-term banking infrastructure.
By Modupe Gbadeyanka
The Economic and Financial Crimes Commission (EFCC) has helped First Bank of Nigeria to recover the sum of N802.4 million from a suspect, Mr Kingsley Eghosa Ojo, who unlawfully took possession of over N1.3 billion belonging to the bank.
The funds were handed over the financial institution by the Benin Zonal Directorate of the anti-money laundering agency on Monday, January 12, 2026, a statement on Tuesday confirmed.
First Bank approached the EFCC for the recovery of the money through a petition, claiming that the suspect received the money into his account after system glitches.
The commission in its investigation; discovered that the suspect, upon the receipt of the money, transferred a good measure of it to the bank accounts of his mother, Mrs Itohan Ojo and that of his sister, Ms Edith Okoro Osaretin, and committed part of the money to completion of his building project and the funding of a new flamboyant lifestyle.
With the recovery of the money from the identified bank accounts, the EFCC handed it over in drafts to First Bank.
While handing over the lender, the acting Director for the Directorate, Mr Sa’ad Hanafi Sa’ad, stressed his organisation would continue to discharge its mandate effectively in the overall interests of society.
“The EFCC Establishment Act empowers us to trace and recover proceeds of crime and restitute the victim. In this case, First Bank was the victim and that is exactly what we have done.
“We will continue to discharge our duties to ensure that fraudsters do not benefit from fraud and that economic and financial crimes are nipped in the bud,” he said.
In his response, the Business Manager for First Bank in Benin City, Mr Olalere Sunday Ajayi, who received the drafts on behalf of the bank, commended the EFCC for the swiftness and the professionalism it brought to bear in the handling of the matter and expressed the bank’s gratitude to the commission.
He described the EFCC as one of Nigeria’s most effective and reliable institutions.
Meanwhile, Mr Kingsley and all other suspects in the matter have been charged to court for stealing by the EFCC.
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