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 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.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has approved the appointment of Mr Julius Omodayo-Owotuga to the board of First Bank of Nigeria Limited as an executive director.
A statement from the company said the appointment of Mr Omodayo-Owotuga became effective on Wednesday, May 13, 2026.
He was appointed to the board of the subsidiary of First Holdco Plc to further strengthen its leadership capacity across strategic finance, governance, risk management, and institutional transformation.
Before now, he served on the board of First Holdco as a non-executive director between 2021 and 2026.
The appointee brings to the board 24 years of experience spanning banking and financial services, infrastructure finance, power, oil & gas, and audit and consulting.
His appointment, according to the notice to the Nigerian Exchange (NGX) Limited, reflects the Bank’s continued commitment to strong governance, disciplined execution, financial resilience, and sustainable long-term growth.
He most recently served as deputy chief executive of Geregu Power Plc, Nigeria’s first listed power generation company, where he played a pivotal role in institutional transformation, governance strengthening, capital market positioning, operational optimisation, and major financing initiatives, including the company’s landmark listing on NGX.
Mr Omodayo-Owotuga previously served as group executive director, Finance & Risk Management at Forte Oil Plc (now Ardova Plc), where he was instrumental in the company’s financial and operational transformation, leading strategic restructuring, capital raising, treasury optimisation, enterprise risk management, and governance improvement initiatives that strengthened long-term shareholder value.
His professional career also includes roles at Africa Finance Corporation, Standard Chartered Bank, KPMG Professional Services and MBC International Bank (Now First Bank Nigeria Limited), providing him with deep experience in institutional finance, treasury management, financial controls, regulatory engagement, and corporate advisory.
Mr Omodayo-Owotuga is a CFA Charter Holder, KPMG-trained Accountant, and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN), and the Institute of Credit Administration. He is also a member of the Institute of Directors (IoD) Nigeria and a Certified Management Accountant.
He holds a Doctorate in Business Administration, a Master’s in Business Administration and a Bachelor’s degree in Accounting. He is an alumnus of Saïd Business School, University of Oxford, IE Business School, Geneva Business School, and the University of Lagos.
By Modupe Gbadeyanka
In recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises (SMEs), Union Bank of Nigeria Plc has been honoured by the Association of Small Business Owners of Nigeria (ASBON).
The lender was rewarded by the group for its suite of solutions designed to enable business expansion and long-term value creation.
At the Nigeria National SME Business Awards, held recently in Lagos, Union Bank was given the Best SME Growth Banking Initiatives Award for 2025.
The ceremony was organised by ASBON in partnership with the Lagos State government through the Ministry of Commerce, Cooperatives, Trade and Investment.
The event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.
Receiving the award on behalf of the bank, its Head of SME Segment, Mr Ayokunnumi Abraham, described the recognition as a strong endorsement of the organisation’s commitment to supporting small and medium-sized businesses.
“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible.
“Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting.
“These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive,” he stated.
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