Banking
Fitch Affirms UBA at ‘B’ with Stable Outlook

By Modupe Gbadeyanka
Fitch Ratings has affirmed United Bank for Africa Plc’s (UBA) Long-Term Issuer Default Rating (IDR) at ‘B’. The Outlook is Stable. The bank’s Viability Rating (VR) has been affirmed at ‘b’ and its Support Rating at ‘5’. The National Ratings have also been affirmed. A full list of rating actions is at the end of this rating action commentary.
The bank’s IDRs are driven by its standalone creditworthiness, defined by the VR. The VR is constrained by Nigeria’s (B+/Negative) operating environment.
UBA is one of Nigeria’s largest banks, classified as domestically systemic by the regulator. It controls shares of loans and deposits in Nigeria of 7.5% and 9.5%, respectively. Its well-established franchise is a rating strength and internationalisation through expansion into 19 other sub-Saharan African countries adds to the franchise.
UBA’s earnings and profitability tend to be stable, which we view positively.
The bank reports a low impaired loans/gross loans ratio (around 4%), but loan loss cover at around 70% is on the low side compared with the average for large Nigerian banks (90%). UBA also has access to collateral. Corporate lending dominates the loan book, but much of it is collateralised. UBA’s exposure to the oil and gas sector represents 20% of total loans, lower than the 30% sector average but concentrations by single borrower can be high. This is particularly the case in some of the African subsidiaries.
UBA’s foreign currency liquidity position improved following the issue of a USD500 million senior medium-term bond on the international capital markets in June 2017. UBA’s local currency funding profile is a rating strength. The group is largely funded by historically stable deposits and UBA’s strategy is to continue to expand its low-cost retail deposit base. Retail deposits represent about a third of customer deposits, which is higher than average for rated peers. Local currency liquidity ratios are high.
UBA’s capital ratios are in line with other large Nigerian banks but the bank’s overall capitalisation still provides relatively narrow buffers and only limited loss-absorption capacity, in our view. This is because concentrations can be high, exposing the bank to the risk of unexpected losses.
UBA’s National Ratings reflect its creditworthiness relative to Nigeria’s best credit and to peers operating in Nigeria.
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.
SENIOR DEBT
Senior debt is rated at the same level as the bank’s Long-Term IDR because in our view, the likelihood of default on these notes reflects the likelihood of default of the bank. The Recovery Rating (RR) assigned to these notes is ‘RR4’, indicating average recovery prospects.
The bank’s IDRs, National Ratings and VR are primarily sensitive to either improvements or deterioration in asset quality and capital adequacy. Given the still fragile economy in Nigeria and credit weakness in many other sub-Saharan African countries, upgrade potential is considered limited at present.
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 senior debt is sensitive to a change in UBA’s Long-Term IDR.
The rating actions are as follows:
Long-Term IDR affirmed at ‘B’; Outlook Stable
Short-Term IDR affirmed at ‘B’
Viability Rating affirmed at ‘b’
National Long-Term Rating affirmed at A+(nga)’
Short-Term National Rating affirmed at ‘F1(nga)’
Support Rating affirmed at ‘5’
Support Rating Floor affirmed at ‘NF’
Long-term senior unsecured debt affirmed at ‘B’/RR4
Banking
874 Stanbic IBTC Bank Customers to Win N130m in Reward4Saving Promo Season 4

By Dipo Olowookere
About N130 million has been set aside by Stanbic IBTC Bank for 874 of its lucky customers in the Reward4Saving Promo season 4.
This year’s campaign, which was launched recently, has more cash prizes, providing customers even more chances to save and win big.
The promotion encourages Nigerians to develop a savings culture and reward their loyalty. Simply fund your new or existing savings or @ease wallet with a minimum of N10,000 for at least 30 days. The more multiples of N10,000 they save, the higher of their chances of winning.
To participate, eligible individuals must maintain a minimum balance of N10,000 in their Stanbic IBTC Bank Savings Accounts or @ease Wallet for at least 30 days to be automatically entered into the promotion.
Non-account holders are encouraged to open Stanbic IBTC Bank Savings Accounts and maintain a balance of N10,000 to participate. Winners will be selected through a transparent random draw process and receive exciting cash prizes ranging from N100,000 to N5 million.
To lend credence to the transparency of the winners’ selection process in the Reward4Saving Promo, the draws are usually supervised by representatives from National Lottery Regulatory Commission (NLRC) and Advertising Regulatory Council of Nigeria (ARCON).
The promo has won The Most Transparent Consumer Promotion Award, two years in a row at the Industry Awards.
The financial services provider in Nigeria said it created this campaign to reinforce its commitment to fostering a strong savings culture among Nigerians.
“We are committed to empowering our customers to achieve their financial goals.
“The Reward4Saving Promo is our way of saying ‘thank you’ to our loyal customers and encouraging them to develop a savings culture,” the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, stated.
Banking
No Plans to Introduce N5000, N10000 Naira Notes—CBN

By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has dismissed a widespread circular claiming the country has introduced two new large denominations— N5,000 and N10,000 notes.
The apex bank described the circular as “fake” in a statement via its official handle on X (formerly Twitter).
The alleged circular said the new notes were set for circulation from May 1.
Business Post gathered that the notes were generated with Artificial Intelligence (AI) showing the late Obafemi Awolowo, who is originally on the N100 note, on the N5,000 note and the late Nnamdi Azikiwe, originally on the N500 note, on the N10,000 version.
“The Central Bank of Nigeria (CBN) has officially announced the introduction of two new denominations – N5,000 and N10,000 banknotes; as part of ongoing efforts to streamline cash transactions and improve liquidity management,” the viral circular widely shared online and falsely attributed to the CBN, stated.
The document further alleged that one Deputy CBN Governor, Mr Ibrahim Tahir Jr, justified the move as a way to reduce cash-handling costs while offering Nigerians more efficient options for larger transactions.
However, the apex bank refuted the claims, urging the public to verify information through its official website.
“The content is not from the Central Bank of Nigeria. Kindly note that the official website of the CBN is cbn.gov.ng,” the CBN stated, emphasising its commitment to transparency and accurate communication.
In 2022, the apex bank announced the redesign of the N200, N500, and N1,000 notes with the new notes entering circulation on December 15, 2022. This initiative aimed to address issues such as currency counterfeiting, the prevalence of currency outside the banking system, and to promote a cashless economy.
According to the CBN, under then Governor Godwin Emefiele, said the redesigned banknotes feature enhanced security measures and updated designs to improve their durability and aesthetic appeal.
The CBN emphasized that introducing new designs aligns with global practices, where national currencies are periodically redesigned to combat counterfeiting and enhance security.
The old versions of these denominations remained legal tender and circulated alongside the new notes until January 31, 2023, after which they were phased out.
Banking
Sterling Bank Waives Bank Transfer Fees for Customers

By Aduragbemi Omiyale
A tier-2 financial institution, Sterling Bank, has confirmed the introduction of a zero-transfer-fee policy for customers with immediate effect.
The bank has urged others in the banking industry to emulate this initiative, saying customers should not be overburdened with bank transfer charges.
“We believe access to your own money shouldn’t come with a penalty.
“This is more than a financial decision, it’s a values-based one. It reflects our commitment to making banking fair, inclusive, and truly customer focused.
“We’re not yet the biggest bank in Nigeria, but we’ve been the boldest.
“Sterling fearlessly believes in the future of Nigeria, and this is us backing Nigerians with more than words,” the Growth Executive Leading the Consumer and Business Banking Directorate at Sterling Bank, Obinna Ukachukwu, stated.
Recall that on April Fool’s Day, Sterling Bank announced waiving bank transfer fees for customers and many thought it was just a marketing prank.
But in a statement today, the lender reaffirmed that it introduced this policy to set a new benchmark for customer-focused banking in Nigeria by championing the cancellation of bank transfer charges.
With this move, Sterling becomes the first major Nigerian bank to take a definitive stand against the long-standing practice of charging customers for everyday digital transfers, an issue that has grown increasingly contentious as digital banking adoption deepens.
Under the new policy, Sterling Bank customers will enjoy free transfers for all local transactions conducted via the bank’s mobile app. This translates into significant savings, particularly for individuals and new small business owners who make frequent daily transfers.
This customer-first orientation is not new for the bank. During the COVID-19 pandemic, the company stood out by providing supplementary payments to healthcare workers in public hospitals—at a time when few others were willing or able to offer additional support.
The bank’s latest move has been met with widespread public approval, sparking positive reactions across social media and placing pressure on industry peers to follow suit.
“We’re proud to lead this change. We hope it inspires others to think differently about what customers truly need from their banks, not just in services, but in values,” Ukachukwu added.
Sterling Bank’s zero-fee policy is part of a broader strategy to transform the customer experience and deliver transparent, ethical banking solutions at scale.
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