Banking
Fitch Expects Access Bank to Repay Diamond Bank’s $200m Eurobond Next Month
By Modupe Gbadeyanka
In May 2019, Eurobond worth N200 million issued by Diamond Bank Plc is expected to be due for repayment and with Access Bank merging with Diamond Bank, the tier-1 lender would be expected to repay the bond holders at maturity.
Renowned rating agency, Fitch Ratings, says it expect Access Bank to be able to settle the debt and not default.
In a statement issued on Wednesday, Fitch, which maintained the Rating Watch Negative (RWN) on Access Bank ratings following the completion of the merger with Diamond Bank Plc, said it “expects Access Bank to repay the $200 million Eurobond on the due date.”
Fitch said it will resolve the RWN on Access Bank’s ratings when it has sufficient information to fully assess the combined entity’s standalone creditworthiness.
In the meantime, Fitch has upgraded Diamond Bank’s Long-Term Issuer Default Rating (IDR) to ‘B’ from ‘CC’, aligning it with Access Bank’s Long-Term IDR to reflect the merger with a higher-rated entity, and simultaneously withdrawn Diamond Bank’s Long-Term IDR.
The merger of the two banks has resulted in Diamond Bank’s assets, liabilities (including Diamond Bank’s $200 million Eurobond due May 21, 2019) and other undertakings being assumed by Access Bank.
Fitch noted in the statement obtained by Business Post that the RWN on Access Bank Long-Term IDR and Viability Rating (VR) primarily reflects the potentially negative impact on its financial profile from the absorption of a bank with very weak asset quality, capitalisation and foreign currency liquidity.
Accordingly, Fitch expects Access Bank’s asset quality, capitalisation and, potentially, funding and liquidity to be weaker post-merger.
“At the same time, we recognize that Access’s will be acquiring substantial low-cost deposits from Diamond Bank, which could improve its overall cost of funding. The RWN on Access Bank’s ratings also reflects greater strategy and execution risks post-merger,” the rating firm said.
Furthermore, Fitch said it expects to resolve the RWN when there is further clarity on these elements of Access Bank’s standalone credit profile, which we anticipate will be following the release of its results for the first quarter of 2019.
Fitch hinted that a potential downgrade of the bank’s rating is likely to be limited to one notch given Access Bank’s reasonable asset quality and capitalisation pre-merger, and its potentially now stronger company profile and franchise as Nigeria’s largest bank by total assets.
It stressed that Access Bank’s ratings could be affirmed with a Stable Outlook if we view the impact from the merger as moderate, based on the combined bank’s financial metrics, and limited additional unforeseen risks emerging from Diamond Bank.
It further said Access Bank’s National Ratings reflect the bank’s creditworthiness relative to other issuers in Nigeria. The RWN on Access Bank’s National Ratings reflects potential downside risks of the merger.
It disclosed that Access Bank’s ratings could be downgraded if the bank’s financial profile, particularly its capitalisation, asset quality or foreign currency liquidity, deteriorates significantly with the merger or, in the medium term, if the bank’s risk appetite, strategy and/or business model weaken notably.
“The ratings could be affirmed if the impact from the merger is moderate. The ratings could be upgraded in the medium term if Access Bank’s financial profile becomes sustainably comparable with higher rated peers, such as Zenith Bank, Guaranty Trust Bank or United Bank for Africa.
“Access Bank’s National Ratings remain sensitive to a change in the bank’s creditworthiness relative to other Nigerian issuers.
“A change in Access Bank’s IDRs would lead to a change in the ratings of its senior debt. A change in Access Bank’s VR would lead to a change in the rating of its subordinated debt,” it said.
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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