Banking
GCR Affirms AA-(NG) Rating on UBA With Stable Outlook
By Modupe Gbadeyanka
The national scale ratings of AA-(NG) and A1+(NG) in the long and short term respectively assigned to United Bank for Africa (UBA) have been affirmed by Global Credit Ratings (GCR).
The Nigeria-based rating agency, in a statement, disclosed that it also affirmed the long term international scale rating of B+ assigned to the lender with the outlook accorded as stable.
However, GCR stressed that downward ratings movement may emanate from a significant deterioration in asset quality, liquidity, capital and profitability metrics, noting that the international scale rating will be sensitive to changes in the sovereign rating of Nigeria.
In the statement, GCR explained that UBA’s ratings reflect its established franchise, significant domestic market share (being one of the top-tier banks in Nigeria) and status as a systemically important bank.
It added that further rating support was derived from the bank’s risk appropriate capitalisation, comfortable liquidity, as well as geographic and earnings diversification, with operations in 20 African countries and offices in three global financial centres (London, Paris and New York).
UBA’s capitalisation is considered satisfactory for the current risk level, with a risk weighted capital adequacy ratio of 20 percent and 18.4 percent at FY17 and 3Q FY18 respectively, above the regulatory minimum of 15 percent.
Supported by strong internal capital generation, shareholders’ funds grew consistently over the years and stood at N529.4 billion at FY17, representing a compounded annual growth rate of 22.5 percent over a five-year review period.
The gross non-performing loans (NPL) almost doubled (rising by 89.8 percent) to N114.8 billion at FY17, largely impacted by the downgrade of a single large exposure, underpinning the gross NPL ratio rise to 6.7 percent at FY17, from 3.9 percent at FY16.
According to management, remedial action on the loan has commenced and recovery prospects are considered high. Specific provision coverage of impaired loans stood at 22.0 percent at FY17 (FY16: 36.0 percent).
Consequently, capital value at risk (NPLs net of provisions to capital) was a higher 9.7 percent at FY17 (FY16: 1.9 percent). At 3Q FY18, the NPL ratio stood at 7.2 percent.
“Although the contractual and behavioural mismatch of assets and liabilities in FY17 reflected a liquidity gap of N1,631.7 billion and N712.7 billion respectively within the critical ‘less than one-month’ maturity bucket (equivalent to 3.1x and 1.3x of shareholders’ funds respectively), liquidity risk is mitigated through maintaining a sizeable portion of liquid assets.
“The bank’s liquidity profile is further supported by $500 million Eurobond facility raised during the year, as well as available credit lines from other financial institutions.
“UBA’s statutory liquidity ratio ranged between 33.8 percent and 55.5 percent in FY17, against the regulatory minimum of 30 percent,” the rating agency said.
In 2017 financial year, UBA reported a pre-tax profit of N105.3 billion, representing a 16.1 percent year-on-year growth. While net interest income was largely supported by improved investment yields and funding costs, non-interest income was driven by increase in transaction related income and foreign exchange gains.
Operating expenses rose by 23.7 percent on the back of increase in staff costs, IT and other administrative expenses, resulting in a cost to income ratio of 57.8 percent at FY17 (FY16: 56.3 percent).
Overall, the return on average equity and assets stood at 16.6 percent (FY16: 19.0 percent) and 2.1 percent (FY16: 2.3 percent) respectively in FY17.
In 3Q FY18, the bank delivered a pre-tax profit of N79.1 billion, comparing favourably with the corresponding period in FY17 and in line with budget on annualised basis.
Substantially improved asset quality, positive earnings profitability, and capitalisation metrics, as well as further enhancement of geographic and earnings diversification benefits, would be positively considered.
By Aduragbemi Omiyale
A collaboration to enable fast money transfers into Nigeria has been entered into between Flutterwave and Xoom, PayPal’s international digital money transfer service.
The partnership allows Xoom transfers to be converted by Flutterwave and settled locally in Naira, enabling quick transfers directly into recipients’ bank accounts at Access Bank, UBA, Zenith Bank, First Bank, GTBank, and additional participating banks across Nigeria.
The deal also enables Xoom’s global network with Flutterwave’s local payout infrastructure, allowing users globally to send funds directly into Nigerian bank accounts with improved speed and efficiency.
Nigeria is the leading remittance recipient in Sub-Saharan Africa, receiving over $20 billion in personal remittances in 2024. Despite this volume, receiving international payments has historically remained complex due to FX constraints and settlement delays. This collaboration helps address those challenges in a market of more than 232 million people, where the ICT sector is projected to contribute 21 per cent of GDP by 2027.
By combining Xoom’s expansive reach with Flutterwave’s local compliance and banking partnerships, the two companies are providing a more accessible financial corridor for the continent.
Xoom, a PayPal service, is a fast and secure international digital money transfer service that enables consumers to send money, pay bills, and reload phones for friends and family in approximately 160 markets globally.
As part of PayPal’s global payments ecosystem, Xoom leverages advanced fraud protection, compliance capabilities, and a trusted global network to help millions of customers move money quickly and securely across borders.
“We’re excited to have been chosen by Xoom for their Nigeria expansion. Millions of Nigerians rely on money from abroad to support everyday needs, whether it’s families receiving help from loved ones, freelancers getting paid for their work, or individuals earning income from the global economy. This helps make it easy and more reliable for people in Nigeria to receive funds and stay connected to opportunities beyond borders,” the chief executive of Flutterwave, Mr Olugbenga GB Agboola, stated.
By Aduragbemi Omiyale
An initiative known as Nigeria Lightning Rounds, designed to expand funding opportunities for Nigerian startups and small businesses by connecting founders with local and international investors, has been launched by ProvidusUnity Bank, in partnership with US-based global venture firm and accelerator, gener8tor.
Scheduled to be held on July 15, 2026, Nigeria Lightning Rounds will feature carefully selected startups engaging with targeted investors who have expressed interest in supporting Nigerian innovation.
Participating founders will have the opportunity to pitch their businesses through focused 15-minute virtual sessions facilitated by gener8tor and ProvidusUnity Bank’s networks.
The program will focus on high-growth sectors including fintech, healthtech, manufacturing, sustainability, and AI, but welcomes SMEs from all industries, with intending participants urged to apply via https://www.gener8tor.com/lightning-rounds/nigeria.
“We recognise that access to capital remains one of the biggest challenges facing entrepreneurs in Nigeria. Through our partnership with gener8tor, we are creating a platform that connects promising Nigerian founders with investors who can provide the support required to scale their businesses,” the Head of Business Development at ProvidusUnity Bank, Mr Ernest Elue, stated.
“The partnership reinforces ProvidusUnity Bank’s commitment to strengthening Nigeria’s entrepreneurial ecosystem by supporting innovation, enabling access to opportunities, and creating pathways for businesses with high-growth potential,” he added.
Also commenting, the Director of Lightning Rounds at gener8tor, Ms Elizabeth Larios, said, “gener8tor is thrilled to partner with ProvidusUnity Bank to extend the Lightning Rounds model into Nigeria.
“This collaboration reflects our commitment to building equitable ecosystems and driving capital to the most promising and underrepresented entrepreneurs.”
Lightning Rounds are a signature initiative of gener8tor’s investment platform, which has facilitated thousands of investor-startup meetings globally. The format is optimised to eliminate friction, reduce bias in early-stage fundraising, and help founders secure capital from investors aligned with their mission and stage. gener8tor’s previous Lightning Rounds for Nigerian Founders in 2025 featured 18 participating Investors and led to 50 investment meetings facilitated.
By Modupe Gbadeyanka
The verification of the depositors of the 46 microfinance banks, whose operating licenses were revoked by the Central Bank of Nigeria (CBN) over a week ago, has commenced.
The exercise, aimed at refunding those whose funds were trapped in the small lenders, is being conducted by the Nigeria Deposit Insurance Corporation (NDIC).
In a statement on Thursday, the agency said its staff members have been positioned at the offices of the affected banks across the country to attend to depositors.
It was disclosed that depositors of the defunct banks, who had their Bank Verification Numbers (BVNs) linked to their accounts in the failed banks, will be paid through their alternative accounts in existing banks.
However, depositors whose BVNs were not linked to their accounts in the failed banks have been encouraged to visit the affected banks’ offices with proof of account ownership, a passport photograph, verifiable means of identification (Driver’s Licence, Permanent Voter’s Card, International Passport or National ID Card) and BVN.
NDIC also stated that depositors can alternatively file their claims online through its website: www.ndic.gov.ng, to complete the Pre-Verification Claims Form by clicking on the Search Bar, and typing Pre-Verification Claims Form; opening the Form and filling in their details. They can also do so by clicking the link: https://ndic.gov.ng/ndic-pre-verification-claims-form/ or by visiting any of the NDIC offices closest to them to file their claims.
For further enquiries, the corporation can be reached on any of the following lines: 09037273810, 09038197064, 08104220807, 09064657140.
