Banking
GCR Affirms Ratings on Union Bank of Nigeria
By Dipo Olowookere
Nigeria-based rating agency, Global Credit Ratings, has affirmed the national scale issuer ratings assigned to Union Bank of Nigeria Plc of BBB+(NG) and A2(NG) in the long term and short term respectively, with the outlook accorded as stable.
In a statement issued by the firm, the ratings affirmed on Union Bank reflect the bank’s improved capitalisation, strong shareholders’ support, sustained profitability, and mid-sized status (by total assets) within the Nigerian banking landscape.
Its non-performing loan (NPL) ratio escalated to 19.8 percent at FY17 from less than 7 percent range in the last four years.
This was driven largely by a marked growth in delinquent assets, particularly within the real estate sector, oil and gas and power sector.
Union Bank is intensifying focus on loan recovery, collections, and portfolio realignment towards perceived lower risk non-oil sectors.
While management is targeting a significant reduction in the NPL ratio by FY18, GCR said it expects the position to remain above 10 percent, given the current risk level. As at March 31, 2018 (1Q FY18), the bank’s NPL ratio stood at 14.9 percent.
Following a successful Rights Issue during FY17, with over 120 percent subscription, Union Bank’s capital adequacy ratio rose to 17.8 percent at FY17 (FY16: 13.3 percent), standing above the regulatory minimum of 15 percent for international commercial banks.
The position is not expected to change imminently given management’s focus on building internal capital generative capacity, GCR noted in the statement.
It said although the lender displayed a largely short-dated funding structure (a common industry feature), liquidity risk is considered to be moderate.
Union Bank’s regulatory liquidity ratio stood at 37 percent at FY17 (1Q FY18: 39.4 percent), against a regulatory threshold of 30 percent.
The financial institution covers liquidity shortfalls via its short term marketable securities and available credit lines from other financial institutions.
The bank also continued to explore potential financing opportunities, including the issuance of debt instruments based on prevailing market conditions.
GCR said in the statement that profitability growth was constrained by higher funding cost and credit losses in FY17, with the bank ending the year with a relatively flat pre-tax profit of N15.5 billion. The high funding cost reflects the high inflationary environment. As of 1Q FY18, the bank reported a pre-tax profit of N5.4 billion, relative to N4.7 billion reported in 1Q FY17.
Although management expects a pre-tax profit of N20 billion-N24 billion by FY18, GCR said it envisages full year performance could be impacted by additional impairments.
While asset quality challenges remain a key issue for Union Bank, the accorded ratings are supported by the bank’s strong capitalisation and continuous shareholders’ support.
The uncertainties within the Nigerian operating environment limit the likelihood of ratings rising in the medium term.
However, markedly improved competitive positioning, a rebound to strong asset quality and profitability may trigger a positive rating action.
Conversely, additional asset quality pressure, resulting in NPL ratio rising above anticipated level; further weakening in profitability, particularly arising from credit losses; and further deterioration in operating conditions would result in a rating downgrade.
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.
