Banking
GCR Affirms Union Bank’s National Scale Rating of BBB+(NG)
By Dipo Olowookere
The national scale ratings assigned to Union Bank of Nigeria Plc of BBB+(NG) and A2(NG) in the long and short term respectively have been affirmed by Global Credit Ratings.
Also, the firm announced last Thursday that the ratings are with stable outlook and that they remain valid until June 2018.
Commenting on the ratings, Global Credit Ratings disclosed that the rating took into consideration the lender’s successful capital raising exercise of N49.7 billion through a Rights Issue, which was concluded in December 2017, with 120 percent subscription.
While the bank’s capital adequacy ratio had declined to 13.3 percent at FY16 against the required minimum of 15 percent for international commercial banks, the newly raised capital is to be largely utilised to regularise the shortfall and support working capital.
Furthermore, the 20 percent over-subscription is considered a reflection of shareholders’ continuous support for the bank.
Union Bank’s gross non-performing loan (NPL) ratio rose from 6.9 percent at FY16 to 9.1 percent at 3Q FY17, becoming a major concern for the ratings.
In addition, per management, the increase in NPL was largely due to macro-economic pressures on businesses across the country, and its resultant effect on the loan book.
Nonetheless, cognisance is taken of the effort towards NPL recovery, as the bank reported N2 billion in recoveries at 3Q FY17, compared to N923 million recorded for the same period in FY16.
Union Bank’s regulatory liquidity ratio stood at 40.6 percent at 3Q FY17, against the regulatory minimum of 30 percent, while the liquid assets to short term funding ratio rose to 30.4 percent from 21.5 percent at FY16.
Performance based on unaudited 3Q FY17 results, reflect a pre-tax profit of N13.0 billion, representing 2.1 percent decline from the corresponding period in FY16.
Primarily driving the performance was an annualised 20.4 percent growth in interest income to N88.5 billion, but a similar rise in interest expense (up by an annualised 68.1 percent) constrained net interest income to N46.9 billion.
However, profitability was further enhanced by a decline in net impairment charge to N5.9 billion from N12.7 billion at 3Q FY16.
Operating expenses increased by 10.1 percent (which management attributed to inflationary pressure) from the 3Q FY16 position and as such the cost ratio rose to 72.2 percent from 66.2 percent at FY16.
Return on average equity and assets (ROaE and ROaA) stood relatively stable at 6.1 percent and 1.3 percent respectively.
GCR says it considers the capital raising exercise as rating positive. The appropriate deployment of capital and regularisation of capital adequacy metrics, sustained improvement in profitability, asset quality and liquidity measures, and a further strengthening of the bank’s competitive position in the domestic market, could lead to upward ratings migration.
However, a downward review of the rating may result from a further decline in asset quality and earnings metrics, high capital encumbrance by unreserved NPLs and tight liquidity.
By Modupe Gbadeyanka
The six edition of the Hackaholics of Wema Bank Plc has produced 20 top finalists shared equally between two streams, Ideathon and Hackathon.
The Hackathon finalists are Rapid DEV, Secure IT, Neurafeed, Trust Lock Babcock, Pulse Track, IlluminiTrust, Trust Lock FUTA, Fix Fraud AI, KASH Flow and VOC AI.
The Ideathon finalists include PLOY, Fertitude, VarsityScape, Mama ALERT, StockMed, Chao, All Arbitrate, FarmSlate, Sane AI and Cycle X.
They emerged after a two-day pre-pitch held on December 16 and 17, 2025, for the grand finale slated for Friday, December 19, 2025.
They grand finale of Hackaholics 6.0 will convene the top players in Africa’s tech and innovation ecosystem, creating an avenue for these finalists to not only put their creativity to the ultimate test but also give their solutions visibility to potential investors for additional funding opportunities beyond the prizes to be won.
The prizes to be won for the Ideathon include N25 million for the winner, N20 million for the first runner-up, N15 million for the second runner-up and N5 million each for two women-led teams.
In the Hackathon category, the first to fourth-place winners will receive N20 million, N15 million, N10 million and N5 million, respectively.
The pre-pitch saw the top 43 contenders battle in a game of innovation and problem solving, presenting compelling pitches for a chance to make it to top 10 in their respective streams.
After a rigorous stretch of pitches and presentations, the top 20 emerged, securing their spot in the grand finale of Hackaholics 6.0.
“Hackaholics started off as a hackathon and morphed into an ideation. For Hackaholics 6.0, the sixth edition, we decided to give both the builders of new solutions and the refiners of existing ones, an opportunity to make meaningful impact.
“For us at Wema Bank, we understand that innovation isn’t just building from scratch. Sometimes, it’s looking at what exists and developing new ways to optimise that and create more efficiency. This is the idea behind our two-stream Ideathon-Hackathon structure.
“Every year, Hackaholics shows us just how eager and motivated Nigerian youth are when it comes to exploring creativity and innovation, and we are honoured to be the institution that provides them with the platform and resources to put this drive to good use.
“We toured seven cities, indulged 1,460 participants and discovered hundreds of remarkable ideas; some of which needed some refining and some of which deserved to move to the next stage.
“For those who needed to go back to the drawing board, we provided useful guidance and for the top contenders, we were able to shortlist to the top 43, who proceeded to the pre-pitch. To every participant, Wema Bank is proud of you. This is just the beginning,” the chief executive of Wema Bank, Mr Moruf Oseni, said.
By Adedapo Adesanya
The Nigeria Customs Service (NCS) says it will enforce penalties against designated banks that delay the remittance of customs revenue, in a move aimed at strengthening transparency and safeguarding government earnings.
This was disclosed in a statement on the NCS official account on X, formerly known as Twitter and signed by its spokesman, Mr Abdullahi Maiwada, who said the delays undermine the efficiency, transparency, and integrity of government revenue administration.
“The Nigeria Customs Service has noted instances of delayed remittance of customs revenue by some designated banks following reconciliation of collections processed through the B’odogwu platform,” the statement read.
“Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency, and integrity of government revenue administration.
“In line with the provisions of the Service Level Agreement executed between the Nigeria Customs Service and designated banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.”
Mr Maiwada disclosed that any bank that fails to remit collected Customs revenue within the prescribed timeline will be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the period of the delay.
He added that affected banks would be formally notified of the delayed amounts, the applicable penalty, and the deadline for settlement.
“Accordingly, any designated bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay.
“Affected banks will receive formal notifications indicating the delayed amount, applicable penalty, and the timeline for settlement,” the statement read.
By Aduragbemi Omiyale
The deputy managing director of First Bank of Nigeria (FBN) Limited, Mr Ini Ebong, has offloaded some shares of FBN Holdings Plc, the parent firm of the banking institution.
A regulatory notice from the Nigerian Exchange (NGX) Limited confirmed the development on Thursday.
It was disclosed that the transaction occurred on Friday, December 12, 2025, on the floor of the stock exchange.
The sale involved about 11.8 million shares, precisely 11,783,333 units traded at N31.14 per share, amounting to about N366.9 million.
Mr Ebong, who studied Architecture from University of Ife and obtained Bachelor and Master of Science degrees, became the DMD of First Bank in June 2024. Prior to this appointment, he was Executive Director, Treasury and International Banking since January 2022.
He was previously the Group Executive, Treasury and International Banking, a position he held since 2016 after serving as the bank’s Treasurer from 2011 to 2016.
Before joining First Bank, he was the Head of African Fixed Income and Local Markets Trading, Renaissance Securities Nigeria Limited, the Nigerian registered subsidiary of Renaissance Capital. He also worked with Citigroup for 14 years as Country Treasurer and Sales and Trading Business Head.
He has a passion for market development and has worked actively to drive change and internationalisation of the Nigerian financial markets: foreign exchange, fixed income and securities.
He has worked closely with regulatory bodies such as the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) in assisting with the development of fresh monetary and foreign exchange policies, to broaden and deepen markets and open them up to international practices.
At various times he has facilitated and delivered courses and seminars on a wide variety of subjects covering Money Markets, Securities and Foreign exchange trading and market risk management subjects to regulators, corporate customers, banks and market participants.
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