By Aduragbemi Omiyale

Talks for the acquisition of a small lender, Bankly Microfinance Bank, to enable stability and accelerate growth have commenced.

The bank is to be acquired by C-One Ventures Platform (C-One), though subject to the approval of the Central Bank of Nigeria (CBN).

C-One will invest in the company and take over its licences, technology and select assets of the Nigerian operations of Bankly.

Bankly was established to bridge financial access gaps across Nigeria’s informal economy, but it has faced liquiditiy issues, which is why C-One is coming in to make things better.

The transaction structure involves a modest cash consideration, ensuring a focus on sustainable growth and customer protection.

The investment from C-One, when finalised, will prioritise the immediate resolution of customer obligations, stabilisation of operations, and strategic integration of Bankly’s technology into its broader financial services ecosystem.

The acquisition will enable C-One to further expand its reach in grassroots financial services and build resilient solutions for real people in real communities.

As part of the deal, C-One will build on Bankly’s foundation, ensuring continuity while investing in long-term growth, while the lender’s co-founder, Ms Tomilola Majekodunmi, will serve in an advisory capacity ensuring continuity and long-term success.

“We believe financial services should be simple, affordable and accessible to everyone. Bringing Bankly into our ecosystem allows for a combination of community networks with our powerful digital infrastructure to expand access to finance for underserved communities and drive real economic participation.”

“Restoring customer confidence and ensuring operational resilience are our immediate priorities. We are committed to scaling Bankly’s vision while delivering lasting value to our community,” a representative of C-One stated.

“We are immensely proud of the impact we have made over the years. Bankly was built to serve people who were left out of the formal financial system and with C-One’s backing, we have an opportunity to build on this foundation, address recent challenges, and expand our reach to even more communities,” Ms Majekodunmi stated.

Founded in 2018, Bankly has been instrumental in advancing financial inclusion, serving Nigerians through innovative savings, payments, and credit solutions.

However, in recent times, it has faced significant liquidity constraints and operational disruptions, including delays in customer withdrawals and reduced service availability.

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has given the greenlight to banks to source foreign exchange (FX) for Pan-African Payment and Settlement System (PAPSS) in Nigeria without its approval.

This is as it announced a major revision of the documentation requirements for transactions processed through the PAPSS in Nigeria.

This move underscores the CBN’s commitment to enhancing seamless intra-African trade, promoting financial inclusion, and improving operational efficiency for Nigerians participating in cross-border payments across the continent.

Launched by Afreximbank in partnership with the African Union (AU) and the African Continental Free Trade Area (AfCFTA) Secretariat in January 2022, PAPSS serves as a centralised payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.

By facilitating payments in local currencies, PAPSS minimises reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA.

In a recent circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, CBN outlined the key changes to the documentation requirements associated with PAPSS transactions.

The key changes take effect immediately, according to the CBN.

Changes to simplified documentation for low-value transactions will now see customers use basic KYC and AML documents provided to their Authorized Dealer Banks (ADBs) for low-value transactions ($2,000 and $5,000 equivalent in Naira for Individuals and corporate, respectively).

For transactions above the thresholds, all documentation as stipulated in the CBN Foreign Exchange Manual and related circulars remains mandatory.

It also noted that applicants are responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.

In terms of FX sourcing, Authorised Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN).

The apex bank directed that all export proceeds repatriated via PAPSS shall be certified by the relevant processing banks.

The CBN then urged all banks to adopt PAPSS and commence originating transactions in line with this new policy, encouraging exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.

By Dipo Olowookere

The national scale long-term issuer rating of BBB+(NG) and the short-term issuer rating of A2(NG) assigned to FCMB Group Plc by GCR Ratings have been placed on review extension.

The rating firm confirmed this development in a notice on Monday, explaining this was due to an ongoing rating process of the financial services provider.

In the statement obtained by Business Post, GCR disclosed that it intends to inform the investing community of “the updated rating results before May 31, 2025.”

As a result, all the ratings of the organisation, including the national scale issue rating of BBB-(NG) on Series 1 N20.7 billion Additional Tier 1 Subordinated Bonds and Series 2 N26.0 billion Additional Tier 1 Subordinated Bonds have been extended.

At the last rating exercise for FCMB in April 2024, GRC affirmed the company’s national scale long and short-term issuer ratings of BBB+(NG) and A2(NG), respectively, with the Rating Watch Negative outlook extended due to the planned recapitalisation of the consolidated FCMB Group Plc.

It was explained that the rating watch negative was assigned the group’s core operating entity, FCMB Limited, which is the bank arm, due to “pressure on the capitalisation from the adverse impact of macroeconomic environment on the loan book.”

“This is balanced against a sound funding structure, good liquidity and competitive position and the planned capital raise of N150 billion in 2024,” it added.

GCR had said if the planned capital raise in the short term materialises, it would support its core capital ratio at 18 per cent over the next 12 months (all else being equal), otherwise, “we would lower the ratings in the near term.”

“Credit migrations to IFRS 9 stage 3 classification are likely because of the weak macroeconomic climate, with the credit loss ratio registering between 3 per cent and 4 per cent and a gradual resolution of the single obligor limit breaches over the next 12-18 months. “While the funding structure remains sound, CBN’s contractionary monetary policy stance could moderate the liquidity position over the outlook horizon,” a statement said.

FCMB Group has its core operations in banking and an increasing presence in non-bank financial services through other subsidiaries.

It had seven direct subsidiaries and four indirect subsidiaries as of December 31, 2023, with a growing franchise across different financial services areas, including banking, consumer finance, investment management and investment banking.