Banking
Moody’s Fears First Bank Financial Health Could be at Risk
By Dipo Olowookere
There is every possibility that the financial health (solvency) of First Bank of Nigeria Limited, the flagship subsidiary of FBN Holdings Plc, could be at risk, Moody’s Investors Service has feared.
The rating agency in a report on Wednesday also said the management team of the bank could find it difficult to focus on implementing the company’s strategic plan.
First Bank has been in the news recently following the botched boardroom coup that initially ousted its Managing Director, Mr Adesola Adeduntan.
The Veterinary Doctor turned banker was removed from office by the board of the organisation formerly led by Mrs Ibukun Awosika and was replaced by his deputy, Mr Gbenga Shobo.
However, the Central Bank of Nigeria (CBN), the primary regulatory agency for the banking sector in the country, restored him and sacked the board as well as that of its parent company led by renowned businessman, Mr Oba Otudeko.
The apex bank revealed that it took the action to protect the interest of depositors, minority shareholders and others, revealing that it had been supporting the lender with funds in the past so as not to allow it to crash.
It was alleged that First Bank had been granting loans to its directors, especially to Mr Otudeko and one of his companies, Honeywell Flour Mills, without clears ways of recovering them, though this was denied.
As a result of the board crisis shaking the banking institution, Moody’s said it has placed all long-term ratings and assessments of First Bank on review for downgrade.
The agency said the action of the CBN on the bank clearly showed “corporate governance shortcomings and weaknesses in board oversight.”
Moody’s noted that though the management team has been restored, the crisis “could distract management’s focus on implementing the bank’s strategic plan and the road to recovery,” pointing out that the development was also likely to sway “investor confidence.”
“In addition, the rating agency notes First Bank’s relatively low proportion of provisions to its NPLs (non-performing loans), at just about 40 per cent, which puts its solvency at some risk in case higher loan-losses materialise than previously expected.”
The management team led by Mr Adeduntan worked tirelessly to reduce the NPL ratio of the financial institution from 25.9 per cent in 2018 to 7.7 per cent at year-end 2020 and this has been commended by several observers and analysts.
But the rating firm noted that First Bank “needs to implement regulatory directives concerning the resolutions of loans to and shareholding in non-banking related parties, which reportedly had not been executed in the recent past.”
It said the review for downgrade of First Bank rating will focus on its “ability to address the shortcomings highlighted by the regulator as concerns its governance and risk procedures, among others, the management of its loan portfolio to related parties.”
Moody’s stated in the statement sighted by Business Post that it would “monitor any further corrective actions that the regulator may require.”
“Moody’s will also assess the likely impact of these changes on the bank’s risk governance, its solvency level and its on-going efforts to reduce the bank’s stock of NPLs,” it added.
It disclosed that, “The bank’s long-term deposit ratings could be downgraded if deficiencies in the governance structures of the bank persist and if there is any further sanctioning of the bank by the CBN, including but not limited to requirements to take corrective measures of any weaknesses that could be uncovered. Weaker financial performance than expected could also lead to a downgrade of the ratings.”
“There is limited likelihood that First Bank’s ratings could be upgraded given the review for downgrade and the negative outlook on the government of Nigeria, its support provider in case of need,” adding that “stronger solvency improvements than what is currently captured in the ratings, together with a stabilisation of the sovereign outlook, could lead to stabilisation of the outlook.”
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria anticipates remittances from citizens living abroad to increase by two-thirds in 2026 as it seeks to bolster its foreign-exchange reserves to $1 billion monthly.
“We are expecting that by the end of the year, we will hit about a billion Dollars a month from diaspora remittances,” he said at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, themed From Stability to Shared Prosperity.
Mr Cardoso said remittances are expected to be boosted from more than $600 million currently, banking on the CBN’s deliberate target at remittances to diversify reserve sources beyond oil earnings.
According to him, the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He said the lender subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Mr Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped double diaspora inflows within one year and exceeded initial expectations, also projecting annual remittances could reach about $8 billion if the current momentum was sustained, adding that the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Mr Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors’ confidence.
He identified exchange rate unification as one of the central bank’s major achievements under the reforms programme.
According to him, replacing multiple exchange rate windows with a market-driven system eliminated distortions and improved transparency.
Mr Cardoso said improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently, noting that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
According to him, the reserves are designed to shield the economy from external shocks and excessive market volatility.
He said the reserves were not meant for routine interventions or day-to-day exchange rate management.
By Modupe Gbadeyanka
The flagship banking subsidiary of Guaranty Trust Holding Company (GTCO) Plc, Guaranty Trust Bank (GTBank) Limited, has been announced as the winner of Nigeria’s Best Digital Bank award at the Euromoney Awards for Excellence 2026.
The lender clinched this accolade at the Euromoney Awards for Excellence 2026 ceremony, held on July 17, 2026, at The Peninsula London, England, for its outstanding performance, innovation, customer service, and leadership.
GTBank’s recognition as Nigeria’s Best Digital Bank reflects its continued leadership in digital innovation and its commitment to delivering seamless, secure, and customer-centric financial solutions.
As the banking franchise of GTCO, GTBank has consistently set industry benchmarks in digital transformation, pioneering solutions that have redefined how individuals and businesses access, manage, and experience financial services.
Over the years, GTBank has transformed the banking experience through a suite of innovative digital platforms, including the GTWORLD mobile app and solutions that provide millions of customers with seamless, secure, and convenient access to financial services.
The bank continues to strengthen its digital capabilities by introducing products and services that meet evolving customer needs while maintaining the highest standards of security, reliability, and service excellence.
This latest recognition underscores the company’s position as a market leader and reflects its sustained investment in technology, operational excellence, and innovation.
“This recognition is a testament to the legacy upon which GTBank was built and the vision that continues to guide us today.
“From inception, our goal has been to deliver on the Group’s vision to make end-to-end financial services accessible to everyone by leveraging technology to remove barriers, simplify experiences, and create meaningful value for our customers,” the chief executive of GTBank, Mrs Miriam Olusanya, stated.
“While we are honoured by this recognition, we see it as an acknowledgement of what we have achieved and a motivation to do even more.
“We remain focused on raising the bar for digital banking, investing in innovative solutions, and delivering exceptional experiences that create lasting value for our customers.
“As the financial services landscape continues to evolve, we will continue to innovate, adapt, and lead with the same commitment to excellence that has defined our franchise for decades,” she added.
The Euromoney Awards for Excellence 2026 convened leading financial institutions, industry executives, and policymakers from across the globe to celebrate excellence, innovation, and leadership in the financial services sector.
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.
