Banking
Observers React to Potential Zenith Bank, Union Bank Merger
By Dipo Olowookere
One information that is gradually gaining momentum in the nation’s stock market is the rumoured acquisition or merger between Zenith Bank Plc and Union Bank of Nigeria Plc.
Both financial institutions are listed on the Nigerian Stock Exchange (NSE) and it is expected that speculations as this will catch the attention of their respective shareholders.
On Saturday, it was rumoured that the Central Bank of Nigeria (CBN) has given Zenith Bank the go ahead to ‘swallow’ Union Bank, one of the oldest lenders in the country.
This came few days after it was reported by a national daily that First Bank, unarguably the oldest bank in Nigeria, was planning to absorb Heritage Bank and Polaris Bank, which used to be Skye Bank.
About 24 hours after this news was reported, FBN Holdings Plc, the parent company of First Bank Nigeria Limited, issued a statement admitting that it was shopping for a bank with value to acquire.
So, when the rumour about Zenith Bank looking to ‘take in’ Union Bank hit the investing community, observers were quick to share their views on the matter, especially when it was speculated that Zenith Bank beat Access Bank to the deal.
Access Bank has before now been linked with Union Bank on possible but both companies refuted that by releasing statements to the NSE.
Recall that it was about this time last year that Access Bank completed its merger with the defunct Diamond Bank then headed by Mr Uzoma Dozie.
That deal also started late 2018 as a rumour, with both banks initially denying the ‘marriage’ vehemently, until its former Chairman, Mr Seyi Bickersteth, hinted that the issue of selling the bank to Access Bank came up at one of its board meetings, but was rejected by a set of members, who were later schemed out of the transactions.
So, when the news of Zenith Bank planning to merger with Union Bank came out yesterday, Business Post reached out to some players in the capital market, including stockbrokers, shareholders of both companies involved, analysts, journalists and others to get their views.
A shareholder of Zenith Bank Plc, Mrs Modupe Adediran, who spoke with Business Post, described the rumoured acquisition of Union Bank as a good one, saying it would bring out more earnings and profits to the financial institution.
“It is a good development. In fact, it is long overdue and I am happy that the management of my company is looking at inorganic growth. You will agree with me that Zenith Bank is a classy bank and loves organic growth. Let’s see how this pans out,” she said.
However, a Lagos-based business journalist, Mr Audu Abubakar, warned that the merger between Zenith Bank and Union Bank could be brutal for shareholders of the former.
“I don’t know why Zenith Bank is going for Union Bank that has only managed to reward its shareholders this year for the first time in over 10 years.
“I just hope this deal will not turn out to hunt Zenith Bank and its shareholders, who have been enjoying steady dividend payment over the years.
“If you remember vividly, Access Bank could not give its shareholders a good dividend for the 2019 financial year largely because of its merger with Diamond Bank last year, which significantly increased its outstanding shares, resulting in the paltry 40 kobo dividend the board proposed to pay,” Mr Abubakar stated.
An investor in the stock market, Mr Emmanuel Ewumi, while giving Business Post his view on the matter, stated that, “I think this is the first acquisition by Zenith Bank. Zenith [Bank] is about the biggest bank in Nigeria based on profitability and asset.
“I think the acquisition of Union Bank, if true, will go a long way in consolidating the position of Zenith Bank in the industry. I want to believe that [the] management has done their homework and due diligence before opting for Union Bank.”
Concluding, Mr Elewunmi stated that the rumoured deal “will be a win-win situation for the shareholders of both Union Bank and Zenith Bank.”
On his part, Mr Oremade Oyedeji of the Radiant Shareholders Group, one of the registered shareholders groups at the capital market, informed us that, “I was surprised when I heard the rumour too. What will be the name of the new entity, Union Bank I suppose?
“I don’t see it a good marriage at all, whether as a merger or takeover. We are going to end up with an over-bloated overhead like Access Bank, with poor return on asset employed.
“I also think we need a legislation for anti-competition and monopoly law in Nigeria.”
A senior official of Veritas Registrars, who asked us not to mention his name because he was authorised to speak on the matter because his company is the registrar of Zenith Bank, informed Business Post that Zenith Bank is considering different options of achieving its growth plan. However, he did not specifically say if the rumour has any iota of truth in it or not.
“What I can tell you is that Zenith Bank seriously considering several options to expand its operations, including acquisition of distressed, but profitable ventures. I know in due time, the bank will officially state its position on the matter,” the source simply told Business Post.
Business Post recalls that in 2019, during an analysts’ call, which we also participated in, the Group Managing Director of Zenith Bank, Mr Ebenezer Onyeagwu, said the bank will not hesitate to acquire any available lender that falls in line with its (Zenith Bank) vision.
“In terms of acquisition, we will continue to grow organically, but if we find anything attractive in the market, that is in line with our strategic imperative, we will look at it.
“But we will not go out inordinately to seek for acquisition, but if we find something that is quite attractive and really fits the kind of profile of the investment that we do, we will consider [it].” Mr Onyeagwu had said at the conference call.
Speaking further, the Zenith Bank chief said, “On the opportunity to acquire any of the retail lender; first is that we will continue to grow organically, that is our primary goal. If we find anything that is strategically relevant and would add reasonable value to us, we will look at it.
“We will not just do acquisition for the sake of doing it, we will do it [because] there is money to be made, there is incremental value, not for cosmetic reasons.”
By Adedapo Adesanya
The Senate has demanded detailed explanation from the Central Bank of Nigeria (CBN) over the alleged non-remittance of N1.44 trillion in operating surplus.
The Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mr Tokunbo Abiru, opened its statutory briefing with a firm call for transparency at the apex bank, noting that the Auditor-General’s query on the unremitted funds required a full, clear and documented response, insisting that public trust in monetary governance depended on strict accountability.
While acknowledging the CBN’s achievements in stabilising the foreign exchange market and reducing inflation, Mr Abiru underscored that such progress must be accompanied by institutional responsibility.
He stated the Senate expected the CBN to explain the circumstances surrounding the query, outline corrective steps taken and reveal safeguards against future lapses.
This came as the Governor of the central bank, Mr Yemi Cardoso, appeared before the senate committee and offered an extensive review of economic conditions, asserting that Nigeria was experiencing renewed macroeconomic stability across major indicators.
Mr Cardoso attributed the progress to bold monetary reforms, foreign-exchange liberalisation and disciplined liquidity management implemented since mid-2025.
According to him, headline inflation had declined for seven consecutive months, from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking the steepest and longest disinflation trend in over a decade.
Food inflation accruing to him also slowed to 13.12 per cent, supported by improved supply conditions and exchange-rate predictability.
The CBN governor described the foreign-exchange market as fundamentally transformed, adding that speculative attacks and arbitrage opportunities had largely disappeared.
According to him, the premium between the official and parallel markets had fallen to below two per cent, compared to over 60 per cent a year earlier. As of November 26, the naira traded at N1,442.92 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,551 average recorded in the first half of 2025.
He also announced a sharp rise in external reserves to $46.7 billion, the highest in nearly seven years and sufficient to cover over ten months of imports.
Diaspora remittances, he noted, had tripled to about $600 million monthly, while foreign capital inflows reached $20.98 billion in the first ten months of 2025, 70 per cent higher than in 2024 and more than four times the 2023 figure.
Cardoso further confirmed that the CBN had fully cleared the $7 billion verified FX backlog, restoring investor confidence and strengthening Nigeria’s balance-of-payments position.
On banking-sector stability, he reported that recapitalisation efforts were progressing smoothly. Twenty-seven banks had already raised new capital, with sixteen meeting or surpassing the new regulatory thresholds ahead of the March 31, 2026 deadline, highlighting improvements in ATM cash availability, digital-payments oversight and cybersecurity compliance.
Despite the positive indicators, the Senate sought clarity on several policy decisions.
Mr Abiru pressed for explanations on the sustained 45 per cent Cash Reserve Ratio (CRR), the 75 per cent CRR applied to non-Treasury Single Account public-sector deposits, FX forward settlements, mutilated naira notes in circulation, excessive bank charges, failed electronic transactions and the compliance of CBN subsidiaries with parliamentary oversight.
He also requested an update on the activities of the Financial Services Regulatory Coordinating Committee, arguing that stronger inter-agency cooperation was necessary to maintain public confidence.
The session later moved into a closed-door meeting.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
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