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 operating licences of all legacy Bureau De Change (BDC) operators who failed to meet the new licensing requirements have been revoked by the Central Bank of Nigeria (CBN).
This happened after the central bank streamlined the BDCs to 82 in order to sanitise the foreign exchange (FX) market in the country.
The latest development was revealed by the apex bank in its Frequently Asked Questions document on the current reform of the bureau de change, published on its website on Tuesday.
According to the document, the CBN has now enforced the final cutoff, declaring that any BDC that did not meet the requirements by the end of November is no longer recognised.
“The guidelines provided a transition timeline of six months from the effective date, 3 June 2024, with a deadline of 3 December 2024, for all existing BDCs to meet the requirement of the new Guidelines or lose their licence(s). However, the management of the CBN graciously extended this deadline by another six months, which ended 3 June 2025, to give ample time for as many legacy BDCs desirous of meeting the new requirements to do so.
“Consequently, any legacy BDC that failed to meet the requirements of the new Guidelines as of 30 November 2025 has ceased to be a BDC, as its licence no longer exists. Please visit the CBN website for the updated list of existing BDCs in Nigeria,” the apex bank said.
According to the CBN, before its latest decision, an extended compliance window was granted under the revised BDC Guidelines. Existing operators were initially given six months, June 3 to December 3, 2024, to satisfy the new regulatory conditions.
The CBN later granted an additional six-month extension, which elapsed on June 3, 2025, to allow more operators to align with the updated standards.
The new measures form part of broader efforts by the CBN to strengthen transparency, compliance, and stability within Nigeria’s foreign exchange market.
The new CBN regulatory framework for BDCs, introduced in February 2024, mandated BDC operators to meet higher capital requirements. Tier-1 operators are required to meet a minimum capital requirement of N2bn, while Tier-2 operators must meet N500m as MCR.
The bank added that it would continue to receive applications on its Licensing, Approval and Requests Portal from prospective promoters, and those that meet the criteria will be considered for a license.
However, the CBN said it reserves the right to discontinue the licensing of BDCs at any time.
By Modupe Gbadeyanka
A non-bank credit card issuer, 03 Capital, has introduced a travel card designed to unlock the N95 billion festive spending boom in Nigeria.
The new initiative, known as the 03 Capital Blink Travel Card, promotes economic participation among returning Nigerians, expatriates, and tourists.
A statement from the financial technology (fintech) firm is available instantly to use at over 40 million merchants and ATMs nationwide.
The Blink Card, to be issued in both digital and physical form, is loaded with currency from any foreign bank card, converted to Naira, enabling transactions to be completed in the local currency.
The card offers tap-to-pay and cash withdrawals at over 40 million merchants and ATMs nationwide, making it the ideal solution for visitors to Nigeria.
It also avails Nigerians in the Diaspora to spend like locals when they return to their country of origin.
Payments for goods and services can be completed via the virtual Blink Card, linked to the O3Cards app. Funds can also be transferred instantly to all local banks and other financial institutions.
According to the World Bank, remittance inflows account for approximately 5.6 per cent of Nigeria’s gross domestic product (GDP), and the resultant spending power is unlocked when the Diaspora returns home for the festive period.
In December 2024, about N95 billion was injected into the Nigerian economy by inbound passengers – 90 per cent being diasporic Nigerians – spending on short-let accommodation and hotels, events and hospitality, nightlife and dining, and vehicle rentals. The launch of the Blink Card promises to spur this spending further, providing a significant boost to local businesses.
Blink Cards are available for collection at all Nigerian international airports, offering an immediate and hassle-free route to financial empowerment for people arriving in the country.
Blink Card carriers benefit from increased convenience, flexibility, and safety by not needing to carry large amounts of physical cash, while the ability to pre-load cards promotes smarter budgeting practices.
“We are excited to launch the Blink Card to promote greater economic participation among visitors to Nigeria.
“The card removes the needless friction and costs involved in legacy foreign exchange and cash payment processes, offering a quicker and more transparent option for spending in the country.
“As Nigerians begin travelling home for Christmas – combined with the regular traffic of arriving tourists, expatriates, and businesspeople – this is the perfect time to launch a solution catering to the financial needs of visitors, tapping into the seasonal spending boom which provides an annual lifeline for local economies and SMEs,” the chief executive of 03 Capital, Abimbola Pinheiro, stated.
By Modupe Gbadeyanka
Technology leaders from across Nigeria’s digital finance ecosystem recently converged on Eko Convention Centre in Lagos to explore pathways for expanding credit access to underserved communities.
It platform for this was the 2025 Committee of e-Business Industry Heads (CeBIH) Annual Conference themed Reimagining Financial Inclusion through Cultural Shifts in Consumer Credit. Interswitch was a returning gold sponsor.
At a high-impact panel session titled Alternative Credit Scoring for the Underserved, moderated by Wunmi Ogunbiyi of the CeBIH Advisory Council, the Divisional Head of Product Management and Solution Delivery at Verve International, a subsidiary of Interswitch Group, Mr Ademola Adeniran, examined how alternative data and digital intelligence can unlock credit for millions excluded by conventional financial models.
“For us, this conversation goes beyond technology. It is about designing credit systems that truly reflect African realities.
“Millions transact daily outside traditional banking frameworks, and alternative credit scoring enables us to recognise that economic activity and responsibly convert it into access to finance.
“At Verve and Interswitch, we are committed to building the digital infrastructure that makes this inclusion scalable and sustainable,” Mr Adeniran stated.
Also, the Vice President for Sales and Account Management, Digital Infrastructure and Managed Services at Interswitch Systegra, Ms Robinta Aluyi, stressed the importance of African-led solutions in addressing the continent’s financial challenges, noting that sustainable progress must be rooted in local realities.
Interswitch’s strength, she said, lies in the fact that it was built on the continent, for the continent, with solutions designed to serve individuals, small businesses, enterprises, and government institutions across every layer of the payment value chain.
She also emphasized the company’s purpose-driven approach to building the infrastructure that powers Africa’s digital economy and enabling secure money movement on a scale.
“Interswitch helps people navigate their daily lives with greater ease. We make transactions flow safely and reliably. We do this by connecting banks, supporting secure and reliable payments, and strengthening the entire value chain of digital finance.
“Today, we hold a significant portion of the market, and that achievement reflects the deep trust our banking and fintech partners place in our platforms. We continue to deliver because the ecosystem has worked with us every step of the way,” Ms Aliyu said.
There were also contributions from Munachimso Duru, Head, Products, Partnership and Innovation, Afrigopay Financial Services Limited; Damola Giwa, Country Manager, Visa West Africa; Nike Kolawole, representing Aisha Abdullahi, Executive Director, Credit and Portfolio Management, CREDICORP; and Ifeanyi Chukuwekem, Head, Corporate Strategy Department, eTranzact, offering a broad industry perspective on the future of responsible credit delivery.
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