Banking and Finance

Banking the Economy That Actually Exists

Published

3 weeks ago

April 19, 2026

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There is a version of the Nigerian economy that the banking sector has always served well. It is the economy of salaried professionals, corporate treasurers, documented collateral, and monthly pay cycles. It is the economy that fits neatly into conventional credit models, standard account structures, and the risk frameworks that Nigerian banking inherited from its colonial and post independence institutional architecture. That economy is real, and serving it matters.

There is another version. It is the economy of the cooperative chairwoman in Ogun whose members pool contributions weekly. The textile trader in Balogun who turns inventory four times a month but has never had a formal credit history. The agro dealer in Kaduna whose working capital needs spike in planting season and collapse in the dry months. The artisan in Aba whose business has been profitable for fifteen years, but whose collateral is her workshop and her reputation. This economy is also real. It is, by most measures, larger than the first; and for most of Nigerian banking history, the sector was not designed to serve it.

The gap is not a matter of intention. It is a matter of architecture. Conventional banking products were designed around a specific customer profile: formally employed, predictable monthly income, assets that could be valued and pledged, credit history held in a bureau. Nigerians who fit that template, whether men or women, whether in Lagos or Kano, were served well. Those who did not, regardless of how productive their economic activity, were structurally underserved. They were not refused service. The products simply did not fit the shape of their lives.

The numbers confirm what anyone who has spent time in a Nigerian market already knows. According to the 2023 EFInA report, 26 per cent of Nigerian adults remain financially excluded. The World Bank’s surveys of Nigerian SMEs consistently identify access to finance as the single largest constraint on business growth, particularly among enterprises operating in the informal and semi formal sectors.

These are not idle businesses. They are enterprises generating real output and real employment, operating in a financial blind spot that the banking sector created not through malice but through product design.

A small number of institutions have begun to close that gap by building differently. Union Bank of Nigeria is one of them.
Through alpher, the bank’s financial proposition designed specifically for underserved market segments, Union Bank disbursed over ₦150 million in cash flow loans to entrepreneurs in a single three month window in 2025. The underwriting methodology behind alpher was built for businesses whose income flows through market associations and cooperative structures rather than through conventional payroll. These are businesses that traditional credit scoring cannot see, not because they are risky but because the scoring model was never calibrated for them.

Through alpher partnerships, the bank extended more than ₦106 million in discounted credit to seventy one businesses operating in market clusters that had previously sat outside the formal banking system. Its financial literacy outreach through alpher reached over 230 individuals in targeted sessions, and a parallel programme supported fifty nine previously unbanked entrepreneurs with micro grants and account opening.

The significance of these numbers is less in their volume and more in their method. alpher represents a decision to redesign the product rather than wait for the customer to fit the existing one. That is a meaningful institutional choice, because it requires a different kind of underwriting capability, a different kind of relationship management, and a different kind of patience than conventional retail or SME banking demands.

What makes Union Bank’s work on financial inclusion credible is that the institutional culture behind it is itself built on inclusion. Forty-five per cent of the bank’s board is female, exceeding the Central Bank of Nigeria’s thirty per cent governance threshold by fifteen percentage points.

The Managing Director and Chief Executive Officer, Mrs Yetunde B. Oni, leads an institution whose most recent graduate intake was sixty per cent female. The bank offers five month fully paid maternity leave, among the longest in the Nigerian banking sector, alongside ten day fully paid paternity leave, formalised adoption and surrogacy leave, and the CareCube crèche facility at the head office. These are not separate from the bank’s external inclusion work.

They are the internal architecture that makes it possible. An institution that invests in the breadth of its own talent base develops a broader product imagination than one that does not.

The honest assessment is that the Nigerian banking sector as a whole has a considerable distance still to cover. The informal and semi formal economy remains the largest segment of Nigerian economic activity, and it remains the least well served by formal financial institutions.

The products available to this segment are still too few, still too expensive in many cases, and still too narrowly distributed. Closing the gap will require more institutions to make the same architectural choice that the early movers have made: to build for the economy that actually exists, not for the economy that conventional banking assumed it was serving.

As Union Bank enters its 109th year, the inclusion question is not peripheral to its institutional story. It is central to it. A bank that has been present in Nigeria since 1917 has watched the country’s economic structure change repeatedly. The cooperative economies of the North, the trading networks of the South West, the manufacturing clusters of the South East, and the digital enterprises of Lagos each demand different financial products and different engagement models. The institutions that build for that diversity will be the ones that remain relevant. The ones that do not will find that the economy they were designed to serve is no longer the economy they need to serve.

Nigeria’s productive economy is broader, more diverse, and more resilient than any single customer profile can capture. The banking sector’s next chapter will be defined by which institutions recognised that earliest and built accordingly.
Union Bank of Nigeria has started. The work continues.

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Banking and Finance

Union Bank Honoured by ASBON at Nigeria National SME Business Awards

Published

11 hours ago

May 13, 2026

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Lagos, Nigeria – Union Bank of Nigeria has reaffirmed its reputation as a strong supporter of Nigerian businesses, receiving the Best SME Growth Banking Initiatives Award for 2025 from the Association of Small Business Owners of Nigeria (ASBON) at the Nigeria National SME Business Awards, held recently in Lagos.The award was presented to the Bank in recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises, through a differentiated suite of solutions designed to enable business expansion and long-term value creation.Receiving the award on behalf of the Bank, Ayokunnumi Abraham, Head of SME Segment at Union Bank, described the recognition as a strong endorsement of the Bank’s commitment to supporting small and medium-sized businesses. He said:”We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible. Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting. These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive.”Organised by ASBON in partnership with the Lagos State Government through the Ministry of Commerce, Cooperatives, Trade and Investment, the event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.Union Bank remains focused on deepening its support for SMEs through customer-led solutions and processes that strengthen business growth across the ecosystem.###Note to Editors:About Union Bank of Nigeria Plc’s Established in 1917, Union Bank is a leading provider of financial services in Nigeria, renowned for its “Simpler, Smarter Banking” philosophy. With a nationwide network and a strong focus on digital innovation, Union Bank continues to empower individuals, businesses, and the public sector to achieve lasting success.The Bank is a trusted and recognisable brand with an extensive network of over 300 branches across Nigeria. The Bank offers a range of banking services to individual and corporate clients, including current, savings, and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing, and trade finance. The Bank also offers customers convenient electronic banking channels and products, including Online Banking, Mobile Banking, Debit Cards, ATMs, and POS Systems.More information can be found at: www.unionbankng.comMedia Enquiries: Olufisayo Adelekun+234 (0) 201 271 6800mediarelations@unionbankng.com

Banking and Finance

Polaris Bank Partners Cyclotron Club to Advance LiveWell Initiative and Promote Healthy Living

Published

12 hours ago

May 13, 2026

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Members of Cyclotron Club in the newly unveiled Polaris Bank co-branded cycling jersey, after a wellness ride held as part of the LiveWell by Polaris initiative in Lagos.

Polaris Bank, Nigeria’s leading digital retail and commercial Bank institution, has announced a strategic partnership with Cyclotron Cycling Development Initiatives, otherwise known as Cyclotron Club, to advance LiveWell by Polaris, the Bank’s flagship wellness initiative designed to promote healthy living, preventive healthcare, and overall wellbeing among employees, customers, and communities across Nigeria.The partnership was formally unveiled at a ceremony held at the Bank’s headquarters last Saturday in Lagos, where both organisations launched a co-branded partnership jersey symbolising their shared commitment to fostering healthier lifestyles and supporting cause-driven advocacy through cycling.LiveWell by Polaris is a comprehensive wellness initiative created by Polaris Bank to encourage physical fitness, mental wellbeing, and healthier lifestyle choices. Through initiatives such as; fitness challenges, health awareness campaigns, and strategic partnerships, the programme reinforces the Bank’s belief that personal wellbeing is essential to productivity, financial success, and sustainable development.Cyclotron Club, a premium Not-for-Profit association is dedicated to promoting safe, healthy, and organised cycling among professionals across sectors including medicine, finance, law, technology, automobile and academia. The Club is widely recognised for its cause-based cycling campaigns, including the Lagos–Accra–Lagos Ride for Autism, which raises awareness and support for individuals living with autism and their families.Speaking at the event, Chris Ofikulu, Executive Director, Retail and Commercial Banking at Polaris Bank, described the collaboration as a major milestone in the Bank’s commitment to promoting wellness and expanding the reach of its corporate social responsibility initiatives.“This partnership is a significant step in the evolution of LiveWell by Polaris and reflects our commitment to championing healthier lifestyles and meaningful social impact,” Ofikulu said.“By collaborating with Cyclotron Club and supporting their cause-based cycling campaigns, including Ride for Autism, we are extending our CSR footprint while encouraging Nigerians to embrace wellness as a critical foundation for success and quality of life.”He noted that the initiative aligns with Polaris Bank’s broader vision of creating value beyond banking and making a positive contribution to society.“Cycling is not only a globally recognised sport but also one of the most effective ways to stay physically fit. Through LiveWell by Polaris, we are investing in the health and wellbeing of our people and the communities we serve because we firmly believe that health is wealth,” he added.In her remarks, Eziafakaku Nwokolo, Captain of Cyclotron Club, commended Polaris Bank for its support and commitment to wellness-focused initiatives.“We are delighted to partner with Polaris Bank, an institution that clearly values wellbeing and social impact. This collaboration will empower us to expand our advocacy efforts and support our professional cyclists to compete at both local and international levels,” she disclosed.The event featured an exciting cycling skills demonstration by members of Cyclotron Club, showcasing the energy, discipline, and excellence that define the Club’s activities.Through LiveWell by Polaris, Polaris Bank continues to strengthen its role as a socially responsible organisation dedicated to promoting healthier communities, inspiring positive lifestyle choices, and delivering sustainable impact beyond banking.-END-

Banking and Finance

Fidelity Bank’s liquidity position rises above N1trn on stronger cash holdings

Published

12 hours ago

May 13, 2026

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Fidelity Bank strengthened its liquidity position in the 2025 financial year as cash and cash equivalents rose by 87 percent to N1.32 trillion, reflecting improved cash buffers, stronger deposit mobilisation, and growth in interest-earning assets.

The lender’s audited financial statement for the year ended December 31, 2025, showed that cash and cash equivalents increased from N707.45 billion in 2024, underscoring the bank’s stronger liquidity profile amid Nigeria’s tight monetary environment.

Restricted balances with the Central Bank of Nigeria (CBN) also increased by 4.1 percent to N1.65 trillion in 2025 from N1.59 trillion in the previous year.

The improved liquidity position came as Fidelity Bank recorded strong growth in customer deposits, which rose by 16.1 percent to N6.89 trillion from N5.94 trillion, indicating sustained customer confidence and expansion in the bank’s funding base.

The bank’s total assets also expanded by 18.6 percent to N10.46 trillion from N8.82 trillion, driven by increases in investment securities, liquid assets, and other financial instruments.

Analysis of the bank’s earnings performance showed that gross earnings rose by 45.6 percent to N1.52 trillion from N1.04 trillion in 2024, supported by growth in interest income and foreign exchange-related gains. Interest and similar income increased by 38.7 percent to N1.11 trillion, while net interest income rose by 32 percent to N831.35 billion.

The bank also improved its credit risk position during the year as credit loss expense moderated significantly to N21.61 billion from N56.44 billion in the previous year. This contributed to a 41.2 percent increase in net interest income after credit losses to N809.74 billion.

Non-interest income performance remained strong, with fee and commission income rising by 44.7 percent to N113.36 billion. Foreign currency revaluation gains surged to N99.58 billion from N11.72 billion recorded in 2024.

The bank also expanded its investment portfolio during the year. Debt instruments measured at fair value through other comprehensive income (FVOCI) rose by 199 percent to N557.78 billion, while debt instruments at amortised cost increased by 27.2 percent to N1.97 trillion.

Fidelity Bank’s shareholders’ funds crossed the N1 trillion mark during the year as total equity increased by 21.1 percent to N1.09 trillion from N897.87 billion. Statutory reserves rose by 32.7 percent, while non-distributable regulatory reserves climbed by 92.5 percent.

Fidelity began the year with a share price of N19.00 and closed at N21.9 on Monday, gaining 15.3 percent year-to-date on the NGX.

The bank is currently the 25th most valuable stock on the NGX with a market capitalisation of N1.1 trillion, which is about 0.686 percent of the Nigerian Stock Exchange equity market.