Banking
Fitch Affirms Zenith Bank at ‘B+’, Outlook Negative
By Modupe Gbadeyanka
Fitch Ratings has affirmed Zenith Bank Plc’s Long-Term Issuer Default Rating (IDR) at ‘B+’ with the Outlook Negative. Also, the lender’s Viability Rating (VR) was affirmed at ‘b+’ and its Support Rating at ‘5’.
Fitch said Zenith Bank’s IDRs are driven by its standalone creditworthiness, defined by the VR. The VR is constrained by Nigeria’s sovereign rating and the Negative Outlook on the Long-Term IDR mirrors the Outlook on Nigeria’s sovereign rating (B+/Negative).
Zenith’s VR is the highest assigned by Fitch to a Nigerian bank. This reflects the bank’s established franchise in Nigeria where it controls an overall markets share of around 16%. The franchise is particularly strong in the corporate segment. Loss-absorption capacity is strong relative to peers and management has demonstrated its ability to deliver a good performance through volatile operating cycles.
Fitch views Zenith’s management team positively. Decision-making is well spread across a broad number of executives to minimise reliance on individuals. Achieving targets in a volatile operating environment can be difficult but Zenith’s execution is strong relative to peers. The bank’s strategy is primarily to continue to service leading corporate clients.
The loan book represents around 45% of assets, which is lower than international banks, but in line with the average for large Nigerian banks. Zenith’s underwriting standards and risk controls compare favourably with the average for rated peers. Reported impaired loans are low as a percentage of gross loans (around 4%) and reserve coverage is above 100%. Lending to the oil and gas sector represents around 30% of total loans, average for the sector, and the top 20 loans represent around one-quarter of total loans, which is lower than average comparative figures reported by large Nigerian banks (around 40%).
The bank’s performance metrics compare favourably with peers. Margins are narrower, reflecting the corporate focus, but loan impairment charges also tend to be lower, as could be expected given the more resilient nature of the bank’s clients. Cost control has been reasonable considering high inflation in Nigeria. In 2018, we expect profitability to decline for many Nigerian banks, reflecting weak loan growth, lower Treasury Bill issuance and falling yields on these government securities. IFRS-9 will also result in a rise in loan impairment charges, although this is likely to be containable at Zenith.
Zenith’s capital adequacy ratios are among the strongest in Nigeria and leverage ratios are stable. The bank’s relative capital strengths are a positive ratings differentiator.
Like most Nigerian banks, deposits provide the bulk of funding (72% of total non-equity funding at end-September 2017). Deposits from corporate customers represented 57% of consolidated deposits at end-September 2017, but these tend to be stable.
Zenith issued a five-year USD500 million senior bond in the international capital markets in June 2017. Zenith’s ability to access international market funding, even in times of stress for Nigeria’s economy, is credit positive in our view, providing the bank with funding diversification and access to longer-term finance.
Zenith’s foreign currency (FC) liquidity position shows no apparent signs of stress over a 12-month horizon. The bank holds a sizeable FC liquid asset buffer and its ability to continue to honour FC obligations even during recent periods of extreme FC stress in the Nigerian banking sector demonstrates Zenith’s close attention to the management of its FC liquidity position.
The Long-Term National Rating has been affirmed at ‘AA-(nga)’. National Ratings reflect Zenith’s creditworthiness relative to the country’s best credit and to peers operating in Nigeria.
SENIOR DEBT
Senior debt issued by Zenith is rated at the same level as the bank’s IDRs because in our view, the likelihood of default on these notes reflects the likelihood of default of the bank. The Recovery Rating (RR) assigned to these notes is ‘RR4’ indicating average recovery prospects.
SUPPORT RATING AND SUPPORT RATING FLOOR
Fitch believes that sovereign support to Nigerian banks cannot be relied on given Nigeria’s weak ability to provide support, particularly in FC. In addition, there are no clear messages from the authorities regarding their willingness to support the banking system. Therefore, the Support Rating Floor of all Nigerian banks is ‘No Floor’ and all Support Ratings are ‘5’. This reflects our view that senior creditors cannot rely on receiving full and timely extraordinary support from the Nigerian sovereign if any of the banks become non-viable.
RATING SENSITIVITIES
IDRS, NATIONAL RATINGS AND VR
The bank’s IDRs, National Ratings and VR are sensitive to changes in Nigeria’s operating environment and to factors impacting Zenith’s intrinsic creditworthiness. The operating environment is unlikely to improve until the outlook for the sovereign rating improves. Zenith’s ratings are sensitive to a significant deterioration in asset quality and a resultant weakening of loss absorption capacity. This is not our base case. Upside potential for the ratings is limited given the operating environment.
SUPPORT RATING AND SUPPORT RATING FLOOR
The SR is potentially sensitive to any change in assumptions around the propensity or ability of the sovereign to provide timely support to the bank.
SENIOR DEBT
Ratings on the senior debt will change in line with the bank’s IDRs.
The rating actions are as follows:
Long-Term IDR affirmed at ‘B+’; Outlook Negative
Short-Term IDR affirmed at ‘B’
Viability Rating affirmed at ‘b+’
National Long-Term Rating: affirmed at ‘AA-(nga)’
National Short-Term Rating affirmed at ‘F1+(nga)’
Support Rating affirmed at ‘5’
Support Rating Floor affirmed at ‘NF’
Long-term senior unsecured debt issues affirmed at ‘B+’/’RR4’
Short-term senior unsecured debt affirmed at ‘B’
By Aduragbemi Omiyale
The chairman of Access Holdings Plc, Mr Aigboje Aig-Imoukhuede, has reaffirmed the organisation’s long-term commitment to shareholders, expressing confidence in the company’s strategic positioning, which he said is underpinned by disciplined execution, a diversified business model, a strengthened capital base, and a clear focus on sustainable value creation.
Speaking at the 4th Annual General Meeting (AGM) of the firm on Wednesday, he explained that the temporary suspension of dividend distributions was a consequence of regulatory compliance requirements rather than any deterioration in the group’s financial performance.
Mr Aig-Imoukhuede reaffirmed that the financial institution’s earnings capacity remains strong and that the board’s position reflects adherence to supervisory expectations and prudent capital management principles.
He assured shareholders of the board’s commitment to resuming dividend payments as soon as the relevant regulatory conditions are satisfied, noting that, “Our approach is clear: capital retained today must translate into greater value tomorrow and sustainable returns for our shareholders.”
The Chairman reiterated the strategic imperative underpinning the company’s next phase of growth, saying, “Our strategy, From Scale to Value, reflects the natural evolution of our journey. Scale created opportunity; value creation is how we fully realise it.”
He noted that while the organisation continues to generate strong returns, ensuring that earnings per share consistently exceed the cost of capital remains central to unlocking sustainable shareholder value.
The retired banker also acknowledged the significant unrealised value embedded within the firm’s international subsidiaries and reiterated management’s focus on improving market recognition of that intrinsic value over time.
Commenting on the financial performance of the group in 2025, he said Access Holdings accelerated provisions on legacy and regulatory forbearance credit exposures, resulting in elevated impairment charges.
He explained that the group consciously prioritised balance sheet strength and long-term resilience over short-term earnings optimisation.
“Periods of economic uncertainty often reveal more about an institution than periods of uninterrupted growth. Our focus remains on building a business that is not only growing, but improving in the quality, resilience, and sustainability of its earnings,” he stated.
Last year, the financial services organisation delivered pre-tax profit of N1.007 trillion, underscoring the strength of its diversified platform and expanding earnings base across key markets. Total assets increased to N51.56 trillion, while customer deposits grew strongly, reflecting sustained franchise momentum and deepening customer trust.
By Modupe Gbadeyanka
A new report highlighting the transformation from a newly established fintech venture into one of Nigeria’s leading payment infrastructure providers has been launched by HabariPay Limited.
The report, known as the HabariPay Impact Report 2025, provides stakeholders with a comprehensive evolution, innovation journey, business performance, and impact of the fintech subsidiary of Guaranty Trust Holding Company (GTCO) Plc on the digital payments landscape.
The company’s contributions to enabling digital commerce, supporting businesses, strengthening payment infrastructure, and expanding financial access through technology-driven solutions were also captured in the piece.
The HabariPay Impact Report 2025 also highlights the organisation’s strong financial and operational performance, the growth of the Squad platform, and the development of infrastructure that powers payment acceptance, switching, transfers, merchant services, and value-added solutions.
The publication further explores the role of innovation, talent development, and ecosystem partnerships in driving the company’s success.
It showcases HabariPay’s investments in innovation through initiatives such as the Take on Squad Hackathon and the Squad Hackademy, both of which are helping to develop future technology talent and accelerate the creation of practical solutions to real-world challenges.
“As a technology-driven company, we believe that impact extends beyond financial performance. It is reflected in the businesses we enable, the merchants we support, the infrastructure we build, and the opportunities we create for the next generation of innovators.
“The HabariPay Impact Report 2025 captures this journey and demonstrates our commitment to creating sustainable value for customers, partners, and the broader economy,” the Managing Director of HabariPay, Ms Eduofon Japhet, said.
“The HabariPay Impact Report 2025 represents more than a reflection on our achievements; it is a testament to the deliberate investments we have made in building sustainable payment infrastructure, empowering businesses, fostering innovation, and creating long-term value for our stakeholders.
“As we look ahead, we remain committed to expanding our capabilities, deepening our impact, and shaping the future of digital payments through technology-driven solutions that are secure, scalable, and inclusive,” she added.
By Modupe Gbadeyanka
Some top foreign exhibitors participating in the much-anticipated Ecobank Adire Lagos Experience commencing on Thursday, June 11, 2026, are already in Nigeria.
The four-day event, closing on June 14, will witness participation from notable African fashion brands from Ghana, Sierra Leone, Senegal and the Benin Republic.
Among the international exhibitors confirmed for this year’s edition are Creative Hub Africa and Shades of Class from Sierra Leone, Drame Khadidatou from Senegal, Tampoori from Ghana, and Naylah Collection from the Republic of Benin. Their participation highlights the growing continental appeal of the Ecobank Adire Lagos Experience as a platform for cultural exchange, business collaboration and market access across Africa.
More than 100 exhibitors and vendors, including leading Nigerian brands such as Obida Design Associates, This Is Us, Imani Kids, Ashabi Fads, E25Dresses, Miné by Ejiro Amos Tafiri, Buss Fabrics Store, Aina Aladire and many others, will participate, showcasing the richness of African craftsmanship, innovation and entrepreneurship.
It was gathered that organisers are putting finishing touches to the venue of the exhibition, the prestigious Ecobank Pan African Centre (EPAC) on Victoria Island, Lagos.
All necessary arrangements to ensure a seamless, secure and memorable experience for exhibitors and attendees are being put in place by the bank, further underscoring its commitment to promoting African creativity, entrepreneurship and intra-African trade.
The Head of SMEs, Partnerships and Collaborations at Ecobank Nigeria, Mrs Omoboye Odu, said attendees can look forward to a vibrant showcase of fashion, craftsmanship, art, music, culture and entrepreneurship, with participants drawn from Nigeria and several other African countries.
“We are fully prepared and excited to welcome guests from across Nigeria and the African continent to another edition of the Ecobank Adire Lagos Experience. From exhibition spaces and cultural showcases to networking opportunities and customer engagement activities, every necessary arrangement has been put in place to ensure a seamless and rewarding experience for all attendees,” she stated.
“The Ecobank Adire Lagos Experience continues to evolve as a unique platform that connects creatives, entrepreneurs and consumers from across Africa. Attendees can look forward to exceptional products, interactive sessions, entertainment, cultural exhibitions and valuable opportunities to build relationships, explore new markets and expand their businesses,” Mrs Odu added.
Beyond the exhibition, participants will have opportunities to network, explore business partnerships, discover unique products and experience the diversity and vibrancy of African culture.
The event is open to the public, and visitors can look forward to an immersive experience that seamlessly blends tradition, innovation, fashion, enterprise and entertainment in a grand celebration of Africa’s creative economy.
Over the years, the Ecobank Adire Lagos Experience has grown into one of Nigeria’s foremost platforms for promoting indigenous textile production, supporting small and medium-sized enterprises, and showcasing the ingenuity of African creatives.
The programme has also played a significant role in expanding market access for businesses while preserving and celebrating Africa’s rich cultural heritage.
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