Business

How Nigerian Banks Are Raking In Billions From Foreign Operations

Published

3 years ago

October 8, 2022

Editor

Nigerian banks have been aggressive, expanding into other African countries, as well as in Europe, and Asia.

The cross-border activities which started in 2002 have intensified as banks look beyond the shores of Nigeria to seek incremental value.

A cursory review of the financial performance of some of Nigeria’s largest banks (i.e. FUGAZ), which have offshore subsidiaries highlights a significant rise in revenues and profits from these foreign subsidiaries. Thus arguably buttressing why expansions outside Nigeria may only increase.

Note that Revenue from foreign operations or “Outside Nigeria” includes revenues from other African countries, as well as, the UK, US, and Europe where some of the banks have operating segments.

In aggregate, across the banks under review, revenues from offshore operations (outside Nigeria) surged from N2.4 trillion in 2020 to N2.8 trillion in 2021 representing a 13.8% increase year on year.

Even more remarkably, revenue from outside Nigeria also contributed 22% of revenues in 2021 compared to 21% in the prior year. This includes intercompany eliminations.

From a net earnings perspective, Nigerian banks are also generating significant earnings from their offshore operations.

For example, in 2021 total pre-tax profits (excluding FBN Holdings which does not disaggregate profits) rose to N259 billion up from N191.8 billion a year earlier.

Again, pre-tax profits outside Nigeria contributed 30.3% of the total compared to 25.4% the year before. Data from the first half of 2022 also point to an even larger growth by the end of the year for both revenues and profits respectively.

Why does this matter? As de-globalization risks continue to emerge and countries re-assess supply chains, frontier markets like Africa face challenges in attracting ultra-large-scale investments from more developed countries in the financial services space.

Interestingly, save for a few banking giants such as Standard Chartered, Citi, Barclays, Soc Gen, and ABN Amro, most financial institutions prefer a light-touch approach to operations in Africa. Whereby they prefer to open agency offices staying away from operating full-fledged banking operations.

Nigeria for example has just 11 licensed foreign banks with representative offices in the country. This includes the likes of JP Morgan, HSBC, Barclays, and Deutsche Bank.

A few reasons often cited include that the economies of most African countries are also not large enough to attract significant interest from top western banks. This is in addition to the low levels of inter-region trading requiring banking services.

There is also fear of value accretion which has recently been worsened by the experience of Bob Diamond’s Atlas Mara, a company formed in 2013 to acquire banks across Africa. A lack of understanding of the operational terrain and regulatory landmines in Africa is also considered a challenge for most investors.

Consequently, the paucity of large global financial institutions has left Africa to fend for itself, and Nigeria’s FUGAZ banks are leading the charge by expanding into countries like Ghana, Kenya, Rwanda, Botswana, Gambia, Congo, Sierra Leone, Senegal, Chad, Cameroon, South Africa, etc.

UBA which is an acronym for United Bank for Africa is one of the earliest banks to sojourn outside Nigeria for business. The bank has over 19 subsidiaries across Africa and has a presence in the USA and UK. The bank recently opened an office in Dubai. The bank’s African operations alone contributed 40.9% of revenues and an astonishing 59.5% of pre-tax profits (N96.8 billion) respectively in 2021. In total, operations outside Nigeria contributed 45% of revenues and 65% of profits in 2021.

Access Bank has towed this line aggressively with 11 offices in the rest of Africa and in the UK. It also has representative offices in China, UAE, India, and even Lebanon. The bank’s revenue of N974.2 billion included N182.79 from its rest of Africa businesses while outside of Africa contributed N57.1 billion. In total, its foreign subsidiaries contributed 24.6% of revenue. In terms of pre-tax profits, it raked in N70.2 billion, or 40% of the total.

GTB with almost a dozen offshore businesses outside Nigeria reported revenue of N447.8 billion in 2021 out of which 26% was from its foreign subsidiaries. They also contributed 24% of pre-tax profits.

Nigerian banks are also taking advantage of the country’s vastly advanced financial payments infrastructure and experience (which many consider a global leader) to revolutionize banking outside of Africa.

This places them firmly in a position to seize the opportunities AFCFTA provides for financial services. Banks with outsized operations outside their home countries are likely to benefit the most from transaction fees, interest income, and commissions.

They also get to compete with the likes of Standard Bank, and Ecobank who are well capitalized and experienced with competing across African markets.

Cautious Optimism

Despite these impressive returns, risks abound with offshore banking. These risks include execution risk, huge capital outlay, currency risks, regulatory burdens, etc

As we have seen from the likes of UBA and Access Bank, most of their offshore operations incurred significant losses before they started making money.

There is a risk that a misstep in an offshore operation could wipe out significant capital at home putting shareholders at risk. Some of these risks forced the CBN to issue guidelines on banks operating offshore as far back as 2008.

There is also the challenge of overlapping regulatory provisions and laws across central banks of several countries which can increase operational risks, stifling growth and wiping out gains. As is the case with the Flutterwave debacle.

Ultimately, the recent financial performance suggests that Nigerian Banks that are able to navigate through these challenges are poised to win and continue to create value for shareholders.

Business

IWD: Fidelity Bank Signs MoU with Partners, Launch ‘Give Her Power’ Initiative to Empower Nigerian Women

Published

3 days ago

March 10, 2026

Editor

Fidelity Bank Plc has reaffirmed its commitment to advancing women’s economic empowerment with the signing of strategic Memoranda of Understanding (MoU) with partner organisations at the launch of the bank’s “Give Her Power” initiative, a programme designed to equip Nigerian women with practical skills, tools, mentorship, and financial knowledge.

The partnerships, formalised as part of activities commemorating the 2026 International Women’s Day, bring together a diverse network of stakeholders: LUSH Hair, Barbergirl Academy School of Barbering, Dee ‘n’ Ell the Shoe Architect, Inter-Bau Foundation, IVM Innoson, National Credit Guarantee Company (NCGC) and One Universe.

The collaboration is anchored on the Bank’s HerFidelity Apprenticeship Programme, a structured platform created to provide vocational training, business support, and sustainable enterprise opportunities for women across multiple sectors.

Speaking during the event, Managing Director and Chief Executive Officer, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, highlighted that the bank’s ‘HerFidelity’ initiative reflects Fidelity Bank’s continued commitment to creating opportunities that empower women to achieve financial independence and build sustainable businesses.

L-R: Chief Executive Officer, Innoson Kiara Academy, Endi Ezengwa; Commissioner for Women Affairs and Poverty Alleviation, Lagos State, Bolaji Cecilia Dada; Managing Director/Chief Executive Officer, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe; and Commissioner for Commerce, Cooperatives, Trade and Investment, Lagos State, Folashade Ambrose-Medebem; during the signing of Memorandum of Understanding (MoU) at the launch of “Give Her Power” initiative as part of the 2026 International Women’s Day (IWD) activities at the Fidelity Bank Head Office in Lagos, recently.

“At Fidelity Bank, we strongly believe that empowering women is not only a social responsibility but also a powerful economic strategy. Through the ‘Give Her Power’ initiative and the HerFidelity Apprenticeship Programme, we are providing women with practical tools, vocational skills and financial knowledge that will enable them to move from effort to earnings and from hustle to sustainable enterprise.”

She explained that the programme will deliver a range of interventions throughout the month of March, including the distribution of 1,000 sewing and grinding machines to support women-led microbusinesses, as well as vocational training in automobile mechanics, interior decoration, barbing, hair making, and shoe making.

Other components of the initiative include professional headshot sessions to strengthen women’s personal and professional brands, mentorship engagements with leading female entrepreneurs, and hands-on skill acquisition training in areas such as makeup artistry, nail care, and traditional headgear tying.

Dr. Onyeali-Ikpe also noted that empowering women economically has ripple effects that extend beyond individual beneficiaries.

“When women are empowered economically, the impact extends far beyond individuals. It strengthens families, grows businesses, and uplifts entire communities. Research suggests that advancing women could add up to $12 trillion to global GDP. This reinforces the need to deliberately create platforms that support women to build sustainable businesses and strengthen their economic independence,” she added.

Applauding the bank’s initiative, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs. Folashade Ambrose-Medebem, commended Fidelity Bank for its leadership in promoting entrepreneurship and supporting women across the nation.

“This initiative strongly aligns with the Lagos State Government’s commitment to building an inclusive economy where women have access to skills, mentorship and financial opportunities they need to thrive”, Ambrose-Medebem stated.

Her words, “Women remain key drivers of commerce and enterprise across Lagos, from traditional markets to emerging digital sectors. This initiative by Fidelity Bank has ensured that we stayed true to the promoting and supporting women”.

Also speaking at the event, the Lagos State Commissioner for Women Affairs and Poverty Alleviation, Mrs. Bolaji Cecilia Dada, praised Fidelity Bank for championing financial inclusion and economic independence for women.

“Empowering women economically is one of the most effective ways to reduce poverty and strengthen communities. We commend Fidelity Bank for this forward-thinking initiative and for demonstrating how collaboration between the private sector and government can create meaningful opportunities for women across the state,” she said.

Representatives of the partner organisations also expressed appreciation to Fidelity Bank for the collaboration, noting that the partnership will play a significant role in expanding vocational training opportunities and strengthening entrepreneurship among women.

The Give Her Power initiative is expected to empower hundreds of women through skill development, mentorship, and startup support, while reinforcing the role of women as key contributors to Nigeria’s economic growth.

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 10 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

The Bank is a recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.

Business

Union Bank’s Union Cares Initiative Celebrates Academic Excellence at Pacelli School for the Visually Impaired Graduation

Published

8 months ago

July 29, 2025

Editor

Union Bank of Nigeria proudly participated in the graduation ceremony of the Pacelli School for the Visually and Partially Sighted on 23 July 2025, honouring the resilience and academic achievements of visually impaired students.

The event, held on the school premises, highlighted the importance of inclusivity and determination in education.

As a 108-year-old institution committed to social responsibility, Union Bank’s involvement reflects its enduring support for Persons With Disabilities (PWD) and its dedication to fostering equitable access to education.

The Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, expressed her admiration for the graduating students:

“Union Bank proudly stands as a champion of inclusiveness and equitable representation. Through our UnionCares corporate social responsibility initiative, we are committed to supporting vulnerable and underrepresented communities.

We celebrate the incredible achievements of these students and reaffirm our dedication to empowering them to reach their full potential.”

UnionCares is Union Bank’s CSR Arm focused on creating sustainable social impact in key areas, including:

• Support for Vulnerable Groups: Empowering persons with disabilities and other marginalised communities through inclusive initiatives.
• Education and Skill Development: Facilitating access to education and practical skills that promote self-reliance and opportunity.
• Community Well-Being: Enhancing the overall quality of life of communities through health, education, and social welfare projects.

Union Bank remains honoured to collaborate with institutions dedicated to uplifting less-recognised members of society. The Bank remains dedicated to championing initiatives that inspire positive change, and foster a more inclusive, enlightened community across Nigeria.

Business

Fidelity Bank ED, Kevin Ugwuoke Takes Over As President Of Risk Managers Association

Published

9 months ago

June 15, 2025

Editor

Kevin Ugwuoke, Executive Director and Chief Risk Officer of Fidelity Bank Plc, has formally assumed office as President of the Chartered Risk Management Institute of Nigeria (CRMI).

His leadership promises a reform-focused era anchored on policy advocacy, ethical standards, and digital innovation to deepen risk governance across sectors in the country.

Speaking during the presidential handover ceremony in Lagos over the weekend, Ugwuoke — who also doubles as acting President of the Federation of African Risk Management Associations (FARMA) — described his election as “a call to action.”

He pledged to reposition CRMI as a thought leader and institutional partner in shaping the future of risk management in Nigeria’s national development.

“Our mission is more than just certification; it’s about strengthening the culture of risk governance across sectors. We will collaborate with regulators, raise awareness, and provide practical tools to help organizations embed risk discipline at all levels.”

Ugwuoke outlined a five-pronged strategy to guide his administration: strengthening professional education and certification; deepening policy and regulatory engagement; accelerating digital transformation; integrating ESG and climate risk into corporate strategies; and mentoring the next generation of risk practitioners.

He explained that CRMI will align its initiatives with key policy institutions — including the Nigerian Economic Summit Group, the National Assembly, and sub-national governments — to help embed robust risk frameworks into economic development plans.

“We must integrate risk thinking into how we plan, govern, and invest. We will advocate for more inclusive regulations to empower small and medium enterprises, improve macroeconomic stability, and foster institutional resilience.”

Ugwuoke also announced plans to revise the Institute’s curriculum, introduce specialized certifications to reflect emerging risks, and implement a new National Risk Observatory to provide real-time risk data to both the public and private sectors.

“Digital innovation will be central to how CRMI operates going forward. We are automating our backend, delivering more virtual training, and employing technology to scale our impact across the country and beyond.”

In his remarks, the outgoing President of CRMI, Ezekiel Oseni, challenged the new leadership to consolidate on the achievements made under his tenure — from securing chartered status and strengthening partnerships to gaining greater international recognition — and take the Institute to the next level.

Also speaking on the occasion, Chukwuma Nweke, deputy managing director of United Bank for Africa (UBA), delivering a goodwill message on behalf of Group Managing Director, Oliver Alawuba, described Ugwuoke as a worthy successor. “As Professor Oseni hands over the baton to Kevin Ugwuoke — a well-respected leader in the risk management ecosystem — we are assured CRMI is poised for greater achievements under his watch.”

Nweke stressed that growing economic uncertainties — from inflation and exchange rate volatility to growing debt — underscore the need for a more strategic view of risk. “Risk must be recognized not as a compliance obligation or a cost center but as a key enabler of resiliency and growth. Institutions that embed risk into their strategies will absorb shocks more effectively, unlock value, and inspire investor confidence.”

As part of the day’s ceremonies, 11 distinguished practitioners were conferred with the Fellow of Chartered Risk Manager (FCRMI) award, while 21 new members were formally inducted as Chartered Risk Managers (CRM).

Furthermore, a new Governing Council was inaugurated to oversee the affairs of the Institute for the 2025–2027 term, marking a decisive step forward in institutional renewal and policy direction.

L-R: Registrar/Chief Executive, Chartered Risk Management Institute of Nigeria (CRMI), Victor Olannye; Divisional Head, Risk Management Securities and Exchange Commission (SEC), Grace Abioye; Immediate Past President, CRMI, Ezekiel Oseni; President, CRMI and Executive Director/Chief Risk Officer, Fidelity Bank Plc, Kevin Ugwuoke; Director, Enterprise Risk Management, Nigeria Deposit Insurance Corporation (NDIC), Amal Haruna; and Rep. Keynote speaker, Deputy Group Management Director, United Bank of Africa (UBA), Chukwuma Nweke; at the CRMI Conferment Handover/Sent-Forth ceremony, held in Lagos recently.