Business
How Nigerian Banks Are Raking In Billions From Foreign Operations
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
Union Bank’s Union Cares Initiative Celebrates Academic Excellence at Pacelli School for the Visually Impaired Graduation
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.
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.
One of Africa’s leading financial institutions, Zenith Bank has reaffirmed its dedication to employee welfare by announcing the promotion of over 4,000 staff members and implementing salary increases ranging from 20% to 30% across various employee grades.
This bold initiative, under the leadership of Managing Director/CEO Dame Adaora Umeoji, its aimed at boosting staff morale and productivity.
With over 8,000 employees, this significant investment in human capital reflects Zenith Bank’s belief that its workforce is its most valuable asset. The salary adjustments, effective January 1, 2025, aim to reward performance, alleviate financial pressures, and ensure enhanced customer service delivery. Promotions for top management are also expected as part of the bank’s ongoing commitment to excellence and growth.
Dr. Umeoji emphasized the importance of maintaining a motivated workforce, stating that the bank’s dedication to its employees will translate into superior service experiences for customers. She highlighted the organization’s commitment to setting industry benchmarks through innovative solutions and exceptional service delivery.
Zenith Bank’s continued leadership in the Nigerian financial sector is underscored by numerous awards, including Best Bank in Nigeria 2024 by Global Finance and recognition as the Biggest Bank in Nigeria by Tier-1 Capital in 2024 by The Banker. These accolades complement its reputation for innovation, sustainability, and corporate governance.
By prioritizing employee welfare during challenging times, Zenith Bank not only strengthens its internal operations but also sets a standard for other financial institutions in the region, reinforcing its position as a leader in Africa’s banking landscape.
As a major player in Nigeria’s financial landscape, under its managing director/chief executive officer, Adaora Umeoji, the bank has embraced a holistic approach to growth that integrates environmental, social and governance (ESG) principles with its core business objectives.
At the heart of Zenith Bank’s strategy is a focus on buoying economic inclusion, supporting small and medium-sized enterprises (SMEs) and driving technological innovation to enhance customer experiences. The bank’s proactive investments in renewable energy, sports, digital transformation and impactful community initiatives exemplify its dedication to creating long-term value for its stakeholders while addressing global sustainability challenges.
Zenith Bank’s continued success is driven by a combination of strong financial performance and an unwavering commitment to its stakeholders.
Zenith Bank’s growth trajectory is underpinned by a robust expansion strategy. With operations in several countries, including the UK, UAE, China, and most recently, France, the bank continues to expand its geographical footprint.
As usual, the bank’s efforts in 2024 did not unnoticed as the lender clinched several local and international awards in recognition of its outstanding performance.
In 2024, the bank won the Best Bank in Nigeria at the annual Global Finance award in Washington, DC, NY.
The bank also emerged the Biggest Bank in Nigeria by Tier-1 Capital, 2024 by The Banker; Best Commercial Bank, Nigeria 2024 – World Finance; Best Corporate Governance, Nigeria 2024 – World Finance; Most Sustainable Bank, Nigeria 2024 – International Banker; Bank of the Year, 2024 – Business Day; Retail Bank of the Year, 2024 – Business Day; Bank of the Year 2024- The Banker.
It also clinched the Most Responsible Organization in Africa 2024 – SERAS; Best in Gender Equality & Women Empowerment 2024 – SERAS and Best in Transparency & Reporting 2024 – SERAS
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