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CBN Chooses 5 Banks For Cash Swap Programme, Excludes Lagos, Abuja PoS Operators

The Central Bank of Nigeria (CBN) has named about five money deposit banks to participate in its cash swap initiative. The development comes as the deadline for the expiration of old N200, N500 and N1,000 notes as legal tender approaches.

The information was contained in an Frequently Asked Questions (FAQ) document released by the CBN on Monday, January 23, 2023, where the it detailed the procedure for the cash swap programme.

The banks chosen for the initiative include Zenith Bank, Access Bank, First City Monument Bank, First Bank and United Bank for Africa. Also, the CBN barred PoS operators in Lagos and Abuja from participating in the programme.

According to the directive by the CBN, not all agents can participate as the initiative is open to only selected agents profiled by super agents or Mobile Money Operators (MMO) and participating banks.

The bank added that selected agents in all the states in Nigeria, excluding Lagos and Abuja, can participate in the programme. It was learnt that PoS operators are barred from using the new notes for other transactions, just for the scheme.

The Punch reported that the document said agents can obtain the new notes from the selected banks but they must have accounts with the banks, and their super agents must have pre-registered the operator with the bank where they have accounts.

Each agent’s name, Bank Verification Number (BVN) and operator’s name are needed before the new notes are issued, adding that the participating banks should also verify the agent’s picture and fingerprint.

Agents must also have completed the KYC levels for the operator which includes name, phone number, bank, account number and amount. The document also stated that there is no limit to the amount a customer can deposit but restricts withdrawals to N10,000 per customer under the cash swap scheme.

The apex bank asked agents to open a bank account or wallet for customers who have bank accounts. Old Notes: ATMs and other ways to swap your notes before Jan 31 Recall that Legit.ng reported that Nigerian banks have cried out over the shortage of new naira notes despite the Central Bank of Nigeria (CBN) reporting that it has a surplus of the new notes in its vaults.

The CBN, during its many sensitisation outings across the nation, stated that it is pleading with commercial banks to come for the new notes ahead of its January 31, 2023 deadline. The apex bank vowed to penalise banks that continue to issue old naira notes or dispense the same through their ATMs.

Source: Legit.ng

Here are banks that suspend transactions on Naira cards abroad

The persistent Foreign Exchange (FX) pressure occasioned by dollar supply shortage has resulted in many Nigerian banks suspending or reviewing down their international transactions on Naira cards.

Some of the banks include GTBank, Access Bank Plc, UBA, First Bank of Nigeria, Zenith Bank, and Ecobank, among others.

“I think this has to do with reduction in FX liquidity. The banks are not getting as much as they need and cannot be creating dollar liability for themselves,” said Ayodeji Ebo, managing director/CBO, Optimus by Afrinvest.

He explained that the supply of FX to the banks has continued to reduce.

On the implication of this development, he said people will switch to FinTechs that supply dollar cards and virtual cards, as well as open domiciliary accounts, which they can fund with dollar cash.

GTBank last week suspended its International transactions on Naira cards as seen in a statement issued to its customers, titled, “important update on your Naira card for international spending’.

The statement reads, “Dear customer, we write to inform you that you will no longer be able to use your Naira Mastercard for international online and POS transactions effective 31st December 2022. Kindly note that you can use your GTBank dollar card for all your international spending requirements.”

The bank said its dollar card allows ATM withdrawal of $1,000 daily or the equivalent in the transaction’s local currency and has no limit to international PoS or online transactions.

Some banks reviewed downward the usage of Naira debit cards overseas to $20 from $100 and finally to temporary suspension by banks.

The development has pushed the manufacturers who need dollars to import raw materials, to patronise the unofficial foreign exchange market known as the black market at a high cost.

What follows is that the margins of the manufacturers are squeezed resulting in inflationary pressures. At the end of the day the consumers bear the brunt as the cost of production is inputted in the price of goods.

The current situation is further explained by Taiwo Oyedele, head of tax and corporate advisory services at PwC, who said, “I believe this development is based on CBN’s directive which seems to be focusing on the demand side of the foreign exchange management”.

Unfortunately, he said the restriction will push more legitimate demands into the black market thereby pushing up the rate and widening the gap compared to the official rate.

“Given that even manufacturers source a significant percentage of their foreign exchange needs from the parallel market, this could further squeeze their margins while fueling inflation,” Oyedele said.

First Bank of Nigeria last year issued a note to its customers on the review of Naira cards for international spending.

Due to current market realities on foreign exchange, we’ve reviewed cross border transaction limits for the Naira Mastercard, Naira Credit Card, our Virtual card and Visa Prepaid Naira card further to $20 monthly. This will take effect on 1 April 2022,” FirstBank of Nigeria said recently.

“Also, International ATM withdrawals will not be allowed with our Naira cards at this time. For increased transaction limits, please use your Visa Debit Multicurrency Card, Visa Prepaid (USD) Card and Visa Gold Credit Card to enjoy transaction limits up to $10,000 and other exciting benefits,” the bank said in a note to its customers.

In April 2015, the usage of naira denominated cards overseas was $50,000 per person per annum or $4,166.7 per month, indicating a 99.5 percent downward review in seven years to $20 per month and subsequently to zero by some Nigerian banks.

Lower oil production below the budgeted benchmark despite high crude oil price led to limited foreign currency inflows needed to boost the reserves, FSDH research said in a report.

Furthermore, the persistent dollar scarcity and declining foreign exchange reserves have further pushed some Deposit Money Banks (DMBs) to review their travel allowance allocation period.

With the latest review, travellers who need dollars for Business Travel Allowance (BTA), Personal Travel Allowance (PTA) can now access the same only twice a year compared to four times a year.

Access Bank reviewed upwards the processing and disbursing time for international school fees for customers who initiate their request via Access Bank to within 60 days from 30 days previously.

For what was supposed to be consummated within 24 hours after filling out CBN-approved documentation known as Form M, banks pushed it forward to 30 days in July 2022, and to 60 days now.

This however is subject to forex availability, the bank stated in a notification sent across its customers.

Nigeria’s infrastructure quality low, says World Bank

The World Bank has assessed the level and quality of infrastructure in Nigeria as being low, despite the Federal Government’s assertions that it has borrowed money to construct infrastructure.Information Guide Nigeria

In its evaluation of Nigeria’s public finances, the World Bank estimated that Nigeria’s physical infrastructure deficit would exceed $3 trillion over the next three decades.

The report read, “The level and quality of Nigeria’s infrastructure quality is low, with the country ranked 132 out of 137 countries for infrastructure in the 2018 Global Competitive Index. Nigeria’s physical infrastructure gap is estimated to reach $3tn over the next 30 years.”

It was also said that Nigeria’s development outcomes were among the lowest in the world, indicating the necessity for substantial public spending.

The Washington-based bank also estimated that it would take Nigeria 300 years to repair its infrastructure gap, at an annual cost of 4% of its GDP.

The report read, “At the current rate of expenditure allocation, it would take 300 years to close the country’s current infrastructure gap. Closing Nigeria’s infrastructure gap would cost at least four per cent of GDP growth per year.”

The Minister of Information and Culture, Lai Mohammed, stated in September 2021 that the Federal Government was borrowing to construct world-class infrastructure and not for recurring expenses.NYSC portal
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This was stated by the minister during a town hall meeting organized by his ministry to discuss the destruction of Borno State’s telecommunications and electrical infrastructure.

Recently in October, President Major General Muhammadu Buhari (ret.) justified his government’s borrowing, calling it as an essential move to develop the infrastructure that would boost chances for economic growth in Nigeria.

Buhari said, “We have also continued to accelerate our infrastructure development through serviceable and transparent borrowing, improved capital inflow and increased revenue generation by expanding the tax bases and prudent management of investment proceeds in the Sovereign Wealth Fund.”

Currently, Nigeria owes around N66.61tn, which includes N23.77tn owed to the CBN and N42.84tn owed to domestic and foreign creditors.

According to figures issued by the Debt Management Office, the country’s debt increased by N30.72tn between July 2015 and June 2022, as reported by The PUNCH.

According to DMO figures, Nigeria’s overall debt amounted at N12.12tn as of June 30, 2015. By June 30, 2022, the amount had increased to N42.84tn, a 253.47 percent increase. Despite the significant increase in debt over time, the government expects to borrow N8.4 trillion in 2023.JAMB portal

In ten months, the Federal Government borrowed N6.31 trillion from the Central Bank of Nigeria through Ways and Means Advances, according to The PUNCH.

This caused the Federal Government’s borrowing from the CBN to increase from N17.46 trillion in December 2021 to N23.77 trillion in October 2022.

Ways & Means Advances is a borrowing mechanism through which the CBN finances government budget deficits.

The Federal Government’s N23.77tn debt to the central bank is not included in the country’s total public debt, which stood at N42.84tn as of June 2022.

In November 2021, the World Bank cautioned the Nigerian government against funding deficits by borrowing from the Central Bank of Nigeria (CBN) through the Ways and Means Advances, citing budgetary pressures on the country’s spending.

In spite of experts’ and organizations’ warnings, the Federal Government continued to borrow from the CBN to finance budget deficits.

An economist specializing in economic growth, Dr. Aliyu Ilias, criticized the administration for its unhealthy dependence on borrowing.

Instead of continually borrowing from the central bank, he advised the government to pursue alternative revenue-generating methods.

Nigeria to spend 123% of revenue on debt servicing in 2023 – W’Bank

DEBT servicing will gulp 123.4 per cent of the Federal Government’s revenue in 2023.

World Bank Lead Economist for Nigeria, Alex Sienaert, made the projection in a presentation he delivered in a forum on latest update on Africa’s finance outlook to round off 2022.

Speaking while presenting the paper with the title’ “Nigeria Public Finance Review – Fiscal Adjustment for Better and Sustainable Development Results”, Sienaert projected that debt servicing would gulp 100.2 per cent of Federal Government revenue by the end of 2022.

According to him, this was a decline from the earlier projection in its October report on Africa.

“Borrowing more is not the solution: debt costs are rising rapidly, squeezing non-interest spending. Debt servicing has surged over the past decade and is expected to continue increasing over the medium-term, crowding out productive spending,” he said.

It will be recalled that Nigeria’s public debt recently rose to N44.06trillion in the third quarter of 2022.

According to a press statement published on the website of Debt Management Office, while total public debt stock rose from N42.84trillion recorded in the second quarter to N44.06trillion in the third quarter of 2022, this showed 2.85 per cent increase quarter-on-quarter with Nigeria acquiring N1.22trillion debt within three months.

Windfall For Banks, Telcos As Mobile Transactions In Nigeria Double To N12.8 Trillion In 9 Months

The use of mobile and other digital forms of payment in Nigeria has also resulted in huge gains for Nigerian commercial banks and telecom services providers as the Nigeria Inter-Bank Settlement System (NIBSS) has announced a massive growth in the worth of mobile transactions carried out by Nigerians between January and September 2022.

According to the data released, Nigerians carried out N12.8 trillion worth of mobile transactions which is more than double the amount recorded in the same period last year and even much more than what was recorded in 2020.

NIBSS recorded that mobile inter-scheme transactions in Nigeria grew by a whopping 153% year-on-year in the first nine months of 2022 from N5.07 trillion recorded in the comparable period of 2021. The total transactions for the current year represent an even higher margin when compared to the same period of 2020 (N1.89 trillion), 2019 (N461.4 billion), and 2018 (N216.4 billion).

Since the COVID-19 pandemic, mobile and electronic forms of banking have been on the rise which has necessitated the use of more cashless forms of payment across the country. A closer look at the data tracked by the NIBSS showed that the volume of mobile transactions rose by over 132% in the review period.

Specifically, a total of 438.28 million transactions were recorded through mobile, higher than the 284.5 million transactions recorded in 2021. Similarly, a sum of N6.05 trillion was spent through POS transactions in the first nine months of the year, a little below the N6.4 trillion recorded in the full-year 2021, with three months left till the end of the year.

A review of the financials of listed telecommunication providers in the country showed impressive growth in data revenue as MTN Nigeria generate a whopping sum of N549.2 billion from data in the first nine months of the year, a 50% increase from the N366.18 billion earned during the comparable period in 2021.

Similarly, Airtel earned $431 million from their data business between April and September 2022, representing a 22.8% increase from $351 million recorded in the comparable period of last year.

However, banks have also raked a fortune from commissions charged on electronic banking transactions. FBN Holdings, in the first nine months of the year, recorded N39.98 billion as e-banking revenue, Access Bank (N49.39 billion), and GTBank raked in N15.18 billion.

Nigerian banks accused of stealing money from customers

Some victims told the News Agency of Nigeria in Abuja on Monday, that such illegal deductions are done with the connivance of bank officials.

Bank customers in various Nigerian banks have decried the increasing spate of ‘illegal’ withdrawals from their accounts.

Some victims told the News Agency of Nigeria in Abuja on Monday, that such illegal deductions are done with the connivance of bank officials.

A customer with one of the new generation banks, Miss Helen Isiguzu, said such fraudulent acts have become widespread and are being perpetrated in almost all the banks unlike before, but more common in some financial houses.

“What is happening in banks these days is discouraging me from depositing my money with them.

“No wonder the Central Bank of Nigeria said there is so much money in the hands of Nigerians outside the banks.

“People are beginning to lose hope in commercial banks.

“Instead of my money to develop wings and disappear from my account just in a day, I rather invest it into real estate business and it will yield greater profits,’’ she said.

Mrs Anthonia Ibedalu, another customer with one of the new generation banks, said that some banks in the country were operating below international standard.

Ibedalu called on relevant authorities, including the Federal Competition and Consumer Protection Commission to step up actions and save customers from fraudulent activities in some banks.

“I travelled to South Africa for a period of three years but I had a dollar account in one of the banks.

“When I got back to Nigeria for holidays, I decided to take the money but to my surprise, I was told the money was no longer there.

“I enquired to know what happened but was told my account was hacked into. I wondered how an account that no other person had the details could be hacked into.

“When I contacted higher authorities in the bank, they investigated and my money was refunded.

“They did not tell me the result of their investigation but from their responses, it was an insider thing. I now ask, what if I didn’t know who to contact,’’ she said.

A former banker, Mr Louis Otagoro, appealed to the Chartered Institute of Bankers to ensure that only trained professionals practise in the industry.

“The CIBN should step up actions to ensure that the banking profession does not become an all-comers affair,’’ he said.

Meanwhile, the President of the CIBN, Ken Opara, had said that the council was resolute and committed to the observance and maintenance of ethics and professionalism among practitioners in the banking industry.

The Executive Vice Chairman of the FCCPC, Mr Babatunde Irukera, had also said they were engaging with banks to address consumer-related issues.

The Economic and Financial Crimes Commission had said that most banking fraud cases handled by the agency showed that bank employees aided the acts.

The Head, Cybercrime Section of the Commission, Abbah Sambo, said the acts were mostly perpetrated using insider Information.

He also expressed regret at the increasing rate of cybercrime in spite of the best efforts by the Commission to tackle it.

Sambo observed that in years past, young people involved in cybercrime were not ICT savvy, but today, it is ICT graduates that were champions in perpetrating the crime.

SaharaReporters recently reported that some new-generation banks refunded monies illegally deducted from customers’ accounts after reports by SaharaReporters.

Glo Joins MTN and Airtel in Starting Banking Service, as CBN gives approval

Globacom, one of the largest telecom operators in the country, launched its payment service bank (PSB) two years after it secured the license.

Punch reports that the payment subsidiary, MoneyMaster Payment Service Bank, will provide financial services to millions of currently unbanked Nigerians.

Its service will be similar to MTN MoMo and Airtel’s Smartcash, which started operations in 2022.

According to ThisDay, Glo’s MoneyMaster will facilitate payment and remittance services within Nigeria, accept deposits from individuals and small businesses, and issue debit and prepaid cards.

It will also operate electronic wallets and inbound remittances and carry out other services in line with CBN regulations. It, however, cannot grant loans like commercial banks.

The Central Bank of Nigeria (CBN) approved Globacom’s PSB license application on 27 August, 2020, alongside 9Mobile and Unified Payments.

A statement from the company reads: “Our overarching business objective remains to empower Nigerians by providing them with unlimited opportunities. MoneyMaster extends that objective as it targets the unbanked and under-banked with G-Kala, its flagship product, in order to deepen financial inclusion in Nigeria.”

It added that the company’s nationwide reach will provide opportunity for MoneyMasterPSB to extend its services to different parts of the country, thus extending financial services to the largely unbaked rural populations who have over the years been left out.

To open an account, all the customer needs to do is dial *995# then follow the prompts from a Glo line or from any other telecommunications network as MoneyMaster PSB is network agnostic.

Globacom said: “MoneyMasterPSB is ready to provide top notch services that will redefine the payment service banks’ landscape and further help to drive financial inclusion in Nigeria.”

Here are the top 5 best performing Nigerian banks in 2022

A new report has shown, which of the thirteen Nigerian banks recorded the highest revenues in the first half of 2022.

According to Nairalytics, the research department of Nairametrics, the thirteen Nigerian banks listed on the Nigeria Exchange raked in N501.13 billion net profit in the first half of 2022.

This revenue is 13% more than last year’s, within the same period in review. This revenue is also despite the economic issues that have plagued Nigeria in the past few months since the year began, including, high inflation rates, devaluation of the naira, and an increased interest rate.

These banks managed to do well despite compromises such as reducing working hours to minimize operating costs.

Below is a list of five of the best performing banks this year thus far, according to Nairametrics;

Zenith Bank: Zenith Bank is the best performing bank this year, recording a net revenue of N111.41 billion. Its gross profit is N404.76 billion. Both numbers denote an increase for the bank from last year’s performance.

Last year, the bank experienced a 5% increase in its net profit, within the period in review, which came in at N106.12 billion. Also in its gross, it experienced a 17.1%increase. Its cost of operation grew by 26.8% year-on-year to N123.78 billion, while personnel expenses increased by 5.7% to N39.74 billion.

Tax expenses for this bank rose by 69.9% from N10.94 billion to N18.59 billion.

Access Bank: Following behind is Access Bank which had a revenue of N88.74 billion. The bank grew by 2.1% in profit margins this year compared to its last year’s revenue of N86.94 billion in the same six months.

Its gross margins grew significantly by 31.4%. The bank experienced a surge in its operating expenses including, personnel expenses increasing by 33.9% to N58.27 billion while other operating expenses surged by 40.2% year-on-year to N176.71 billion.

Tax expenses surged by 14.3% to N9.05 billion.

Guarantee Trust Holding: Coming in third is Guarantee Trust Holding, which had a revenue of N77.58 billion. This bank unlike the previous two banks mentioned experienced a decline of 2.3% in its bottom line. Last year, Guarantee Trust Holding raked in N79.42 billion within the first six months.

This decline could be a result of the surge in the bank’s operating cost, which was N63.57 billion, 17% higher than the N54.34 billion it expended in the same period last year.

Tax expenses also increased by 88.3% to N25.69 billion in the period under review.

United Bank of Africa (UBA): This bank recorded N70.33 billion in net revenue in the first half of 2022. Unlike GTA, the bank saw a significant increase in its profit margin compared to the same period in 2021. UBA had a 16.1% increase, shooting from N60.58 billion in 2021 to N70.33 billion in 2022.

Personnel expenses surged by 22.7% to N52.29 billion, and other operating expenses increased by 22.6% to N96.57 billion.

Tax expenses for this bank in the first half of the year fell by 1.2% to N15.42 billion when compared to last year, in the period under review.

First Bank of Nigeria: At number 5 is one of Nigeria’s premier banks, First Bank. This bank made N56.6 billion in the first half of 2022. Of all the banks listed here, First Bank experienced the most growth from last year to this year. In the first half of 2021, the bank made N38.09 billion compared to its 56.6 billion this year, a 48.6% increase in retrospect.

As for personnel expenses the bank spent N55.31 billion, an increase of 7.9% when compared to last year. Operating expenses jumped by 32.7% to N116.78 billion.

USSD Service May no Longer be Available as Network Providers Threaten Banks

Network providers have threatened to halt the Unstructured Supplementary Service Data (USSD) offered to the financial institutions operating in the country due to N80 billion unpaid debt.

Investors King learnt that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) says it might be forced to stop Unstructured Supplementary Service Data (USSD) services because banks have failed to pay for services rendered.

Speaking at a conference in Lagos, ALTCON chairman, Mr Gbenga Adebayo lamented that the debt which stood at N42 billion earlier this year has now risen to N80 billion.

Adebayo noted that despite the government’s effort to resolve the matter, many banks were not cooperating as regards paying their debt.

He further disclosed that the telecom operators might have to disconnect the banks from the USSD service until they do the needful.

It will be recalled that in March 2021, telecommunication operators had threatened to withdraw their USSD services to financial institutions due to the N42 billion accumulated debt.

The huge debt was a result of the deduction from the commission during the transactions. However, the banks failed to remit to the telecommunications operators who own the infrastructure used for the transactions.

The USSD service has become an integral part of the Nigerian banking system. Some of the services available on USSD include money transfer, checking of account balance and buying mobile airtime.

Other services which can be carried out on USSD include buying data and generating bank statements or pin codes.

No doubt, the USSD service has significantly helped to drive the CBN cashless policy and financial inclusion.

It is believed that millions of Nigerians who do not have a smartphone or run out of data or internet connection often resolve to the USSD service. Billions of naira are transacted every day through USSD. Statista reported that the value of USSD transactions in 2020 was a whopping N550 billion.

Largest banks in Nigeria by total assets as of H1 2022

Access Bank, Zenith, and FBN Holdings maintained the top spot as the largest banks in Nigeria based on the value of their total assets as of the first half of 2022. Data compiled by Nairalytics, the research arm of Nairametrics shows.

The thirteen commercial banks listed on the Nigerian Exchange (NGX) with major operations in the country saw their aggregate asset value increase by 8.1% in the first six months of the year to stand at N63.59 trillion as of June 2022 from N58.83 trillion recorded as of the beginning of the year.

The top five banks were the major tier-1 financial institutions typically referred to as the FUGAZ, which is an acronym used to represent First Bank, UBA, GTCO, Access, and Zenith Bank. The top five banks accounted for 80.5% of the total asset of the industry. It is worth noting that Ecobank Transnational Incorporated was not included in the compilation because most of its operations are outside Nigeria.

A further breakdown of the data shows that the increase in the total assets of the banks was largely attributed to rises in customer loans. Although Union Bank recorded a decline in its total assets in the period under review, Stanbic IBTC recorded the highest increase with a 14.8% increase to stand at N3.15 trillion from N2.74 trillion as of the beginning of the year.

The top five banks in Nigeria by total assets are:

 

#5: GTCO – N5.69 trillion

Guaranty Trust Holding Company Plc (GTCO) posted a total asset value of N5.69 trillion as of June 2022, which is 4.6% higher than the N5.44 trillion recorded as of December 2021. GTCO accounted for 8.9% of the total assets of the thirteen banks.

  • The banking giant, which also restructured into a holding company last year saw its cash and bank balances with the Central Bank rise to N1.04 trillion in June 2022 from N933.59 billion as of the end of last year.
  • Also, loans to customers increased marginally from N1.8 trillion as of December 2021 to N1.83 trillion by the end of June 2022. Meanwhile, financial assets at fair value through profit or loss improved significantly from N104.4 billion to N262.32 billion.

#4: UBA – N8.99 trillion

United Bank for Africa ranks fourth on the list of biggest banks in Nigeria based on total assets with a value of 8.99 trillion, representing a 5.4% increase from N8.54 trillion recorded by the beginning of the year.

  • UBA accounted for 14.2% of the total asset value of the entire thirteen banks on the list. A further breakdown of the bank’s statement of financial position showed that it’s cash and bank balances improved to N1.98 trillion from N1.82 trillion recorded as of the beginning of the year.
  • Also, its loans and advances to customers increased to N2.75 trillion from N2.68 trillion, while loans to banks improved to N198.1 billion as of the period under review. Property and equipment stood at N183.6 billion, while investment securities at fair value stood at N1.63 trillion.

Largest banks in Nigeria by total assets as of H1 2022

#3: FBN Holdings – N9.53 trillion

FBN Holdings posted a total asset valuation of N9.53 trillion as of June 2022, representing a 6.6% increase from N8.93 trillion recorded six months earlier. FBN Holdings, which is the parent company for First Bank accounted for 15% of the total aggregate assets for the thirteen banks.

  • FBN’s asset growth can be attributed to increasing in its cash and balances, loan books, and investment securities. Its cash and balances with Central Bank rose from N1.59 trillion to N1.64 trillion in the six months period.
  • Also, its loans and advances to customers improved from N2.88 trillion as of December 2021 to stand at N3.38 trillion by the end of June 2022. It is worth adding that its investment securities rose to N2.16 trillion from N1.96 trillion.
  • On the flip side, its property and equipment declined marginally to N113.79 billion from N115.9 billion recorded as of December 2021.

#2: Zenith Bank – N10.12 trillion

Zenith Bank reported a total asset value of N10.12 trillion as of June 2022, an increase of 7.1% from N9.45 trillion recorded as of December 31st, 2022. Zenith Bank accounted for 15.9% of the total assets of the banks listed on the Exchange.

  • The increase in its total assets was as a result of improvement in its cash and balance with the Central Bank, treasury bills, loans to customers as well as investment securities.
  • The bank, which is also the most capitalized bank in the Nigerian equities market, saw its loan books increase to N3.49 trillion as of June 2022 from N3.36 trillion, while investment securities stood at N1.48 trillion.
  • In the same vein, property and equipment improved, albeit only marginally from N200 billion to N202.3 billion. Investment securities improved from N1.3 trillion recorded as of the beginning of the year to N1.48 trillion by the end of June 2022.

#1: Access Bank – N13.19 trillion

Access Holdings Plc tops the list with a total asset value of N13.19 trillion as of June 2022, representing an increase of 12.5% compared to N11.73 trillion recorded as of the beginning of the year.

  • The financial institution, which is a newly restructured holding company accounted for 20.8% of the total assets of the thirteen banks under consideration. The uptick in the total asset value of the bank can be attributed to improvements in some of the asset components, especially loans and advances.
  • Specifically, loans and advances to customers rose to N4.62 trillion as of the period under consideration from N4.16 trillion recorded as of the beginning of the year. This means that Access Bank gave out an additional N458.2 billion in loans to its customers in the first six months of the year.
  • Also, investment securities rose by N493.6 billion to stand at N2.76 trillion. The value of its property and equipment increased to N261.8 billion from N247.7 billion, having spent N36.7 billion on the acquisition of property and equipment in the same period.
  • Meanwhile, Access Bank has entered into a binding agreement with Centum Investment Company Plc to acquire its entire 83.4% equity stake held by Centum in Sidian Bank Limited.
  • Also, the holding company received regulatory approval in August 2022 to acquire a majority equity stake in First Guarantee Pension Limited, in a bid to evolve into a financial service holding company.

Others include

  • Fidelity Bank – N3.69 trillion
  • Stanbic IBTC – N3.15 trillion
  • FCMB – N2.65 trillion
  • Union Bank – N2.54 trillion
  • Sterling Bank – N1.81 trillion