Echotitbits – Nigeria News

Tag: banking sector

  • Manufacturing Sector Accesses N68.7 Trillion in Bank Loans

    Manufacturing Sector Accesses N68.7 Trillion in Bank Loans

    New data from the Central Bank of Nigeria (CBN) reveals that manufacturers have accessed a staggering N68.7 trillion in credit facilities over the last nine months. According to The Guardian, this surge in lending is part of a broader effort to stimulate industrial growth and reduce the country’s dependence on imports. The loans are reportedly being utilized for facility upgrades, raw material acquisition, and expansion of production lines across various sub-sectors.

    In an update published by ThisDay, the CBN noted that while credit access has improved, the manufacturing sector still faces significant hurdles, including high interest rates and energy costs. The report highlights that the apex bank is working on further interventions to ensure that the credit results in tangible GDP growth. BusinessDay validated the report, quoting a manufacturer: “While the volume of credit is high, the cost of servicing these loans remains a heavy burden on our margins.”

    Reporting by Tribune indicates that the Manufacturers Association of Nigeria (MAN) has called for more specialized windows for long-term, low-interest funding. A MAN representative stated, “Access to credit is only one half of the equation; we need a stable power supply and better infrastructure to make this capital truly productive.” This highlights the ongoing tension between financial liquidity and the ease of doing business in Nigeria.

    Echotitbits take:

    The massive credit injection into manufacturing is a gamble on the sector’s ability to drive Nigeria’s economic recovery. However, with inflation still a concern, the “high borrowing costs” mentioned by MAN could lead to a cycle of debt if production doesn’t scale rapidly. Watch for the next GDP report to see if this N68.7 trillion translates into a manufacturing-led growth spike.

    Source: The Guardian – https://guardian.ng/news/manufacturers-access-n68-7tr-bank-loans-in-nine-months-says-cbn/, February 9, 2026

    Photo credit: The Guardian

  • First Bank Parent Company Slashes Bad Loans to Secure Long-Term Stability

    First Bank Parent Company Slashes Bad Loans to Secure Long-Term Stability

    In an update published by BusinessDay, FBN Holdings Plc, the parent entity of First Bank of Nigeria, witnessed its shares undergo the sharpest single-day decline in three months following a strategic decision to “clean” its books. The financial giant reported a significant impairment loss of N748 billion for the 2025 financial year, a move designed to write off legacy non-performing loans and align with stricter regulatory demands from the Central Bank of Nigeria.

    Despite the immediate hit to profitability, the bank’s leadership maintains that the gesture is a necessary “one-time pain” for long-term health. The chairman of the group noted that the underlying business remains robust, generating trillions in interest income, but admitted that the transparency regarding old bad debts was overdue. The market reaction has created a rare entry point for investors looking to buy into the country’s oldest commercial lender at a discount.

    The development was also extensively tracked by The ICIR and Premium Times. The ICIR highlighted the scale of the write-off, quoting an industry analyst who remarked, “You do not impair N748 billion in one year unless you are closing a messy chapter of the past.” Premium Times added that the move follows intense pressure from the apex bank, reporting that “the CBN is pushing banks to stop kicking problems down the road.”

    Echotitbits take: This “big bath” accounting strategy is a bold move by Femi Otedola’s leadership to de-risk the bank once and for all. While it hurts the current share price, it makes First Bank a much leaner and more transparent institution for future foreign investment. Expect other Tier-1 banks to follow suit if they have lingering legacy debts.

    Source: Vanguard – https://www.vanguardngr.com/2026/01/why-firstbank-wrote-off-n748bn-bad-loan-otedola/#google_vignette, February 3, 2026

    Photo credit: Vanguard

  • CBN warns bank recapitalisation could crowd out other capital-market fundraising

    CBN warns bank recapitalisation could crowd out other capital-market fundraising

    Reporting by Punch indicates the Central Bank of Nigeria (CBN) is warning that the ongoing bank recapitalisation drive could tilt capital-market funding even more heavily toward banks, leaving other issuers struggling to attract investor attention.

    The concern is not that recapitalisation is unnecessary, but that liquidity could become concentrated in bank equity and related offers if multiple large fundraises hit the market around the same time.

    CBN’s outlook describes a generally bullish capital-market tone, but stresses that momentum can become fragile when one sector dominates deal flow, raising concentration risk.

    For corporates outside banking, the implication is tougher pricing and slower book-building if banks keep taking the front seat through 2026.

    Elsewhere, ThisDay quoted the apex bank warning the market could face “higher concentration risk” and that recapitalisation may “crowd-out other issuers.” Premium Times also noted the central bank’s caution that rising non-performing loans and concentration risks could weigh on growth outcomes.

    Echotitbits take: The sequencing of bank offers will matter. If multiple tier-1s fundraise in the same quarter, expect wider discounts and weaker demand for non-bank IPOs and bonds. Timing discipline and a deeper investor base are the pressure valves.

    Source: BusinessDay – https://businessday.ng/companies/article/cbn-sees-capital-market-extending-bullish-streak-on-bank-recapitalisation/ January 7, 2026
    BusinessDay  January 7, 2026

    Photo Credit: BusinessDay

  • GTCO moves to raise ₦10bn via private placement as recapitalisation pressure builds

    GTCO moves to raise ₦10bn via private placement as recapitalisation pressure builds

    2025-12-31 08:28:00

    As reported by PUNCH, Guaranty Trust Holding Company (GTCO) says it will raise ₦10bn through a private placement involving 125 million ordinary shares, positioned within its regulatory and capital-raising framework.

    The company says the transaction follows relevant guidelines for financial holding companies, and it’s structured as a targeted placement rather than a broad public offer.

    In a market where banks are racing to meet higher capital thresholds, deals like this signal a preference for faster, cleaner capital injections—especially if investor demand is solid.

    Validation: Investegate said “undertaking a private placement to raise ₦10 billion by issuing 125,000,000 ordinary shares at ₦80 per share.” and TheCable reported “has secured approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).”

    Echotitbits take: Private placements are speed tools—good for timelines, but they test investor appetite and pricing discipline. Watch the pricing mechanics, investor mix, and whether more tier-1 banks follow with similar structures.

    Source: The Punch— 31 December 2025 (https://punchng.com/gtco-to-raise-n10bn-through-private-placement/)

    The Punch 31 December 2025

    Photo Credit: The Punch

  • Regent MFB Says It Has Crossed ₦10bn in MSME Loan Disbursements

    Regent MFB Says It Has Crossed ₦10bn in MSME Loan Disbursements

    Photo Credit: The Punch
    2025-12-23 09:00:00

    From a brief by The Punch, Regent Microfinance Bank says it has passed the ₦10 billion mark in cumulative MSME loan disbursements, positioning the milestone as part of its push to close Nigeria’s credit gap for small businesses.

    The bank frames the milestone as evidence that structured micro-lending—paired with advisory support—can help small enterprises scale beyond survival mode, especially amid inflation and weak consumer demand.

    For MSME operators, the bigger story is access: whether such disbursements translate to broader geographic reach, fair pricing, and sustainable repayment terms that don’t trap businesses in rollover cycles.

    It also reflects a sector-wide narrative: microfinance banks competing for relevance by tying credit to digital onboarding, supply-chain partnerships, and specialised products for traders and light manufacturers.

    Validation: The Nation reports, “Regent Microfinance Bank (MfB) has disbursed over N10 billion in cumulative loans disbursements to… MSMEs.” In Regent MFB’s own messaging, the milestone is presented as impact-driven: “By reaching the N10bn mark in disbursements, the bank reinforces its role as a catalyst for productivity…”

    Echotitbits take: The next thing to watch is asset quality. If repayment performance stays strong, MSME credit can scale responsibly; if not, we’ll see tighter lending and higher effective borrowing costs.

    Source: The Punch — December 23, 2025 (https://punchng.com/regent-mfb-crosses-n10bn-msme-lending-milestone/)
    The Punch 2025-12-23

  • Kaduna Opens 800,000 Bank Accounts as Financial Inclusion Surges

    Kaduna Opens 800,000 Bank Accounts as Financial Inclusion Surges

    Photo Credit:Punch Newspapers

    Kaduna State has recorded 800,000 new bank accounts as part of an aggressive financial‑inclusion drive targeting low‑income residents and informal‑sector workers. Authorities attribute the surge to mobile‑banking campaigns, agent networks and partnerships with microfinance institutions and fintechs.

    Officials say greater access to formal financial services is helping citizens save securely, receive government payments and access credit for small businesses. The initiative aligns with national inclusion targets and could serve as a model for other states seeking to bring more people into the formal economy.

    Source: Punch Newspapers – 12 Dec 2025

    2025-12-12 10:00:00 Punch Newspapers – 12 Dec 2025 2025-12-12

  • Reps Target Casual Labour Practices in Nigeria’s Banks

    Reps Target Casual Labour Practices in Nigeria’s Banks

    Photo Credit:Vanguard

    The House of Representatives has advanced a bill sponsored by Fuad Laguda seeking to curb the widespread use of casual workers in Nigeria’s banking sector. The proposed law aims to compel banks to regularise thousands of contract staff who perform core functions but lack job security, benefits and union representation.

    Labour groups have long criticised the practice as exploitative, arguing that it depresses wages and encourages unethical sales pressures. Supporters of the bill say fair employment in banks is critical to financial‑sector stability and consumer trust, though industry players warn of higher operating costs.

    Source: Vanguard – 11 Dec 2025

    2025-12-12 10:00:00 Vanguard – 11 Dec 2025 2025-12-11