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CBN Set to Establish Int’l Financial Centre at Eko Atlantic City

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Mr. Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), has disclosed plans by the apex bank to set up an International Financial Centre at the Eko Atlantic City in Lagos to be operational in the second quarter of 2022.

Emefiele explained that the facility is expected to serve as a hub for attracting domestic and external capital which is much-needed to strengthen the Nigerian economy post-COVID-19.

The CBN governor stated this in a keynote address he delivered at the 56th Chartered Institute of Bankers of Nigeria (CIBN) annual dinner held in Lagos at the weekend.

“The International Finance Centre when fully operational in the 2nd quarter of 2022, will help to position Nigeria as a key destination for investment in Africa,” Emefiele added.

The CBN governor noted that a key challenge to supporting growth in key sectors of the economy was access to large pools of cheap investment capital, adding that over $100 trillion was being held by institutional investors in Organisation for Economic Co-operation and Development (OECD) countries.

According to him, most of the funds were invested in low-yielding assets relative to high-yielding opportunities in Nigeria.

Furthermore, Emefiele noted that although uncertainties remained around the mutating Delta virus, prospects of a broad-based economic recovery in Nigeria were bright as efforts were being made to improve access to vaccines for Nigerians, in addition to measures aimed at implementing safety protocols to curb the spread of the virus.

He, however, pointed out that “our economic growth remains fragile, as our unemployment and inflation rate remains at levels that are not very supportive of growth. Second, continued implementation of our intervention efforts would need to be undertaken to sustain the recovery efforts and stimulate further growth of the economy.

“Third, given population growth at about 2.7 per cent annually, it is important that we continue to deploy measures that will enable our economy to attain annual growth rates of over five per cent.

“Through the pandemic, we are aware that our policy responses are often more effective when we work with the private sector. For example, the CACOVID alliance played an instrumental role in reducing the negative effects of the pandemic, by providing palliative support to families affected by the virus and in rebuilding our healthcare institutions.

“Leveraging the strength of the private sector will be critical in mobilising funds that are needed toward building a more resilient and stronger economy. We intend to strengthen collaborations with the private sector to support investments in critical sectors such as infrastructure, and ICT, in addition to ongoing efforts to build a stronger agriculture and manufacturing base in Nigeria.

“As a result, all efforts in 2022 must be made to ensure that we maintain our focus on improving access to finance and credit for households and businesses, mobilising investment to boost domestic productivity, enabling faster growth of non-oil exports, and supporting employment generating activities,” he explained.

Commenting on the recently introduced 100 for 100 policy on production and productivity, he reiterated that the programme targets credit of up to N5 billion to be provided to 100 firms every 100 days, provided that the firms are investing in projects that are Greenfield projects.

Secondly, projects would be assessed on their ability to generate significant employment opportunities in critical sectors of the economy, he added.

Thirdly on the 100 for 100 policy, he pointed out that eligible firms must show evidence of their efforts to harness available local raw materials towards the realisation of their intended investment.

Emefiele also said efforts would be made to support firms geared towards producing goods for the export market.

“Let me add that routine audits will be conducted on firms that receive funding, to ensure that they are complying with the terms of the program. We believe this program will significantly help to catalyse growth in critical sectors of our economy while aiding our efforts to create employment opportunities and reduce our dependence on imported goods.

“A key focus of the Central Bank of Nigeria under my leadership has been enabling the build-out of a robust payment system in Nigeria that will provide cheap, efficient, and faster means of conducting payments for most Nigerians.

“With the growing pace of digitisation globally, it is essential that we leverage digital channels in fulfilling this objective. Total transaction volumes using digital channels more than doubled between 2018 and 2020, as volumes rose from 1.3 billion to over 3.3 billion financial transactions in 2020.

“Digital payment channels also help to support continued conduct of business activities during the lockdown. Our robust payment system has continued to evolve towards meeting the needs of households and businesses in Nigeria. Reflective of the confidence in our payment system, between 2015 and September 2021, about $900 million has been invested in firms run by Nigerian founders.

“Notwithstanding these gains, close to 36 per cent of adult Nigerians do not have access to financial services. Improving access to finance for individuals and businesses through digital channels can help to improve financial inclusion, lower the cost of transactions, and increase the flow of credit to households and businesses.

“It is in this vein that the Central Bank of Nigeria recently deployed the first central bank digital currency in Africa, the e-Naira, which would help in attaining our goals of fostering greater inclusion using digital channels, supporting cross border payments for businesses and firms, and providing a reliable channel for remittance inflows into the country.

“The e-Naira will ensure that Nigerians in remote areas can conduct financial activities using their digital devices at little or no cost. It will also help to strengthen the effectiveness of government intervention programs, as funds provided will get to the intended beneficiaries. In less than four weeks since its launch, almost 600,000 downloads of the e-naira application have taken place.”

He added: “Efforts are ongoing to encourage faster adoption of the e-naira by Nigerians who do not have smartphones. The support of the financial industry will be critical in the ongoing deployment of the e-naira and efforts are ongoing to encourage continued partnership between the CBN and stakeholders in the financial industry.

“With the decline in revenues due to federal and state government as a result of reduced receipts from the sale of crude oil, alternative ways of funding infrastructure are critical if we are to ensure sustained growth of our economy. As we are all aware, the cost of logistics is often seen as a significant impediment to the growth of businesses in the country.

“In recognition of the role improved infrastructure could play in the development of our economy, along with the need to leverage private sector capital in funding the over N35 trillion deficit, which is the estimated amount required to build an efficient infrastructure ecosystem in Nigeria, the Central Bank of Nigeria working in partnership with critical stakeholders such as the Nigerian Sovereign Investment Authority (NSIA) and African Finance Corporation (AFC) set up Infracorp. Infracorp is expected to raise over N15 trillion to support investment in critical infrastructure in Nigeria.

“So far, N1 trillion has been provided as seed funds by the promoters to support the operations of Infracorp. We recently appointed four fund managers, and a Management Team has been selected to run and manage Infracorp.

“Over the next two months, Infracorp will kick off its operations by targeting strategic infrastructure projects that would help catalyse further growth of our economy. Infracorp is expected to set the standard template that will help in enabling greater private sector funding for public infrastructure projects in Nigeria.”

On the outlook for 2022, Emefiele revealed that CBN’s in-house model, after an exhaustive simulation with various oil price possibilities and numerous scenarios of other macroeconomic metrics, indicates a continued and strong rebound of the domestic economy.

He said the near-term outlook of the Nigerian economy was brightening significantly, with improvements projected into the short- and the medium-term. He projected that the real GDP growth rate would remain robust and strengthen within the short term.

“Output growth rate is projected to remain positive from 4.03 per cent in 2021q3 to nearly 2.91 per cent in 2021 fourth quarter, implying a total growth of about 3.10 percent for 2021. The short-term projection indicates a continued strengthening of the growth rate.

“Deliberate structural policies and reforms are needed to raise this projected trend higher towards the desired five per cent average growth level.

“Output growth rate for the Nigerian economy is broadly estimated by key institutions to consolidate in 2021. The IMF and the World Bank project real growth rates of 2.6 per cent and 2.4 per cent, respectively while the estimate by the Federal Ministry of Finance and National planning stands at 3.0 per cent.

“Generally, the real GDP growth rate is projected to remain robust and strengthen within the short-term, regardless of the immanent vulnerabilities. With this continued strengthening, real GDP could recover beyond the pre-pandemic levels by the first quarter of 2022. Further simulations of the medium-term projections suggest that Nigeria’s real GDP could surpass pre-COVID trends by 2024.

“The business environment remains optimistic given the sustained policy interventions in the economy. The overall business confidence index is projected to rise significantly from -9.2 index points as at end-August to over 37.7 index points in November 2021 and surpass 57.6 index points by mid-2022,” he added.


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E-Financial

Moody’s Upgrades Ecobank’s Outlook to Stable

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Moody’s has upgraded the outlook on Ecobank Transnational Incorporated’s long-term issuer and senior unsecured debt ratings to stable from negative.

In the latest rating commentary, made available to media on Thursday, Moody’s also affirmed the pan-African banking group’s B3/Not Prime long- and short-term issuer ratings; B3 senior unsecured debt rating; b2 notional Baseline Credit Assessment and b1 Adjusted BCA.

ETI’s subsidiaries operate across 38 countries, including 35 African countries, and total assets of $28.9bn as of March 2025, details from the rating note highlighted. Moody’s said the decision to change the outlook to stable on the long-term issuer and senior unsecured ratings reflects ETI’s resilient financial performance.

The rating upgrade also takes into consideration higher dividends being upstreamed to ETI, resulting in lower double leverage and reduced refinancing risk.

The rating adjustment also reflects an expectation that the recapitalisation process of Ecobank Nigeria Limited will be completed by the end of 2025, with limited impact on the group’s financial fundamentals.

“The stable outlook also captures our expectation that a series of capital-boosting initiatives and actions to cure Ecobank Nigeria’s total capital position will be completed before the end of 2025”, according to the ratings agency.

In May 2025, ETI received shareholder approval to raise $250 million in Additional Tier 1 (AT1) capital and announced the launch of the transaction effective 9 July 2025, of which a portion is expected to be downstreamed to Ecobank Nigeria as AT1 capital during Q3 2025.

Ecobank Nigeria’s plan to raise $200m in AT1 capital was noted in the rating note. The ratings analysts said they consider

“We also note that Ecobank Nigeria’s recent successful offer to tender $150m of its February 2026 $300 million notes and consent to remove the capital adequacy ratio covenant from this bond’s terms alleviates risks of an event of default in Nigeria that would trigger cross default at the ETI level. Over the past year, ETI has shown resilience in its financial performance, which supports our change in outlook to stable. Liquidity risks are being moderated by the group’s gradually improving profitability during 2024 and Q1-2025.

“This has translated into a 22 per cent increase in dividends upstreamed to ETI during 2024, these being received from 22 dividend-paying subsidiaries compared to just 14 in 2021,” the rating commentary revealed.

In turn, albeit high, ETI’s double leverage ratio, which measures the liquidity risk taken on by the holding company, as a result of it borrowing in order to invest in the equity of its subsidiaries, has eased to 168 per cent as of December 2024 from 173 per cent in 2023.

Additionally, the stable outlook reflects reduced liquidity risk at the holding company level with the refinancing of short-term liabilities in 2024 with longer-term funding.

Moody’s said this is underpinned by demonstrated market access, notably through senior unsecured notes issuance of $400m in October 2024 and a tap increase of $125m in May 2025, maturing in October 2029.

ETI’s B3 long-term issuer ratings affirmation reflects the affirmation of the group’s b2 notional BCA; the affirmation of the group’s b1 adjusted BCA as captured by a one-notch uplift for affiliate support, reflecting Moody’s assessment of a moderate probability that the firm’s major institutional shareholders would extend support to the group. Moody’s said asset quality for the group has improved over recent years.

 


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SEC Grants “No objection” to N323Bn First Holdco Shares Deal

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The Securities and Exchange Commission (SEC) granted a “no objection” to the N323.45 billion First Holdco off-market deal that occurred on July 16.

The regulator in a statement clarified its role in the deal, which is famous for being the largest on the NGX, following public speculation over the nature of its involvement.

In a statement released Thursday, the Commission stated it conducted a comprehensive review. This review was carried out in line with existing laws and regulatory requirements. The capital market regulator also emphasised that there were no subsequent requests for additional information. It added that the Central Bank of Nigeria (CBN) made no further inquiries after the transaction was finalised.

Addressing circulating reports, the SEC noted that its communication with the parties involved should not be misconstrued as a query. Instead, it described the correspondence as part of an automated compliance mechanism designed to ensure transparency and proper closure of large-scale transactions in the Nigerian capital market.

“The Commission remains firmly committed to its mandate of regulating a fair, orderly, and efficient market; protecting investors; and fostering capital formation in Nigeria,” the statement added.

The June 16 transaction involved the sale of over 10.4 billion shares in First Bank Holdings by entities linked to Oba Otudeko and Tunde Hassan-Odukale to RC Investment Management. RC Investment has since been identified as a trustee acting under an arrangement coordinated by the Central Bank of Nigeria (CBN) and First Bank Holdings.

Otudeko and Hassan-Odukale, both former chairmen of First Bank of Nigeria, were key figures in the long-running power tussle for control of the lender.

The leadership struggle dates back to 2021, when billionaire investor Femi Otedola entered the fray and eventually emerged as chairman of First Bank Holdings. Otudeko, through his investment vehicle Barbican Capital, had taken legal action against the CBN and First Holdco, challenging the refusal to acknowledge his claimed majority stake.

 


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Kuda Unveils New Wallet for Multiple Currencies

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As the first currency supported by the functionality, Kuda launched an update for its app that allows users to send, receive, hold, and convert USD directly.

Kuda Unveils New Wallet for Multiple Currencies

Babs Ogundeyi, MD, Kuda

The action comes in response to growing consumer demand for currency-neutral spending, savings, and income management.

As part of its expansion strategy, digital bank Kuda has introduced a multicurrency wallet to assist Africans who live, work, and travel internationally.

Users may keep, fund, and convert between five main currencies—the US dollar, British pound, euro, Nigerian naira, and Canadian dollar—all within a single wallet on the Kuda app with this application, which is still undergoing testing.

“The new wallet is designed to simplify the fragmented experience Africans face when managing money across different countries and currencies,” said Nosa Oyegun, senior vice president, Business Banking, Kuda, during a media parley in Lagos.

“People no longer reside in a single nation. Due to their global reach, Africans should be able to transfer their money with ease, Oyegun stated.

He claims that eligible customers outside of Nigeria may already access the wallet on Android smartphones, and an iOS deployment is planned.

He clarified that Kuda purposefully decided against developing a distinct wallet app.

Customers will be able to log in as normal, open foreign currency balances, convert money when needed, and send or spend money without switching platforms because it will be integrated into the core Kuda experience.

More than N100 billion entered Kuda accounts from LemFi in 2024 alone.

“This wallet is just our first step in acknowledging and supporting the fact that our customers are already living this cross-border reality,” Oyegun stated.

Kuda wants to give people a smooth financial tool that suits their lifestyle, not only currency exchange.

By removing the bottlenecks involved in the need to switch between various apps or financial services, the wallet will enable users from overseas to send money home, exchange currencies, and continue spending from the same account when they visit Nigeria.

Oyegun emphasized throughout the event that the wallet also takes client retention into account.

Kuda plans to keep helping people who move overseas as they adjust to life in other nations rather than losing them.

He further claimed that these users had not churned. “They simply switched nations. We wish to continue servicing them.

Kuda is now one of many African fintech companies developing products for cross-border use cases as a result of the move.

Oyegun pointed out that Kuda’s goal is to become a financial partner for Africans wherever they may be, going beyond simply exchanging currencies.

The bank’s growth trajectory is reflected in Kuda’s first-quarter 2025 performance, which was disclosed during the briefing. Customer confidence in the company’s digital-first strategy was strengthened when it recorded N453 billion in savings deposits and processed N8.4 trillion in total transaction volume.

With the new feature being introduced on the app, Kuda Microfinance Bank hopes to assist online business owners, freelancers, and remote workers who make money in USD with the recently added feature, which is currently undergoing testing.

Users can choose to accept USD payments directly or convert naira into USD using the Spend tab.

In the near future, GBP and EUR will be recognized as alternative currencies, according to the financial institution.

Additionally, in Nigeria, where inflation is severe, having USD on hand might be advantageous and convenient for people.

More Nigerians have recently begun to use digital platforms to improve the stability of their financial status.

For the majority of them, managing multiple currencies—whether via remote work, cryptocurrency, or international trade—has become the standard. Kuda Bank aims to meet these demands and grow its business to meet the demands of the market.

The financial institution’s continued dedication to providing solutions that give its users the best possible experience which is demonstrated by the multicurrency wallet feature.

Speaking about the project, Kuda representatives emphasized that the new wallet was created to make it easier for Africans to manage their money across various nations and currencies.

Customers can log in as normal, open foreign currency balances, convert funds, and spend or send money without switching platforms thanks to the integration of this feature within Kuda.

Along with currency conversion, Kuda plans to provide a financial tool that eliminates the need for users to switch between apps or financial services by enabling users from other countries to send money to Nigeria, convert currencies, and spend from the same account when they visit.


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