E-Financial
Worries over Arrests of Top Bankers for Alleged Terrorist Financing
The banking industry and State Security Service (SSS) are embroiled in claims and denials over the continued detention of senior personnel of 13 Nigerian banks for alleged terrorist financing and money laundering believed to have been perpetrated by Aminu Suleiman Lamido, son of Alhaji Sule Lamido, Jigawa State governor.
The banks whose staff are affected are Fidelity Bank Plc, First City Monument Bank Plc (FCMB), Wema Bank Plc, Access Bank Plc, Skye Bank Plc, First Bank Nigeria Limited (FBN), Sterling Bank Plc, Diamond Bank Plc, Zenith Bank Plc, Unity Bank Plc, Ecobank Plc, Guaranty Trust Bank Plc (GTBank) and Citibank.
THISDAY reeported that the chief executive officers of the affected banks have continued to receive a barrage of phone calls from both foreign institutional investors and their foreign partners over the allegation.
Some financial market analysts have also warned that the development, which is being closely watched by the global financial community could make foreign banks shut down credit lines, not just to the affected banks, but to all the other local banks.
In addition, it may also lead to the withdrawal of funds from the Nigerian banking system by the banks that have international affiliations, international institutional investors and may hamper the performance of banks listed on international stock markets.
Some of the banks with foreign investors include Diamond Bank, which has the International Finance Corporation (IFC) and Actis as institutional investors. The bank had also issued a Global Depository Receipts (GDR) and had done a private placement in US dollars in the past.
Also, Zenith Bank which issued a GDR last year, is also listed on the London Stock Exchange (LSE).
In the same vein, GTBank which has investment by IFC, had issued both the GDR and Eurobond and is concluding plans to float another $400 million Eurobond. It is also listed on the LSE.
While First Bank and Fidelity Bank have respectively tapped from the Eurobond and GDR markets, Citibank and Ecobank are international banks.
In addition, FCMB also has foreign investor in form of Sabre Capital, while Access Bank has investments from IFC and FMO, the private sector investment arm of the government of Netherlands, and had issued a Eurobond and GDR.
Commenting on the development, the chief executive officer of a leading financial advisory firm, who preferred anonymity, said: “It will make things extremely difficult for Nigerian banks.
Firstly, if you remember in the last five years, Mallam Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN), has been applauded and acknowledged for cleaning the system and so for anybody to come out now to say there is rot in the system, puts a lot of question mark on what the CBN had done.
“Foreign banks that have availing credit to Nigerian banks were doing so on the grounds that the banking system is transparent and properly governed, so the allegation might make some of them to start having a rethink on their relationship with Nigerian banks.”
Continuing, he explained: “For a bank like GTBank that has plans for a roadshow to market its Eurobond, it cannot do so again until this allegation is sorted out. For banks like Zenith, Fidelity, First Bank, Ecobank, Citibank, FCMB, Access and Diamond that have foreign investments in form of Eurobond, GDR and other form of partnership, they will feel the heat, which is not good for the country.
“The situation has the capacity of limiting foreign investment and participation in the Nigerian banking system, especially at a time when government is talking about attracting more foreign investment. So we may start seeing the exit of some of these foreign investors to countries like Ghana or Cote d’ Ivoire if the situation is not properly managed.”
Africa has marked a significant step towards financial independence following the launch of PAPSSCARD, the continent’s first Pan-African card scheme.
Professor Benedict Oramah, president and chairman of the Board of Directors, Afreximbank,
Unveiled on June 27 at the 32nd Afreximbank Annual Meetings in Abuja, Nigeria, the new card represents a major leap in Africa’s efforts to achieve financial sovereignty by building resilient and independent payment systems, easing people travel and boosting trade integration.
PAPSSCARD, a joint-venture between the African Export-Import Bank (Afreximbank), the Pan-African Payment and Settlement System (PAPSS) and Mercury Payment Services (MPS), enables fast, secure, and affordable retail payments across African borders. Currently, most African card payments are routed through global systems causing increased fees and loss of data control. By processing transactions entirely within the continent, PAPSSCARD keeps value, data, and economic benefit in Africa.
Speaking at the launch, Professor Benedict Oramah, president and chairman of the Board of Directors, Afreximbank, highlighted the significance of PAPSSCARD in reclaiming Africa’s financial autonomy.
“For too long, Africa’s reliance on external payment systems has impeded trade, increased costs, and compromised control over our financial data. PAPSSCARD changes that. It empowers us to move money swiftly, securely, and affordably across our borders. It is a transformative step towards strengthening intra-African trade and preserving value within the continent.”
Mike Ogbalu III, CEO of PAPSS, described PAPSSCARD as a major advancement in the continent’s financial architecture, noting that it is “more than just a payment tool, it is a powerful symbol of progress and a bold step towards financial independence.” He added that the card reflects Africa’s ability to create practical, home-grown solutions that align with how the continent trades, lives, and grows.
Muzaffer Khokhar, executive chairman, Mercury, said the launch represents a milestone in Africa’s move toward financial sovereignty.
“We are proud to support a system built by Africa, for Africa. This is about sovereignty, innovation, and building trust in African systems to shape the continent’s financial future. The PAPSS Card will become Africa’s most trusted payments brand, strengthening the backbone of the continent’s financial future.”
John Bosco Sebabi, acting CEO of PAPSSCARD, added that the new payment offering will unlock benefits for a wide range of stakeholders, from corporates and banks to merchants and individuals.
He said that the PAPSSCARD card would “reduce costs for public institutions, support innovation across the financial sector, and expand access to secure, modern payment tools for people and businesses across the continent.”
Commemorative cards were unveiled at the 32nd Afreximbank Annual Meetings to mark the launch of the PAPSSCARD.
This initiative was made possible by strategic partnerships with issuing banks – Bank of Kigali and I&M Bank Rwanda; Rswitch, Rwanda’s national switch – Smart Cash; and Unified Payments, ensuring its seamless acceptance throughout Nigeria.
African central banks and payment systems are set to spearhead the continent-wide adoption and rollout of the new PAPSSCARD.
This initiative will significantly advance Afreximbank’s strategy to promote financial inclusion and boost intra-African trade under the African Continental Free Trade Area (AfCFTA), fostering a more integrated and self-sustaining African economy.
United Bank for Africa (UBA) has announced strategic expansion into more African countries even as it plans to open a new office in Saudi Arabia, marking a significant milestone in its mission to connect Africa with key global markets.
Oliver Alawuba, GMD/CEO, UBA group,
This emerged during the Group’s Half Year Business Review held at its global headquarters in Lagos, where Oliver Alawuba, group managing director/CEO, UBA group, met with senior executives overseeing UBA’s 24-country footprint.
The meeting reaffirmed the bank’s pan-African strategy while outlining bold new steps into global markets.
Alawuba highlighted UBA’s continued growth outside Nigeria, with more than 51.7% of Group revenues now generated from its ex-Nigerian operations.
He described the Saudi expansion as a move that positions UBA to support cross-border trade, attract investment flows, and better serve the African diaspora.
“UBA’s vision is clear—we are building a truly global institution anchored in Africa, but serving customers across continents. Our entry into Saudi Arabia signals confidence in new opportunities and commitment to supporting economic connectivity between Africa and the Middle East,” he said.
The Saudi expansion adds to UBA’s international presence, which currently includes the United Kingdom, United States, France, and the United Arab Emirates. Alawuba also disclosed that the bank is upgrading its operating licence in France to further strengthen its European operations.
“In Europe, UBA has operations in the United Kingdom and is upgrading its licence in France, expanding its capacity to serve cross-border trade, investment flows, and the African diaspora, complementing our over 40-year presence in New York,” Alawuba noted.
Since launching its pan-African journey with an entry into Ghana in 2004, UBA has expanded rapidly across 20 African countries, establishing itself as a leading driver of financial inclusion, innovation, and regional integration.
Ecobank Transnational Incorporated announced its plan to raise up to $250m in Additional Tier 1 capital through a private placement of contingent convertible notes.
In a statement filed on the Nigerian Exchange Limited recently, the capital raise was approved by shareholders at the company’s Extraordinary General Meeting held in Lomé, Togo. The private placement offer was launched on July 9 and will run for ten days.
“Following the approval of the shareholders at its Extraordinary General Meeting held on May 28, 2025, in Lomé, Togo, to raise up to $250m in additional Tier 1 capital qualifying instruments via a private placement of contingent convertible notes, Ecobank Transnational Incorporated announces the launch of the AT1 effective July 9, 2025, for ten days. Renaissance Capital Africa has been appointed as the transaction adviser to ETI.”
The move is an initiative aimed at strengthening Ecobank’s capital adequacy, enhancing financial resilience, and supporting its long-term growth ambitions across its diversified pan-African banking platform.
Additionally, Madibinet Cisse, Ecobank’s Company Secretary, said, “This proposed capital raise represents a critical step in our efforts to fortify the bank’s financial foundation and support sustainable growth across Africa.”
It would be recalled that Ecobank Transnational Incorporated, the parent company of the Ecobank Group, has raised an additional $125m through a Eurobond tap, bringing the total size of its 2029 notes to $525m.
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