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Banking Wisdom, Lagos (2025)

01/09/2025

Here’s a comprehensive list of terms associated with AI adoption in the Nigerian banking industry 👇

🔹 Core AI Technologies

Machine Learning (ML): Algorithms that learn from data to improve decision-making.

Natural Language Processing (NLP): Powers chatbots, voice banking, and text analytics.

Robotic Process Automation (RPA): Automates repetitive back-office banking tasks.

Predictive Analytics: Forecasts customer behavior, credit risk, and fraud.

Computer Vision: Used in biometric verification like facial recognition for KYC.

🔹 Customer Experience & Engagement

Chatbots & Virtual Assistants: AI-driven support for 24/7 customer service.

Voice Banking: Transactions and inquiries using voice recognition.

Personalized Banking: AI tailors financial advice and product offerings.

Sentiment Analysis: Understanding customer feedback from social media and complaints.

🔹 Risk & Compliance

AI-Powered Credit Scoring: Alternative data-driven loan assessment.

Fraud Detection Systems: Real-time monitoring of unusual transactions.

Anti-Money Laundering (AML) AI: Identifying suspicious activities.

RegTech (Regulatory Technology): AI tools for compliance with CBN/NDIC rules.

🔹 Operations & Efficiency

Process Automation: Reduces manual tasks in account opening and reconciliations.

AI in Treasury & Trade Finance: Enhances forecasting and liquidity management.

Smart Document Processing: AI extracts and processes customer data.

ATM & Cash Forecasting: AI predicts demand to reduce shortages/downtime.

🔹 Innovation & Future Trends

Open Banking & APIs: AI enhances interoperability and data-driven services.

AI-Powered Cybersecurity: Protects against phishing and hacking attempts.

AI in Wealth Management (Robo-Advisors): Automated investment advice.

Blockchain + AI: Improves transparency in payments and settlement.

Explainable AI (XAI): Ensures transparency in AI-driven decisions.

31/08/2025

1) Major Capital Market Movements in Banking Stocks

Banking Index: closed 1,528.58, down -1.21% W/W (from 1,547.31). Banks again led sector declines.

Market breadth & activity: Financial Services dominated turnover—2.195 billion shares (≈68.61% of volume) worth ₦42.689 billion across 66,808 deals. Overall market volume was 3.199 billion shares valued at ₦85.399 billion.

Notable tickers in flow: Heavy trades included FCMB Group and Access Holdings among the top three by volume for the week, alongside Champion Breweries. Media recaps also flagged sell-offs across Ecobank, Access, Zenith, FCMB, and Wema—consistent with the Banking Index slide.

Market posture: The broad market fell -0.50% W/W (ASI 140,295.50; market cap ₦88.769 trn).

2) Public Announcements (CBN, NDIC, others)

NDIC updates:

Notice to beneficiaries/allottees of housing estates formerly acquired by AHOCOL Savings & Loans (in-liquidation) (Aug 26).

Ongoing communications tied to Heritage Bank (in-liquidation) asset disposals and depositor guidance.

NGX listings & actions (FYI to banks/investors): Routine capital-market notices, including a new Coronation Infrastructure Fund listing and an Industrial & Medical Gases rights issue opened Aug 22 (not bank issuers but relevant to market liquidity/flows).

3) Industry News (Nigeria & diaspora; including social media)

Equities wrap: Third straight weekly loss for the market; sector tables show banks led declines. Media tallies align with NGX data.

Open Banking status: With the August go-live target communicated earlier in the year, coverage this week highlighted implementation lag concerns and timelines. Expect renewed guidance from CBN/industry as adoption phases proceed.

Market chatter (social): NGX shared top ten brokers performance for the week; finance channels posted Friday wrap videos summarizing the 29 Aug close—sentiment skewed cautious for banks.

4) Regulations & Insider Information

Regulatory forbearance guardrails (still active): CBN’s June directive for banks under forbearance—no dividends, no director/senior-staff bonuses, and no new offshore investments—remains in force and continues to shape capital planning and payout expectations. Follow-ups included calls for capital-restoration plans.

FX market communication: CBN’s August 2025 FAQ on FX forwards outlined rationale and processes around outstanding contracts and audits—useful context for treasury desks.

Open Banking framework: Prior CBN operational guidelines (2023) underpin the current industry push; watch for registry/participant updates as rollout milestones are clarified.

5) Opinions (notable analysis & commentary)

Dividend-ban implications: Editorials/analyst notes argue the ban improves capital buffers but can weigh on bank valuations and investor sentiment near-term—one driver of sector under-performance in recent weeks.

Policy perspective: Legal/market analyses view Open Banking as a structural positive for competition and inclusion once ex*****on catches up; near-term transition risks (data-sharing readiness, APIs, consent flows) remain focal points.

NGX Banking Index: -1.21% W/W (1,547.31 → 1,528.58).

Financial Services activity: 2.195 bn shares, ₦42.689 bn, 66,808 deals.

Market: ASI 140,295.50 (-0.50% W/W); Market Cap ₦88.769 trn.

28/08/2025

Banking Wisdom: Question of the Day ❓

Should You Have More Than One Bank Account?

Yes—and here’s why.
Having more than one bank account can help you better manage your finances, improve your financial discipline, and reduce risks. However, it should be done with purpose.

Benefits of Having Multiple Bank Accounts:

1. Budgeting and Organization
Separate accounts for spending, savings, and business can help you track money more easily and avoid accidental overspending.

2. Emergency Access
If one bank experiences downtime or technical issues, having a second account gives you backup access to your funds.

3. Maximize Account Features
Different banks offer unique benefits—such as higher interest rates, better digital banking, or lower fees. You can take advantage of the best each one offers.

4. Improved Financial Discipline
Keeping savings in a separate account—especially one without ATM access—can reduce the temptation to spend impulsively.

Cautions:
Too many accounts can become hard to manage.

Be aware of minimum balance requirements and maintenance fees that may apply.

Use accounts with strong digital platforms and good customer service for easy access.

Bottom Line?
Yes, you can—and often should—have more than one bank account.
Just be intentional, stay organized, and avoid unnecessary fees.

26/08/2025

📌 Key Terms in Mutual Fund Investments (Including Non-Interest-Based Funds)

1. General Mutual Fund Terms

Mutual Fund – A pooled investment managed by professionals to invest in stocks, bonds, or other assets.

Fund Manager – A professional or company responsible for managing mutual fund investments.

Net Asset Value (NAV) – The price of one unit of a mutual fund, calculated as (Total Assets - Liabilities) ÷ Total Units.

Expense Ratio – The annual cost of managing a fund, deducted from investors' returns.

Load vs. No-Load Fund – Load funds charge a fee at purchase or sale, while no-load funds don’t.

2. Types of Mutual Funds

Equity Fund – A mutual fund that primarily invests in stocks for long-term growth.

Fixed Income Fund (Bond Fund) – A fund that invests in government and corporate bonds for stable returns.

Money Market Fund – A low-risk mutual fund that invests in short-term instruments like treasury bills.

Balanced Fund (Hybrid Fund) – A mix of stocks and bonds to balance risk and returns.

Index Fund – A fund that mimics the performance of a stock market index (e.g., NGX30, S&P 500).

Target Date Fund – A mutual fund designed for long-term goals like retirement, adjusting asset allocation over time.

3. Non-Interest-Based Mutual Funds (Islamic/ Ethical Investing)

Shariah-Compliant Fund – A mutual fund that avoids interest-based investments and follows Islamic finance principles.

Halal Investment – Investments that comply with Islamic law, avoiding businesses like alcohol, gambling, and riba (interest).

Sukuk (Islamic Bonds) – Interest-free bonds used in Shariah-compliant mutual funds.

Ethical/ESG Fund – A fund that invests in socially responsible and environmentally friendly businesses.

Profit-Sharing (Mudarabah) – A non-interest investment model where profits are shared based on agreement.

4. Performance & Risk Metrics

Return on Investment (ROI) – The profit earned from a mutual fund investment.

Annualized Return – The average yearly return of a mutual fund over time.

Volatility – The measure of how much a fund's value fluctuates over time.

Beta – A measure of a fund’s risk compared to the overall market.

Sharpe Ratio – A formula that compares a fund’s return to its risk level.

5. Buying & Selling Mutual Fund Units

Systematic Investment Plan (SIP) – Investing a fixed amount regularly instead of a lump sum.

Redemption – Selling mutual fund units to withdraw money.

Dividend Payout vs. Dividend Reinvestment – Choosing to receive dividends as cash or reinvest them in the fund.

Exit Load – A fee charged when withdrawing funds before a set period.

Lock-In Period – A time restriction before an investor can sell mutual fund units.

💡 Pro Tip for Investors

"Always review a mutual fund’s past performance, risk level, and expense ratio before investing!"

24/08/2025

1. Major Capital Market Movements in Banking Stocks

The Nigerian banking sector experienced mixed movements in the capital market during the week of August 18-24, 2025.

The NGX All-Share Index (ASI) closed at 141,004 points on August 22, marking a 0.48% gain from the previous session, driven partly by investor interest in banking stocks amid ongoing recapitalization efforts.

Overall, the NGX lost 0.77% for the week, but banking stocks showed resilience with smart money rotating into defensive plays.

Key highlights include:
Banking stocks contributed to a 6.96% sector increase in Q1 2025, fueled by the CBN-led recapitalization, with ten NGX-listed banks raising ₦2.04 trillion in H1 2025 through public offers and rights issues.

Total capital raised since 2024 stands at ₦2.5 trillion across 16 banks, though only eight have met the new thresholds as of July 31.

Notable stock performances: GTCO shares declined to ₦97 per share as of August 18, amid positioning for interim dividends.

UBA Plc approved its 2025 half-year results on August 14, potentially paving the way for dividends if CBN approves.

Zenith Bank and United Capital issued announcements on directors' dealings and other updates.

Market-wide: Transactions hit a record ₦2.7 trillion in the first four months of 2025, with market capitalization up 21.04% in H1 compared to December 2024, supported by new listings and equity issues.

The Naira weakened 31bps to ₦1,534.80/USD on August 18.

Banks are projected to attract an additional ₦900 billion by year-end to meet CBN requirements, with domestic investors leading the charge.

2. Public Announcements
Several key announcements emerged from Nigerian financial institutions and regulators during the week:

Central Bank of Nigeria (CBN): Governor Olayemi Cardoso held strategic meetings on economic matters, including with the Bank of England on August 20.

The CBN reiterated its open banking policy, set to commence operations in August 2025, mandating banks to share customer data with other institutions. It also released FAQs on settling undelivered forward contracts and directed banks to submit capital restoration plans.

Nigeria Deposit Insurance Corporation (NDIC): Announced the disposal of landed properties and assets from Heritage Bank in liquidation, with bids due by August 11.

New NDIC management, inaugurated in July, pledged effective service delivery.

Banks and Others: Tier-1 banks like UBA, GTCO, and others signaled potential interim dividends pending CBN approval.

Zenith Bank and United Capital disclosed directors' dealings on August 19.

Jaiz Bank signed a brand ambassador on August 22.

3. Industry News
The Nigerian banking sector featured prominently in global and local news, with a focus on recapitalization, digital shifts, and challenges:

Recapitalization accelerated, with banks raising ₦800 billion from January to July 2025, and an additional ₦900 billion expected by year-end to comply with CBN thresholds (e.g., ₦500 billion for international banks).

Fee and commission income for five deposit money banks rose 38.62% (₦68.42 billion) on August 18.

Agusto & Co affirmed a stable outlook for Nigerian banks but anticipated declining profitability and rising non-performing loans to 6.9% by year-end.

FX reserves hit $41 billion, a 44-month high.

Digital transformation: Emphasis on open banking rollout in August, positioning Nigeria as Africa's first adopter.

Sterling Financial Holdings reported 157% profit growth in H1 2025 innovations included evolving customer expectations.

Social media buzz: X posts highlighted frustrations with banks' high interest rates (up to 150% annually for loans), risk aversion, and poor service, with fintechs like Moniepoint and Opay gaining traction among SMEs.

NIBSS network downtime affected transfers.

Positive notes included Jaiz Bank's rebranding.

Global context: PepsiCo's $20 million investment in Lagos boosts food security and positions Nigeria as a hub.

4. Regulations and Insider Information
Regulatory updates from the CBN and others focused on strengthening the sector:

CBN Policies: Open banking guidelines require tiered KYC (BVN/NIN for accounts), effective August 2025.

From January 8, 2025, no extensions for repatriating export proceeds

Monetary policy guidelines for 2024/2025 unify exchange rates and maintain liquidity ratio at 30%.

Recapitalization (2024-2026) sets new minima, with implications for resilience but risks like dilution.

FCCPC and Others: New 2025 regulations mandate re-registration for digital lenders and compliance for POS agents.

Crypto recognized as securities under SEC, with strict banking restrictions.

5. Opinions
Industry leaders and experts shared insights on Nigeria's banking landscape:

Financial expert Idi Aja advised investing in high-interest options amid 27.5% rates and 22.22% inflation, highlighting opportunities in stocks.

Tilewa Adebajo discussed balancing stabilization and growth.

20/08/2025

💭 Which One Hurts More When You Need Money Urgently?

We’ve all been there—an unexpected expense pops up, and you rush to the ATM or banking app. Then reality hits: either a service charge quietly eats into your balance or a withdrawal limit stops you from accessing all the cash you need at once.

Service charges feel like little cuts—₦100 here, ₦500 there—but when added up, they reduce what’s left in your account. On the other hand, withdrawal limits can be frustrating when you urgently need a big amount, but the bank only lets you take a portion.

Both sting in different ways. One is the silent deduction you don’t notice until your balance drops, while the other is the roadblock that delays your plans.

So, let’s settle this once and for all 👇
Which hurts you more when you’re pressed for cash: Service charges or withdrawal limits?

Drop your answer in the comments—let’s see what Nigerians really think!

19/08/2025

Why Are Banks Now Required to Report Customers With Monthly Turnover Above ₦5 Million?

The Federal Inland Revenue Service (FIRS) now Nigeria Revenue Service (NRS)recently directed Nigerian banks to flag and report accounts with a monthly turnover of ₦5 million or more. But why is this happening?

Here’s what you need to know:

1. To Curb Tax Evasion
The primary reason is to track income sources and ensure that eligible individuals and businesses are paying their fair share of taxes. Many people operate informally or underreport earnings—this measure helps the government close those gaps.

2. Improved Revenue Collection
With Nigeria’s push to diversify its income away from oil, tax revenue has become a critical source of national funding. Monitoring high-turnover accounts ensures high earners are captured in the tax net.

3. It’s About Turnover, Not Account Balance
This isn’t about how much you have saved, but how much money flows into your account in a month. So if multiple credits total above ₦5 million—even temporarily—you may fall into this reporting bracket.

4. It's a Reporting Requirement, Not a Tax
Contrary to popular belief, this doesn’t automatically mean you’ll pay more tax. It simply allows the tax authorities to cross-check your financial activity with your tax declarations.

5. Who Should Be Concerned?
If you run a business, receive large transfers, or move funds between accounts, ensure your tax records are in order.
✅ Register your business
✅ File accurate returns
✅ Avoid suspicious or unexplained inflows

✅ What You Should Do:
- Keep proper records of your income
- Ensure your business is registered with CAC & FIRS

Don’t panic—just stay transparent and compliant

📢 Final Word:

This policy is part of Nigeria’s effort to build a stronger, fairer tax system. If your income is legitimate and your taxes are in order, you have nothing to fear.

18/08/2025

20 Terms Associated with Sukuk Fund (Islamic Bonds)

1. Sukuk – Islamic equivalent of bonds. Instead of earning interest (which is prohibited), investors earn profits from an underlying asset or project.

2. Shariah Compliance – All Sukuk funds must follow Islamic principles, avoiding interest (riba), gambling (maysir), and uncertainty (gharar).

3. Riba (Interest) – Any guaranteed interest on loans is forbidden in Islamic finance. Sukuk structures avoid this by using profit-sharing models.

4. Mudarabah – A partnership where one party provides capital and the other manages the investment. Profits are shared per agreement; losses are borne by the capital provider.

5. Murabaha – A cost-plus-profit arrangement. The seller discloses the cost and adds a known profit margin.

6. Ijara – Lease-based Sukuk where the investor earns rental income from assets leased to a third party.

7. Musharakah – A joint venture where all partners contribute capital and share profits and losses.

8. Istisna – A contract for manufacturing or construction, where payments are made as the project progresses.

9. Underlying Assets – Real assets (like buildings, roads, or equipment) back the Sukuk, ensuring it represents ownership and not debt.

10. Profit Rate – The return investors receive, which replaces the concept of an interest rate.

11. Takaful – Islamic insurance often tied to Sukuk investments, ensuring mutual protection without gambling elements.

12. SPV (Special Purpose Vehicle) – An entity created to manage Sukuk transactions, hold assets, and distribute profits to investors.

13. Asset-Backed Security – Since Sukuk are tied to real assets, investors have a claim on the asset and its profit, not on debt repayment.

14. Tenor – The duration of the Sukuk investment, which could be short-term (e.g., 1 year) or long-term (e.g., 5–10 years).

15. Sukuk Al-Ijara – One of the most common Sukuk types, based on leasing income from tangible assets.

16. Capital Preservation – Islamic investments aim to protect the investor’s original capital while earning halal returns.

17. Halal Returns – Profits earned through permissible business activities and asset-backed ventures.

18. Securities and Exchange Commission (SEC) Nigeria – Regulates Sukuk issuance in Nigeria to ensure transparency and investor protection.

19. FGN Sukuk – Sukuk issued by the Federal Government of Nigeria to fund infrastructure projects like roads and bridges.

20. Sukuk Fund NAV (Net Asset Value) – Reflects the value of assets in the Sukuk fund per unit held by investors.

17/08/2025

Weekly Report on the Nigerian Banking Industry: Week Ending August 15, 2025

PowerPoint Presentation: Nigerian Banking Industry Weekly Update (August 15, 2025)

Highlights:
- NGX Banking Index dips 0.23%; profit-taking hits
- CBN pushes NCGC, AI fraud detection
- Naira steady at ~N1,530/USD; MPR at 27.50%
- NCGC disburses N450B to MSMEs

Capital Market Buzz
Stock Trends:
- NGX Banking Index 🚭😉 0.23%; ASI at 144,628.20 (-0.77%)
- Zenith (-0.5%), GTCO (-0.3%) face sell-offs

Driver:
- Profit-taking after recapitalization rally

Developments:
- FMDQ approves N40B in commercial papers
- GCR: Banks stable, but inflation risks linger
- Tier-2 banks advance merger talks

Public Announcements
CBN Updates:
- NCGC boosts MSME loans by N450B
- Cardoso: AI fraud detection saves N600B yearly

CBN Clarifies:
- No new banknotes; digital payments prioritized
- NDIC:
- Ups depositor insurance to N3M for mergers

Industry Sparks
Bank Moves:
- Zenith rolls out AI-driven fraud alert system
- GTCO’s digital wallet adds 1.5M users

Fraud Fight:
- N100B invested in AI, biometrics vs. fraud

Economic Context:
- NCGC supports 2.5M MSMEs with credit guarantees
- Inflation eases to 21.88% in July

FG Plan:
- NCGC targets 4M MSMEs by Q4 2025

Regulations & Insider Scoop
CBN Rules:
- Bans foreign currency collaterals for naira loans
- BDC FX cap at $25,000/week enforced

Insider Tip:
- Banks boost AI loans, digital fees to offset taxes

Expert Takes
- Olayemi Cardoso (CBN): “NCGC, AI drive MSME growth, stability.”
- Tajudeen Olayinka (Stockbroker): “Profit-taking temporary; mergers to spark rally.”
- Moody’s: B3 rating supports banking sector growth
- GCR Ratings: Inflation, taxes challenge bank margins

Naira Watch
USD/NGN:
- BDC rate: ~N1,530/USD (indicative, up 0.32%)
- Official: ~N1,530 (Aug 15, up N4.90)

Week-on-Week:
- Up vs. ~N1,525 (Aug 8)

Drivers:
- Foreign reserves hit $40.72B (Aug 15)
- Oil price dips, 21.88% inflation pressure naira
Outlook:
- Current account surplus to 9.4% of GDP by 2026

, ,

13/08/2025

If a Nigerian bank debits you twice for a single transaction, here are 7 steps you can take to resolve the issue efficiently:

1. Gather Evidence of the Transaction:
Collect all relevant details, including transaction ID, date, time, amount, and any receipts or notifications (e.g., SMS alerts, email confirmations, or POS/ATM slips).

Take screenshots of your bank app or statement showing the double debit.
Note any error messages received during the transaction.

2. Contact Your Bank Immediately:
Report the issue through your bank’s official channels: customer service hotline, email, or by visiting a branch.

Provide all transaction details and request a formal acknowledgment of your complaint. Banks are required by the Central Bank of Nigeria (CBN) to resolve such issues within 24 hours for "On-Us" transactions (using your bank’s ATM/POS) or 48 hours for "Not-on-Us" transactions (using another bank’s ATM/POS).

Keep a record of all communications, including dates, times, and names of bank staff you interact with.

3. Follow Up with a Formal Complaint:
If the issue isn’t resolved within the stipulated timeframe, submit a written complaint to your bank. Use a professional tone and include:
A clear subject line (e.g., "Urgent: Double Debit Transaction Reversal Request").
Transaction details (amount, date, time, transaction ID).

Copies of receipts or screenshots as evidence.
A request for prompt resolution.

4. Escalate to Regulatory Authorities:
If the bank fails to resolve the issue within 24–48 hours, escalate to the Central Bank of Nigeria’s Consumer Protection Department:
Email: [email protected]

Include all transaction details, evidence, and prior communications with the bank.
You can also copy the Federal Competition and Consumer Protection Commission (FCCPC) at [email protected] for additional pressure.

The CBN mandates that banks resolve disputes within two weeks, and escalation often speeds up the process.

5. Leverage Social Media (As a Last Resort):
If the bank remains unresponsive, consider posting about the issue on social media platforms like X, tagging the bank’s official handle. Be factual and avoid defamatory statements. Many banks monitor their social media and may respond faster to public complaints.

6. Monitor and Follow Up:
Keep a log of all interactions with the bank and regulatory bodies (dates, times, summaries).
Follow up regularly via phone or email to ensure your complaint remains active.

Persistence is key, as some cases may take longer due to technical issues or bank delays.

7. Prevent Future Issues:
Always double-check transaction details (e.g., account numbers, amounts) before confirming.

Use your bank’s mobile app for real-time transaction monitoring, as it’s more reliable than USSD codes.

Ensure a stable internet connection during transactions to avoid glitches.

8. Additional Notes:
The CBN’s guidelines state that double debits (a type of failed transaction) should be reversed instantly or within 24 hours for technical issues. If delays persist, it could indicate system glitches or, in rare cases, fraudulent activity, so act quickly.

If the double debit involves a non-existent account, the funds should be refunded automatically without further action.

Be cautious of sharing sensitive details like your PIN or BVN with anyone except your bank’s official channels.

If the issue persists beyond two weeks, consider consulting a lawyer for advice on further legal action, though the CBN’s non-judicial dispute resolution process is designed to avoid this. By acting promptly, documenting everything, and escalating when necessary, you can increase the chances of a swift resolution.

Banking Wisdom

01/09/2025

31/08/2025

28/08/2025

26/08/2025

24/08/2025

20/08/2025

19/08/2025

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17/08/2025

13/08/2025

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