Quest Merchant Bank Limited has strengthened its market position following GCR Ratings’ affirmation of the Bank’s national scale issuer ratings of BBB(NG) and A3(NG), alongside an outlook revision to Stable from Rating Watch Negative.

The ratings action marks a significant milestone for Quest Merchant Bank following a transformative period for the institution, reflecting renewed confidence in the Bank’s financial strength, market positioning, liquidity profile and future growth trajectory.

According to GCR, the revised Stable Outlook is anchored on Quest Merchant Bank’s sound risk profile, improved capitalization and strong liquidity, alongside the successful transition of the Bank’s ownership structure following its acquisition by EverQuest LLP after the divestment by FBN Holdings.

The rating agency also highlighted the Bank’s strong presence within Nigeria’s merchant banking sector, where Quest Merchant Bank accounted for c.30% of the sub-sector’s total assets as of 31 December 2025, reinforcing its position as one of the country’s leading merchant banking institutions.

Further strengthening the Bank’s outlook was the successful completion of its ₦42.9 billion capital raise in March 2026 in line with the Central Bank of Nigeria’s revised minimum capital requirements. GCR noted that the capital injection is expected to further enhance the Bank’s capital adequacy position and support the next phase of business growth.

Quest Merchant Bank’s asset quality and liquidity profile also remained key strengths underpinning the ratings affirmation. The Bank maintained a NPL ratio of 3.2%, significantly below the broader banking industry average, while continuing to sustain strong liquidity metrics and resilient earnings performance.

GCR additionally recognised the strategic value of the Bank’s relationship with Custodian Investment Plc, noting the potential for expanded business opportunities, operational synergies and stronger profitability over time.

Commenting on the development, Afolabi Olorode, Ag. Managing Director/CEO, Quest Merchant Bank Limited, said: “This outlook revision is a strong signal of confidence in the future of Quest Merchant Bank and the progress we have made in strengthening our organization over the last year.

“Beyond the ratings action itself, this recognition reflects the resilience of our business, the quality of our balance sheet, and the confidence our clients, partners and stakeholders continue to place in the Bank.

“We have emerged from a defining transition period stronger, well-capitalized and better positioned to capture the opportunities ahead. We remain committed to delivering innovative solutions, creating long-term value and supporting economic growth across the sectors we serve.”

The Stable Outlook reflects GCR’s expectation that Quest Merchant Bank will continue to maintain sound asset quality, stable funding and strong liquidity metrics over the next 12 to 18 months, further reinforcing confidence in the Bank’s long-term strategic direction and operating fundamentals.

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has cautioned against renewed pressure on the apex bank to return to intervention programmes previously implemented by the institution.

CBN

Cardoso said such programmes distorted the bank’s financial position and weakened the effectiveness of monetary policy.

He spoke on Thursday during the opening session of the Monetary Policy Committee (MPC) workshop in Abuja, where participants discussed strategies for strengthening monetary policy effectiveness and achieving sustainable macroeconomic stability.

According to a statement issued by the CBN on Sunday, Cardoso said the credibility gradually being restored to the apex bank over the past two and a half years was due largely to its return to orthodox monetary policy tools anchored on transparency, discipline and market confidence.

“The credibility we are now rebuilding and the progress achieved over the last two and a half years stem largely from returning to orthodox monetary policy anchored on transparency, policy discipline and market confidence,” he said.

The CBN governor noted that intervention programmes implemented in the past weakened policy transmission mechanisms and blurred the line between fiscal and monetary responsibilities.

He stressed that the apex bank would continue to prioritise transparency, evidence-based policy decisions and institutional reforms aimed at sustaining macroeconomic stability.

Cardoso said the bank had recorded progress in strengthening internal processes and improving policy coordination, adding that decision-making within the institution was increasingly guided by data analysis, technical evaluations and structured deliberations.

He also said the apex bank had improved communication with investors, businesses, financial markets and the public to make monetary policy direction more predictable and easier to understand.

According to him, the reforms are part of the bank’s medium-term transition towards a clearer inflation-targeting framework focused on price stability.

“These efforts are part of our medium-term transition towards a clearer inflation-targeting framework that places price stability at the centre of monetary policy,” he said.

Cardoso said the transition would require deeper institutional reforms, stronger collaboration among economic institutions and sustained technical work.

Reflecting on the challenges inherited by the current management, he said the CBN faced serious institutional and policy difficulties at the beginning of the administration.

According to him, the bank’s autonomy had weakened, confidence in monetary policy had declined and there was excessive dependence on non-conventional monetary tools.

He described the foreign exchange market at the time as opaque and inefficient, while weak coordination between fiscal and monetary authorities reduced the effectiveness of economic policies.

“These structural issues contributed to rising inflation, exchange-rate instability and declining investor confidence,” he said.

Despite the challenges, Cardoso said reforms introduced by the current management had started yielding positive results.

He said the CBN had restored a more orthodox monetary policy framework under the current MPC structure, relying more on traditional policy tools and the Monetary Policy Rate to control inflation and manage economic expectations.

The governor added that improvements in liquidity management, policy communication and forward guidance had strengthened transparency and boosted investor confidence.

While acknowledging that inflation remained elevated, he said there were early signs of moderation.

Cardoso also noted that reforms in the foreign exchange market had improved price discovery and reduced volatility, while stronger policy coordination had enhanced Nigeria’s resilience to external shocks, including geopolitical tensions in the Middle East.

Nigeria Inter-Bank Settlement System Plc (NIBSS) has sued 19 commercial and microfinance banks,  over N13.66 billion allegedly lost to unauthorized transfers following a major glitch on its payment platform.

In a suit filed before a Federal High Court in Lagos, NIBSS is asking for urgent orders to freeze all accounts that received the disputed funds.

NIBSS wants the court to compel the 19 banks to immediately place Post No Debit (PND) restrictions on the affected customer accounts to prevent further dissipation of the money.

The banks listed as respondents are Access Bank Plc, Ecobank Nigeria Limited, FairMoney Microfinance Bank, First City Monument Bank Ltd, Fidelity Bank Plc, Globus Bank, Guaranty Trust Bank, Kuda Microfinance Bank, Lotus Bank Limited, Moniepoint Microfinance Bank, Parallex Bank, Polaris Bank Limited, Providus Bank Limited, Sterling Bank Ltd, TAJ Bank, Titan Trust Bank, United Bank for Africa Plc, Wema Bank Plc and Zenith Bank Plc.

NIBSS is also seeking orders directing the banks to place liens on all accounts linked to the Bank Verification Numbers (BVNs) of the beneficiaries, place the BVNs on a watchlist pending full recovery of the funds, and reverse all sums allegedly traced to the beneficiaries.

In an affidavit filed in support of the application, NIBSS stated that it experienced a system glitch on September 6, 2024, affecting its Nigeria Instant Payment (NIP) engine and allegedly enabling unauthorized transfers into accounts maintained with the respondent banks.

According to the company, the glitches resulted in an “unexpected behaviour” that allowed customers of the respondent banks to receive transfers without corresponding debit instructions from originating accounts, a situation described in banking operations as “Dry Posting.”

The unauthorized transactions allegedly occurred between September 6 and September 9, 2024, largely during weekend transactions, court document said.

NIBSS alleged that the transfers were routed into 176 accounts domiciled with the respondent banks.

“The financial exposure of the Applicant from this incident is in the sum of N13, 662, 138, 920. 00, billion” the affidavit stated.

NIBSS Plc further informed the court that upon discovering the transactions, it immediately contacted the banks and requested them to place PND restrictions on the affected accounts where the funds had allegedly been traced.

But, NIBSS claimed that the banks insisted on obtaining a court order before restricting the accounts of the affected customers.

It argued that unless the accounts are immediately restricted, there is a risk that the funds may be dissipated, thereby frustrating efforts to recover the allegedly unauthorized transfers.