E-Financial
Nigerian Banks in Trouble, Plan Mass Sack of Workers
Nigeria’s banking sector is currently witnessing a shockwave, following economic decline caused by reduced oil revenue, according to Daily Sun investigations.
As a result, fear of massive sack of workers has gripped the sector as an estimated $25billion (about N4.95 trillion) in foreign portfolio investments have been lost over the last few months, following rising political tension across the country, ahead of the March 28 and April 11 general elections.
Daily Sun also reported that about four banks are currently having liquidity problem, worsened by the oil sector crisis.
Investigations revealed that banks are no longer financing importation of petroleum products following non-payment of subsidy to major marketers by the Federal Government and the risks involved.
In the past, banks extended credits to major oil marketers to import fuel. But following the marketers’ inability to pay earlier credits, caused by the Federal Government’s non-payment of the subsidy, banks are now unable to meet the demand.
This is partly the cause of the current fuel scarcity being experienced across the country.
The stoppage of fuel importation financing, some bank chief executives revealed, followed a directive by the Central Bank of Nigeria (CBN) last December to scale down their level of exposure to oil companies, to reduce the challenges of meeting the huge funding demand of the sector.
The CBN’s directive, it was learnt, stemmed from the result of an earlier risk-based supervision exercise carried out by the apex bank, which revealed a huge financial exposure of the banks to the oil and gas sector.
The apex bank was said to be concerned about some risk management deficiencies, and wanted to take necessary steps to ensure that banks have sufficient capital buffers to mitigate escalating risk-taking activities.
Apart from this, the new exchange rate regime announced by the CBN has also affected banks. The CBN closed the retail Dutch Auction System/Wholesale Dutch Auction System (rDAS/wDAS) segment of the foreign exchange market.
With the closure and the pegging of an exchange rate at N198 per dollar, the apex bank stopped naira speculation, as commercial banks were banned from re-selling CBN dollars to other banks.
Under this measure, CBN scrapped its window of direct sale of foreign exchange to end-users, and directed that all foreign exchange needs should be sourced from the interbank market, with rates ranging from N197 to N198 per dollar. With this, the previous gains commercial banks had made from forex trading were stopped.
From the public sector to the real sector of the economy, the stench of economy decline is being felt by all stakeholders, hence, the call on government to further tighten the loose ends to ensure it does not get worse than it is now before the end of the current administration.
With most state governments currently unable to pay workers’ salaries due to declining statutory allocations from the Federation Account, while Naira’s declining exchange value and other financial aggregates are forcing banks to recall facilities given to the real sector, stakeholders are becoming rather apprehensive that the impressive economic gains are speedily being eroded.
Daily Sun also learnt that in the face of the political uncertainties surrounding the impending general elections, an estimated $25billion (about N4.95trillion) investments held by foreign portfolio investors may have left the country over the last few months.
Sources revealed that the foreign investors decided to withdraw their money to watch political development, unsure of what would happen over the general elections.
A bank chief executive, who spoke to Daily Sun on condition of anonymity, however, expressed optimism that despite the loss of such huge portfolios, especially in the capital market, the economy remains strong and resilient.
According to him, these developments are expected, particularly, as successive governments failed to prepare the country for some of the current emergencies, but left it to continue running on one engine, which is crude oil.
The bank chief was convinced that the said foreign portfolios would return as soon as the elections are concluded peacefully, stressing that Nigerian economy offers more returns than other emerging markets.
He said the economy has been growing at the rate of over five per cent, which is higher than the rate of growth in most emerging markets.
Petroleum products marketing companies had heaped the blame of fuel scarcity on the CBN, insisting that the recent devaluation of the Naira was responsible for the crisis in the oil industry, resulting in unavailability of fuel.
Mr. Obafemi Olawore, executive secretary of the Major Oil Marketers Association of Nigeria (MOMAN), said the high exchange rate resulted in the high cost of both petrol and diesel.
“The unfortunate situation in which we find ourselves is that as the price of crude oil and the international price of diesel were dropping, we devalued the Naira. For example, for Premium Motor Spirit (petrol), the exchange rate for bringing products before the devaluation was N171.36 per dollar. At that rate, the landing cost of PMS was N90.67 per litre. There was a time the exchange rate rose to N188, that is N188 was the interbank rate, while the CBN gave us N171.36. But when it went to N188, the landing cost of PMS rose from N90.67 to N98.36. As at today when the exchange rate has gone to N199 (there is no window again), the landing cost rose to N103.45. So, you see that the main factor here is the exchange rate.”
According to marketers, the CBN’s action prompted them to take precautionary measures by relying on imported products from the Pipeline Products Marketing Company (PPMC). Though the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has given the marketers a concrete assurance that the N264 billion outstanding claims would be paid between now and March 31, the marketers are contending with the huge outstanding receivables due and payable to them by the Federal Government.
When people and businesses gain genuine access to financial services, they gain the ability to transact securely, build savings, and access credit. That access creates the conditions for progress: more stable revenues, better business decisions, and the capacity to grow. Progress, sustained over time, is what produces financial happiness. This framework is how Moniepoint measures its impact.
According to Moniepoint 2025 Impact Report, titled creating financial happiness; “Financial happiness is the feeling of confidence and ease that comes with financial freedom and well-being. It is a condition that develops over time and requires a specific set of enablers to take hold.
For millions of people and businesses across Nigeria, those enablers, like tools and solutions to manage their finances, have historically been out of reach. Moniepoint was built to change that, and this change, for us, begins with inclusion”.
Across the world, access to digital tools is a key driver of financial inclusion. The World Bank’s Global Findex 2025 report finds that more than 60% of adults in low- and middle income economies now make or receive digital payments. In Nigeria, this figure is around 54%. Moniepoint has been a key driver in expanding this access with its POS terminals. “Our terminals also drive financial inclusion for individuals.
The report stated that, in 2025, Moniepoint enabled 100 million people to make payments via their POS terminals across the country. For customers in communities where bank branches are scarce or non-existent, a Moniepoint terminal at their local shop, market stall, or fuel station provides reliable access to digital financial services.
They can make purchases, withdraw cash, and manage their money without travelling long distances or depending solely on physical currency. Critically, customers without cards can complete transactions through direct bank transfers to the terminal’s account.
Beyond practical benefits, Moniepoint terminals have also introduced a new layer of trust to everyday commerce. “When network issues make it unclear if a payment went through, the Moniepoint terminal’s loud beep provides instant confirmation for everyone, building trust in digital payments with every transaction”.
Moniepoint POS terminals operate across all 774 local governments in Nigeria, ensuring that small sellers and large stores can accept payments reliably, regardless of location.
In 2025, millions of Nigerians, businesses and individuals alike, accessed Moniepoint services through its mobile app. Top among them are groups like women and low-income earners, who have historically been excluded from formal banking. Inclusion of women is particularly important, as they typically manage household spending and informal savings but are frequently left out of structured financial systems. “Through our app, they are gaining financial independence and greater control over their economic decisions,” the report added.
For millions of Nigerians, debit cards represent a move away from the limits of cash transactions. They enable safer, more reliable everyday payments, particularly as more local businesses begin to accept digital payments.
Moniepoint debit cards are designed to meet this need. In 2025, Moniepoint customers completed over 300 million card transactions at physical locations, largely driven by essential, food-related purchases. Most of this spending took place at neighbourhood provision shops where households buy everyday items such as rice, cooking oil, and soap.
“We’ve made access to our cards intentionally simple. Customers can get a Moniepoint debit card by requesting it within their mobile app or from neighbourhood agents, without lengthy paperwork or waiting periods. By lowering these barriers, more people are able to access financial tools and participate in the formal financial system.
“Our cards also safeguard our customers’ financial information. They don’t carry special markings or any identifiers that could expose our customers or put their financial security at risk. In the event of loss, this reduces the likelihood of targeted fraud or misuse.
“When people can pay with their debit cards at their neighbourhood stores, they can manage their spending, reduce cash handling, and transact more securely. Merchants also benefit, recording higher transaction volumes and more consistent customer activity.
“Moniepoint helps millions of businesses and individuals across Nigeria access seamless payments and banking, every day. The widespread adoption of our tools and services, as highlighted, demonstrates our critical role in expanding financial access, supporting everyday commerce, and enabling more Nigerians to participate safely and consistently in the digital economy,” the report noted.
ChatPay has launched Africa’s conversational banking platform, enabling individuals and businesses to access financial services through WhatsApp.
The Lagos-based fintech startup, is in controlled rollout, connecting WhatsApp to linked-bank management, airtime and supported electricity payments through simple conversations.
The company said the platform is designed to enable users to send money, pay bills, buy airtime and manage business transactions within WhatsApp conversations, subject to the completion of regulatory approvals and integration with licensed banking partners.
According to ChatPay, the platform is operated by CP Technology Limited and is currently undergoing a phased rollout ahead of its planned public launch.
The company said the initiative is intended to simplify access to financial services by leveraging WhatsApp, which it estimates is used by more than 50 million Nigerians monthly.
Speaking on the idea behind the platform, Adeoluwasubomi Odebunmi, product lead and co-founder, said the concept emerged while she was studying Software Engineering at Babcock University.
“I saw the gap while I was still in school—how much friction there was just to move money. I didn’t want to just study the problem. I wanted to help fix it,” she said.
Odebunmi said she had previously worked on software solutions spanning e-commerce, real estate management, school administration and artificial intelligence applications before co-founding ChatPay.
Aseoluwa Siyanbola, growth lead and co-founder, said his experience managing Nigerian bank accounts while studying abroad highlighted some of the challenges users face with digital banking services.
According to him, difficulties such as one-time password (OTP) failures and inconsistent banking applications inspired the team to explore conversational banking solutions.
“We each encountered similar challenges and came together to build a solution that simplifies everyday financial transactions,” he said.
cAbraham William, tech lead and co-founder, said the company is focused on improving access to financial services through a platform that many Nigerians already use daily.
“We want to make financial services easier to access by allowing people to carry out transactions through a familiar messaging platform,” he said.
William said he oversees the company’s engineering, technology strategy and system architecture.
ChatPay said its services will be introduced in phases as regulatory requirements are met and integrations with banking partners are completed.
The company added that its newly launched “Founding 2,500” programme will enable selected early users to test features, provide feedback and participate in product development before the platform’s wider rollout.
According to the company, interested users can register for the waitlist and the Founding 2,500 programme through its website.
Founded by Odebunmi, Siyanbola and William, ChatPay said its long-term goal is to expand conversational banking services beyond Nigeria into other African markets after its domestic rollout.
United Bank for Africa (UBA) Plc has been named Nigeria’s Best Bank for Retail Banking and Best Bank for Sustainability Leadership (ESG) at the 2026 Euromoney Awards for Excellence, reinforcing its position as one of Africa’s leading financial institutions.
The awards were presented on July 17 at The Peninsula London in the United Kingdom, recognising financial institutions that have demonstrated outstanding performance, innovation, customer impact and sustainable banking practices.
The double recognition highlights UBA’s growing influence in retail banking and its commitment to advancing environmental, social and governance (ESG) principles across its operations.
According to Euromoney, UBA distinguished itself through a series of sustainability initiatives, including the introduction of a Green Financing Facility designed to support households and businesses transitioning to renewable energy.
The publication also cited the bank’s ₦5 billion financing programme, implemented in partnership with the Bank of Industry (BOI), to provide funding for women-owned businesses.
Euromoney further recognised UBA’s commitment to achieving net-zero carbon emissions by 2050, describing it as a demonstration of the bank’s long-term sustainability strategy.
The publication also highlighted the bank’s efforts to integrate sustainability into its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building programmes that have trained more than 16,000 employees across the UBA Group.
In the retail banking category, Euromoney noted that UBA continued to consolidate its position as one of Africa’s largest retail banking institutions.
According to the publication, the bank expanded its customer base to more than 37 million by the end of 2025, while retail banking revenue increased more than fourfold to ₦429.5 billion.
The awards also recognised UBA’s continued investment in digital banking innovation, particularly enhancements to its artificial intelligence-powered chatbot, LEO.
Euromoney noted that LEO became Africa’s first AI-powered banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
Commenting on the awards, UBA’s Group Managing Director and Chief Executive Officer, Mr Oliver Alawuba, described the recognition as a validation of the bank’s commitment to delivering value to customers while promoting sustainable development across Africa.
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives.
“These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” he said.
Also speaking, UBA’s Group Head, Marketing, Brand and Corporate Communications, Mrs Alero Ladipo, said the awards reflected the bank’s unwavering commitment to putting customers at the centre of its operations.
According to her, every innovation, investment and banking solution introduced by UBA is aimed at creating exceptional value for customers while expanding access to financial services.
“These awards are a powerful affirmation of our Customer First philosophy.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact.
“We are honoured that one of the world’s most respected financial publications has recognised these efforts,” she said.
UBA currently operates in 20 African countries, as well as the United Kingdom, United States, France and the United Arab Emirates, serving more than 45 million customers through a combination of digital banking platforms and physical branch networks.
The bank said it remains committed to strengthening financial inclusion, driving innovation and supporting sustainable economic development across Africa and beyond.
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