E-Financial
Lagos State Gets ‘AA (nga)’ Ratings from Fitch
Fitch Ratings, renowned global rating agency, has revised the Outlook on Lagos states’ ‘National Long-term rating’ to Positive from Stable, and subsequently affirmed it at ‘AA(nga)’.
The agency has simultaneously affirmed the Long-term foreign and local currency ratings at ‘BB-‘ with Stable Outlooks, Short-term foreign currency rating at ‘B’ and the Long-term ratings of the N50billion and N57.5billion bonds, maturing in 2014 and 2017 at ‘BB-‘ and ‘AA(nga)’.
The agency issued a statement yesterday with several key indicators affirming the robust Lagos state management – (full text of statement).
Key Rating Drivers
The Outlook revision reflects the state’s increasing sophistication in management reflected by improving transparency and debt management amid moves towards a balanced budget by 2015 from a peak deficit of 25% of revenues in 2012 according to preliminary figures, and a stable debt cover ratio by the current balance around three years.
A growing proportion of bond issues, with fixed repayment schedules, longer maturities and monthly provisions intothe debt reserves fund, are replacing the traditional concentration of short-term bank loans. Fitch views this as a sign of the state’s improving debt management.
Together with budgets and quarterly performance reports, Fitch notes continual improvements in transparency and governance.
Fuelled by public and private investments, as well as an estimated population of about 20 million according to state officials, Lagos’s diverse economy is the leading contributor to Nigerian GDP. Fitch expects the 10% growth in the local economy and the state’s plans to widen the tax base and improve collection methods to boost local tax
receipts towardsN330billion by 2015, up from N200billion in 2012, edging towards 80% of annual revenues from 70% of income in the late 2000s.
Maintenance costs for infrastructure built and provision of social services such as health and education could add pressure to Lagos’s budget.
However, Fitch expects the state’s commitment to streamlining costs coupled with the maintenance of a steady employee headcount to contain their growth to about 10% per annum over 2013-2015. Rising energy prices meant costs grew by about 25% in 2012, and Fitch expects Lagos’s operating expenses to rise to about N230bn by 2015 from N185billion in 2012.
Fitch expects capital spending to remain high at about N250 illion per year over the medium term, as the state continues to invest in transport, water, health, education and social protection.
Despite interest expenses rising towards NGN40bn by 2015, the state’s self-financing ratio of investments will remain strong with the current balance funding about 75% of capital expenditure from an average 65% in 2010/12.
The state’s debt will likely stabilise around NGN350bn by 2015, net of repayment provisions, with bonds representing about 50% of total debt from about 30% in 2009.
As Lagos stands out for its low dependence on federal allocation and high tax generation, the state was allowed to incur debt accounting for about 100% of revenues rather than the 50% limit stated by Nigerian borrowing guidelines for subnationals.
The debt service coverage ratio could likely remain at around 2.5x the operating balance offering additional comfort of debt service sustainability.
Kuda Microfinance Bank has unveiled the 2025 edition of “My Year on Kuda,” its annual recap providing customers with personalised insights into their spending, saving, and money management habits from the previous year.
Kuda Microfinance Bank
The tool analyses transaction data across categories like transfers, card payments, online purchases, and bills, revealing patterns such as highest-spending months, biggest payments, saving frequency, and savings from Kuda’s 25 free monthly transfers. Customers can compare 2025 activity against 2024, including income versus expenditure.
In an era of inflation and economic uncertainty, the recap promotes financial literacy by highlighting responsible borrowing via Kuda Overdraft usage, including access frequency, amounts borrowed, and repayment patterns.
Customer-shared screenshots on X reflect national trends: Nigeria recorded over 2.2 billion electronic transactions worth ₦285 trillion in Q1 2025, up 20 percent year-on-year, with POS terminals driving the shift to cashless commerce.
Kuda Group CEO Babs Ogundeyi, in the recap’s opening video, urged users: “Before you carry on with January, this is the perfect time to see everything you did with your money on Kuda last year and learn something.”
The feature underscores Kuda’s focus on actionable insights to help Nigerians navigate evolving personal finance amid shifting earning and spending behaviours.
Wema Bank has introduced SAW, a new AI voice assistant integrated into the ALAT 2.0 app, allowing customers to manage finances through natural voice commands similar to Siri, Bixby, or Alexa.
Wema Bank
SAW understands everyday language and delivers instant responses tailored to banking needs, such as checking account balances, transferring money, reviewing transactions, and accessing support.
This feature brings conversational banking to Nigerian users, eliminating complexity and enhancing accessibility.
The bank positions SAW as a pioneer in AI-powered financial services, aligning with global trends where millions interact daily with voice assistants for tasks like setting reminders or playing music.
ALAT 2.0 represents the next evolution in digital banking, making services more efficient, personal, and human-like for everyday Nigerians.
Ecobank Nigeria Limited has fully repaid bondholders who validly tendered their notes ahead of the February 2026 maturity date.
The bank announced the successful completion of its tender offer, under which it prepaid approximately $245 million of its $300 million Eurobond, representing more than 80 per cent of the total issuance.
According to a statement, the transaction relates to the 7.125 per cent Senior Note Participation Notes due February 2026.
Ecobank Nigeria Limited said it launched a tender offer to eligible noteholders in respect of the outstanding $150 million on the bond on November 27, 2025, providing them with an opportunity to redeem their holdings ahead of the original maturity date of 16 February 2026.
It stated that the early and late tender participation deadlines were 11 December 2025 and 29 December 2025, respectively.
According to the bank, holders of notes validly tendered and accepted received a cash consideration of $1,000 per $1,000 in principal amount, in addition to accrued interest from the last interest payment date up to, but excluding, the final settlement date of 31 December 2025.
Following completion of the offer, the bank said the outstanding principal amount of the notes has been reduced to approximately $55.092 million.
The bank also stated that the initiative reflects Ecobank Nigeria’s proactive approach to liability management and prudent balance sheet optimisation.
The tender offer was conducted with Renaissance Capital Africa (Renaissance Securities Nigeria Limited) acting as financial adviser and dealer manager, while Sodali & Co Limited served as tender agent.
The notes were originally issued by EBN Finance Company B.V., with limited recourse to the issuer, for the sole purpose of financing the purchase of the $300 million 7.125 per cent Senior Note due 2026 issued by Ecobank Nigeria Limited.
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