Finance
Skye Bank: Reaches for the skies with innovative products
By Omoh Gabriel, Business Editor
SKYE Bank emerged strongly from the last consolidation phase not only because of the strength of the legacy banks that combined in the process but also because of the drive of the leading characters of the merger who exhibited so much faith in the Reforms. For instance, at a timed others operated doubtful as to the direction of the exercise and resolve of Professor Chukwuma Soludo to follow through the reforms as announced, the erstwhile Prudent Bank led the way in putting together one of the first set of merger groups. But when it appeared that other members of this initial group were not ready to move at a desirable pace, the bank pulled out and formed the Skye merger group with Eko International bank and in no time achieved the minimum capital base of N25 billion long before the deadline of 31st December 2005.
With this comfortable position, it attracted three others – Reliance, Bond and Co-Operative Banks to form one of the formidable institutions we have today in the banking sector.
With this same drive, the bank approached the challenging question of post-merger integration. The major challenges revolved around extensive branch network, personal and disparity in technology among the legacy banks. Recall that by the end of 2006, the bank had already reached 185 mark in branch network out of which about 25 were opened during the year.
In order to provide effective wide area network to cover all the branches, Skye Bank adopted the flexcube banking solution, a robust platform it has used to deliver on-line real time services to customers across the entire network. This has made it easier for customers to subsume the identities of their respective legacy banks under the now dominant Skye franchise not only by ‘brand name’ but also by actual quality of services.
Skye Bank has gone ahead to re-package existing products of the legacy banks and churn out new ones to sustain a culture of aggressive product development embraced by Prudent Bank in its last few years of existence.
Some of the innovative products it currently offers include Skye Card, Valucard, Flexicard, Skye Rainbow Savings, SkyeSalary Express, Skye Support and Skye Lifestyle. Recently it launched the skye Global Account targetted essentially at Nigerians in diaspora, especially United Kingdom. The success of this latest effort, coupled with enlarged capital base have also provided the impetus to explore the flexibility of physical presence in locations outside the country beginning with the West African sub-region.
Other innovative payment and customer service initiatives introduced by Skye Bank includes the Pay-Direct Payment Settlement System in collaboration with Inters witch. It also launched the V-pay Solution in June 2006 under which arrangements has been concluded to issue the international visa brands in this first quarter of 2007. Accordingly it ATMS have been certified to process both local and international visa transactions.
Interestingly the bank now has more than 70 ATMs, deployed to complement over-the-counter services just as it is one of the pioneers of 24 ATM services in Nigeria.
Skye Banks’ Market Strategy has a strong Retail and Public Sector focusing imprimateur of this could be found on the nature of the products and services. The banks’ strength in delivery efficient payment and collection services to the public sector is well recognized in the market. With one of the legacy banks having close ties to the Lagos state government, it is not a surprise that the bank plays a dominant role in this market segment.
Perhaps because of the gap identified in its defined segment of the market, the bank recently launched a unique free financial advisory services scheme. It set up a dedicated unit to handle this service which is expected not only to provide the desired impetus to meet customers financial needs but also increase financial literacy.
And still targetting this identified market segment, Skye Bank also initiated what it called the ‘yes campaign’. This is an invitation to the target audience to join hands with the bank in partnership to positively explore a new world of possibilities. By this, the bank has anticipatorily said ‘yes’ to the demand of customers towards taking their lifestyles and businesses to new heights.
Financial Performance
As noted earlier, 2006 was a very difficult one operationally for most banks in the Nigerian Financial Sector, especially for merger groups composed essentially of small and medium sized legacy banks. This is because for this set of banks, the exercise involved the question of life and death which required that attention be given to it hundred per cent to the virtual neglect of normal operations. For these banks, it was not totally unexpected that the first post consolidation year Annual Report and Accounts would reflect these challenges. Notwithstanding its impressive record of post merger integration, Skye Bank fell into this category. For the bank virtually all aspects of financial performance lagged behind what was projected by directors during the merger process.
For Skye Bank, the final figures are yet to be released and this followed decision of management to change financial year end from March to September. But from Interim figures released to the stock market it was obvious that though the current period’s results showed improvement over the preceding year’s figures, they were largely far from target. One major proxy for volume of business handled during the review period is gross earning. As at 31st March 2006, the bank grossed a total of N9.4 billion from all sources of earning. This is far from N33 billion projected in the scheme document for the period up to 31st May 2006.
Evidently, the bank could not deploy substantial part of its resources to create assets of high earning potential as a result of the reasons given above. Hence earning efficiency was low at our proxy rating below 7.0%. In the same manner cost efficiency was equally low at about 8.5%. With these ratings of financial performance, the bank was able to achieve a net profit position of N525 million which though was far away from projected figure of N3.4 billion but was slightly higher N493 million achieved by the stand alone Prudent Bank in 2005. There are however indications from recent interim reports that following the conclusion of initial stages of integration, business volume has picked up tremendously.
Finance
Afreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
African Export-Import Bank said it has successfully closed its second Samurai bond transaction, securing a total of JPY 81.8 billion (approx. USD 527 million) through Regular and Retail Samurai Bonds offerings.
The execution surpasses the Bank’s 2024 debut issuance size, attracting orders from more than 100 institutional and retail investors, marking a renewed demonstration of strong Japanese investor confidence in the Bank’s credit and its growing presence in the yen capital markets.
On 18 November, Afreximbank priced a JPY 45.8 billion 3-year tranche in the Regular Samurai market following a comprehensive sequence of investor engagement activities leveraging Tokyo International Conference on African Development (TICAD9), including Non-Deal Roadshows (NDRs) in Tokyo, Kanazawa, Kyoto, Shiga and Osaka, a Global Investor Call, and a two-day soft-sounding process which tested investor appetite across 2.5-, 3-, 5-, 7-, and 10-year maturities.
With market expectations of a Bank of Japan interest rate increase, investor demand concentrated in shorter tenors, resulting in a focused 3-year tranche during official marketing.
The tranche attracted strong participation from asset managers (22.3%), life insurers (15.3%), regional corporates, and high-net-worth investors (39.7%).
Concurrently, Afreximbank priced its second Retail Samurai bond on 18 November, a JPY 36.0 billion 3-year tranche, more than double the inaugural JPY 14.1 billion Retail Samurai issuance completed in November 2024.
The 2025 Retail Samurai bond also marks the first Retail Samurai bond issued in Japan in 2025.
Following the amendment to Afreximbank’s shelf registration on 7 November 2025, SMBC Nikko conducted an extensive seven-business-day demand survey through its nationwide branch network, followed by a six-business-day bond offering period.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the Bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce Multinational Development Bank’s mandate in Africa and its credit profile to key Japanese institutional investors.
MBC Nikko Securities Inc. acted as Sole Lead Manager and Bookrunner for both the Regular and Retail Samurai transactions. Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury & Markets and Group Treasurer, commented:
“We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors.
The strong demand, both in the Regular and Retail offerings, demonstrates sustained confidence in Afreximbank’s credit and mandate.
We remain committed to deepening our engagement in the Samurai market through regular investor activities and continued collaboration with our Japanese partners.”
Ecobank Nigeria, a member of Africa’s leading pan-African banking group, has announced the launch of the Ecobank SME Bazaar—a two-weekend festive marketplace designed to celebrate local creativity, empower entrepreneurs, and give Lagos residents a premium shopping experience this Detty December. The Bazaar will hold on 29–30 November and 6–7 December at the Ecobank Pan African Centre (EPAC), Ozumba Mbadiwe Road, Victoria Island, Lagos. Speaking ahead of the event, Omoboye Odu, Head of SMEs, Ecobank Nigeria, reaffirmed the bank’s commitment to supporting small and medium-sized businesses, describing them as the heartbeat of Nigeria’s economy. She explained that the Ecobank SME Bazaar was created to enhance visibility for entrepreneurs, expand market access, and support sustainable business growth.
According to her, “This isn’t just a market—it’s a vibrant hub of culture, commerce, and connection. From fresh farm produce to trendy fashion, handcrafted pieces, lifestyle products, and delicious food and drinks, the Ecobank SME Bazaar promises an unforgettable experience for both shoppers and participating SMEs. Whether you’re shopping for festive gifts, hunting for unique finds, or soaking in the Detty December energy, this is the place to be.” Ms. Odu added that participating businesses will enjoy increased brand exposure, deeper customer engagement, and meaningful networking opportunities—making the Bazaar a strong platform for both festive-season sales and long-term business growth. The event is powered by Ecobank in partnership with TKD Farms, Eko Marche, Leyyow, and other SME-focused organisations committed to building sustainable enterprises.
The Central Bank of Nigeria (CBN) has said that16 banks have so far met the new capital requirements for their various licences, some four months before the March 31, 2026 deadline. The apex bank also indicated that 27 other banks have raised capital through various methods in one of the most extensive financial sector reforms since 2004. Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Mr Olayemi Cardoso said the banking recapitalisation was going on orderly, consistent with the regulator’s expectations. He said, “We are monitoring developments, and indications show the process is moving in the right direction.” Nigeria has 44 deposit-taking banks, including seven commercial banks with international authorisation, 15 with national authorisation, four with regional authorisation, four non-interest banks, six merchant banks, seven financial holding companies and one representative office.
Cardoso explained that eight commercial banks had met the N500 billion capital requirement as of July 22, 2024, rising to 14 by September of the same year. The number has now increased to 16 as the industry continues to race toward full compliance. He said that the reforms would reinforce the resilience of Nigerian banks both within the country and across the continent. “We are building a financial system that will be fit for purpose for the years ahead. Many Nigerian banks now operate across Africa and have been innovative across different markets. These new buffers will better equip them to manage risks in the multiple jurisdictions where they operate,” Cardoso said. According to him, the reforms would strengthen the financial sector’s capability to support households and businesses. He said, “Ultimately, this benefits Nigerians—our traders, our businesses and our citizens—who operate across those regions. “It should give everyone comfort to know that Nigerian banks with deep local understanding are present to support them. Commercial banks are also creating their own buffers through the ongoing recapitalisation.”
He added that the apex bank considered several factors in determining the new capital thresholds, including prevailing macroeconomic conditions, stress test results and the need for stronger risk buffers. He reassured on the regulator’s commitment to strict oversight as the consolidation progresses. “We will rigorously enforce our ‘fit and proper’ criteria for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso said. He said the CBN remained confident that the banking system would emerge stronger at the conclusion of the recapitalization exercise, with institutions better prepared to support Nigeria’s economic transformation Banks have up till March 31, 2026 to beef up their minimum capital base to the new standard set by the apex bank. Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.
While most banks have shareholders’ funds in excess of the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition. The CBN had in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion. Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. Under the guidelines for the recapitalisation exercise, banks are expected to subject their new equity funds to capital verification before the clearance of the allotment proposal and release of the funds to the bank for onwards completion of the offer process and addition of the new capital to its capital base. The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC). The committee is saddled with scrutinising new funds being raised by banks under the ongoing banking sector recapitalisation exercise.
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