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Tag: Unity Bank

  • 578 young enterpreneurs benefit from Unity Bank’s initiative

    578 young enterpreneurs benefit from Unity Bank’s initiative

    No fewer than 578 young entrepreneurs across Nigeria have benefitted from Unity Bank’s Corpreneurship Challenge — the bank’s flagship entrepreneurial development initiative launched a few years ago.

    The ongoing initiative recently produced 30 new winners, who received a total grant of N16 million during the Batch B, Stream II edition of the National Youth Service Corps (NYSC) orientation course, held across 10 states of the federation.

    The winners, innovative young entrepreneurs developing solutions across various value chains such as fashion design, bag making, pastry and beverage production, event management, and vegetable farming, emerged after pitching their business ideas during the challenge at NYSC Orientation Camps in Lagos, Delta, Kaduna, Jigawa, Kwara, Benue, Abia, Kogi, Rivers, and Plateau States.

    At the NYSC Orientation Camp in Ipaja, Lagos State, Fiyinfoluwa Titilayo Ojo, who pitched a soap-making enterprise, emerged the overall winner to clinch the N800,000 grand prize. Ndukwe Chiamaka Joan, with her innovative Small Chops business proposal, claimed N500,000 as first runner-up, while Barakat Modinat Olamide secured N300,000 to support her beverage-making venture.

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    Expressing her excitement after emerging as the overall winner in Lagos, Fiyinfoluwa Titilayo Ojo described the experience as life-changing, stating, “I’m truly grateful to Unity Bank for this opportunity. Winning the Corpreneurship Challenge has given me the push and confidence I needed to scale my soap-making business. Beyond the grant, the experience taught me how to structure my business better and believe in its potential. It’s amazing to see a bank that genuinely invests in young people’s dreams.”

    Across the remaining nine states, 27 other winners also emerged after pitching diverse business ideas ranging from fish and poultry farming to printing, piggery, and cake production.

    Over the past six years, the Unity Bank Corpreneurship Challenge has become an integral part of the NYSC programme, aligning with the Federal Government’s drive to upskill young graduates and promote entrepreneurship amid the scarcity of white-collar jobs. Each edition attracts thousands of entries from corps members whose business plans are evaluated for originality, marketability, job creation potential, and overall business acumen.

    Speaking during the grand finale in Lagos, Unity Bank’s Divisional Head, Retail & SME, Mrs. Adenike Abimbola, reaffirmed the Bank’s commitment to empowering Nigerian youth through enterprise.

    She said the bank has invested in supporting budding entrepreneurs across multiple sectors to start businesses, create jobs, and contribute to Nigeria’s economic growth.

    She said: “At Unity Bank, we believe that the energy and creativity of young Nigerians are vital to the nation’s economic transformation. The Corpreneurship Challenge is our way of nurturing this potential — by giving corps members the financial boost, mentorship, and confidence to turn their ideas into thriving businesses. Seeing over 578 young entrepreneurs already impacted motivates us to keep expanding the initiative and deepening our support for the SME ecosystem.”

    The Corpreneurship Challenge has earned Unity Bank national recognition for its role in youth empowerment and job creation, attracting over 2,000 applicants per edition.

    In partnership with the NYSC Skill Acquisition and Entrepreneurship Development (SAED) programme, the initiative continues to serve as a launchpad for youth-owned enterprises, offering grants of up to ₦800,000 to help corps members turn their business dreams into reality.

  • AMCON sells 34% major stake in Unity Bank to Providus Bank

    AMCON sells 34% major stake in Unity Bank to Providus Bank

    The Asset Management Corporation of Nigeria (AMCON) yesterday at the Nigerian Exchange (NGX) sold its total equity stake in Unity Bank Plc to Providus Bank in a major deal that consolidated the Providus Bank-Unity Bank merger.

    The transaction, which was consummated through the negotiated window of the NGX, was crossed in three deals involving 4.0 billion ordinary shares of Unity Bank at N1.66 per share, totaling N6.5 billion.

    The transaction amounted to 34 per cent of the total issued share capital of Unity Bank. The transaction came 24 hours ahead of the court-ordered meeting to approve the scheme of merger between the banks.

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    Market analysts said the consummation of the deal, which was done through the negotiated window of the market, indicated that the bid was acceptable to AMCON.

    The deal must also have been approved by the regulatory authorities as material transaction of up to five per cent and above must be approved by Central Bank of Nigeria (CBN). Besides, the suspension on Unity Bank’s shares due to the ongoing merge was lifted to facilitate the trade, a move that required prior approval of NGX.

    Analysts said the merger marked a milestone for Providus Bank, which began operations in June 2017.

    They noted that in less than a decade, the bank has positioned itself as a fast-growing, digitally focused lender, popular among Nigeria’s tech-savvy customers and SME ecosystem.

    Analysts said they expected Providus Bank, through the merger to transform from a niche player into a national bank, leveraging Unity Bank’s over 211-branch network spread across all 36 states and the FCT.

    They noted that the business combination aligns with Providus Bank’s broader strategy to deepen its retail presence and diversify its customer base.

    Analysts said the deal also provided Providus Bank with immediate scale in retail banking, expanding its footprint from a largely digital operation to a full-fledged national player.

    They added that the combination also brings in a strong SME lending pipeline, especially in agriculture, mining, ecommerce, hospitality, and entertainment sectors, which both banks already support.

    Providus Bank had said it planned to integrate its technology stack into Unity Bank’s branch network, enhancing service delivery and cost efficiency.

    The bank stated that the combined entity would unlock new value across its retail, SME, and digital channels.

    Shareholders of Unity Bank Plc are scheduled to vote to the scheme of merger as ordered by the Federal High Court presided over by Hon. Justice D.I. Dipeolu. Unity Bank’s shareholders will decide whether to approve a cash consideration of N3.18 per share or opt for a share swap under which every 17 Unity Bank shares convert into 18 shares in the enlarged Providus Bank.

    If approved, Unity Bank’s assets, liabilities, intellectual property, and ongoing legal matters will be transferred to Providus. Unity Bank will be dissolved, with Providus continuing as the surviving entity.

    The meeting is expected to pave the way for regulatory sign-offs from the CBN and the Securities and Exchange Commission (SEC), both of which had already approved the merger in August 2024.

    The CBN had also backed the deal with a N700 billion lifeline loan to recapitalize the combined entity.

  • Unity Bank drives recapitalisation, posts N38.2b gross earnings in Q3

    Unity Bank drives recapitalisation, posts N38.2b gross earnings in Q3

    Unity Bank Plc is focusing on its ongoing efforts to inject additional capital unto its balance sheet as the commercial bank recorded gross earnings of N38 billion in the third quarter.

    The nine-month report for the period ended September 30, 2023 released at the Nigerian Exchange (NGX) showed that Unity Bank continued to maintain its expansionary and customer-centric model with total loans and advances rising to N222.8 billion.

    The bank stated that interest and similar income stood at N33 billion, which underscored strategic focus to reinvigorate and sustain asset creation that will deliver returns to shareholders.

    Total assets stood at N423.4 billion while net fee and income commission closed the period at N4.4 billion.

    The bank explained that recent change in foreign exchange (forex) regulation impacted its bottom line, which can be reversed as the naira appreciates.

    Managing Director, Unity Bank Plc, Mrs. Tomi Somefun said that the bank is focusing on its efforts to recapitalise the its balance sheet while aggressively driving asset creation.

    She explained that the bank is also promoting innovative products to compete favourably in new markets and relentlessly drive the pursuit of digital banking innovation in order to shake off and completely reverse negative positions.

    She stated that despite the tough operating environment, the deposit position continues to witness steady appreciation, which supports the business as the bank drives initiatives to ramp up transactions as part of its strategy for the short and medium term.

    Read Also: Unity Bank’s half-year gross earnings hit N27.5b

    “This also means that the bank enjoys market confidence, which will enable the institution to thrive better in the months ahead with increased business conversion, profitability and growth needed to achieve sustainable returns.

    “The bank is seeing encouraging uptake in its digital banking services and with expansion envisaged in the pursuit of enhanced retail franchise, fintech partnership, consumer banking and other innovative retail loans as well as diversification of portfolio investment, the outlook remains one of optimism,’’ Somefun said.

    Analysts expressed confidence that re-engaging the market in the short and medium term by deepening the retail end as part of the business strategy will drive more income streams to boost both market share and financial position in the days ahead.

  • Unity Bank’s half-year gross earnings hit N27.5b

    Unity Bank’s half-year gross earnings hit N27.5b

    Unity Bank Plc grew its deposits to N333.38 billion, representing a marginal increase of two per cent compared to N327.42 billion recorded in H1’22 in its Half-Year unaudited financial statement submitted to the Nigeria Exchange Group Limited.

    The growth in deposits demonstrates incremental gains by the lender from its commitment to deepening its retail footprint through a well-diversified banking product suites that caters to different segments of the retail market.

    Other highlights of the unaudited financial statement include gross income and total assets which recorded N27.5 billion as against N27.4 billion and N512.1 billion from N510.1 billion respectively within the period under review. The net loans portfolio reduced significantly by 31% to N198.6Billion as at 30 June 2023 from N289.4Billion as at 31st December 2022. The Bank’s NPL Ratio remained moderate at below 3% while liquidity ratio stood strong at over 45%.

    However, the Bank’s profit for the period was impacted by foreign exchange revaluation on the back of Nigeria’s recent FX liberalization policy, resulting in a slide in our position.

    Notwithstanding, the retail lender grew its FX trading income significantly by 17% to N239.8 million from N204.4 million in the corresponding period of 2022, underscoring the Bank’s strategic focus on diversifying and growing its earnings portfolio.

    Similarly, fees and income commission also witnessed a 10% growth to N3.5 billion from N3.2 billion compared to the corresponding period of 2022, on the strength of the growing popularity of its digital banking platforms and customers’ acquisition in the retail space.

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    Commenting on the financial statements, the Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun noted that the significant disruptions which characterized the operating environment has impacted the positions of the Bank to the extent that we have constraints in income generation on the back of revaluation of the bank’s net foreign liabilities occasioned by the Naira devaluation during the period.

    Mrs. Tomi stated: “In the light of the prevailing FX revaluation in the financial system, what we have is a market-driven impact which is adjustable envisaged from the positive economic outcomes of the government policies in the near term. Be that as it may, the negative shareholders’ fund has improved considerably through the injection of N135billion which moderated the negative shareholders’ fund from (-ve) N275Billion in December 2022 financial year-end to (-ve) N178Billion as at the end of June 2023, after absorbing the FX revaluation loss suffered in Q2/2023. We are however, focused with clear-cut plans to close out on our recapitalization programme very soon to enable us do business as expected in the fast-growing markets in Nigeria”

    She further stated that while we remain optimistic that the government’s policy initiatives will lead to cause correction in the market, the Bank has accelerated measures to ramp up asset creation and liability generation in the short and medium term. The Bank is aggressively driving its retail growth in every segment of the market, expanding strategic partnerships; and growing commercial banking business to develop new and sustainable income lines for the Bank as well as pay sufficient attention to fast-paced process automation, cost and resource efficiency, targeted value chain relationships, and product marketing to enhance value creation in the market.

    Analysts are of the view that notwithstanding the market shocks currently being experienced, the Bank is still on course given the resilience it has demonstrated over time.

  • Unity Bank unveils new lending plans for farmers

    Unity Bank Plc has reiterated its commitment to lending more to farmers and supporting them in getting more value for their farm produce.

    The bank is partnering with Binkabi, a blockchain-based commodity trading network to ensure that farmers get the right pricing and profitability for their produce.

    The Head, Risk Management and Compliance, Unity Bank, Usman Abdulqadir, said the collaboration would also help to provide end-to-end solutions for farmers and the entire agribusiness value-chain.

    Abdulqadir, who spoke at the launch of an agro commodities trade platform in Lagos, said,  many farmers who harvest their crops sell them at the time of harvest when the prices are still low. But the partnership will help such farmers to transfer the produce to warehouse directly, or sell them to people that will send the produce to the storage facilities to reduce post-harvest losses.

    “By way of strategy, we look at the various value chains across the agric sector, and why some banks prefer to concentrate on certain types of customers – the very big ones with little or no risk exposure, we lend across the entire value chain.

    “What we are doing today is just to integrate all the various components of the value chain into one single entity to have an integrated approach to funding the agric sector. We have a huge portfolio of primary production; as we speak today, about 40 per cent of our entire loan portfolio is in one aspect of agriculture or the other. We are the leading bank in funding primary production; we are also deepening agriculture mechanisation.”

    The Co-Founder and Chief Operating Officer, Binkabi, Manrui Tang, said the platform would help to address the issues associated with lending to the agricultural sector.

    “We are a platform for issuing trading and financing commodities on blockchain. We connect with banks, warehouses, commodity exchanges, logistics companies and farmers, aggregators and all parties in the supply chain,” she said.

     

  • Unity Bank holds Spelling Bee competition 

    Unity Bank has hosted a Spelling Bee Competition to Mark Children’s Day for secondary school students. The event was in line with the financial literacy initiatives of the Central Bank of Nigeria (CBN). The competition was held simultaneously in Lagos, Abuja and Port Harcourt to promote youth engagement, create shared value and drive sustainable development initiatives.

    Over the years, the bank has consistently provided financial literacy programmes to schools, but this initiative is even more important today as the CBN and other stakeholders have worked out framework for inclusion of financial literacy into secondary schools’ education curriculum.

    Commenting on the Children’s Day event, the Group Head, Retail & SME, Unity Bank Plc, Olufunwa Akinmade stated that “as a financial institution, it is important to positively reflect on the survival of the Nigerian Child from infantile helplessness to independent adulthood.

    He added that “the Spelling BEE Competition was conceptualized as an engagement platform to mentor the students for leadership, business and  professional responsibility in an atmosphere of fun, excitement and  relaxation”.

    According to him, the ultimate goal has always been to provide students with tools that would enable them become more conversant with financial services, savings culture and financial management, adding that, the program is designed to effectively stimulate the students with quality entertainment.

  • Unity Bank denies keeping MDAs’ funds

    Unity Bank has faulted the allegation against it by Special Presidential Investigation Panel for Recovery of Public Property (SPIPRPP) that it is keeping funds belonging to Ministries Departments and Agencies (MDAs) of government.

    In a statement, the lender said it has conducted itself professionally  by providing all evidence of customers instructions requested by the panel as it relates to all the MDAs.

    The bank said it  had transferred all the MDAs balances to their respective Treasury Single Accounts in Central Bank of Nigeria as far back in 2016.

    “Upon approaching the bank in 2018 to conduct investigations on the subject MDAs, Unity Bank, as a responsible corporate citizen, cooperated with the panel accordingly. But out of its own volition, the panel refused to admit further documentary evidence from the Bank when it was obvious that the Bank has no balances kept in its books for the MDAs.”

  • N7bn: Presidential Panel to charge Unity Bank for alleged economic sabotage

    The Special Presidential Investigation Panel for the Recovery of Public Property says it will slam a charge of economic sabotage on Unity Bank if it refuses to return the over N7 billion owed the Federal Government.

    The Head, Media and Communication of the Panel, Ms Lucie-Ann Laha, gave the warning in a statement in Abuja on Monday.

    According to her, the sum represents 15,561,769.99 dollars and N1,488,455,810.90 being excess and arbitrary charges on accounts of some agencies of government by the bank before the implementation of Treasury Single Account (TSA) system.

    She said the agencies included Nigerian Ports Authority (NPA), Nigerian National Petroleum Corporation (NNPC), Nigeria Custom Service (NCS), the Kaduna Refinery and NIMASA.

    “Unity Bank, which had agreed to this amount in February, has neither proffered a payment plan nor demonstrated good faith by actually initiating payments.

    ” Instead, the bank has severed all communications with the Panel in this regard.

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    “It may be recalled that the panel had commissioned a team of experts, including forensic auditors, to look into the operations of accounts of MDAs in commercial banks within the country prior to the commencement of TSA,” Laha said.

    The spokesperson said that the exercise had unearthed some sharp practices and elicited indictments.

    She added that some of the indicted banks had since agreed to a refund plan and in fact commenced payments.

    “Unity Bank has, however, not made any move in this regard.

    “The Panel is unrelenting in its resolve towards ensuring that economic saboteurs are brought to book and looted public property, including money, duly returned to government.”

    NAN

  • CBN, Unity Bank partner on cotton seeds distribution

    The Central Bank of Nigeria (CBN), Unity Bank Plc and the National Cotton Association of Nigeria (NACOTAN) have partnered on the  flagg-off distribution of seeds/inputs supplies to cotton farmers for the 2019 planting  season nationwide.

    The partnership is in line with the commitment to grow the economy through the revival  of agricultural sector.

    The distribution of cotton input supplies to farmers  is part of the Anchor Borrowers Programme, an  Agricultural Development  finance initiative of the CBN operated as an on-lending scheme with participating financial institutions  packaged to channel financing support to  beneficiaries  in the Agric sector.

    Unity Bank’s partnership and collaboration with CBN in flagging off this year’s input supplies distribution to cotton farmers to support wet season farming is in recognition of the Bank’s established  pivotal footprints in Agriculture which has been well acclaimed  in various awards received by the Bank, such as the Presidential award at the third anniversary of ABP, CBN award on sustainable transaction in Agriculture, among others.

    Unity Bank’s Executive Director, Corporate Planning & Compliance,  Usman Abdulqadir, said CBN is partnering Unity Bank on account of the lender’s strong participation in the Anchor Borrowers Programme aimed at  rebuilding  customers confidence, alleviating poverty through food and cash crops production to make Nigeria self-sufficient in food and diversifying the economy.

     

  • Mojec, banks collaborate on meter provision for customers

    As the date for the take off of the Meter Asset Provider (MAP) scheme draws nearer, Mojec Meter Assets Management Company, a subsidiary of Mojec International Limited, and also one of the selected MAP operators, is partnering some banks to ease the roll out of meters to customers next month.

    Mojec with the banks – FirstBank, Wema Bank, Unity Bank, Keystone Bank, Zenith Bank, Sterling Bank, Polaris Bank and First Option Micro Finance Bank – entered into a deal to provide retail financing to electricity customers to ease their acquisition of prepaid meters.

    The banks will provide finance to customers within the coverage area of Mojec’s partner-electricity distribution companies (DisCos) across the country. The banks, this week, signed memoranda of understanding (MoU) with Mojec in Lagos.

    MAP is a scheme that was initiated by the Ministry of Power, Works and Housing and approved by the Nigerian Electricity Regulatory Commission (NERC).

    The MAPs will provide, install and maintain customers’ meters and fast-track the closure of the metering gap, which is five million and  end estimated billing.

    According to the regulation guiding MAP operation, a MAP must install a customer’s meter within 10 days of payment for such meter and the operators of the scheme must meter unmetered electricity users in Nigeria within three years from the time they strart work next month.

    Mojec International Limited Managing Director/Chief Executive Officer, Ms. Chantelle Abdul, said at a summit of the partnering banks and DisCos in Lagos that the company is determined to bridge the metering gap in the sector by ensuring provision of top quality electricity meters to customers in Nigeria.

    Abdul said: “Now that MAP is here, Mojec is once again blazing the trail in the provision of high-end quality prepaid meters to customers, helping to reduce the financial burden estimated billing is putting on electricity consumers. Mojec as a company has invested a lot of resources positioning it as best suited to meet the metering needs of all customers within the coverage of its partner DisCos.

    “Mojec would be partnering eight DisCos, including, Ikeja Electric, Eko DsCo, Abuja DisCo, Kano DisCo, Enugu DisCo, Jos DisCo, Ibadan DisCo and Kaduna DisCo, covering about 20 states of the federation.”

    The General Manager, Finance and Management Services, NERC, Abdulkadir Shettima, commended Mojec for its leadership in the metering subsector as demonstrated by its efforts towards the full scale implementation of the MAP scheme, which allows customers easy and direct access to meter assets.

    “This MoU signing between Mojec and these banks as well as the announcement of the company’s readiness to implement the MAP scheme is very commendable. It goes to show that Mojec is a real leader in this business and it is committed to industry’s mission of ensuring that every household in this country is metered.”

    Polaris Bank Chief Executive Officer Tokunbo Abiru explained that the bank was pleased to partner with Mojec by providing financing support to customers on the meter acquisition scheme. “Our bank is glad to be facilitating the acquisition of these meters by granting loans to eligible customers under the programme,” he said.

    Keystone Bank Acting Chief Executive Officer, Abubakar Sule, explained: “Energy cost is by all standards the major cost line in most homes and businesses. The scheme is set to eradicate the unnecessary prevalence of estimated billing, which deprived the national economy of funds which otherwise could be deployed into other productive use. We are, therefore, excited to be part of this initiative to bring electricity to homes and businesses at the most prudent cost, putting households and business in control of their expenditure pattern.”

    The Managing Director Unity Bank Plc, Tomi Somefun, explained that the development reinforces the long-standing beneficial relationship and business commitment it had maintained with Mojec International Limited for well over two decades, adding: “The partnership will create beneficial impact on electricity customers, further drive financial inclusion through consumer banking, restore customer’s confidence, increase transparency and thereby replacing the opaque estimated billing system that had prevailed.”

    The Divisional Head, Retail and Consumer Banking, Sterling Bank, Shina Atilola, represented by Ayodele Odulaja, Head of Power and Telecoms Team, stated: “We are excited to be a key driver of the pre-paid meter acquisition programme, which will eliminate the inefficiencies associated with estimated billing and inaccurate post-paid meter readings. Leveraging technology, Sterling Bank is reputed for providing Nigerians with a convenient way to access loans ranging from N10,000 to N5million in five minutes through the Specta online lending platform.

    ‘’Electricity consumers will benefit from the speed of this solution under this partnership without the attendant delays of traditional lending.”

    The Managing Director, Wema Bank, Ademola Adebise, noted that the partnership with Mojec is a proof of the bank’s commitment to provide simple and easy retail financing for Nigerians. ‘’As a bank that takes pride in applying innovative solutions to societal challenges, we are proud and excited to work with Mojec in meeting the demands of equitable electricity metering in the country. This is a reflection of our can’t stop, won’t stop drive to create avenues that will support Nigerians to achieve their future dreams today,” he said.

    The Managing Director, First Option Micro Finance Bank, Godfrey Ogbuehi, stated: “The MAP project resonates so much with the company’s goal of enhancing lives and in response, a new product,  Light-Up Loan (Prepaid Meter Acquisition Loan), has been  strategically   created   to   provide   funding   to   help   energy   consumers   (both individual  and businesses), especially  the  low-  income  earners and  rural  dwellers; acquire prepaid meters with ease under the Meter Asset Provider Regulations.”