Business
Afreximbank disburses $40 million to support Fidelity Bank’s acquisition of Union Bank UK
| Joel Ajayi |
| With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa |
| African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has announced the disbursement of a US$40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc (“Fidelity”) to support Fidelity Bank’s acquisition and recapitalization of Union Bank UK as part of its international expansion programme. Provided in two tranches of US$20 million each, the first tranche of the facility enabled Fidelity to part-refinance the acquisition of 100 per cent equity stake in Union Bank UK, while the second tranche was used to support its recapitalisation via the injection of additional equity into the acquired bank, as approved by the United Kingdom’s regulator. With this acquisition, Fidelity Bank is able to birth a new pan-African financial institution capable of providing correspondent banking and offshore banking services to banks in Africa and servicing the banking needs of Africans in the diaspora. Commenting on the transaction, Kanayo Awani, Executive Vice President, Intra-African Trade Bank and Export Development Bank, Afreximbank, noted that the disbursement of the facility was part of Afreximbank’s effort to promote African control and ownership of capital while improving intra-African trade and investments. “Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for both institutions, reinforcing African ownership and control within the global financial landscape,” Mrs. Awani said. “By supporting this strategic transaction, we are not only bolstering Nigeria’s banking sector but also fostering greater financial integration between Africa and its Diaspora. This initiative is a testament to our commitment to enhancing intra-African trade, promoting economic stability and driving forward the objectives of Agenda 2063 for a prosperous and self-reliant Africa.” She added. Mrs. Awani stated that Afreximbank’s Bank Acquisition Strategy, empowers African entities to acquire financial assets divested by foreign entities in Africa and the diaspora. This is also in line with the Bank’s Diaspora Strategy which seeks to promote and finance the integration of the African Diaspora with the rest of the continent. . She noted that, through the facility, Fidelity was extending its services to the UK, in particular, to Africans and African-owned businesses in the UK, including products to support Diaspora investments. In the words of the MD/CEO of Fidelity Bank, Dr (Mrs) Nneka Onyeali-Ikpe, ‘We are very thankful to Afreximbank for supporting our expansionary initiatives for international growth. It is, indeed, the result of a strong partnership between the two institutions over the years that has produced this good outcome. The refinancing of the Union Bank (UK) acquisition by Afreximbank will unlock additional value and help create a scalable and more sustaining service franchise that will support trade businesses in Africa and diaspora banking.” The acquisition is expected to contribute to Africa’s economic growth and development by increasing intra- and extra-African trade finance and trade flows between Nigeria and the UK, supporting the integration of the African Diaspora into regional and continental supply chains and enabling small and medium-sized enterprises across the continent to improve their export competitiveness and light export manufacturing capabilities. |
Business
FG Reiterates Commitment To Bussines-Friendly Environment
Joel Ajayi
In a move to boost Nigeria’s economic growth and development, the Federal Government has reaffirmed its commitment to creating a safe and conducive environment that will foster private sector investments aimed at unlocking new economic potentials as well as create job opportunities for the teeming youth in the country.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun gave the assurance today in his office in Abuja when he hosted Alhaji Aliko Dangote, President of the Dangote Group, for crucial discussions on enhancing private sector participation.
The Minister reaffirmed President Bola Ahmed Tinubu’s commitment to creating a business-friendly environment that fosters enterprise growth while emphasizing the government’s dedication to implementing supportive policies and reforms aimed at unlocking the private sector’s potential, driving innovation, and accelerating sustainable economic transformation.
Also present at the meeting were Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adelabu Adedeji, Chairman MRS Oil & Gas, Sayyu Dantata, and Maryam Ibrahim, Special Adviser to the Minister
With the government’s commitment to creating a business-friendly environment and the private sector’s eagerness to invest, Nigeria is poised for sustainable economic transformation and growth. Thus, the partnership between the government and the Dangote Group is a significant step towards unlocking the country’s economic potential.
Signed
Mohammed Manga, FCAI
Director, Information and Public Relations
March 18, 2025
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