Mellon and Standard Bank Group have launched global depositary notes (GDNs) backed by Nigerian government debt, all denominated in naira. This new program is designed to make it much easier for international investors to tap into Nigeria’s high-yielding local bonds and Treasury bills, some of the most attractive in emerging markets. Nigeria’s sovereign debt is known for its strong returns. Just this month, the country’s 182-day Treasury bills were sold at a yield of 18.5%, while its 2033 benchmark bond was trading at 19.33%. These elevated yields have long attracted attention, but access for foreign investors has been limited, until now. With the new GDNs, investors around the world can buy into Nigerian debt through major international clearing systems like Euroclear and Clearstream. This means broader participation from global institutions and a smoother, safer way to settle transactions. Chris Kearns, BNY Mellon’s global head of depositary receipts, says the initiative “unlocks investment potential across Africa and contributes to the development of capital markets on the continent.” Standard Bank’s Sola Adegbesan adds that the program offers “a simplified entry point into Nigeria’s debt market,” making the country’s dynamic economy more accessible than ever. For investors seeking high returns and new opportunities, Nigeria’s doors just opened a little wider.
Telecom operators in Nigeria begin direct airtime charges for USSD services starting Today, June 18
Telecommunications companies have started charging customers directly for USSD (Unstructured Supplementary Service Data) services from Wednesday, June 18, 2025. This change follows a new directive from the Nigerian Communications Commission (NCC) aimed at making USSD billing more transparent and efficient. Under the new End-User Billing (EUB) model, mobile subscribers will now pay for USSD sessions through deductions from their airtime at a rate of ₦6.98 for every 120 seconds of use. This replaces the previous system where telecom operators billed banks for USSD services, often leading to disputes and service disruptions. The Association of Licensed Telecom Operators of Nigeria (ALTON) explained that this move will create a more sustainable and customer-friendly framework, especially as Nigeria’s digital financial services continue to grow rapidly. Customers will receive a prompt to opt in before charges are applied, ensuring they have control over each session. Importantly, only successful USSD transactions will be billed, reducing the risk of double charges. “This transition ensures a more accountable and efficient system,” said ALTON Chairman Engr. Gbenga Adebayo. “It also eliminates the frequent disputes between banks and telecom operators that have sometimes disrupted services for millions of users.” Banks are required to notify their customers about the change and educate them on how the new charges will work. For any issues with USSD access, customers should contact their mobile network providers, while transaction errors should be directed to their banks. Both sectors are committed to providing responsive customer support during this transition. Despite the new charges, alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational for users seeking other options. This change comes after years of tension between banks and telecom companies over unpaid USSD debts, which reportedly reached N250 billion. The Central Bank of Nigeria (CBN) and NCC have been working together to resolve these issues, with the new billing model marking a key milestone. As USSD remains a vital tool for financial inclusion, especially for underserved and low-income Nigerians, ALTON has pledged to continue collaborating with regulators and financial institutions to ensure the benefits of this transition reach all users. For millions of Nigerians, this new billing system promises clearer charges, fewer service interruptions, and greater control over their mobile financial transactions.
Zenith Bank reassures investors as CBN dividend ban looms
Zenith Bank Plc has told shareholders that its dividend freeze is only temporary, following a new Central Bank of Nigeria (CBN) directive that suspends dividend payments, executive bonuses, and fresh foreign investments for banks still under regulatory forbearance. In a statement filed with the Nigerian Exchange on June 17, Zenith Bank explained that it has already surpassed the CBN’s new capital requirement of N500 billion. The bank clarified that its forbearance status is tied to just one major customer, and it expects to resolve this issue by June 30, 2025. The CBN directive, issued June 13, aims to strengthen the financial system by phasing out pandemic-era leniency measures. This move has sparked concerns among investors, as several top banks, including Zenith, FirstBank, and Access, have seen their dividend payments halted until they clear outstanding regulatory issues. Zenith Bank emphasized that it has made substantial provisions for the affected loans and expects to exit all CBN forbearance arrangements by the end of the first half of 2025. “We remain confident that the Bank will satisfy all relevant conditions to enable it to pay dividends to shareholders in the current year,” the statement read. The bank’s swift communication is seen as an attempt to calm investor nerves, as the new rules have already impacted banking stocks on the Nigerian Exchange. For now, Zenith Bank says it is on track to resume dividend payments later in 2025, provided it meets all CBN conditions and receives regulatory clearance.
LemFi acquires UK fintech Pillar to launch credit cards for immigrants
London-based international payments startup LemFi has acquired UK fintech Pillar in a strategic move to offer specialised credit cards tailored for immigrant communities, addressing a major barrier to financial inclusion in the UK. Pillar, founded by former Revolut employees Ashutosh Bhatt and Adam Lewis, developed technology that enables immigrants to access credit products by recognising international credit histories and using alternative data for credit assessments. Since its inception, Pillar has issued about 20,000 cards, mainly to migrants from India and Nigeria. The acquisition, completed in May and approved by the UK’s Financial Conduct Authority, integrates Pillar’s licensed card issuance technology and team into LemFi. This will allow LemFi to become the first major remittance platform to offer credit as a core product, complementing its existing money transfer services used by over two million customers across the US, UK, Canada, and Europe. LemFi’s co-founder and CEO, Ridwan Olalere, said the move is part of the company’s vision to build a full-stack financial service for immigrants worldwide. “Through LemFi Credit, we already help customers grow their credit within the app. With this acquisition, we plan to offer credit cards starting in the UK, leveraging Pillar’s technology to import credit histories, provide alternative credit assessments, and integrate credit building with remittance services,” he explained. The new LemFi Credit service, currently in private beta, has already attracted over 8,000 users with an 18% weekly growth rate. Customers can access virtual cards compatible with Apple Pay and Google Pay, with physical cards expected later this year. Ashutosh Bhatt shared his personal experience of financial exclusion despite a good salary in the UK, highlighting the persistent challenges immigrants face. “We still can’t offer equitable access to bank accounts or credit cards to someone from another country. Together with LemFi, we aim to increase our reach tenfold and build truly global access to credit,” he said. LemFi has raised over $86 million in funding to date, including a $53 million Series B round earlier this year.This deal marks a major step forward in reshaping how immigrants manage money globally, combining remittance and credit services in a single platform designed to meet their unique needs.
Visa and Microsoft join forces to boost Nigeria’s fintech with AI skills week
Visa and Microsoft have teamed up to empower Nigeria’s fintech sector through a dynamic AI Skills Week event held from May 26 to 30. The program brought together over 70 developers and 150 technology leaders from financial services for workshops, live sessions, and a hackathon focused on real-world fintech challenges. The week-long event aimed to build practical AI skills, especially in areas like Know Your Customer (KYC) compliance, a key regulatory requirement in finance. Participants explored cutting-edge AI tools such as Azure OpenAI and Microsoft Copilot to design innovative solutions that enhance security and customer experience. Andrew Uaboi, Vice President and Cluster Head of Visa West Africa, said, “We are proud to support Nigeria’s next generation of fintech leaders by fostering technologies that are secure, inclusive, and scalable. This partnership with Microsoft helps turn compliance challenges into competitive advantages tailored for African markets.” Ola Williams, Managing Director of Microsoft Nigeria and Ghana, added, “Nurturing talent is vital for sustaining Nigeria’s fintech innovation. Through initiatives like AI Skills Week, we equip developers and leaders with the tools to drive financial inclusion and elevate customer experiences.” The hackathon winners received mentorship and potential support to bring their AI-driven fintech solutions to market, highlighting Visa and Microsoft’s commitment to Africa’s growing digital economy. This collaboration highlights the importance of responsible AI adoption in fintech, balancing innovation with compliance and privacy to build trust and inclusion in Nigeria’s financial ecosystem.
Access Bank’s bid to freeze MTN accounts over N180 billion debt denied by Lagos court
A Lagos Federal High Court has rejected Access Bank Plc’s application to freeze MTN Nigeria Communications Plc’s bank accounts over a disputed N180.95 billion debt related to an expired infrastructure-sharing agreement. Justice Akintayo Aluko ruled that MTN must be given a chance to respond before any drastic action is taken. The court set a hearing date for June 23, 2025, for further proceedings. The dispute stems from a decade-old fiber-sharing deal between MTN and the now-defunct Multi-Links Telecommunications. The agreement, which expired in 2024, allowed both companies to use each other’s fiber infrastructure. However, Multi-Links underutilized MTN’s network while MTN heavily used Multi-Links’ assets. Multi-Links later went into receivership under Diamond Bank, which Access Bank acquired in 2019. A company called Hoop Telecoms claimed to have acquired Multi-Links’ fiber assets but denied responsibility for past liabilities. Hoop Telecoms billed MTN nearly N170 billion retroactively, which MTN rejected, estimating its actual debt at just over N1 billion. Access Bank aligned with Hoop Telecoms’ claim and sought a Mareva injunction to freeze MTN’s funds to secure the disputed amount. The court, however, emphasized the need to hear MTN’s side first due to the case’s complexity. MTN has faced several legal challenges recently, including suing banks to recover unpaid fees and regulatory scrutiny over compliance issues. The court’s decision offers MTN temporary relief, but the legal battle over the legacy telecom agreement and receivership claims continues. MTN declined to comment, citing the ongoing case, while Access Bank has yet to respond to inquiries.