Union Bank of Nigeria says it is expanding efforts to serve millions of underserved entrepreneurs, as the country’s banking sector faces growing pressure to support the informal economy that drives much of Nigeria’s growth.

The Two Economies in One Country

Nigeria’s financial system has long catered to salaried workers, corporate firms, and customers with formal credit histories.

But a much larger segment operates differently from market traders and cooperative groups to artisans and seasonal agro-dealers often without access to structured financial services.

According to a 2023 report by Enhancing Financial Innovation & Access (EFInA), about 26% of Nigerian adults remain financially excluded, highlighting a persistent gap in access to banking.

Meanwhile, surveys by the World Bank show that limited access to finance remains the biggest constraint for small and medium-sized businesses in Nigeria.

Why It Matters

The informal and semi-formal sector is widely considered the backbone of Nigeria’s economy, generating employment and sustaining local markets.

Yet many of these businesses lack access to credit, savings tools, and financial education  not because they are unviable, but because traditional banking models were not designed for them.

This gap has implications for:

Economic growth

Job creation

Financial stability

Poverty reductions

Union Bank’s Approach

Union Bank says it is attempting to bridge this divide through alpher, a financial initiative tailored to underserved entrepreneurs.

In 2025, the bank reported:

Over ₦150 million in cash flow loans disbursed within three months

More than ₦106 million in discounted credit to 71 businesses in market clusters

Financial literacy training reaching 230 individuals

Support for 59 previously unbanked entrepreneurs through micro-grants and account openings

The initiative focuses on businesses whose financial activities flow through cooperatives, associations, and informal networks — groups often invisible to traditional credit scoring systems.

“alpher represents a decision to redesign the product rather than wait for the customer to fit the existing one.”

Rethinking Banking Design

Industry analysts say the challenge is not a lack of intent, but a mismatch in structure.

Traditional banking systems rely on:

Regular monthly income

Documented collateral

Formal credit histories

Many Nigerian entrepreneurs, however, operate on:

Irregular or seasonal income cycles

Community-based trust systems

Informal financial records

This disconnect has left a large portion of productive businesses underserved.

Inclusion Starts From Within

Union Bank links its external financial inclusion efforts to its internal policies.

The bank says:

45% of its board members are women, exceeding regulatory benchmarks

Its latest graduate intake is 60% female

It offers five-month paid maternity leave and 10-day paternity leave

It provides childcare support through its CareCube crèche

Managing Director and CEO, Yetunde B. Oni, leads the institution as it pushes for broader inclusion both internally and externally.

Analysts argue that diverse leadership can influence how financial products are designed and who they ultimately serve.

Industry Perspective

Experts say Union Bank is among a small group of institutions beginning to rethink banking for Nigeria’s real economy.

However, they warn that:

Financial products for informal businesses remain limited

Lending can still be expensive

Access is uneven across regions

There is growing consensus that more banks must adapt their models to reflect Nigeria’s economic realities.

What’s Next for Nigeria’s Banking Sector

As Union Bank approaches its 109th year, the broader question remains whether the sector can evolve quickly enough.

Nigeria’s economy is not uniform — it spans:

Cooperative networks in the North

Trading hubs in the South-West

Manufacturing clusters in the South-East

Digital startups in Lagos

Experts say banks that design products for this diversity are more likely to remain relevant.

Polaris Bank has graduated 58 new hires from its flagship training programmes, selecting them from more than 10,000 applicants in a move aimed at strengthening talent in Nigeria’s financial sector.

The new employees completed the Polaris Graduate Intensive Training (PGIT) and Polaris Tech Ignite Programme (PTIP), both designed to equip young professionals with banking and technology skills.

The ceremony, held in Lagos on 8 April, brought together senior executives and industry stakeholders, marking what the bank described as a milestone in its talent development strategy.

Only 0.58% of applicants were selected, underlining the competitive nature of the process and the bank’s emphasis on high standards.

“Keep learning, keep evolving”

Polaris Bank’s Managing Director and Chief Executive Officer, Kayode Lawal, told the graduates that adapting to rapid technological change would define their careers.

“Never stop learning, because life never stops teaching,” he said.

“In today’s technology-driven world, staying relevant requires constantly upgrading your skills.”

He pointed to the shift from traditional systems to artificial intelligence, noting that tasks that once took weeks can now be completed in minutes.

“To thrive, you must learn, adapt, and evolve,” he added.

Integrity ‘remains the cornerstone’

Mr Lawal also stressed the importance of ethics in the banking industry, warning that reputation is critical.

“Integrity is the hallmark of a banker – once you lose it, you lose everything. What we truly sell is our reputation,” he said.

He encouraged the graduates to adopt disciplined financial habits, remain humble, and show gratitude throughout their careers.

Why it matters

Nigeria’s banking sector is undergoing rapid digital transformation, driven by fintech growth and increased adoption of digital banking services.

Industry analysts say initiatives like PGIT and PTIP are essential to closing the skills gap and preparing a workforce capable of navigating emerging technologies such as artificial intelligence and data-driven banking.

The 58 graduates are expected to support Polaris Bank’s expansion in retail banking, digital innovation, and customer service delivery.

Industry and public perspective

Experts say talent development programmes are becoming increasingly important as banks compete with fintech firms for skilled professionals.

Young professionals have also welcomed such initiatives, describing them as rare opportunities in a competitive job market.

What’s next

Polaris Bank says the new hires will be deployed across key business units, contributing to its long-term growth strategy.

The bank added that it will continue investing in youth empowerment and professional development to sustain innovation in the financial services sector.

The Lagos State Internal Revenue Service (LIRS) has extended the deadline for filing individual annual income tax returns to April 21, 2026, following increased activity on its eTax platform.

The agency said the decision comes after an earlier extension to April 14, as more taxpayers rushed to meet the deadline.

In a statement signed by its Head of Corporate Communications, Monsurat Amasa-Oyelude, LIRS said the move is aimed at ensuring all taxpayers have enough time to complete their filings successfully.

Why It Matters

The extension offers relief to individuals and businesses who may have struggled with technical delays or last-minute submissions.

Tax filing is a legal obligation in Lagos State, and compliance plays a critical role in funding public services, infrastructure, and economic development.

With Nigeria pushing for improved tax compliance, digital platforms like LIRS’ eTax system are central to modernising revenue collection.

Surge in Online Activity

LIRS noted a “significant increase in traffic” on its eTax platform as the previous deadline approached.

“This additional extension is granted in consideration of the overwhelming response and to enhance taxpayer convenience, while maintaining the integrity and accuracy of submissions,” the statement said.

The agency emphasised that the extension is final, urging taxpayers to act promptly.

Mandatory Online Filing

The Executive Chairman of LIRS, Ayodele Subair, reiterated that all tax returns must be submitted electronically.

“All filings must be completed electronically via the LIRS eTax platform, which remains the only approved channel for submission,” he said.

Taxpayers requiring assistance can visit LIRS offices or use official communication channels.

Industry and Public Perspective

Financial analysts say repeated deadline extensions reflect both increased awareness and lingering challenges with digital adoption.

Some taxpayers have welcomed the extension, citing network issues and delays in gathering documentation.

However, tax experts warn that consistent last-minute filings could continue to overload the system unless more users file earlier.

What’s Next

With the new deadline set for April 21, authorities are expected to monitor compliance levels and platform performance.

There are also calls for further investment in digital infrastructure to support Nigeria’s growing taxpayer base.