The German-Nigerian fintech company BFREE and others want to take over the loans from Union Bank

German-Nigerian fintech firm BFREE and some of its international financing partners have flagged the possibility of acquiring some of the Union Bank of Nigeria’s distressed loan portfolios.

According to a statement seen by BusinessDay, it was revealed that BFREE and Union Bank signed a memorandum of understanding during the German-Nigerian Economic Forum in Berlin that could make the acquisition possible.

Under the terms of the MoU, BFREE, together with its international financing partners, said it will explore the acquisition of non-performing loan portfolios from Union Bank with a potential investment limit of $40 million, with a focus on refinancing non-performing loan portfolios. Especially those that have defaulted on payments or have already been written off.

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Union Bank, whose shares were officially delisted from the official daily listing of the Nigerian Stock Exchange Limited on Monday, said it has proactively adapted to the country’s challenging economic environment.

“Ongoing economic pressures have required greater flexibility in loan repayment schedules, and BFREE, Leveraging Artificial Intelligence, offers an innovative solution,” the statement said.

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Commenting on the partnership, Union Bank CEO Joe Mbulu said: “We are pleased to enter into a strategic partnership with BFREE as it aligns with Union Bank’s commitment to innovation and adaptability. This collaboration demonstrates our commitment to finding innovative solutions to the economic challenges our customers face.”