E-Financial
BPE Allays Fears of Banking Collapse over N1Trn Investment in PHCN
Benjamin Dikki, director general, Bureau of Public Enterprises (BPE), has faulted claims by some financial analysts that commercial bank’s involvement in the ongoing national public sector power privatisation could lead to another round of ‘banking meltdown’.
Dikki argued that the fears were misplaced as the Successor Companies did not borrow directly from the banks for their own books.
Furthermore, no assets of SCSs were pledged as collateral. It should be noted that it was the acquiring companies or SPV’s that borrowed based on their cash flows and accounts.
Nigeria CommunicationsWeek gathered that the SPA signed also requires that the consent of the BPE is obtained before the Core Investors can borrow.
Speaking at a stakeholders’ conference in Abuja last week, Dikki stated that “The banks lent to the Core Investors based on their capability to pay. The investors are supposed to have made adequate provisions to take care of their obligations to their financiers from the outset. They knew that they were not going to make profit immediately on takeover of the SCS. Their financiers also were aware of this.”
During the presentation entitled: “Reform of the power sector in Latin American countries in the 1990s,” Pedro Antmann, of the Africa Energy Team at the World Bank, reminded the investors that their primary focus should be to provide adequate and efficient power supply to Nigerian consumers.
He said that there were unusually challenges at the initial stages of the privatisation exercise but that with determination and the right strategy, it would be surmounted.
Antmann urged the investors not to aim at making profit now but to endeavour to develop infrastructure and to meet the cost of supply.
The World Bank official advised the Nigerian Electricity Regulatory Commission (NERC) to make a provision in its rules to adjust tariffs in times of low generation and shortage of gas supply.
Antman, drawing from experiences in other countries, said these challenges are normal at the early stages. Urging Investors not to focus on short term gains, but invest in infrastructure that will guarantee sustained future profits.
Financial experts have expressed worry on the possibility of Nigerian banks losing about N1 trillion they invested in the acquisition of the privatized assets of the Power Holding Company of Nigeria (PHCN) Successor Companies (SCs).
The banks expressed fears that they may be unable to recoup their investment following the myriad of problems facing the sector.
Dr. Alex Otti, group managing director/chief executive officer, Diamond Bank Plc had at a power investors’ forum in Abuja, said that as at 2013, the banking industry had invested well over N750 billion in the power sector and that they were ready to do more.
Consequently, the banks called for an increase in electricity tariff and in the price of gas, saying it would boost the revenue profile of the power companies and their ability to repay their debts.
Some of the chief executives of banks, who spoke at the just concluded Seventh Lagos Economic Summit, tagged Ehingbeti 2014, complained of the revenue profile of the recently privatized power companies, saying it is not meeting the expectation of investors.
Kuda Microfinance Bank has unveiled the 2025 edition of “My Year on Kuda,” its annual recap providing customers with personalised insights into their spending, saving, and money management habits from the previous year.
Kuda Microfinance Bank
The tool analyses transaction data across categories like transfers, card payments, online purchases, and bills, revealing patterns such as highest-spending months, biggest payments, saving frequency, and savings from Kuda’s 25 free monthly transfers. Customers can compare 2025 activity against 2024, including income versus expenditure.
In an era of inflation and economic uncertainty, the recap promotes financial literacy by highlighting responsible borrowing via Kuda Overdraft usage, including access frequency, amounts borrowed, and repayment patterns.
Customer-shared screenshots on X reflect national trends: Nigeria recorded over 2.2 billion electronic transactions worth ₦285 trillion in Q1 2025, up 20 percent year-on-year, with POS terminals driving the shift to cashless commerce.
Kuda Group CEO Babs Ogundeyi, in the recap’s opening video, urged users: “Before you carry on with January, this is the perfect time to see everything you did with your money on Kuda last year and learn something.”
The feature underscores Kuda’s focus on actionable insights to help Nigerians navigate evolving personal finance amid shifting earning and spending behaviours.
Wema Bank has introduced SAW, a new AI voice assistant integrated into the ALAT 2.0 app, allowing customers to manage finances through natural voice commands similar to Siri, Bixby, or Alexa.
Wema Bank
SAW understands everyday language and delivers instant responses tailored to banking needs, such as checking account balances, transferring money, reviewing transactions, and accessing support.
This feature brings conversational banking to Nigerian users, eliminating complexity and enhancing accessibility.
The bank positions SAW as a pioneer in AI-powered financial services, aligning with global trends where millions interact daily with voice assistants for tasks like setting reminders or playing music.
ALAT 2.0 represents the next evolution in digital banking, making services more efficient, personal, and human-like for everyday Nigerians.
Ecobank Nigeria Limited has fully repaid bondholders who validly tendered their notes ahead of the February 2026 maturity date.
The bank announced the successful completion of its tender offer, under which it prepaid approximately $245 million of its $300 million Eurobond, representing more than 80 per cent of the total issuance.
According to a statement, the transaction relates to the 7.125 per cent Senior Note Participation Notes due February 2026.
Ecobank Nigeria Limited said it launched a tender offer to eligible noteholders in respect of the outstanding $150 million on the bond on November 27, 2025, providing them with an opportunity to redeem their holdings ahead of the original maturity date of 16 February 2026.
It stated that the early and late tender participation deadlines were 11 December 2025 and 29 December 2025, respectively.
According to the bank, holders of notes validly tendered and accepted received a cash consideration of $1,000 per $1,000 in principal amount, in addition to accrued interest from the last interest payment date up to, but excluding, the final settlement date of 31 December 2025.
Following completion of the offer, the bank said the outstanding principal amount of the notes has been reduced to approximately $55.092 million.
The bank also stated that the initiative reflects Ecobank Nigeria’s proactive approach to liability management and prudent balance sheet optimisation.
The tender offer was conducted with Renaissance Capital Africa (Renaissance Securities Nigeria Limited) acting as financial adviser and dealer manager, while Sodali & Co Limited served as tender agent.
The notes were originally issued by EBN Finance Company B.V., with limited recourse to the issuer, for the sole purpose of financing the purchase of the $300 million 7.125 per cent Senior Note due 2026 issued by Ecobank Nigeria Limited.
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