E-Financial
NDIC Reduces Insurance Premium for Banks
The Nigeria Deposit Insurance Corporation (NDIC) yesterday said it had approved the reduction of insurance premium paid by Deposit Money Banks from 0.5 per cent to 0.35 per cent.
The new premium-based insurance rate of 0.35 per cent, according to the corporation, is expected to take effect from next year.
Umar Ibrahim, Managing Director/Chief Executive, NDIC, disclosed these at the 25th anniversary press conference held at the corporation’s headquarters in Abuja.
The decision to reduce the insurance premium, he said, was part of the corporation’s contribution not only to failure resolution, but to the Financial Stability Fund.
This, he added, would help the corporation reduce cost of funds incurred by deposit money banks, thus ensuring stability of the banking sector.
He said, “Another contribution to failure resolution by the NDIC is in its contribution to the Financial Stability Fund by the downward review of premium payable by banks through a reduction of the assessment rate from 50 to 40 and further to 35 basis points.
“That was done to encourage banks in their contribution to the Financial Stability Fund and reduce the cost of funds by deposit money banks.”
Shedding more light on the development,, Zaccheaus Anate, director, Insurance and Surveillance Department, NDIC said the 0.35 per cent reduction on insurance premium would commence from next year.
He said when the premium was first reduced in 2010 from 0.5 per cent to 0.4 per cent, the corporation was able to reduce the amount of insurance premium paid by banks by N53bn.
He said, “In support of the financial stability fund, in 2010, we reduced the premium based rate from 0.5 per cent to 0.4 per cent and that took effect from 2011 up to this year and that is for four years and for this four year period, we have had a reduction of N53bn as a result of reduction in the base rate from 0.5 to 0.4.
“Now, from next year, there is going to be an additional reduction in the base rate from this 0.4 per cent to 0.35 per cent from next year and definitely that will lead to additional reduction for banks.
“We want to make sure that we reduce premium burden for banks and also to make sure that the deposit insurance is fairly priced. We want to support the banks to make sure they succeed.”
Giving a performance of the corporation in the last 25 years in the area of distress resolution, the NDIC MD said that as at the end of August, it had paid a cumulative sum of N93.64bn as liquidation dividend to 250,497 depositors
He also noted that the NDIC had declared a final dividend of 100 per cent of total deposits in respect to 14 closed banks as at December 2013.
This, according to him, is an indication that all depositors in those banks had fully recovered their deposits.
Furthermore, Ibrahim stated that the sum of N1.72bn was declared as dividends to 699 creditors of the nine banks.
Out of that amount, the corporation, he explained, had paid the sum of N1.19bn to 424 creditors who filed their claims as at August 31, 2014.
Similarly, he added that the corporation had paid liquidation dividend to 453 shareholders of Alpha, Pan African and Nigeria Merchant Bank, which stood at N2.03bn as at August 31, 2014.
With regards to liquidation activities, he stated that the corporation had made a lot of achievements in ensuring that depositors of liquidated banks suffer as little loss as possible.
He said. “Following the revocation of the operating licenses of insured DMBs in 1994, 1995, 1998, 2000, 2003 and 2006, as well as the 103 MFBs in 2010, 83 in 2013 and 26 PMBs, the NDIC ensured the prompt payment of insured sums and dividends to uninsured depositors and other eligible claimants.
“A cumulative amount of N6.82bn was paid to 528,277 insured depositors of the 48 DMBs in-liquidation as at August 31, 2014.
“While for the 186 closed MFBs, the cumulative amount of N2.75bn had been paid to 80,059 verified depositors as at 31st August, 2014.”
Despite these achievements, the MD, however lamented that the corporation is still being faced with a lot of challenges.
Some of them are its inability to locate some of the closed Primary Mortgage Banks whose licenses were revoked by CBN; litigations by former shareholders of closed banks and creditors of the closed banks.
Others are unsatisfactory rendition of returns by some MFBs; and delays in the legal and judicial process in relation to failed banks cases.
For instance, he said till date, Peak Merchant Bank one of the 36 banks closed between 1994 and 2003 is still contesting the withdrawal of its license in court while Savannah Bank is yet to resume operation after court had passed judgment in its favour.
This, he lamented had made it difficult for innocent depositors of the two banks to have access to their trapped funds.
He also said awareness about the corporation’s activities remains low despite all the efforts to improve it, noting that a recent survey on public awareness commissioned by the corporation, indicated that the level of awareness was about 40 per cent.
Despite the challenges facing the corporation, the NDIC boss said the board, management and staff are determined to ensure that it achieves its broad mandate of protecting depositors and providing a stable financial system in Nigeria.
David Malpass, former World Bank President, has warned that Nigeria’s increasing reliance on collateral-backed and complex borrowing arrangements could make any future debt restructuring more difficult and discourage investors if the country’s debt position becomes unsustainable.
David Malpass, former World Bank President
Malpass, who was 13th president of the World Bank Group, from April 9, 2019 – June 1, 2023, raised the concern in a World Bank Policy Research Working Paper titled Public Debt and Central Banks, which was based on the Stanley Fischer Memorial Lecture delivered at the World Bank Group’s Annual Bank Conference on Development Economics.
He said increasingly sophisticated collateralised transactions in developing economies, including Nigeria, Angola and Senegal, were creating what he described as “a new race toward seniority in the capital structure.”
In sovereign lending, collateralised creditors may gain priority over other lenders by tying repayment to specific assets, revenues or financial instruments. Malpass warned that the expansion of such arrangements could leave fewer resources available for unsecured creditors and make negotiations more contentious during a debt crisis.
He also questioned the growing use of guarantee products provided by multilateral development banks, arguing that their effectiveness had not been adequately tested during sovereign debt restructurings.
According to him, private lending to distressed or high-risk governments has become less transparent, with some commercial agreements containing non-disclosure clauses that prevent citizens, investors and other creditors from understanding their full implications.
Malpass said debt reconciliation efforts were already being hindered by limited access to sovereign loan contracts, particularly agreements linked to Chinese lending programmes.
The former World Bank chief also criticised the international debt restructuring system, arguing that existing mechanisms had failed to provide timely and meaningful relief to heavily indebted countries.
Beyond debt transparency, Malpass identified exchange rate stability as an important requirement for Nigeria’s economic growth.
He grouped Nigeria with Ethiopia and Egypt among countries where multiple exchange rates and poorly managed currency systems had transferred wealth from low-income earners to politically or economically privileged groups.
He estimated Nigeria’s per capita income at about $1,500, or roughly $4 a day, while noting that median income was likely to be considerably lower because wealth remained concentrated among a small proportion of the population.
Malpass argued that the benefits of credible currency reform could be substantial, pointing to the significantly higher earnings of Nigerians working abroad as evidence of the country’s unrealised productive potential.
He disclosed that, while serving as World Bank president, he held several meetings with Nigeria’s previous administration, cabinet officials and the bank’s Nigeria team to identify reforms capable of accelerating economic growth.
Those discussions highlighted currency stabilisation, exchange rate unification, oil sector reforms, tax changes and agricultural liberalisation, particularly in rice production, as priorities.
Malpass said the reforms could transform Nigeria’s economy in a manner comparable to the policy changes that helped launch China’s sustained period of rapid growth in the 1990s.
Malpass’ warning comes amid continuing scrutiny of Nigeria’s use of unconventional financing to refinance expensive obligations and cover budget deficits.
The International Monetary Fund and Fitch Ratings had earlier raised concerns about the Federal Government’s proposed $5 billion Total Return Swap with First Abu Dhabi Bank, warning that derivatives-based sovereign borrowing could obscure the country’s true debt exposure and complicate future restructuring.
Despite those concerns, Nigeria reportedly accessed an initial tranche of about $1.5 billion from the arrangement.
The controversy follows years of debate over the transparency of Nigeria’s borrowing, including loans linked to crude oil revenues, infrastructure assets and bilateral agreements whose full terms were not always publicly disclosed. With debt-service costs consuming a substantial share of government revenue, the latest warning reinforces concerns that short-term financing relief could create more difficult obligations for future administrations.
Ecobank Nigeria has launched Scaling Up!!!, its flagship business storytelling podcast designed to inspire, educate and empower entrepreneurs, founders, business leaders and the next generation of African innovators through authentic conversations with some of the continent’s most accomplished business personalities.
The podcast, which will be available on Ecobank Nigeria’s official YouTube channel and other major digital streaming platforms, reinforces the bank’s commitment to supporting businesses beyond banking by creating a platform where entrepreneurs can learn from the experiences of successful founders, creatives and industry leaders who have built thriving enterprises across diverse sectors.
Featuring compelling conversations on entrepreneurship, leadership, innovation, resilience and business growth, Scaling Up!!! offers practical lessons and real-life insights that aspiring and established entrepreneurs can apply in building sustainable businesses.
The inaugural season features an impressive lineup of distinguished guests, including beauty entrepreneur and Founder/CEO of Beauty by AD, Adeola Adeyemi (Diiadem); renowned filmmaker and Founder of Golden Effects Pictures, Kunle Afolayan; veteran music producer and Founder of Coded Tunes, ID Cabasa; luxury fashion entrepreneur, Ejiro Amos Tafiri; celebrated commercial photographer, Emmanuel Oyeleke; Co-founder and Lead Interior Designer of Siriano Limited, Adewunmi Adegbola; and Founder of Windsor Gallery and Nahous Creative Hub, Richard Vedelago.
Each episode explores the guests’ entrepreneurial journeys, highlighting the opportunities they embraced, the challenges they overcame and the strategies that enabled them to build enduring brands and successful businesses.
Speaking on the launch, Austen Osokpor, Head, Marketing & Corporate Communications, Ecobank Nigeria, said: “Scaling Up!!! reflects Ecobank’s belief that empowering entrepreneurs goes beyond providing financial solutions.
“Through authentic storytelling and insightful conversations, we are creating a platform where business owners can learn directly from people who have successfully navigated the realities of building sustainable enterprises. It is another way we are reinforcing our commitment to driving entrepreneurship, innovation and economic growth across Africa.”
Also speaking, Head, SMEs, Partnerships & Collaborations, Ecobank Nigeria, Omoboye Odu, said: “Entrepreneurs learn best from the experiences of those who have walked the journey before them. Scaling Up!!! provides practical insights, inspiration and valuable lessons that will help founders make better business decisions, overcome challenges and unlock new opportunities for growth.
“The podcast further strengthens Ecobank’s role as a trusted partner supporting SMEs at every stage of their entrepreneurial journey.”
Sharing the creative vision behind the initiative, the Producer of Scaling Up!!!, Jemimah Ugiagbe, said: “Our goal was to create more than just another business podcast. We wanted honest, engaging and relatable conversations that reveal the realities behind success, the setbacks, the resilience, the bold decisions, and the lessons that every entrepreneur can learn from.
“Every episode is designed to leave listeners informed, inspired and motivated to build businesses that create lasting impact.”
The podcast further strengthens Ecobank Nigeria’s position as a trusted partner for entrepreneurs by providing a knowledge-sharing platform that extends beyond traditional banking services. GeographicReference
Through meaningful conversations with accomplished founders and innovators, the bank continues to demonstrate its commitment to fostering enterprise development, encouraging innovation and promoting sustainable economic growth across Africa.
Scaling Up!!! is targeted at SMEs, entrepreneurs, founders, startups, business executives, creatives, students and young professionals seeking practical business insights from some of Africa’s most respected industry leaders.
New episodes will be released regularly across Ecobank Nigeria’s YouTube channel and other major podcast streaming platforms, offering audiences thought-provoking conversations on entrepreneurship, leadership, innovation and business growth.
Ecobank Nigeria is a member of the Ecobank Group, the leading pan-African banking institution with operations in 33 African countries and international offices in London, Paris, Beijing, and Dubai.
With over 220 branches, more than 36,000 agency banking locations, and robust digital platforms, Ecobank delivers accessible, affordable, and instant banking services. The bank is strategically positioned to support pan-African trade, particularly under the African Continental Free Trade Area (AfCFTA).
S&P Global has agreed to acquire a majority stake in Agusto & Co., one of Africa’s oldest and largest domestic credit rating agencies, in a move that signals growing international interest in the continent’s capital markets and credit ecosystem.
According to a joint statement by the rating agencies. The transaction, which is subject to regulatory approvals, will give the global ratings giant a stronger foothold in Africa through Agusto & Co.’s operations in Nigeria, Kenya, Ghana, and Rwanda. Financial terms of the deal were not disclosed.
The acquisition marks one of the most significant investments by a global ratings agency in Africa’s domestic credit ratings market in recent years and comes as governments and companies across the continent increasingly rely on local debt markets to finance infrastructure, corporate expansion, and fiscal deficits.
Yann Le Pallec, president of S&P Global Ratings, said the investment reflects the company’s long-term commitment to Africa’s financial markets.
“We are delighted to partner with Agusto & Co. to strengthen our domestic ratings presence across Africa,” Le Pallec said. “This transaction underscores our commitment to supporting growth and transparency in local credit markets throughout the continent.”
He added that combining S&P Global’s international analytical capabilities with Agusto & Co.’s local market knowledge would help improve credit transparency and support investor confidence across African markets.
Founded more than three decades ago, Agusto & Co. has built a reputation as one of Africa’s leading domestic rating agencies, providing credit ratings on banks, corporates, and other institutions. The company has expanded beyond Nigeria into several African markets and has played a key role in the development of domestic bond markets.
For Agusto & Co., the transaction represents a major milestone in its growth strategy and fulfills a long-held ambition to align with a global ratings institution.
“This partnership is a transformational milestone for Agusto & Co. and African capital markets, fulfilling our late founder’s vision of affiliating with a leading global rating agency,” said Yinka Adelekan, managing director of Agusto & Co.
According to Adelekan, the combination of Agusto’s regional expertise with S&P Global’s international resources and analytical network is expected to create broader opportunities for issuers and investors while supporting more transparent and resilient credit markets across Africa.
Despite the ownership change, Agusto & Co. said it will continue operating as an independent domestic ratings agency, maintaining its own rating methodologies and issuing ratings under applicable regulatory frameworks.
That structure is expected to preserve the agency’s regulatory standing in the jurisdictions where it operates while enabling it to benefit from S&P Global’s technology, research capabilities, and global market expertise.
The acquisition also reflects increasing global interest in Africa’s capital markets, where governments are pursuing domestic borrowing strategies and private companies are seeking alternative sources of long-term financing amid tighter global liquidity conditions.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary closing conditions. S&P Global said the acquisition is not expected to have a material impact on its financial results.
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