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Insurance and Banking in Nigeria: Any Relationship?

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Under the financial services sector, banks and insurance companies fall within the same tripod, alongside the capital market. As the Central Bank of Nigeria continues in its reform of the banking sector, the National Insurance Commission {NAICOM} has also not been left behind in the formulation of policies and other regulatory frameworks. However the question agitating the minds of industry watchers is why despite efforts put in place, the insurance industry has not occupied the ideal position in Nigeria. Elsewhere, insurance provides a leadership role to other segments of the financial sector, with many banks being owed by insurance companies. What is the role of insurance in the development of any economy, particularly in Nigeria where insurance seems to be crawling instead of running. While appreciating the professional efforts already in place to change the trend, it is expedient to guide the public on what relationship if any, exists between the banks and insurance. According to Mr. Adeyemo Adejumo, managing director of Continental Reinsurance plc, “traditionally, the financial services sector is commonly classified along the lines of banking and non-banking institutions with insurance taking a pride of place in the latter class.” He explained that “globally, banking and insurance have evolved as playing leading roles in the activities of the financial services industry, stressing that over the years, there have been arguments and counter arguments about the ‘ideal’ relationship that should exist between banking and insurance practices and this has also been recognized by governments around the world.” The Continental Reinsurance boss who delivered a paper on the relationship between banks and insurance at a public forum, said that in the United Kingdom for instance, the Financial Services Authority (FSA) was established as the single regulatory body for both the banking and insurance industries, in recognition of the fact that although some differences may exist in their operation, to a great extent there exist some meaningful relationship between them. He said the Financial Services Act of 1999 has far-reaching and major implications towards the movement of globalization in the banking industry.  The bill first and foremost, he said, allows mergers between different sections of the industry that were previously not allowed, a situation which  allowed insurance companies to merge with banks. 
Adejumo explained that in Canada, for instance, the Bank Act and accompanying regulations contain specific rules pertaining to chartered banks and their involvement in the insurance business. The Insurance Business (Bank and Bank Holding Companies) regulations authorize banks to sell certain insurance products closely related to their lending businesses. Banks may also sell other types of insurance through subsidiary companies, subject to certain restrictions. He explained that as a result of the globalization and liberalization of the financial services industry, many financial institutions are participating in the business activities of other financial institutions, banks and insurance companies in particular. “Several European countries have made considerable regulatory changes regarding the banking and insurance sectors. Although regulatory changes vary from country to country, there has been a pan-European trend towards the ‘Universal Bank’ and the limitations of the past no longer exist. Banks are now able to operate across a broader range of activities, including insurance, via legally independent risk carriers. The insurance companies and banks are not competing within just the life insurance industry and banking industry respectively anymore but within the wider financial services marketplace,” he said. The reinsurance expert stressed that in Nigeria, following the Central Bank of Nigeria’s approval-in-principle of the adoption of universal banking, it released Guidelines for the Practice of Universal Banking in Nigeria in December 2000.
According to the guideline banking business in Nigeria was defined as “the business of receiving deposits on current, savings or other accounts, paying or collecting cheques drawn or paid in by customers, provision of finance, consultancy and advisory services relating to corporate and investment matters, making or managing investment on behalf of any person and the provision of insurance marketing services and capital market business or such other services as the Governor of the Central Bank of Nigeria which may, by gazette, designate as banking business.” This implied that banks are free to choose which activity or activities to undertake, whether it is money or capital market activities or insurance marketing services or a combination thereof and are expected to comply with the guidelines specified for such activity or activities.
Consequently he said, a bank will be regulated based on the type of activities it engages in.
This situation led to the issuance of a single uniform license to all conventional banks which are


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Interswitch Inducts 3rd Interns into Its Developer Academy

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Interswitch, an integrated payments and digital commerce company, has announced the induction of the third and largest cohort of developer interns into its Developer Academy, reinforcing its long-standing commitment to building world-class technology talent and strengthening Africa’s digital ecosystem.

Selected from a pool of over 20,000 applications, the new cohort emerged through a rigorous multi-stage process involving technical assessments, and interviews. Their induction into the Developer Academy highlights both the scale of interest in software engineering opportunities in Nigeria and Interswitch’s role in nurturing the next generation of highly skilled technology professionals.

Commenting on the initiative, founder and Group Chief Executive Officer, Interswitch, Mitchell Elegbe, emphasised the importance of taking a long-term, ecosystem-driven approach to talent development.

“At Interswitch, we have always believed in the capacity to see beyond the immediate challenges and focus on long-term impact. While the migration of skilled talent remains a reality, our approach is to actively shape the outcomes by building a strong and sustainable pipeline of technology professionals.

“We are therefore committed to equipping individuals with the capabilities to contribute meaningfully to the broader technology ecosystem, locally and globally, not just for our own needs at Interswitch. In doing so, we are not only strengthening the industry but also reinforcing Nigeria’s position as a source of globally competitive engineering talent,” Elegbe said.

The 9-month programme brings together talents across key engineering tracks, including Backend Development, DevOps, Mobile Development, Frontend Engineering, and Quality Assurance.

Designed as an intensive and structured learning experience, the Developer Academy combines theoretical instruction with real-world application, equipping participants with the skills required to thrive in an increasingly global and competitive technology landscape.

Also commenting, Group Chief Human Resources Officer, Interswitch, Franklin Ali, said: “The Developer Academy reflects our long-term commitment to building talent at scale. We are equipping these young professionals not just with technical skills, but with the mindset, discipline, and adaptability required to thrive in diverse environments.

“Whether they build their careers within Interswitch, contribute to the local ecosystem, or explore global opportunities, they represent the strength and potential of Nigerian talent and carry forward the standard of excellence we are committed to building.”


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UK Reaffirms Commitment to Press Freedom, Science Journalism Training for Nigerian Media

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United Kingdom has reaffirmed its commitment to supporting press freedom and strengthening science and technology journalism in Nigeria through a media training programme for journalists.

UK Reaffirms Commitment to Press Freedom, Science Journalism Training for Nigerian Media

Speaking during the Advancing Press Freedom Through Science and Technology Journalism training organised by the UK Government, British Deputy High Commissioner to Nigeria, Jonny Baxter, said independent journalism remains essential to democratic societies and informed public debate.

Baxter, who hosted the journalists at his residence in Lagos, described the programme as part of the UK’s sustained engagement with Nigerian journalists, academia, and media stakeholders aimed at promoting ethical, evidence-based reporting.

“Strong, independent journalism is essential to democratic societies and informed public debate. That is why we take our relationship with the Nigerian media very seriously,” Baxter said.

He noted that the UK strongly supports freedom of expression and a free press, adding that the training programme was designed to equip Nigerian journalists with tools to interrogate data, challenge misinformation, and accurately communicate scientific and technological issues.

“In an age of rapid technological change, accurate, ethical, and evidence-based reporting has never been more essential,” he said.

Baxter highlighted previous training engagements held for Nigerian journalists in Abuja, Lagos, and the United Kingdom, noting that the latest programme builds on earlier workshops conducted in Portugal and London.

According to him, the initiative also reflects the UK’s commitment to deepening collaboration with Nigerian media professionals while improving public understanding of bilateral priorities such as economic growth, migration, and security cooperation.

He referenced the recent state visit of Nigerian President Bola Ahmed Tinubu to the UK as a major milestone in UK-Nigeria relations, stressing the importance of responsible media coverage during key diplomatic engagements.

“It was important for us to work closely with Nigerian media during the visit to ensure the public received accurate information while also helping hold all parties accountable to the commitments made,” he stated.

A panel discussion held during the event focused on challenges facing journalists in science and technology reporting, including misinformation, disinformation, access to reliable data, digital harassment, source protection, and legal risks.

Panelists noted that journalists face increasing pressure in a fast-paced digital media environment where algorithms often reward virality over factual accuracy.

They urged reporters to prioritise research, fact-checking, and verification while adopting practical digital security measures such as encrypting devices, password protection, and safeguarding confidential sources.

On misinformation and disinformation, panelists encouraged journalists to resist the pressure to publish unverified reports for speed or online traction.

“Don’t always rush to break news without verifying the facts. Trust is built through consistency, research, and cross-checking information,” one panelist advised.

The discussion also addressed concerns around Nigeria’s cyberstalking laws, with legal experts cautioning journalists to ensure all published information is factual, evidence-based, and defensible.

Participants were advised to maintain proper documentation trails, verify all claims, and avoid reliance on hearsay or unconfirmed digital content.

The training, organised in partnership with the School of Media and Communication, Pan-Atlantic University, is part of ongoing UK-backed efforts to strengthen journalism standards and media freedom in Nigeria.

Baxter encouraged participants to actively engage in the sessions and continue championing accountability journalism.

“Thank you for the work you do every day and for your commitment to advancing press freedom in Nigeria,” he said.


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FG Says It May Reject World Bank Loans over Delays

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Dr Shamseldeen Ogunjimi, accountant-general of the federation, has warned that the federal government may reject loan facilities from the World Bank if delays in approval and disbursement persist, saying prolonged timelines could undermine the country’s willingness to proceed with such arrangements.

FG Says It May Reject World Bank Loans over Delays

The warning was contained in a press statement issued on Friday by Bawa Mokwa, director of press and public relations at the office of the accountant-general of the federation.

Ogunjimi, who spoke in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane, stressed that Nigeria expects timely processing of funding requests, given that the facilities are loans and not grants.

He said, “If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” highlighting concerns over bureaucratic delays in accessing development financing.

The AGF noted that as a responsible borrower, Nigeria should not be subjected to prolonged approval processes that could affect project execution timelines and broader development objectives.

He therefore urged the World Bank to “expedite the approval and disbursement of project funds to Nigeria” to support the country’s priorities.

Ogunjimi emphasised that the loans carry repayment obligations, making it imperative that disbursement processes align with project schedules and fiscal planning frameworks.

He further disclosed that the Office of the Accountant-General of the Federation had begun addressing key issues raised earlier by the World Bank, particularly in public financial management and audit reporting.

According to him, the 2023 Audit Report would be submitted to the Office of the Auditor-General for the Federation within two weeks, while work on the 2024 and 2025 audit reports was already underway.

The AGF also assured the delegation that steps were being taken to resolve concerns around the digitalisation of the Government Integrated Financial Management Information System, noting that obsolete infrastructure was being replaced with modern technology to improve efficiency and service delivery.

He said the reforms were part of broader efforts to strengthen transparency, accountability, and the overall public financial management system in Nigeria.

Earlier in her remarks, the World Bank delegation leader,  congratulated Ogunjimi on his recent appointment as African chairman of the Association of Accountants-General.

Lane also urged the Office of the Accountant-General to sustain its digitalisation drive and ensure the timely presentation of financial statements to the Auditor-General, noting that such measures were critical to achieving seamless public financial management processes.

The World Bank earlier explained why about six loans worth $2bn, signed for Nigeria in 2024, are yet to be disbursed nearly a year after the bank’s approval.

This came amid recent reports that the World Bank approved a total of $8.40bn (N12.89tn) in fresh loans to the country over the past two years, based on data from the bank’s official website.


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