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IST Orders NDIC to Pay IPO Subscriber

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Investment and Securities Tribunal (IST) has ordered the Nigeria Deposit Insurance Corporation (NDIC) to pay a subscriber to an aborted initial public offering (IPO), in a landmark judgment that places the burden of uncompleted transactions on the NDIC.

IST Orders NDIC to Pay IPO Subscriber

The IST ordered NDIC to pay Winners Medical Diagnostic and Research Institute Limited N5 million for the aborted share purchase transaction.

According to The Nation, in addition, the NDIC is to pay N5 million at two per cent interest above the Central Bank of Nigeria (CBN) MRR from March 2006 when NDIC took over All States Trust Bank until the full payment of the principal sum.

The IST also awarded to Winners Medical Diagnostic and Research Institute, cost of N500,000 to be paid by NDIC.

But NDIC said it would instruct its solicitors to appeal the judgment.

The case involved Winners Medical Diagnostic and Research Institute and eight others, including NDIC, in which Winners Medical Diagnostic and Research Institute  bought 2.5 million shares in the 2005 IPO of the former All States Trust Bank Plc, now Ecobank Plc, at N2 per shares of 50 kobo each and paid N5 million.

The Tribunal found that it was wrong for the NDIC to classify the Winners Medical Diagnostic and Research Institute as a creditor, as it had no contractual relationship with the All States Trust Bank Plc for which it was expecting payments, but was rather a subscriber to its aborted IPO, whose money is by the capital market law, rules and regulations termed “return money”, to be refunded by the entity in custody of the money.

The Tribunal added that “NDIC having not denied that it took over the subscription money for the aborted All States Trust Bank Initial Public Offer, should be in a position to refund to Winners Medical Diagnostic and Research Institute Ltd the sum of N5, 000, 000, it paid for the un-allotted shares of All States Trust Bank”.

According to the IST, Winners Medical Diagnostics & Research Institute subscribed to 2, 500, 000 units of shares in the 2005 IPO of the former All States Trust Bank Plc, now Ecobank at N2 per shares of 50 kobo each and paid N5 million, which was acknowledged by the First Bank Plc and NDIC.

Though acknowledging the existence of the share-IPO suspense account, Ecobank Nigeria said it was not part of the private sector deposit liabilities of All States Trust Bank it inherited.

Reacting to the judgment, the NDIC said the decision of the tribunal was in error as it misconstrued and consequently misapplied the provisions of the legislations governing bank liquidation.

“The share/IPO subscription fee which was paid by Winners Medical Diagnostic and Research Institute to the defunct bank for the allotment of shares only qualifies the claimant as a creditor to the defunct bank as the subscription fee would be treated as money had and received by the defunct bank,” NDIC stated.

NDIC noted that it was an undisputed fact that Winners Medical Diagnostic and Research Institute was not a customer to the defunct bank but a subscriber to its shares, which unfortunately, were not allotted to it before the bank went under.

The NDIC said it was not contending the indebtedness of the defunct bank to Winners Medical Diagnostic and Research Institute for the IPO subscription fee.

“Rather, the position and contention of the NDIC is that the law on priority of claims must be strictly followed in the distribution of the assets of the defunct bank.

“To pay Winners Medical Diagnostic and Research Institute Ltd as ordered by the Tribunal without following due process as prescribed by law would amount to illegality on the part of the liquidator (NDIC) as it would be a clear violation of the express provision of the laws quoted above” NDIC stated.

According to NDIC, the tribunal also erred when it ordered the NDIC in its corporate capacity to pay the claimant the judgment sum as any award of damages should be against the defunct bank as it is still a legal entity until dissolved and its name struck out of the register of companies at the CAC.

 

 

 

 

 

 

 

 


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E-Business

Kaspersky, SMEDAN to Support SMEs in Nigeria with Cybersecurity Knowledge

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Kaspersky, a global cybersecurity company, and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a memorandum of understanding (MoU) to assist small and medium businesses in the country to become more cyber-aware and less vulnerable to developing cyber threats.

The MoU reflects a shared view that SMEs, being the backbone of economy, require strong cybersecurity measures. Kaspersky and SMEDAN will work together on information sharing, training programmes, and other practical steps to raise awareness of digital threats and cybersecurity measures.

“Small and medium business owners are juggling a dozen things – accounting, promotion, legal issues. They are not cybersecurity experts. But they are being targeted by cybercriminals through malware, phishing, and online schemes using social engineering tactics that make them look realistic.

“Our aim is to provide these organisations with some best practice tools and inform about measures that will help them stay safer online,” says Chris Norton, General Manager for Sub-Saharan Africa at Kaspersky.

The cooperation will feed into SMEDAN’s wider SME development efforts, with Kaspersky contributing cybersecurity knowledge and joining forces on awareness campaigns. The idea is to bring cybersecurity-focused guidance into existing business support channels, and to do it in a way that actually makes sense to entrepreneurs who may not have technical teams behind them.

Charles Odii, DG/CEO of SMEDAN, comments: “Since the COVID-19 pandemic, digital adoption among business owners has accelerated significantly. Many now operate WhatsApp shops, use online banking, and send invoices via email, which has increased their exposure to cyber risks.

Together with Kaspersky, we intend to strengthen cybersecurity awareness and practices across Nigeria, helping SMEs protect their businesses as they embrace the digital economy.”

SMEDAN has long been a government agency that has consistently shown up for small business owners in Nigeria. Its work cuts across industries, regions, and stages of growth from traders and artisans to early-stage tech startups trying to get formalised. This partnership gives it another tool to help those businesses operate more securely in a digital world. For Kaspersky, the collaboration is part of a wider push across the continent to support under-resourced sectors that are quietly being targeted online.

 


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NITDA Advocates AI, Security Integration for Sustainable Development

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Kashifu Inuwa, CCIE, the Director General of the National Information Technology Development Agency (NITDA), has emphasised that integrating intelligence, security, and sustainability is critical to driving Nigeria’s digital transformation and global competitiveness.

Inuwa made the remarks on Tuesday in Kano while delivering a goodwill message at the opening of the 19th International Conference (CONNOVATE 2025) of the Nigerian Computer Society (NCS), themed “Intelligent, Secure, and Sustainable Innovations for a Connected World.”

Represented by Engr. Salisu Kaka, Director of E-Government and Digital Economy Development, Inuwa said the three elements were now indispensable drivers of national progress. He highlighted the need for their convergence to unlock new opportunities in Nigeria’s technology sector, citing Estonia’s X-Road platform — which enables 99% of government services online — as a global model.

“In Nigeria, trust is the ultimate currency in our high-stakes digital environment, where scams and cybercrime are prevalent. Security builds and protects this trust,” Abdullahi said.

He stressed that while security provides the foundation, intelligence builds the structure, pointing to Artificial Intelligence (AI), Machine Learning (ML), and data analytics as tools for addressing Nigeria’s complex challenges. Warning that “innovation without security is unsustainable,” he likened it to “a high-performance race car without brakes.”

The DG urged the next wave of Nigerian startups to go beyond digitising existing processes to creating new value, citing AI-powered wealth management and ML-driven remote diagnostics as examples.

He further highlighted the various Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) initiatives supporting this vision, including the National Centre for Artificial Intelligence and Robotics (NCAIR), the Computer Emergency Readiness and Response Team (CERRT), the Nigeria Data Protection Act (NDPA) 2023, the national digital identity programme, interoperable payments, and human capital initiatives such as the 3 Million Technical Talent (3MTT) and Digital Literacy for All (DL4ALL) programmes.

Inuwa cited example with International Federation for Information Processing (IFIP) President, Antony Wong, that called for stronger protection and strategic use of data in the Global South to safeguard indigenous knowledge. He stressed the importance of legal clarity on data ownership as Nigeria’s cultural heritage in medicine, ecology, and art is digitised and incorporated into AI systems. Wong praised Nigeria’s role in the recent World Intellectual Property Organization (WIPO) treaty protecting genetic resources and traditional knowledge.

Delivering his welcome address, the NCS President, Dr. Muhammad Sirajo, said the conference would serve as a platform for IT professionals to address critical issues, including intelligent systems, fintech, sustainable energy, and innovations in agriculture, health, education, and national planning.

“This conference will provide an interdisciplinary platform for researchers, practitioners, and educators to present and discuss recent innovations, trends, and solutions for improving technological systems,” Sirajo said.

The week-long event includes plenary sessions, a doctoral consortium, a youth and entrepreneurship forum, the Fellows Forum, the Annual General Meeting, an IT quiz competition for students, and an induction ceremony for new members. It will conclude with the election of new national executives, a dinner, and an awards night honouring contributions to the ICT sector.

 


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AfDB Adopts AI to Fast-track Africa’s Development Blueprint

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The African Development Bank (AfDB) is betting big on Artificial Intelligence (AI) as a catalyst for delivering Africa’s ambitious Agenda 2063.

With hands-on training in tools like ChatGPT and Google Gemini, the Bank believes the results could redefine how the continent plans, measures, and delivers its development goals.

Through its Joint Secretariat Support Office, the AfDB has provided technical and financial support to the 5th annual training workshop for African Union member states, focusing on the use of AI to track and implement the second ten-year plan (2024–2033) of Agenda 2063.

The five-day workshop, held in Lusaka, Zambia, was co-organised by the African Union Commission and the African Capacity Building Foundation.

Participants from across the continent rolled up their sleeves for hands-on training with emerging AI platforms like Ailyse, Google AI Studio, and Perplexity.

The goal of Africa’s multilateral development finance institution is to turn complex development data into actionable insights that can drive smarter decisions, faster interventions, and more accountable governance.

AbibuTamu, lead programme co-ordinator at the AfDB, said AI was now an indispensable tool for Africa’s future.

“These tools are not only revolutionizing how data is collected, analysed, and reported, they are also enabling more targeted policy interventions and efficient resource allocation,” Tamu told delegates.

Agenda 2063, dubbed “The Africa We Want,” is the African Union’s 50-year blueprint for inclusive growth and sustainable development. The second 10-year plan prioritises industrialisation, digital transformation, and sustainable livelihoods.

With AI now in the mix, African policymakers can track progress in real-time, spot bottlenecks before they choke projects, and reallocate resources where they are needed most.

The AfDB’s backing underscores a broader strategy of boosting both human and institutional capacity that propels African states to harness the digital revolution.

Beyond technical skills, the Lusaka workshop doubled as a peer-learning platform, with countries sharing real-world success stories on integrating AI into national planning and reporting.

“If Agenda 2063 is Africa’s long-term roadmap, this AI training is about upgrading the continent’s GPS that ensures leaders not only know the destination, but also have the intelligence to navigate every twist and turn on the way,” said Tamu.


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