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E-Financial

CBN, Stakeholders Seek Collaboration among MFBs on Micro-insurance

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The Central Bank of Nigeria (CBN) and financial sector experts have called for collaborative efforts among microfinance banks (MFBs) in order to promote micro-insurance as a tool for deepening financial inclusion.

Making this call in Lagos, at the 6th annual symposium of the Nigerian Microfinance Platform (NMP) organised by the Microfinance Learning and Development Center (MLDC), with the theme, ‘Expanding The Frontiers of Financial Inclusion: The Microinsurance Option,’ the experts averred that microfinance banks are instrumental to the expansion of microinsurance services among the populace.

Addressing participants at the symposium, Deputy Governor, Financial Sector Surveillance, CBN, Mrs. Aisha Ahmad, said there was need for a collective strategy to re-emphasise the importance of micro-insurance as a financial service and re-align it as a vital tool in attaining a higher level of financial inclusion within the Nigerian Microfinance Sub-sector through the security of micro- businesses.

Represented by Mrs. Idowu Akinlade, Deputy Director, Other Financial Institution Department (OFISD), CBN, Ahmad, was quoted in a statement to have said: “Financial inclusion, which entails affordable and available access to financial services by every adult in any given country or area,also includes insurance; however, this aspect of financial servicing has been under-emphasised for too long.

“I consider it vital for us, through collaborative efforts, to look deeper into this shadowed aspect of financial inclusion, exchange ideas with our counterparts from other countries, build regulator/operator capacity and tackle issues within the sector to enhance the provision and availability of affordable financial services in Nigeria.”

Also making a case for collaboration among MFBs on micro-insurance, the Group Chief Executive Officer, Letshego Holdings, the parent company of Letshego MFB, Andrew Fening Okai, said: “Microfinance participants should commit to collaborate on building micro-insurance as product of necessity and do it with confidence – adopt and develop clear value propositions while paying attention to simple but efficient distribution channels supported by easy claims resolutions.”

On his part, Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation (NDIC), Hassan Bello advised the participants on factors MFBs need to consider in the provision of micro-insurance services.

Represented by Joshua Etopidiok, Director, Special Insured Department SIID, NDIC, Hassan said the factors included: Trust quotient of the insurance industry; Ease of purchase of micro-insurance services; customer service through digitisation; and advocacy for micro-insurance.

Speaking on the urgency for MFBs and micro businesses to embrace micro-insurance, the President Chartered Institute of Bankers of Nigeria (CIBN), Mr. Bayo Olubgemi, said: “The onslaught of the COVID-19 pandemic and the social unrest which climaxed the #EndSars protest corroborate the need for insurance no matter the size of a given business. You will recall that during the protests, social tensions escalated to heightened levels of violence, looting and vandalism.

“No doubt, uninsured businesses felt the full effects of the destruction with no or limited options for recovery. I strongly believe that this experience provides a very strong use case for the adoption of micro-insurance.”

Corroborating this position, Board Chairperson, AFOS Nigeria LTE, Adetutu Ogunnaike, AFOS, said the need for inclusive micro-insurance cannot be overemphasised, especially in view of the achievement of AFOS through the empowerment of low-income people.


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E-Financial

Zenith Banks Leads as 8 Banks Suffer N156Bn Impairment Charges

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Eight leading Nigerian banks collectively set aside N156 billion as impairment charges on their credit and financial assets, marking a significant financial impact amidst a challenging economic environment, in the opening quarter of 2025.

Zenith Banks Leads as 8 Banks Suffer N156Bn Impairment Charges

Known commonly as loan losses or credit impairments, these charges highlight the banks’ defensive measures against risks arising from inflation, naira depreciation, and tightened liquidity affecting consumers and businesses alike.

The level of impairment varied considerably across institutions, reflecting divergent risk appetites and credit management practices.

Zenith Bank led with the highest provision of N49.38 billion, an 11.8 percent reduction from the previous year’s N55.97 billion.

This decline may suggest enhanced asset quality or more rigorous loan recovery tactics.

Broken down, loans and advances contributed N35.95 billion to impairments, while investment securities and treasury bills added N7.1 billion and N2.16 billion respectively.

Despite heavy provisioning, Zenith recorded a notable 20.7 percent increase in post-tax profit, soaring from N258.34 billion to N311.83 billion.

Similar trends emerged at First HoldCo, which posted N37.25 billion in impairment (down 11.2 percent), driven mainly by loans and advances provisions of N41.23 billion.

Offsetting this were write-offs and reversals that mitigated losses.

First HoldCo’s profit, however, fell to N171.10 billion from N208.11 billion.

Access Holdings and Guaranty Trust Holding Company also demonstrated reduced impairment charges, indicating stronger credit monitoring.

Access’s net provision dropped 4.5 percent to N21.77 billion, while Guaranty Trust’s impairment stabilized near last year’s N13.42 billion figure.

Yet, Guaranty Trust’s profit plunged 43.6 percent to N258.03 billion, a striking contrast to other banks’ profit growth.

On the other hand, United Bank for Africa (UBA) faced a staggering 332.2 percent surge in impairment, from N3.28 billion to N14.18 billion—pointing to amplified credit risks possibly driven by external economic pressures.

Nonetheless, UBA recorded a 33.1 percent profit uptick to N189.84 billion.

FCMB’s impairment charge fell notably by nearly 60 percent to N9.52 billion, aided by significant recoveries of previously written-off loans, boosting its profit to N32.23 billion.

Meanwhile, Fidelity Bank and Wema Bank posted sharp rises in impairment—285.8 percent and 64.7 percent increases respectively—reflecting heightened write-downs that underscore growing risk exposure amidst portfolio expansions.

Overall, while the cumulative impairment charge diminished by 5.2 percent compared to Q1 2024, individual bank results were mixed, embodying the varied strategies and external pressures in Nigeria’s banking sector.

 

 


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E-Financial

SEC Flags FF Tiffany as Ponzi Scheme

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Securities and Exchange Commission (SEC) has revealed plans to commence investigation into the activities of an entity operating under FF Tiffany, allegedly running a fraudulent investment scheme that has defrauded citizens.

SEC Flags FF Tiffany as Ponzi Scheme

A statement by SEC on Tuesday in Abuja said preliminary information revealed that the scheme, which promised investors unusually high and unrealistic returns, had resulted in the loss of several billions of naira.

The SEC said it viewed the activity as a threat to investor confidence and the overall integrity of the financial system.

The commission assured the public that it was working closely with law enforcement agencies and other relevant bodies to bring everyone involved in the unlawful operation to justice.

According to SEC, those found culpable will be prosecuted in accordance with Investment and Securities Act (ISA) and regulatory provisions.

SEC reiterated its earlier warnings to the general public to desist from engaging in Ponzi or unregistered investment schemes that promised guaranteed or exaggerated returns.

”These schemes are not registered with the SEC and do not offer investor protection under the law.

“The commission is currently investigating 79 schemes and will make a statement on its findings at the conclusion of the investigation,” the SEC said.

The commission encouraged investors to conduct due diligence and verify the registration status of any investment firm or product by visiting the SEC website or contacting the commission directly through official channels.

SEC said it remained committed to its mandate of protecting investors, ensuring fair practices, and maintaining confidence in Nigeria’s capital market.

 

 

 

 


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E-Financial

AccionMonie App to Empower Low-Income Households

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Accion Microfinance Bank has unveiled AccionMonie, a next-generation digital financial services platform aimed at empowering individuals, micro, small, and medium enterprises (MSMEs), as well as low-income households across Nigeria.

Speaking at the official launch in Abuja, Chief Executive Officer of Accion MfB, Taiwo Joda, described the introduction of AccionMonie as a significant milestone and a testament to the bank’s culture of innovation, designed to meet the evolving needs of its customers.

“At Accion Microfinance Bank, we believe in the potential of every MSME to drive inclusive economic growth. That is why we are committed to empowering them with the financial support they need to grow, innovate, and make a lasting impact in their communities and beyond,” Joda said.

He added that the app provides instant access to essential services including loans, savings, and other forms of financial support.

According to Joda, AccionMonie is a strategic component of the bank’s “Always There to Lend You a Hand” campaign, which underscores its commitment to small business development and the economic upliftment of underserved households. The campaign positions Accion MfB as not only a financial institution but also a trusted partner in its customers’ journey to prosperity.

Highlighting the economic role of MSMEs in Nigeria, he noted that with an estimated 37 million MSMEs, the sector accounts for 86% of employment and contributes 48% to Nigeria’s Gross Domestic Product (GDP). However, these enterprises continue to face major challenges such as limited access to finance, inadequate infrastructure, and an unfavourable business environment.

Also speaking at the launch, the bank’s Chief Commercial Officer, Stephen Olalere, said the combination of AccionMonie and the bank’s expansive network of over 74 branches across 12 states will help bridge the gap in financial service delivery to small businesses.

“The platform’s user-friendly features are designed to simplify payments and offer vital support to businesses and individuals alike,” he said.

Paul Ehiagbonare, Chief Digital Officer of the bank, described the launch as a bold step toward digital leadership and financial empowerment.

“For us, AccionMonie reflects customer empowerment through digital tools and technologies. It offers a range of customer-focused features designed to promote financial inclusion,” he said.

One of its standout features is Save2Loan, which allows users to save between ₦50,000 and ₦250,000 over a 90-day period and become eligible for a loan worth twice their saved amount. This, Ehiagbonare explained, will help promote a savings culture while enhancing credit access.

In addition, customers can conveniently fund their AccionMonie accounts using any debit card, eliminating the need for physical visits or long queues in banking halls.

 


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