E-Financial
Insurance Bill Seeks Compensation for Customers of Failed Firms
The Nigerian Insurance Reform Bill, currently waiting for the president’s assent, will enhance consumer protection by creating a compensation fund for victims of liquidated insurance companies.
Kunle Ahmed, chairman of the Nigerian Insurers Association (NIA), who made the disclosure during a quarterly press conference in Lagos Tuesday, said the bill will also set up fund for uninsured road accident victims.
Ahmed said the bill is a significant piece of legislation aimed at overhauling the regulatory framework of the insurance sector in Nigeria.
“The Insurance Reform Bill includes provisions designed to protect policyholders adequately. A fund has been set aside to meet requests of policyholders whose primary insurance company is liquidated or faces challenges, addressing recent occurrences in the industry.”
Additionally, a fund is included in the bill for uninsured road accident victims, Ahmed said.
According to him, these sections of the bill are expected to enhance trust in the insurance industry.
“The bill also reflects increased capital requirements, which we believe will lead to stronger and more virile insurance companies that can develop new products and address the pain points of consumers.”
On the ongoing tax reform bill at the National Assembly, he said that the NIA has made a representation to the government regarding the taxation of insurance premiums, emphasising that some premium belongs to shareholders.
“Changes to any tax bill could impact various sectors of the economy, including insurance. We have made a representation to the government regarding the taxation of insurance premiums, emphasising that some premium belongs to shareholders, especially on the life insurance side, and this concern is being taken seriously.”
On the enforcement of third party motor insurance in Nigeria, Ahmed commended the inspector general of police and the commissioner for insurance for their commitment to protect Nigerians on the road.
“For us at NIA, the enforcement of the third-party policy is largely to the benefit of policyholders.
“Policyholders are entitled to compensation for their liabilities in terms of injury or death to third parties, which is unlimited.”
According to him, member companies of the NIA have seen slight growth in third-party policies since the pronouncement, but noting the figures are not handy.
While emphasising the importance of claims payment in the industry, he said the hallmark of any licensed insurance company is the timely payment of claims.
“Insurance companies are ready and willing to pay valid claims. The enforcement of the third-party policy is a welcome development for the economy, for the insurance companies, and for policyholders.”
“We expect to see a situation whereby motorists do not get out of their cars and fight when accidents occur.
“Despite the amount paid in claims, we believe there is more to achieve in terms of the ease and timeliness of claims payments.”
Ahmed said the industry is working to harmonise claims process to limit the number of documents required for claims to be paid.
According to him, the industry has grown significantly, noting that while non-life business has seen notable growth, largely driven by fire and oil and gas policy, the life business has also experienced growth, driven by group life policy.
“The growth we have seen is likely to be sustained, and we will have a very vibrant and growing insurance market in Nigeria.
“Apart from the big numbers around gross written premium (GWP), I also think we have grown our net assets as an industry.”
World Bank has approved an additional $65 million loan for Nigeria to support the Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project, increasing the total financing for the initiative to $145 million.
The approval was granted on June 24, 2025, according to details posted on the World Bank’s website, which also indicates that the project’s status has moved to “active” following the approval.
The SPESSE project, initially launched with an $80 million loan approved in February 2020, aims to strengthen institutional capacity for managing procurement, environmental, and social standards in both the public and private sectors across Nigeria.
The World Bank described the project’s development objective as the establishment of sustainable capacity in these areas.
This latest approval is part of a broader wave of financing expected from the World Bank to Nigeria in 2025.
The bank is scheduled to approve loans totalling $1.61 billion over the coming months, supporting various development initiatives.
Among these is a $300 million loan for the ‘Solutions for the Internally Displaced and Host Communities Project,’ expected to be finalised by the end of July.
This project aims to improve access to basic services and economic opportunities for internally displaced persons (IDPs) and host communities in selected local government areas in northern Nigeria.
In September, the World Bank plans to approve four additional loans: a $10.5 million facility to support technical assistance for the Central Bank of Nigeria, a $300 million Health Security Program targeting Western and Central Africa (Nigeria – Phase IV), a $500 million project for building resilient digital infrastructure (BRIDGE), and a $500 million loan under the Nigeria Sustainable Agricultural Value-Chains for Growth project aimed at promoting sustainable growth and job creation within key agricultural sectors.
Earlier in March 2025, the bank approved three financing requests amounting to $1.13 billion.
These funds are directed towards projects focused on enhancing quality education, boosting household and community resilience, and improving nutrition.
Among the approved loans were $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project, $552 million for the HOPE for Quality Basic Education for All programme, and $500 million for the Community Action for Resilience and Economic Stimulus Programme.
In February, the Nigerian government announced expectations of new World Bank loans totalling $2.2 billion for six different projects in 2025. This follows a $1.5 billion loan disbursed in 2024 aimed at strengthening Nigeria’s economic stability and resource mobilisation efforts.
Ecobank, a pan-African financial services group, has partnered with Google Cloud in a deal to improve financial services with advanced analytics, AI and driving digital empowerment across Africa.
This collaboration will focus on leveraging Google Cloud’s advanced technologies and AI to enhance Ecobank’s digital offerings to accelerate the digital transformation of the Bank.
The partnership agreement is designed to empower individuals, support the growth of small and medium-sized enterprises (SMEs) in the region, and contribute to the overall economic development of Africa.
“Our collaboration with Google Cloud is a leap forward in Ecobank’s digital transformation journey. We look forward to leveraging Google Cloud’s world-class technology to unlock new possibilities for individuals and businesses to grow and scale across Africa,” said Jeremy Awori, group chief executive officer of Ecobank.
“This collaboration signifies our shared intent to explore building a more connected and financially inclusive future for the continent.”
Thomas Kurian, CEO, Google Cloud, stated that Google Cloud and Ecobank have a shared vision for using technology to help deliver financial empowerment to more people and businesses in Africa.
“We look forward to exploring the ways our cutting-edge AI, powerful data analytics, and scalable infrastructure can support Ecobank’s efforts to fuel the continent’s economic development and digital future.”
The collaboration aims to simplify and streamline money transfers, both domestically and across borders. By leveraging Google Cloud’s capabilities, including its powerful data analytics platform, BigQuery, for AI-driven insights, Ecobank will aim to develop solutions that improve access to finance for SMEs, simplify payment acceptance, and provide valuable data-driven insights to help businesses scale across more than 33 countries in Africa.
Stanbic IBTC Holdings Plc has announced the successful close of the N148.7 billion Rights Issue subscription exercise following the completion of the verification exercise by the Central Bank of Nigeria (CBN) and final clearance by the Securities and Exchange Commission (SEC).
Stanbic IBTC Holdings said the Rights Issue was oversubscribed by 21.9 percent, adding that the holding company has injected N140 billion into Stanbic IBTC Bank.
Kunle Adedeji, acting Chief Executive, Stanbic IBTC Holdings Plc while commenting on the just concluded rights issue programme said that “The turnout and participation of existing shareholders taking up their rights was impressive such that the rights issue was oversubscribed by 21.9percent to the tune of N181.4 billion. Our shareholders’ interest shows the confidence they continue to have in the brand,” he said.
“We appreciate the support of the Central Bank of Nigeria, The Securities and Exchange Commission, the Lead Issuing house, Joint Issuing houses and other stakeholders in the successful completion of the recapitalisation exercise.
“We are optimistic about future opportunities, as the injection of new capital will position us to take advantage of them to enable us to deliver to our shareholders. To all shareholders, we are grateful for your unwavering belief and support for the Stanbic IBTC Brand and your willingness to continue this journey with us,” Adedeji said.
Having received an injection of N140 billion from the parent company, the Chief Executive of the Banking subsidiary, Wole Adeniyi, remarked that “the injection of the new capital into the banking subsidiary is a positive development. This will enable the Bank to seize additional opportunities within the industry and enhance our Single Obligor Limit (SOL).
“We deeply appreciate the dedication and hard work of our regulators, issuing houses, and all other stakeholders. We extend our sincere gratitude for your continued support.”
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