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.
United Bank for Africa (UBA) Plc has unveiled an ambitious vision to expand its presence to over 100 countries worldwide in the next 75 years, deepening its role as a truly global African institution.
Looking ahead, UBA also plans to grow its customer base from over 45 million at present to more than one billion customers within the next 75 years.
The bank aims to achieve this by leveraging cutting-edge technology, customer-first innovation, trusted relationships, and collaborations to meet the evolving needs of individuals, businesses, and governments.
The bank projects to accomplish more, driven by its unwavering Customer 1st philosophy, the vast and untapped potential across Africa, and the deeply held belief that UBA possesses the capacity, resilience, and responsibility to confront and overcome the continent’s most pressing challenges while unlocking sustainable opportunities for future generations.
This vision was unveiled by Dr Oliver Alawuba, GMD/CEO of UBA Plc, over the weekend during his opening remarks at the UBA @ 75 anniversary gala dinner in Abuja.
Speaking during the celebration, themed “UBA @ 75 – A Legacy of Excellence… A Future of Impact,” Alawuba said, “At UBA, we are building more than a bank; we are building a future for the next generation of Africans—one defined by opportunity, inclusion, and transformation.
“In the next 75 years, we envision a UBA with a presence in every African country and an expansion to over 100 countries worldwide, deepening its role as a truly global African institution.
“In the next 75 years, UBA will serve more than one billion customers, leveraging cutting-edge technology, customer-first innovation, and trusted relationships and collaborations to meet the evolving needs of individuals, businesses, and governments.
“In the next 75 years, UBA will be more than a part of Africa’s economic renaissance—it will shape its trajectory and champion its transformation.”
Alawuba highlighted that 75 years ago, UBA commenced operations in 1949 on Kakawa Street, Lagos Island, as the British and French Bank. Today, through the strength and resilience of its people and the unwavering trust of its customers, the bank operates in 20 African countries and four global financial centres—New York, London, Paris, and Dubai.
“We are serving over 45 million customers through 1,000 business offices and a diverse array of channels: more than 430,000 POS terminals, 2,600 ATMs, and 21 million cardholders, powered by a workforce of over 25,000 staff across our network,” he stated.
UBA has consistently recorded numerous achievements, delivering an impressive performance in the 2024 fiscal year, with gross earnings soaring by 53.6% to ₦3.19 trillion ($2.14 billion)—underscoring the bank’s strong earnings momentum.
Furthermore, total assets expanded by 46.8% to ₦30.32 trillion ($19.58 billion), and shareholders’ funds strengthened by 68.39% to ₦3.42 trillion ($2.21 billion)—reflecting UBA’s growing balance sheet and unwavering resilience.
The GMD/CEO said, “These milestones stand on the pillars of stability, resilience, and excellence—pillars that have anchored UBA’s growth over the last seven and a half decades.”
Earlier, Senator Kashim Shettima, vice president, extolled what he termed the staying power of the United Bank for Africa (UBA Group) over the past 75 years, describing the financial institution as a pacesetter in innovation, emerging markets, and generational ambition.
“Seventy-five years is not something you pick up at a supermarket. It is earned. It’s through risks and calculations, through storms and sunshine, through mergers and acquisitions, and through the brainpower and courage of those who believe in its promise of a new world. That is what leadership means,” he declared.
Senator Shettima said the celebration of an institution like UBA “that has outlived generations and still pulses with the vibrancy of youth” is not something that happens every day.
“The United Bank for Africa, or simply UBA, is not what it is because of the age of its ideas. It is what it is because of the attention it pays—attention to innovation, attention to emerging markets, attention to shifting dreams, and attention to the changing contours of generational ambition.
“UBA has remained a pacesetter because it is led by people who do not just manage capital but manage curiosity.
“UBA’s staying power is owed to its pursuit of relevance. It has stood as a reward for new thinking, expanding not just across geography but across ideas.
“It serves millions, it shapes economies, and it influences the narrative of what an African institution can become when excellence is institutionalised and when well-intentioned dream-makers are in charge.”
The Vice President acknowledged the leadership ability of Mr Tony Elumelu, group chairman, UBA, whom he described as one of the finest sons of the African continent, noting that no institution writes its history without the signature of those who believe in it.
According to him, Elumelu has “become a bridge between the old and the new, between the outdated and the emerging,” adding that he “has won the trust of even the Gen Zs, or whatever this brilliant, digital generation calls itself.”
He continued, “Tony Elumelu is not a dreamer. Dreamers are those who are stuck in the bubble. Mr Elumelu is a dream-maker. He has made true the imagination of those who wish for an empire from the comfort of their homes. He has taught us that it is possible to build without breaking, to lead without losing touch, and to dream without borders.
“One thing that has amused me about Mr Elumelu over the years is that he has cracked a code many still struggle to decipher—the delicate art of balancing the boardroom with the living room, of being a captain of industry and still a commander at home.
“Not many men have managed a balance between building empires and building families, between saving the world and being present at Christmas in their village. But this man, this maverick, this dream-maker, has shown us that you can help move the continent forward without losing touch with home and family.”
The Vice President also lauded Elumelu’s wife, Dr Awele Elumelu, saying she is not just a spouse “but an Amazon—a matriarch who gathers the kith and kin under her warm canopy,” as well as the quiet strength behind the force that is her husband.
Earlier,Tony Elumelu, group chairman of UBA, expressed profound gratitude to the Vice President while acknowledging the bank’s foundational history.
“This is a night of celebration, gratitude to God and to customers and shareholders who have made it possible,” Elumelu stated.
The Chairman emphasised the importance of honouring those who established UBA’s foundation, saying, “We all today are under the shields because someone planted the tree. The foundation of UBA was laid by people before us; we are only taking it further.”
Looking toward the future, Elumelu expressed confidence in the bank’s continued success, tying it directly to Nigeria’s economic environment.
“On the vision of the next 75 years, just keep transforming our domestic economy as President Bola Ahmed Tinubu is doing, and UBA will keep roaring,” he affirmed.
The Supreme Court of Nigeria has set aside a Federal High Court judgement in which over N22 trillion was awarded against Union Bank and other parties since 2014.
The judgement arose from a suit instituted by a company known as Visana Nigeria Limited which claimed that Union Bank was indebted to it in the sum of approximately $8 million at an interest rate of 2.5 per cent per month compounded from January 2000 until judgement and thereafter at 10 per cent per annum from the date of judgement until the sum was fully paid.
Delivering the lead judgement of the Supreme Court, with which four other Justices agreed, Justice Stephen Jonah Adah regretted how non-adherence to a settled judicial precedent by the two lower courts had caused a simple matter to be in court for over 25 years.
The final determination of the case is expected to lay to rest the discomfort of the CBN and other regulators of Union Bank, its auditors and rating agencies on the possible impact of the judgement on the going concern status of the bank.
Visana instituted the suit against the defendants, alleging that Metalloplastica Nigeria Limited, a Borrower from Union Bank was indebted to it in the sum of $7,616,188.94 as at December 1993 and that the purported Deed of Debenture made on 24th February 1989, pursuant to which Continental Merchant Bank appointed Chief R. U. Uche as Receiver/Manager of Metalloplastica was invalid, same having been procured “without the prior written consent of Universal Trust Bank and its successors-in title or assigns (being Union Bank) as provided in paragraph 13(f) of the original Debenture issued by Metalloplastica in favour of Universal Trust Bank.
In less than a year since its launch, the Nigeria Education Loan Fund (NELFUND) has attracted over 500,000 student loan applications—highlighting a growing national demand for accessible and inclusive higher education support.
The remarkable figure, achieved in just 11 months, signals the urgent need for student-friendly financial structures in Nigeria’s educational system.
Speaking on the development, Mr. Akintunde Sawyerr, managing director/CEO of NELFUND, described the volume of applications as “a signal of hope for families across Nigeria.”
“We are witnessing a nationwide demand for opportunity, and NELFUND is proud to be at the heart of this transformation,” he said.
Since launching its portal, the Fund has enabled students from various institutions to apply for both tuition and maintenance loans, demonstrating the critical role it plays in bridging educational access gaps.
Sawyerr reaffirmed the Fund’s dedication to transparency, ease of access, and operational efficiency, while calling on stakeholders across sectors to support NELFUND’s mission of making higher education affordable for all.
He also encouraged students who are yet to apply or who need clarity on the process to reach out to the NELFUND support team for guidance.
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