E-Financial
Nigerian Banks in Trouble, Plan Mass Sack of Workers
Nigeria’s banking sector is currently witnessing a shockwave, following economic decline caused by reduced oil revenue, according to Daily Sun investigations.
As a result, fear of massive sack of workers has gripped the sector as an estimated $25billion (about N4.95 trillion) in foreign portfolio investments have been lost over the last few months, following rising political tension across the country, ahead of the March 28 and April 11 general elections.
Daily Sun also reported that about four banks are currently having liquidity problem, worsened by the oil sector crisis.
Investigations revealed that banks are no longer financing importation of petroleum products following non-payment of subsidy to major marketers by the Federal Government and the risks involved.
In the past, banks extended credits to major oil marketers to import fuel. But following the marketers’ inability to pay earlier credits, caused by the Federal Government’s non-payment of the subsidy, banks are now unable to meet the demand.
This is partly the cause of the current fuel scarcity being experienced across the country.
The stoppage of fuel importation financing, some bank chief executives revealed, followed a directive by the Central Bank of Nigeria (CBN) last December to scale down their level of exposure to oil companies, to reduce the challenges of meeting the huge funding demand of the sector.
The CBN’s directive, it was learnt, stemmed from the result of an earlier risk-based supervision exercise carried out by the apex bank, which revealed a huge financial exposure of the banks to the oil and gas sector.
The apex bank was said to be concerned about some risk management deficiencies, and wanted to take necessary steps to ensure that banks have sufficient capital buffers to mitigate escalating risk-taking activities.
Apart from this, the new exchange rate regime announced by the CBN has also affected banks. The CBN closed the retail Dutch Auction System/Wholesale Dutch Auction System (rDAS/wDAS) segment of the foreign exchange market.
With the closure and the pegging of an exchange rate at N198 per dollar, the apex bank stopped naira speculation, as commercial banks were banned from re-selling CBN dollars to other banks.
Under this measure, CBN scrapped its window of direct sale of foreign exchange to end-users, and directed that all foreign exchange needs should be sourced from the interbank market, with rates ranging from N197 to N198 per dollar. With this, the previous gains commercial banks had made from forex trading were stopped.
From the public sector to the real sector of the economy, the stench of economy decline is being felt by all stakeholders, hence, the call on government to further tighten the loose ends to ensure it does not get worse than it is now before the end of the current administration.
With most state governments currently unable to pay workers’ salaries due to declining statutory allocations from the Federation Account, while Naira’s declining exchange value and other financial aggregates are forcing banks to recall facilities given to the real sector, stakeholders are becoming rather apprehensive that the impressive economic gains are speedily being eroded.
Daily Sun also learnt that in the face of the political uncertainties surrounding the impending general elections, an estimated $25billion (about N4.95trillion) investments held by foreign portfolio investors may have left the country over the last few months.
Sources revealed that the foreign investors decided to withdraw their money to watch political development, unsure of what would happen over the general elections.
A bank chief executive, who spoke to Daily Sun on condition of anonymity, however, expressed optimism that despite the loss of such huge portfolios, especially in the capital market, the economy remains strong and resilient.
According to him, these developments are expected, particularly, as successive governments failed to prepare the country for some of the current emergencies, but left it to continue running on one engine, which is crude oil.
The bank chief was convinced that the said foreign portfolios would return as soon as the elections are concluded peacefully, stressing that Nigerian economy offers more returns than other emerging markets.
He said the economy has been growing at the rate of over five per cent, which is higher than the rate of growth in most emerging markets.
Petroleum products marketing companies had heaped the blame of fuel scarcity on the CBN, insisting that the recent devaluation of the Naira was responsible for the crisis in the oil industry, resulting in unavailability of fuel.
Mr. Obafemi Olawore, executive secretary of the Major Oil Marketers Association of Nigeria (MOMAN), said the high exchange rate resulted in the high cost of both petrol and diesel.
“The unfortunate situation in which we find ourselves is that as the price of crude oil and the international price of diesel were dropping, we devalued the Naira. For example, for Premium Motor Spirit (petrol), the exchange rate for bringing products before the devaluation was N171.36 per dollar. At that rate, the landing cost of PMS was N90.67 per litre. There was a time the exchange rate rose to N188, that is N188 was the interbank rate, while the CBN gave us N171.36. But when it went to N188, the landing cost of PMS rose from N90.67 to N98.36. As at today when the exchange rate has gone to N199 (there is no window again), the landing cost rose to N103.45. So, you see that the main factor here is the exchange rate.”
According to marketers, the CBN’s action prompted them to take precautionary measures by relying on imported products from the Pipeline Products Marketing Company (PPMC). Though the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has given the marketers a concrete assurance that the N264 billion outstanding claims would be paid between now and March 31, the marketers are contending with the huge outstanding receivables due and payable to them by the Federal Government.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
Securities and Exchange Commission (SEC) has directed all public companies and Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred”, especially those dating from before the enactment of the Finance Act 2020.
The directive reaffirms the provisions of Section 60 of the Finance Act, which mandates that dividends unclaimed for over six years be transferred to the Unclaimed Funds Trust Fund (UFTF), where they remain accessible to shareholders pending claims.
The Commission said that shareholders are entitled to continue to claim their dividends that are not statute-barred (that is not above 12 years) before December 31, 2020 “when the Finance Act 2020, came into effect.”
According to the SEC in a Circular, “The attention of the Securities and Exchange Commission has been drawn to the fact that paying companies and their Registrars have continued to treat unclaimed dividends of public companies that are older than 12 years as being “statute-barred” without recourse to the provisions of the Finance Act 2020.
“In response to various inquiries on the subject, the Commission hereby clarifies as follows: The import of the provisions of Section 60 of the Finance Act 2020 (December 31, 2020), is that, where dividends declared by a public company quoted on the Nigerian Exchange Limited remained unclaimed for a period of six years or more, such dividends are expected to be transferred to the Unclaimed Funds Trust Fund (UFTF) to be held in trust and managed pending when the shareholder presents a claim for such unclaimed dividends.
“Pending the setting up and operationalisation of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020”.
The Commission therefore directed public companies and Registrars to effect immediate compliance with the directive and submit periodic reports on same in the manner prescribed in the Commission’s Rules and Regulations.
Federal Inland Revenue Service (FIRS) has revised its Standard Operating Procedure (SOP) as part of efforts to improve consistency, transparency, and service delivery in tax administration across the country.
According to a statement on Monday in Abuja by Mr. Collins Omokaro, Special Adviser on Communication Strategy and Advocacy to the Executive Chairman of FIRS, the revised SOP offers a unified framework for core tax processes including registration, payment, audit, and enforcement.
“This is about people, experience, and impact. It’s a step toward a tax system that supports voluntary compliance and national development,” Omokaro said.
He explained that while FIRS field offices have long operated with good intentions, inconsistent methods across different locations often created confusion for taxpayers.
The revised SOP, he said, is designed to eliminate such disparities by providing a single, clear roadmap for operations in all of the Service’s over 300 offices nationwide.
More than just a procedural manual, the new SOP is described as a statement of institutional direction, reflecting values that define the future of the Service.
Omokaro quoted Dr. Zacch Adedeji, executive chairman of FIRS, as saying that “This SOP is not just a technical document—it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people.”
The SOP update is one component of a broader reform agenda underway at FIRS, which aims to transform the agency into a fully service-oriented institution.
The changes are also aligned with the ongoing digital transformation within the agency, which is intended to harmonize human and technological systems for faster, more reliable, and taxpayer-friendly service delivery.
Internally, the SOP is expected to enhance operational efficiency and provide a foundation for improved staff training, clearer guidance, and stronger evaluation systems. Omokaro noted that every FIRS employee is expected to study, implement, and embody the procedures outlined in the new document.
“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” he said.
The SOP reform is being introduced as part of the Service’s broader mission to reposition itself as a modern tax authority grounded in accountability, consistency, and a shared sense of national purpose.
The move comes as the FIRS continues to modernize its processes, improve tax collection efficiency, and foster a culture of voluntary compliance—all aimed at strengthening revenue mobilization to support Nigeria’s development agenda.
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