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.
Nigerian insurance industry has recorded a gross written premium of N1.562 trillion in the 2024 financial year. Mr Kunle Ahmed, Chairman, Nigerian Insurers Association, disclosed this during the 54th Annual General Meeting of the Nigerian Insurers Association (NIA) in Lagos.
Ahmed said that this represented a 56 per cent increase over the N1.003 trillion generated in 2023.
According to him, the industry’s total assets rose to N3.9 trillion, a 46.1 per cent increase from N2.67 trillion in 2023.
He said: “The Nigerian insurance industry in 2024 experienced notable developments, shaped by regulatory changes, economic conditions, and evolving market dynamics. “Available data indicated robust growth in gross premiums.
The industry reported a gross written premium of N1.562 trillion, a 56 per cent increase over the N1.003 trillion recorded in 2023. “Non-life business accounted for N1.1 trillion, while life business generated N470 billion.
“The industry’s total assets expanded significantly to N3.9 trillion, a 46.1 per cent rise from N2.67 trillion in 2023. “Market capitalisation also grew substantially, reaching N1.2 trillion, a 41 per cent increase from N850 billion in 2022.”
Ahmed further disclosed that the net claims paid by the industry stood at N622 billion, with the non-life segment accounting for N437 billion and the life segment for N185 billion.
He said within the non-life sector, fire, oil and gas insurance lines were key drivers of revenue growth, with all non-life products demonstrating strong quarter-on-quarter increases.
Ahead of the Africa Social Impact Summit (ASIS) 2025, scheduled for July 10 and 11 in Lagos, co-conveners Sterling One Foundation and the United Nations in Nigeria held a high-level press briefing at the United Nations House in Abuja.
L–R: Mohamed Malick Fall, Assistant Secretary-General and United Nations Resident and Humanitarian Coordinator in Nigeria; Olapeju Ibekwe, CEO, Sterling One Foundation; and Abubakar Sulieman, MD/CEO, Sterling Bank, at the recently held Africa Social Impact Summit 2025 World Press Conference at the United Nations House, Abuja.
The event brought together development partners, policymakers, and the media to outline expectations for the upcoming summit and reflect on Africa’s role in defining local responses to global challenges.
Since its launch in 2022, ASIS has grown into a key platform for regional development collaboration. From eight founding partners, the summit now brings together over 40 institutions working across climate, healthcare, education, finance, governance, and digital inclusion. This expansion points to a growing shift: African institutions are pushing to set the agenda, not wait to be handed one.
The 2025 summit, themed “Scaling Action for the SDGs: Bold Solutions for Climate Resilience and Policy Innovation,”will focus on strengthening sub-national development, rethinking finance flows, and tackling structural inequalities through long-term investment and reform.
Speaking at the press briefing, Mohamed M. Malick Fall, Assistant Secretary-General and United Nations Resident and Humanitarian Coordinator in Nigeria, reinforced the urgency of this year’s convening.
“The climate crisis is eroding decades of development across Africa, displacing communities, disrupting education and health systems, and undermining economic stability. But lasting solutions must come from those living the impact daily.
“As co-conveners of the summit, and with this year’s theme Scaling Action: Bold Solutions for Climate Resilience and Policy Innovation, ASIS offers a platform for African institutions to lead and for global partners to respond with investment, policy reform, and serious commitment.”
In a presentation on the summit’s evolving impact, Olapeju Ibekwe, CEO, Sterling One Foundation, reflected on the summit’s trajectory:
“ASIS has never been about convening for its own sake. Each summit marks a deliberate step to mobilize capital, shift policy, and advance African-led solutions. Already, we have seen over 100 million dollars unlocked through coalition efforts.
“That scale is not accidental. It is the product of systems thinking, partnership, and a commitment to putting Africa’s priorities at the center of global development conversations.”
In his remarks, Abubakar Suleiman, MD/CEO, Sterling Bank, emphasized the private sector’s enduring role in the ASIS journey: “Sterling Bank has been a strategic partner to ASIS from the very beginning.
“As global development funding becomes more constrained, it is increasingly clear that the private sector must help drive scalable solutions.
“Our engagement with ASIS reflects a belief that impact is not a side effort but core to building resilient economies and inclusive growth.”
Other partners in the room echoed the need for bold, cross-sector investment in areas such as health systems, youth employment, education access, and digital infrastructure.
ASIS boasts a coalition of over 40 institutions that includes Afreximbank, Coca-Cola, United Nations Global Compact Network Nigeria, Sterling Bank, and other theme and technical partners, with Lagos State as the host city.
Interested participants are encouraged to register at theimpactsummit.org
Flutterwave, Africa’s leading payments technology company, has been named in the TIME100 Most Influential Companies List of 2025, marking its second appearance on the prestigious global ranking.
Previously honoured in 2021, Flutterwave joins industry giants such as Amazon, Netflix, and OpenAI in the TITANS category of the fifth-annual list, which recognizes companies driving significant global impact.
The selection process, led by TIME editors, evaluated nominees based on innovation, ambition, impact, and success, highlighting Flutterwave’s transformative role in the fintech sector.
Founded in 2016, Flutterwave has grown into a powerhouse facilitating seamless payments across Africa and beyond, empowering businesses and individuals in the digital economy.
Its solutions span critical sectors such as cross-border remittances, e-commerce, travel, payroll, and hospitality.
The company’s 2021 TIME100 recognition followed its impactful campaign to help businesses pivot online during the COVID-19 pandemic.
This year’s inclusion underscores Flutterwave’s sustained influence, with its technology now reaching over 34 African countries and expanding into new markets such as Bahrain, Turkey, and Saudi Arabia, supporting a leading global ride-hailing company’s operations.
Flutterwave’s flagship remittance product, SendApp by Flutterwave, has gained significant traction in the US, UK, and EU, offering faster and more affordable money transfers for the African diaspora.
In 2024, the company secured 20 additional licenses in the US, bringing its total to 34 and achieving near-complete coverage through strategic partnerships.
Flutterwave’s focus on profitability and market expansion, coupled with a strengthened executive team, has fuelled its growth, with nearly half of its customers receiving payments in new markets last year.
Olugbenga Agboola, founder and CEO, Flutterwave, expressed pride in the recognition, stating, “Being recognized by TIME once again is a true honour. It’s a testament to our team’s incredible work. We’re shaping Africa’s financial future and connecting the continent to the world.”
The accolade follows other recent honours, including topping Fast Company’s 2024 Most Innovative Companies list for Europe, the Middle East, and Africa, and earning a second consecutive ranking in the FXC Top 100 Cross-Border Payment Companies.
The TIME100 listing solidifies Flutterwave’s position as a global fintech leader, bridging Africa to the world through innovative payment solutions.
As the company continues to expand its reach and refine its growth strategy, its influence in transforming the financial landscape remains undeniable, setting a benchmark for innovation and connectivity in the digital economy.
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