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NDIC Distributes N16.18 Billion in Liquidation Dividends to Stakeholders of Defunct Banks

Impressive Recoveries and Asset Realizations Lead to Substantial Payout



The Nigeria Deposit Insurance Corporation (NDIC) has announced the disbursement of N16.18 billion in liquidation dividends to depositors, creditors, and shareholders of 20 banks that are in liquidation.

This announcement follows a commendable streak of recoveries from debtors and successful realizations of assets of the defunct banks.

Bashir Nuhu, the Director of Communication and Public Affairs at NDIC, conveyed this development through an official statement on Monday.

According to the statement, the corporation has already initiated the verification and payment processes for the stakeholders covered by these declarations, with a pledge to complete the payouts within 30 days, starting from September 28.

This recent announcement builds upon previous disbursements, with the NDIC having distributed a cumulative sum of N45.45 billion as liquidation dividends for the 20 banks as of July 2023.

These dividends represent a welcome relief to those who have been affected by the closure of these banks over the years.

The list of closed banks covered by this exercise includes Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), and Premier Commercial Bank, among others.

This financial move by NDIC is not only a testament to their commitment to protecting depositors and investors but also a reflection of their successful efforts in recovering funds from debtors and converting assets into liquid assets.

It is expected that this dividend distribution will bring a measure of financial relief to the affected stakeholders, while also demonstrating the effectiveness of regulatory measures in Nigeria’s banking sector.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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AIICO Insurance Boosts Infrastructure Development with 5% Stake in InfraCredit



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AIICO Insurance Plc has acquired a five percent shareholding in Infrastructure Credit Guarantee Company Limited (InfraCredit).

This strategic investment positions AIICO as the second domestic institutional investor admitted by the infrastructure credit guarantee institution, following Leadway Assurance Plc.

The infusion of capital from AIICO is set to elevate InfraCredit’s paid-in capital base to an impressive $175.14 million (approximately NGN 148.55 billion), translating into an aggregate guarantee issuing capacity of up to NGN 742.77 billion (about USD 875.7 million).

This equity injection will become part of InfraCredit’s core capital, enhancing its guarantee issuing capacity and contributing to the sustenance of its coveted ‘AAA’ credit rating.

InfraCredit, known for deploying innovative credit enhancement solutions, has been pivotal in mobilizing private sector financing for infrastructure projects across various sectors of the Nigerian economy.

AIICO’s investment underscores its commitment to bridging the infrastructure gap in the country, marking the evolution of a long-term partnership with InfraCredit.

Babatunde Fajemirokun, the Chief Executive Officer of AIICO Insurance, emphasized the company’s dedication to supporting infrastructure development.

He stated, “This investment is the evolution of what we at AIICO Insurance believe will be a long-term partnership with InfraCredit. Over the past two years, AIICO Insurance has invested in InfraCredit guaranteed bonds and participated in novel financing arrangements promoted by the company to bring infrastructure investment to areas that have been significantly underserved.”

The Chairman of the InfraCredit Board of Directors, Sanjeev Gupta, welcomed AIICO as a new shareholder and highlighted the importance of fostering a strong partnership between the public and private sectors.

Gupta said, “AIICO’s investment is in line with our vision of creating a strong partnership between the public and private sectors. This partnership aims to attract private sector capital for infrastructure financing sustainably.”

Chinua Azubike, the CEO of InfraCredit, expressed enthusiasm about AIICO’s admission as the second private domestic institutional investor.

Azubike stated, “The admission of AIICO Insurance, the second private domestic institutional investor in InfraCredit, reinforces the confidence in the sustainability of InfraCredit’s unique business model.”

The AIICO Insurance equity investment is expected to further strengthen InfraCredit’s core capital base, expand its guarantee capacity, and facilitate deeper market penetration.

This collaboration aims to advance sustainable finance for impactful infrastructure projects in Nigeria, aligning with the nation’s broader goals for economic growth and development.

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Resilience Amid Challenges: Nigerian Insurance Giants Report 165% Surge in Profits



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Against a backdrop of a challenging business environment and meager insurance penetration in Nigeria, thirteen leading insurance companies have displayed resilience by declaring a collective profit before tax (PBT) of N57.1 billion in the first nine months of 2023.

This signifies a 165% increase compared to the N21.51 billion reported during the same period in 2022.

The standout performers among these insurers include AXA Mansard Insurance, Cornerstone Insurance, and AIICO Insurance, which collectively contributed significantly to the sector’s stellar performance.

AXA Mansard Insurance, particularly, recorded a remarkable 471% increase in profit before tax, reaching N15.1 billion in the nine months ending September 30, 2023.

Notably, AXA Mansard Insurance stands out as the sector leader, declaring an interim dividend of 6 kobo per N2 ordinary share, payable to shareholders on December 15, 2023, showcasing a commitment to rewarding investors.

The remarkable financial performance of these insurers has had a tangible impact on the NGX Insurance Index, reflecting a 68.44% Year-to-Date growth as of November 17.

Analysts attribute this positive trajectory to the sector’s resilience and profitability.

However, the sector grapples with impending recapitalization efforts and the need for regulatory reforms. The proposed Consolidated Insurance Bill awaits presidential assent, promising transformative changes for the industry.

Analysts believe these changes, coupled with increased budgetary allocations from the Federal Government, will strengthen the sector’s capacity to contribute significantly to the nation’s GDP and employment creation.

As the industry anticipates legislative support, stakeholders remain hopeful for a new era of growth and global best practices in the Nigerian insurance landscape.

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Nigeria’s Insurance Sector Surges: Premium Income Reaches Record High of N551.4 Billion in Q2 2023




Nigeria’s insurance sector reported a surge in premium income to N551.4 billion in the second quarter of 2023, according to data recently published by the National Insurance Commission (NAICOM).

This figure represents a 49 percent quarter-by-quarter (q/q) increase and a 77 percent year-on-year (y/y) growth compared to the same period in 2022.

FBQuest analysts have attributed this growth to the sector’s resilience in the face of various macroeconomic challenges, including high inflation, rising energy prices, and foreign exchange shortages.

The robust y/y premium income expansion was largely driven by an 81 percent increase in the non-life insurance business, amounting to N362.4 billion in Q2 ’23, with fire insurance making the most significant contribution.

Even the life insurance business, which accounted for approximately 34 percent of the sector’s premium income, soared by 77 percent y/y to N189.0 billion in Q2 ’23.

The cumulative premium income generated by the sector over the first half of 2023 increased by 45 percent y/y to N862.9 billion.

Despite this impressive growth, analysts warn that Nigeria’s insurance sector must still address the challenge of low insurance penetration in the country.

Nevertheless, the industry’s total assets grew by 18 percent y/y to N2.7 trillion in Q2 ’23, with the non-life insurance business playing a significant role in this increase.

While there is undoubtedly more work to be done, these figures are undeniably a cause for celebration in the nation’s insurance landscape.

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