Economy
Nigeria banks are sound – NDIC
Nigeria Deposit Insurance Corporation (NDIC) said that the country’s banks are despite negative rating on Nigeria by global credit rating agency, Moody’s. NDIC Deputy Director for Bank Examination, Mr Abdulhameed Aliu, said this at the ongoing workshop for business editors and finance correspondents by the Corporation in Yola. The theme of the workshop is,”Nigerian Banking System Stability: Tackling Emerging Issues.” Moody’s Investors Service (Moody’s), one of the global credit rating agencies, on December 4 changed its outlook on Nigeria’s ratings to negative from stable.
According to it, Nigeria’s weak operating environment poses a challenge to the banking sector in maintaining the recent improving trend, particularly as regards asset quality, given the increasing bank lending. Aliu said that the regulators, which included the NDIC and the Central Bank of Nigeria (CBN), had put in place frameworks that would continuously ensure that the banking industry remains strong. He said that the commercial banks’ Capital Adequacy Ratio (CAR) had improved from 10 per cent to 15 per cent, higher than the right per cent threshold. CAR is a measurement of bank’s available capital expressed as a percentage of its weighted exposures.
The deputy director said that the development meant that Nigerian bank’s were insulated against some level of risks. Aliu noted that the regulator had come up with electronic template that monitors excessive charges among banks. Aliu said “Any bank that charges customers beyond what is approved. Like I said, we will go to these banks, it is just unfortunate that our reports are not public reports but we have a lot of circumstances where customers were refunded for excessive charges. “We have even gone beyond doing these things manually; we have a template that we send to these banks, they are IT driven. It is a software that we developed. Once the bank slots in the variables, the results will come out and there is a red flag. So, anyone that has violated the articles, the system generates it.
“It is not the issue of doing manually, the tendency of which there will be mix up, but this is a template that we have been using. So, all those customers that are charged exorbitant charges are flagged off.” According to him, the idea behind the template is to ensure that banks do not overcharge customers. They will tell you it is based on their source of funds and we are talking of infrastructure also, one of the things that is making the banks drive their rate is infrastructure that we don’t have. Like we said, CBN has customer protection desk, we also have it in NDIC and I can tell you the amount of complaints I receive. We don’t just wait until customers complain, we request inputs from these banks, they tender their returns and we advise them. We don’t wait for customers to complain, but where customers even complain, we investigate that,” he added.
He said that fixed deposit does not determine the bank charges but time value of money, inflation, interest rate as determinants. On non performing loans, Aliu also disclosed that those days when insider-related abuse was rampant was over. According to him, International Financial Reporting Standards (IFRS) has mandated the banks to always explain in their books facilities that are performing or not as classified or not classified. He said bank shareholders also have a maximum limit they can borrow and a function of shareholders’ funds and the regulator would continue to enforce it. “On loan, what we usually emphasise when we go to these banks, we look at lapses, analyse how banks give out its loans. If we see infractions, we interject but sometimes some of these facilities goes bad, not at the instance of the customers but economy. Aliu said “And this sometimes affect the performance of these loans and we are talking about various sectors, you see a lot of customers making effort but the economy is not assisting them in servicing their loans as and when due because their businesses are not really moving.” (NAN)
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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