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We’ll Refund Distressed Banks’ Depositors – NDIC

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By Joseph Amah, Abuja

The Nigeria Deposit Insurance Corporation on Thursday in Kaduna said it had enough funds to pay depositors whose money is trapped in 23 distressed banks across the country. The Managing Director of the NDIC, Bello Hassan, disclosed this at the ‘NDIC day’ at the ongoing 43rd Kaduna International Trade Fair, Kaduna on Thursday.

He said the corporation has moved for the commencement of payment to the affected depositors.
This is just as he assured that the era of failed banks in the country, was over, adding that the NDIC was living up to its mandates of contributing to financial stability in the country. The fair is organized by the Kaduna Chambers of Commerce Industries, Mines & Agriculture.

Hassan said part of its core mandate was to protect banks insured by the corporation and ensure financial stability in the nation’s economy. Represented by the Director of Communication and Public Affairs, Bashir Nuhu, the NDIC boss said apart from proving deposit insurance cover Microfinance banks, commercial banks, non-interest banks, said each depositor were insured up to N500,000 in the event of failure while N2m insures coverage for depositors of Microfinance Banks. He, however, reiterated that depositors who have funds in excess of the insured limits are paid dividends from the proceeds of assets and debt recovery in respect of the failed banks.

The NDIC boss said, “the NDIC has been living up to its mandate and public policy objectives of contributing to financial system stability. “The corporation provides deposit insurance cover to Microfinance Banks (MFBs), Deposit Money Banks (DMBs), Non-Interest Banks (NIBs), Primary Mortgage Banks (PMBs), subscribers of Mobile Money Operators (MMOs) and also to the recently licensed Payment Service Banks (PSBs).“Presently each depositor of DMBs, NIBs, PMBs and subscribers of MMOs are insured up to the maximum limit of N500,000.00 per bank in the event of failure; while the maximum insured coverage for depositors of MFBs is N200,000.00 per bank.” He added, “It may interest you to note that from its dogged liquidation activities, the Corporation has declared 100 percent liquidation dividends to depositors of 22 DMBs in liquidation. “What this means is that NDIC has realized enough to pay all depositors of the concerned 23 DMBs 100 percent of their money trapped in those banks. “As a result, the Corporation has since moved on to commence payment of liquidation dividends to creditors and shareholders of some of the banks, indicating that their depositors can access their full payment whenever they file their claims. “It is on this note that I like to call on depositors of banks in liquidation to avail themselves of the Corporation’s physical and online platforms for claiming their trapped deposits. “The online claim verification platform has been incorporated into the Claim Page on our website (www.ndic.gov.ng) to facilitate processing of claims from the comfort of depositors’ houses and offices.”

Economy

We’ll Continue Borrowing Within Sustainable Limits- FG

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 The Federal Government says it will continue to borrow within manageable and sustainable limits in accordance with the Debt Management Office (DMO) debt sustainability framework.

This is contained in a statement by the Director, Information and Public Relations in the Ministry of Finance, Mr Mohammed Manga, in Abuja on Wednesday.

President Bola Tinubu recently requested the approval of the 2024 – 2026 external borrowing rolling plan from the National Assembly.

Tinubu has requested the National Assembly’s approval to secure external loans of 21.5 million dollars and 15 billion Yuan, along with a grant of 65 million Euro, as part of the federal government’s proposed 2025–2026 external borrowing plan.

Manga said that the proposed borrowing plan was an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.

“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.

“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices.

“This strategic method enhances the country’s ability to implement effective fiscal policies and mobilise development resources,” he said.

According to the statement, the borrowing plan does not equate to actual borrowing for the period.

“The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is 1.23 billion dollars, and it has not yet been drawn.

“This is planned for H2 2025, the plan is for both federal and several state governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.

“Importantly, it should be noted that the borrowing rolling plan does not equate to an automatic increase in the nation’s debt burden.

“The nature of the rolling plan means that borrowings are split over the period of the projects, for example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between five to seven years which are project-tied loans,” Manga said.

He said that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, rail and road infrastructure.

According to him, the majority of the proposed borrowing will be sourced from the country’s development partners, like the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank.

Manga said that these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.

He said that the government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023.

Manga said that the government has ended the distortionary and inflationary ways and means.

According to him, there is significant revenue expectations from the Nigerian National Petroleum Corporation Limited (NNPC Ltd), technology-enabled monitoring and collection of surpluses from government owned enterprises and revenue-generating ministries, departments, and agencies and legacy outstanding dues.

“Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.

“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture.

“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.

“Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing,” he said.(NAN)

 The Federal Government says it will continue to borrow within manageable and sustainable limits in accordance with the Debt Management Office (DMO) debt sustainability framework.

This is contained in a statement by the Director, Information and Public Relations in the Ministry of Finance, Mr Mohammed Manga, in Abuja on Wednesday.

President Bola Tinubu recently requested the approval of the 2024 – 2026 external borrowing rolling plan from the National Assembly.

Tinubu has requested the National Assembly’s approval to secure external loans of 21.5 million dollars and 15 billion Yuan, along with a grant of 65 million Euro, as part of the federal government’s proposed 2025–2026 external borrowing plan.

Manga said that the proposed borrowing plan was an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.

“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.

“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices.

“This strategic method enhances the country’s ability to implement effective fiscal policies and mobilise development resources,” he said.

According to the statement, the borrowing plan does not equate to actual borrowing for the period.

“The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is 1.23 billion dollars, and it has not yet been drawn.

“This is planned for H2 2025, the plan is for both federal and several state governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.

“Importantly, it should be noted that the borrowing rolling plan does not equate to an automatic increase in the nation’s debt burden.

“The nature of the rolling plan means that borrowings are split over the period of the projects, for example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between five to seven years which are project-tied loans,” Manga said.

He said that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, rail and road infrastructure.

According to him, the majority of the proposed borrowing will be sourced from the country’s development partners, like the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank.

Manga said that these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.

He said that the government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023.

Manga said that the government has ended the distortionary and inflationary ways and means.

According to him, there is significant revenue expectations from the Nigerian National Petroleum Corporation Limited (NNPC Ltd), technology-enabled monitoring and collection of surpluses from government owned enterprises and revenue-generating ministries, departments, and agencies and legacy outstanding dues.

“Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.

“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture.

“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.

“Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing,” he said.(NAN)

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Economy

Organise Informal Sector, Tax Prosperity Not Poverty, Adedeji Tasks Officials

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The Chairman, Joint Tax Board (JTB), Dr Zacch Adedeji, has urged officials of the board to organise traders and artisans into a formal body before capturing them in the tax net.

Adedeji said that this was in line with the agenda of President Bola Tinubu not to tax poverty but prosperity.

The chairman stated this at the 157th Joint Tax Board meeting held in Ibadan, on Monday.

The theme of the meeting “Taxation of the Informal Sector: Potentials and Challenges”.

Speaking on the theme of the event, Adedeji stressed the need to evolve a system that would make the informal sector formal before it could be taxed.

Adedeji, who also doubles as the Chairman, Federal Inland Revenue Service, (FIRS), said “What I would not expect from the JTB meeting is to define a system that would tax the informal sector.

“The only thing is to formalize the informal sector, not to design a system on how to collect tax from market men and women.

“As revenue administrator, our goal is to organise the informal sector so that it can fit into existing tax law.”

Citing a report of the National Bureau of Statistics (NBS) in the first quarter of 2023, the chairman said that the nation’s unemployment index was attributable to recognised informal work.

Adedeji stated that workers in that sector accounted for 92.6 per cent of the employed population in the country as at Q1 2023.

“JTB IS transiting to the Joint Revenue Board with expanded scope and functions.

“We are hopeful that by the time we hold the next meeting of the Board, the Joint Revenue Board (Establishment) Bill would have been signed into Law by the President.

“The meetings of the board provide the platform for members to engage and brainstorm on contemporary and emerging issues on tax, and taxation,” he said.

In his address, Gov. Seyi Makinde of Oyo State, said the theme of the meeting was apt and timely, stressing that it coincides with the agenda of the state to improve on its internally generated revenue.

According to him, the meeting should find the best way forward in addressing the issue of the informal sector and balance the identified challenges.

“Nigeria is rich in natural resources, but it is a poor country because economic prosperity does not base on natural resources,”

Makinde also said that knowledge, skill and intensive production were required for economic prosperity, not just the availability of natural resources.

He stressed the need to move from expecting Federal Allocations to generating income internally.

“We are actively ensuring that people are productive and moving the revenue base forward,” Makinde said.

The governor said that tax drive should be done by simplifying tax processes, incentives for compliance like access to empowerment schemes and loans.

He urged JTB to deepen partnership and innovation in using data on tax to track and administer it.

Earlier, the Executive Chairman, Oyo State Board of Internal Revenue, Mr Olufemi Awakan, said the meeting was to address tax-related matters, evolve a workable, effective and
efficient tax system across the states and at the Federal level.

He urged participants to find amicable solutions to challenges of tax jurisdiction, among others.

Tax administrators from all the 36 states of the federation, who are members of JTB, were in attendance. (NAN) 

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Agriculture

Tiv Monarchs Give Herders Ten Days Ultimatum To Vacate Tiv Kingdom

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By David Torough, Abuja

The Tiv Area Traditional Council during its emergency meeting held yesterday in the palace of the Tor Tiv in Gboko requested the Governor Hyacinth Alia led administration to create an enabling environment to allow herders’ peaceful exit of farmlands in Tiv Kingdom to facilitate resumption of farming activities.

Consequently, the Council directs political and traditional rulers in each local government area of Tiv Kingdom to peacefully engage the herders to ensure their exit from the local government areas to allow farming resumes.

The Council which was chaired by the Tor Tiv himself, HRM Prof James Ortese Iorzua Ayatse CFR equally appealed to all herders in Tiv Kingdom in Benue State to vacate all Tiv lands before the end of May 2025 to allow farmers return and cultivate their farms in order to avoid the looming hunger in Nigeria.

According to a Communique signed by the Secretary of the Council Mr Shinyi Tyozua which deliberated particularly on the security situation in Tiv Kingdom the Council enumerated the communities worst affected to include those in Kwande, Katsina Ala, Logo, Ukum, Guma, Makurdi, Gwer West Gwer East and Buruku Local Government Areas.

The Council lamented that farming activities in the kingdom have ceased due to the occupation of farmlands by herders for grazing and attacks and killings of farmers who fled stressing that if the situation continues it will ultimately result to hunger in Tiv Kingdom and Nigeria as a whole.

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