•Over 700,000 Heritage Bank depositors paid

By Cynthia Alo

The Nigeria Deposit Insurance Corporation, NDIC, has said that it has commenced payment of depositors of the 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria, CBN, in July 2026.

The Managing Director and Chief Executive Officer of NDIC, Mr. Thompson Sunday, disclosed this on yesterday during an interview with journalists at the 2026 stakeholders’ retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos.

The retreat was held under the theme, “Strengthening Financial Safety Nets in an Era of Banking Sector Recapitalisation and Fintech Innovation.”

Recall that last month, CBN revoked the operating licences of 46 microfinance banks following their failure to meet regulatory requirements.

The affected banks were found to have inadequate assets to meet their liabilities, ceased operations without regulatory approval, stopped financial intermediation, failed to commence operations within 12 months of obtaining their licences or failed to maintain the required minimum capital base unimpaired by losses.

Speaking on the development, Sunday said NDIC, which was appointed provisional liquidator following the revocation, had started paying guaranteed deposits to affected customers.

He stated: “The CBN revoked the licenses, and we became appointed as the provisional liquidator. We have started paying depositors of those banks, and gradually, we intend to cover all the insured depositors.

“Our function as liquidator would involve payment of guaranteed sums. Thereafter, what we do is we go after those who are owing the institutions and have not paid.

“We also make sure that we sell the assets that are available and also realise their investment towards paying the uninsured portion of the deposit.”

Sunday explained that NDIC was now working with the Nigeria Inter-Bank Settlement System, NIBSS, to identify alternative accounts linked to depositors’ Bank Verification Numbers, BVNs, and make payments automatically.

He said: “Hitherto, we used to depend on people to come file for payment, but now, in collaboration with the Nigeria Inter-Bank Settlement System, what we do is, for every account that has a BVN, we trace your alternative account in other institutions and make payments to you automatically.

“So, the more we discover those, the more we start payment.”

The NDIC boss explained said the same process had been used in the payment of verified depositors of the defunct Heritage Bank, adding that about 700,000 depositors had so far been reimbursed.

He said insured deposits were paid in less than four days after the bank’s failure, while liquidation dividends were subsequently declared for depositors with balances above the insured limit.

Sunday said some Heritage Bank depositors who could not be traced through available databases still needed to come forward with evidence of account ownership and other relevant documents for verification.

He said: “For the guaranteed sum, we do not need you to come to be paid. Of course, there are challenges in the Nigerian system.

“There are depositors that we have not been able to trace, and this is an opportunity for them to also come forward.”

•But warns energy prices, credit squeeze threaten outlook

By Babajide Komolafe

Nigeria’s business environment recorded stronger expansion in July 2026 despite rising operating costs, but the Nigerian Economic Summit Group, NESG, has warned that surging energy prices, limited access to credit and other structural constraints could threaten the sustainability of the recovery.

Presenting its August 2026 Business Confidence Monitor, BCM, report, the NESG said: “Nigeria’s business environment recorded stronger expansion in July 2026. The overall Current Business Performance Index stood at 108.6 points, up from 104.6 points in June 2026 and 105.4 points in July 2025. This was driven by broad-based expansion across subsectors led by Non-Manufacturing.” 

On the note of caution the group stated: “Key constraints persisted, especially limited access to finance, energy shortages, high rental costs, insecurity, and infrastructural challenges during the month.” 

On the outlook for businesses, the report said: “The Future Business Expectations Index stood at 128.3 points in July 2026, declining marginally from 128.4 in the previous month. This reflects sustained but cautious optimism about short-term business conditions.” 

According to the NESG, “Sentiment was uneven across sectors, with Trade and Manufacturing recording the strongest optimism during the month. The cautious outlook reflects renewed cost pressures that could result from elevated energy prices in the coming months.” 

Explaining the drivers of the positive performance, the report noted: “All sectors except Services remained in the expansion territory. Remarkably, Services moved into the expansion region during the month. Key BCM sub-indices, including general business situation, production, demand conditions, operating profit, financial results, supply order, access to credit, cash flow, and employment, remained in the expansion territory.” 

The report added that investment remained weak despite the improved business climate, stressing that: “The access-to-credit index recorded only a marginal decline. Notably, sub-indices including export and trade stockpiling expanded during the month, whereas investment remained in the contraction territory.” 

Looking ahead, the NESG warned that: “The cautious optimism signals firms’ concerns over cost pressures that could emanate from the recent shift to dollar-denominated petrol pricing by the Dangote Refinery, which could keep energy prices elevated in the coming months.” 

By Udeme Akpan, Energy Editor

The Senate Committee on Privatisation has commended Eko Electricity Distribution Plc (EKEDP) for its improved operational performance since the privatisation of Nigeria’s power sector, while pledging to push for solutions to persistent challenges undermining electricity distribution across the country.

During an oversight visit to EKEDP’s headquarters in Marina, Lagos, the Committee reviewed the company’s operational performance, financial position and the broader challenges confronting the electricity distribution segment.

The nine-member delegation, led by the Chairman of the Senate Committee on Privatisation, Senator Shuaibu Isa Lau, was received by the EKEDP management team led by the Managing Director, Distribution, Transgrid Enerco Limited, Mr. Wola Joseph Condotti.

Presenting the company’s performance, EKEDP said it had recorded significant improvements since taking over operations following the 2013 privatisation exercise.

According to the company, Aggregate Technical, Commercial and Collection (ATC&C) losses have declined from 35.37 per cent in 2013 to 19.71 per cent in 2026, while average monthly revenue billed has increased from less than ¦ 2 billion to N39.5 billion over the same period.

The company also disclosed that the number of metered customers has grown from 183,808 to 584,193, reflecting sustained investment in metering and customer service.

EKEDP highlighted several milestones achieved between 2024 and 2026, including the full settlement of market obligations to the Nigerian Independent System Operator (NISO), the Nigerian Bulk Electricity Trading Plc (NBET), Waterfall and bilateral power purchase agreement counterparties.

Despite the improvements, EKEDP said transmission infrastructure constraints beyond its control continue to limit electricity supply to consumers.

Responding, Senator Lau praised the company’s progress since the Committee’s previous oversight visit in 2024, describing its performance as encouraging.