Says recapitalisation will strengthen resilience

NDIC vows to protect depositors

By Emma Ujah, Abuja Bureau Chief

The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, yesterday urged regulators and operators in the banking sector to strengthen public confidence to support a resilient economy.

Speaking at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) workshop in Abuja, Oyedele said: “Confidence cannot be legislated, purchased or imposed; it must be earned through strong institutions, transparency, effective communication, preparedness and consistent action. The stronger our institutions, the greater the confidence they inspire. The greater the confidence, the more resilient our financial system becomes, and the stronger our economies and prosperity for our people.”

He said the ongoing banking recapitalisation was designed to make banks stronger amid global economic uncertainties.

According to him, “A better-capitalised banking system is a more resilient one, better able to absorb shocks and sustain lending without recourse to the deposit insurance fund. Stronger bank balance sheets mean a stronger financial safety net. A financial system credible in the eyes of the world is one in which depositors are more likely to place and keep their confidence.”

He added: “Deposit insurance is necessary for inclusive growth. It does not just protect savings; it supports financial inclusion. When people trust financial institutions, they save more. When savings increase, banks lend more. When lending expands, businesses invest and jobs are created.”

Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Thompson Sunday, declared that protecting depositors remains the corporation’s top priority.

He said the workshop theme, “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future,” was timely, noting that digital innovation, fintech, artificial intelligence and cross-border financial activities were reshaping deposit insurance systems globally.

According to him, “Confidence remains the most valuable asset in any financial system. Trust takes years to build but can be eroded within days. Public awareness is an essential pillar of effective deposit insurance systems. A well-informed depositor is more likely to make rational decisions and less likely to react adversely to rumours and misinformation during periods of uncertainty.”

On crisis preparedness, Sunday said the 2023 banking turmoil, the most severe episode of systemic stress since the 2007-2008 global financial crisis, highlighted the need for readiness.

He said: “These events remind us that financial crises can emerge unexpectedly and evolve rapidly, particularly in digital environments where information travels instantaneously and depositor reactions are amplified by technology and social media. Preparedness, effective coordination and timely intervention can make the difference between maintaining stability and allowing contagion to spread.”

Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Sen. Mukhail Abiru, described financial stability as “the quiet heartbeat of a thriving nation” that prevents orderly resolution from descending into panic.

By Obas Esiedesa

The Federal Government  yesterday said it has paid about N333 billion to eight electricity generation companies (GenCos) under its power sector debt settlement programme, and launched a second N729 billion bond issuance aimed at clearing more legacy debts and restoring liquidity in the Nigerian Electricity Supply Industry (NESI).

Speaking at an investors’ forum organised by the Nigerian Bulk Electricity Trading (NBET) Plc in Abuja, government officials said the new bond would complete the first phase of the Presidential Power Sector Debt Reduction Programme, which seeks to resolve verified legacy liabilities and attract fresh investment into the electricity sector.

Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, said the first series of the programme had demonstrated the Federal Government’s commitment to honouring its obligations, helping to restore confidence among investors and market participants.

She disclosed that in February 2026, the government deployed about N501 billion under the first series of the programme, comprising N300 billion in cash and N201 billion in non-cash bond instruments, to settle part of the verified debts owed to GenCos.

According to her, N333 billion has so far been paid to eight participating GenCos covering 17 power plants, while the first coupon payment of about N63.5 billion on the seven-year bond was made in full on July 14, 2026.

She said the timely settlement had enabled participating generation companies to meet obligations to gas suppliers, lenders and operations and maintenance contractors, thereby improving liquidity across the electricity value chain.

“Markets do not reward promises; they reward performance. Capital follows credibility,” Verheijen said, adding that the second series would deepen market liquidity and strengthen the financial foundation required to attract long-term private investment into the power sector.

She described the programme as a development initiative designed to improve electricity reliability, support businesses and enhance Nigeria’s economic transformation.

In his address, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the Federal Executive Council had approved a N4 trillion Power Sector Debt Reduction Initiative after a comprehensive verification of liabilities.

He explained that the debt verification exercise reduced outstanding claims from over N4 trillion to about N3.3 trillion through line-by-line validation of services rendered.

Oyedele said the second bond issuance, valued at about N729 billion, would complete the first phase of the debt settlement programme and extend payments to more generation companies, gas suppliers and other service providers.

He noted that the successful repayment of the first bond coupon had demonstrated the government’s credibility and strengthened investor confidence.

“Investors do not reward intentions; they reward execution. Every commitment honoured today reduces the cost of capital tomorrow,” he said.

Also speaking, the Minister of Power, Mr Joseph Tegbe, said resolving the liquidity crisis in the electricity market was critical to achieving reliable power supply and sustainable economic growth.

According to him, the debt reduction programme is not merely a financing transaction but a key economic reform designed to restore the commercial viability of Nigeria’s electricity market.

He urged pension funds, insurance firms, banks and other institutional investors to support the bond programme, describing it as an opportunity to partner with the Federal Government in transforming Africa’s largest electricity market.

By Elizabeth Adegbesan

The Federal Government of Nigeria (FGN) bond auction in July 2026 was oversubscribed by 45 percent, or N540 billion, attracting total subscriptions of N1.74 trillion against the N1.2 trillion offered by the Debt Management Office (DMO).

This reflects strong investor demand for Federal Government of Nigeria (FGN) debt instruments.

According to the July FGN Bond Auction results released by the DMO yesterday, investors submitted bids worth N1.74 trillion for bonds valued at N1.2 trillion, while total allotments declined by 23.8 percent to N929.32 billion in July, from N1.22 trillion allotted in June.

Three instruments were offered during the auction: the 22.6 percent FGN JAN 2035, the 16.25 percent FGN APRIL 2037, and the 15.45 percent FGN JUN 2038 bonds, with N400 billion offered for each instrument.

Investor interest was strongest in the APRIL 2037 bond, which attracted N665.19 billion in bids from 122 successful applicants.

The bulk of the allotments also went to this bond, totalling N381.46 billion.

The JAN 2035 bond attracted N245.73 billion in subscriptions, while the JUN 2038 bond received N302.13 billion.

Clearing yields for the bonds were as follows: JAN 2035, 18.34 percent; APRIL 2037, 18.35 percent; and JUN 2038, 18.40 percent.

During the auction, the bonds were priced within the following ranges: 16 percent to 22.6 percent for the JAN 2035 bond, 16 percent to 19.58 percent for the APRIL 2037 bond, and 17 percent to 20.45 percent for the JUN 2038 bond.

The results reflect the continued growing appetite among investors for Nigerian government debt, even as allotments tightened compared with previous months.