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FG borrows N5tn from bond market in six months

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The Federal Government raised N5.08tn from the domestic bond market in the first six months of 2026, marking a 77.8 per cent increase from the N2.86tn raised during the corresponding period of 2025, an analysis of Debt Management Office auction results by The PUNCH has shown.

The increase came despite a decline in borrowing costs, with average marginal rates easing compared with last year, even as investor appetite remained strong, with subscriptions exceeding N9tn over the six-month period.

The DMO auction results showed that the Federal Government allotted N5.08tn worth of bonds between January and June 2026, compared with N2.86tn allotted during the same period in 2025, representing an increase of N2.22tn. The figures include both competitive and non-competitive allotments disclosed in the auction results.

The government also significantly increased the amount of bonds offered to investors during the review period. Between January and June 2026, it offered N4.95tn worth of bonds, compared with N1.85tn in the corresponding period of 2025. This represents an increase of N3.10tn, or 167.6 per cent, reflecting a more aggressive domestic borrowing programme.

Investor demand also strengthened in nominal terms. Total subscriptions rose to N9.04tn in the first half of 2026 from N4.37tn a year earlier, an increase of N4.67tn or about 107 per cent.

However, demand moderated when measured against the size of the government’s offer. While subscriptions were equivalent to 236.1 per cent of the amount offered in the first half of 2025, the ratio declined to 182.6 per cent in the corresponding period of 2026. This suggests that although investors committed substantially more money, the increase did not keep pace with the sharp expansion in borrowing requirements.

A further analysis of the auction data showed that investors submitted 2,823 bids across all bond auctions in the first six months of 2026, up from 1,621 bids in the corresponding period of 2025.

Successful bids also increased from 926 to 1,449 over the period. However, the proportion of successful bids declined to 51.3 per cent in 2026 from 57.1 per cent in 2025, indicating that the DMO became more selective in accepting bids despite stronger participation.

The government’s monthly borrowing profile showed significant differences across the six months. January recorded the highest borrowing during the review period, with N1.54tn allotted to competitive investors and total allotments of about N1.68tn after including non-competitive allocations, compared with N601.04bn in January 2025.

June followed with total allotments of N1.22tn, compared with just N100bn during the corresponding month of 2025, making it one of the strongest months for domestic debt issuance.

See also  FG begins N4tn debt settlement, captures five GenCos

May also witnessed a sharp increase, with N614.51bn allotted through competitive bids and total allotments rising to N894.51bn after the inclusion of a N280bn non-competitive allocation for the 16.2499 per cent FGN April 2037 bond. This compares with N300.69bn raised in May 2025.

Borrowing was relatively lower in February and April. The DMO allotted N524.28bn in February 2026, down from N910.39bn in February 2025, while April allotments fell to N276.79bn from N520.90bn recorded during the corresponding period last year.

March was the only other month to record an increase, with allotments rising to N485.50bn from N423.68bn.

The data also point to a decline in the government’s domestic borrowing costs. Marginal rates across the various bond instruments ranged between 15.50 per cent and 18.35 per cent during the first half of 2026. In comparison, marginal rates ranged from 17.75 per cent to 22.60 per cent during the corresponding period of 2025.

The simple average marginal rate across all instruments declined to about 16.78 per cent in the first six months of 2026 from about 19.84 per cent in the same period of 2025. Similarly, the allotment-weighted average marginal rate fell to about 17.29 per cent from about 20.14 per cent.

The 22.60 per cent FGN January 2035 bond remained the government’s largest funding instrument during the review period. Across four reopening auctions held between January and June 2026, the bond attracted subscriptions of about N2.30tn and accounted for approximately N1.52tn in allotments.

The 16.2499 per cent FGN April 2037 bond also recorded strong investor interest. Offered only in May and June, the 20-year instrument attracted subscriptions exceeding N1.24tn and total allotments of about N1.38tn, boosted by the N280bn non-competitive allocation recorded in May.

Among shorter-tenor instruments, the 19.89 per cent FGN May 2033 bond attracted N1.34tn in subscriptions and N541.34bn in allotments during its three reopening auctions in February and March 2026.

In contrast, the 2025 auction data showed that the 19.89 per cent FGN May 2033 bond accounted for the largest share of government borrowing during the first half of the year, raising N1.07tn, while the 18.50 per cent FGN February 2031 bond followed with N758.90bn.

The figures indicate that while the Federal Government significantly expanded domestic borrowing during the first half of 2026, investor demand remained robust despite the larger supply of securities.

The PUNCH earlier reported that foreign investors channelled $3.23bn into Nigerian bonds in the first quarter of 2026, highlighting a strong appetite for the country’s fixed-income securities amid elevated interest rates and improving confidence in the foreign exchange market.

Data from the capital importation report released by the National Bureau of Statistics showed that bond investments accounted for 32.71 per cent of the $9.86bn portfolio investments recorded during the quarter and 31.10 per cent of the total $10.37bn capital imported into the country.

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The bond inflow represented a 267.67 per cent increase from the $877.41m recorded in the corresponding period of 2025 and a 63.76 per cent rise from the $1.97bn attracted in the preceding quarter.

The sharp increase reflects the attractiveness of Nigerian sovereign debt instruments, which have offered among the highest yields in emerging and frontier markets following the Central Bank of Nigeria’s aggressive monetary-tightening cycle over the past two years.

Since assuming office in September 2023, CBN Governor Olayemi Cardoso has led the Monetary Policy Committee through one of the most aggressive tightening cycles in Nigeria’s history, raising the Monetary Policy Rate from 18.75 per cent to a peak of 27.50 per cent through a series of hikes in 2024 aimed at curbing inflation, stabilising the naira and restoring investor confidence.

After holding the benchmark rate at 27.50 per cent throughout most of 2025, the MPC began a cautious easing cycle in September 2025, cutting the MPR by 50 basis points to 27.00 per cent as inflation moderated for several consecutive months, before lowering it further to 26.50 per cent in early 2026.

At its most recent 305th meeting in May 2026, the MPC opted to retain the MPR at 26.50 per cent and leave all other key policy parameters unchanged, citing renewed inflationary pressures linked to global energy market disruptions while seeking to preserve the macroeconomic gains achieved through earlier tightening measures.

A renowned economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, recently warned that rising Federal Government borrowing from the domestic financial system is increasingly crowding out the private sector, as banks favour low-risk, high-yield government securities over lending to businesses.

β€œThe increase in credit to the government can be attributed to a number of factors. The government has been raising money to finance the deficit. So this financing of the deficit has led to the issuance of bonds, treasury bills, and so on, which banks also buy. The rate is also very attractive, and it’s more attractive to them than lending to the real sector,” Yusuf said. He further urged the government to moderate its borrowing.

In a separate conversation, he also noted that while high yields on government securities had helped draw portfolio investors, they were also increasing the burden of public debt.

See also  Thank God for Dangote refinery, Ojulari tells Nigerians

Yusuf told The PUNCH that the interest rates offered on government bonds and treasury instruments were excessively high and required coordination between fiscal and monetary authorities to moderate.

β€œIt’s helping us to attract portfolio investment, but it’s creating a huge burden of debt service. We have to balance those two objectives. We have to improve portfolio flows, but it’s costing us a lot in terms of our domestic borrowing and debt-servicing costs,” he said.

The economist argued that Nigeria should reduce its reliance on debt-funded public projects by expanding public-private partnerships. According to him, governments should identify commercially viable infrastructure projects and offer them to private investors rather than financing them through additional borrowing.

Market analysts predict that any significant reversal in Federal Government bond yields is highly unlikely to occur before the final quarter of 2026, which means Nigerian fixed-income investors should brace for a prolonged period of high interest rates.

According to the latest macroeconomic analysis from Coronation Asset Management, a combination of sticky inflation, aggressive monetary policy, and heightened fiscal pressures will keep yields firmly elevated throughout the upcoming quarter.

β€œWe expect FGN bond yields to remain elevated through Q3 2026, with limited scope for a near-term reversal of the June repricing,” the firm stated in its June 2026 Economic Note.

Looking ahead to the upcoming July auction, experts believe market yields have established a new baseline that will be difficult to break without an explicit shift in economic data.

β€œOur base case is that marginal rates hold in a 17.5-19.0 per cent band on long-dated re-openings into the July auction, conditional on the MPC maintaining its hold at the 20-21 July meeting and inflation prints remaining sticky in the mid-teens,” Coronation Research noted.

The report further cautioned that risks remain heavily tilted toward even higher yields if macroeconomic pressures intensify over the next few weeks. β€œUpside risk would come from a fourth straight inflation uptick, a weaker naira, or another large NTB auction ahead of the next bond sale,” the report added.

Conversely, the window for rates to cool down remains tightly restricted by the Central Bank of Nigeria’s policy timeline. β€œDownside risk would require a clear, sustained lower inflation print or an MPC easing signal, neither of which we see as most likely before Q4 2026,” the analysts explained.

In light of this persistent high-interest-rate environment, asset managers are advising a defensive investment approach, urging capital preservation via short-term instruments rather than locking funds into long-dated bonds prematurely.

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Restoring fuel subsidy will reverse Nigeria’s economic gains

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The renewed call for the restoration of petrol subsidy under any guise demands a clear-eyed examination of what Nigeria has gained from reform and what the country would have to surrender by reversing course.

The scale of the problem is important to remember. In 2022, when Nigeria was struggling with declining oil production and weak revenues, the country spent about $10 billion on fuel subsidies. The World Bank also warned that the subsidy was consuming resources that could otherwise have gone into education, healthcare, infrastructure and social protection.

This is the system that the administration of President Bola Ahmed Tinubu inherited and boldly decided to change.

At the Federal Government’s recent presentation of β€œNigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented,” the Honourable Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, disclosed that subsidy savings mobilised N15.8tn in resources for the Federation between June 2023 and December 2025.

Of this amount, approximately N5.43tn accrued to the Federal Government, N6.52tn to states and N3.88tn to local governments.

It is important to explain these figures honestly. The N15.8tn is not sitting in a government account as a separate pool of cash called β€œsubsidy savings.” It represents resources released within the Federation’s wider fiscal system and made available across the three tiers of government.

The additional resources available to states and local governments have strengthened their capacity to meet salaries and pensions obligations and to invest in infrastructure and essential services, including primary healthcare, basic education, roads and other needs. At the federal level, the broader fiscal space created by the reforms has supported major investments and obligations that would have been considerably more difficult to sustain under the old subsidy regime.

The Federal Government’s Reform Scorecard records approximately N6.47tn in additional expenditure on strategic infrastructure, covering major investments in transport, housing, agriculture, security and other strategic projects. These include major national corridors such as the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, and the Trans-Sahara Superhighway.

The reforms have also made room for significant investments in human capital and social support. Over 10 million Nigerian households have benefited from social transfers. The administration has also extended more than N400bn towards landmark social investment initiatives like the Nigerian Education Loan Fund, NELFUND (N223.8bn), the MOFI Real Estate Investment Fund, MREIF (N150bn) and the Nigerian Consumer Credit Corporation, CREDICORP (N50bn).

Renewed domestic and foreign investor confidence founded on the reforms has helped make the Nigerian stock market the world’s best-performing in 2026, pushed the external reserves to the highest level in almost 20 years, and helped the country grow oil production to exceed its OPEC quota for the first time in years.

The additional fiscal space has also supported wage adjustments, minimum-wage obligations and pensions, while expanding the capacity for investments in education, healthcare, agriculture, electricity, security and other critical areas of national development.

Nigeria is also entering a new phase in its petroleum sector, with marked expansion in domestic refining capacity. Reversing policy now will undermine this progress and introduce fresh uncertainty for investors at precisely the time Nigeria should be consolidating domestic refining and strengthening energy security.

See also  FG begins N4tn debt settlement, captures five GenCos

Our Reform Scorecard also assesses the economic harm that the reforms have helped Nigeria avert. Had the subsidy regime remained unaddressed, petrol scarcity would have returned, pushing prices above N3,000 per litre on the black market. The legacy Ways and Means financing, which stood at about N30 trillion in May 2023 and has since been curtailed, would have doubled to N60 trillion or more. The Scorecard projects that, without the reforms, the inherited situation of 27 States unable to reliably pay salaries would undoubtedly have worsened.

There is another important argument being overlooked. Nigeria already carries a second energy subsidy, on electricity consumption, which cost the country an additional N3.14tn between June 2023 and December 2025. This subsidy helps bridge the gap between actual power production costs and the capped tariffs paid by most consumers. Reintroducing a petrol consumption subsidy on top of this would deal a double blow to Nigeria’s fiscal position.

The above illustrates an important point: restoring the subsidy would almost instantly return Nigeria to the economic conditions of 2022, recreating the same fiscal pressures, distortions, scarcity and incentives for arbitrage that made the old system unsustainable in the first place.

We are not claiming that the reforms have solved all of Nigeria’s economic challenges; there is indeed still much work to be done to translate improved fiscal capacity into better services, jobs, infrastructure and living standards. But the proper response to the hardship associated with reform is not to dismantle the reform; it is to accelerate the benefits – which remains what the Tinubu administration is resolutely focused on.The objective is clear: to move public resources away from subsidising consumption and towards investing in the Nigerian people and the productive foundations of lasting prosperity.

This is also why the debate over restoring subsidy must ultimately come down to hard choices. Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians? Do we restore subsidy, or preserve higher allocations to states and local governments? Do we restore subsidy, or continue funding roads, rail, power and security? Do we restore subsidy, or strengthen the fiscal capacity required to expand healthcare, education and social protection for vulnerable Nigerians?

It is equally significant that the Organised Private Sector and the wider economic community have cautioned against reversing the reform, recognising that fiscal sustainability, policy stability and a competitive downstream petroleum sector are essential to investment, job creation and economic growth.

Nigeria cannot build tomorrow’s economy by returning to yesterday’s unsustainable subsidy regime. We have moved beyond that model.

We do not downplay or deny the challenges associated with subsidy removal and other major reforms. President Bola Tinubu and his administration are daily working – and succeeding – at translating these sacrifices into improved living standards, stronger public services and greater economic opportunities for the Nigerian people.

Idris is the Minister of Information and National OrientationRestoring fuel subsidy will reverse Nigeria’s economic gains

The renewed call for the restoration of petrol subsidy under any guise demands a clear-eyed examination of what Nigeria has gained from reform and what the country would have to surrender by reversing course.

See also  Petrol may hit N1,000/litre as Dangote hikes price

The scale of the problem is important to remember. In 2022, when Nigeria was struggling with declining oil production and weak revenues, the country spent about $10 billion on fuel subsidies. The World Bank also warned that the subsidy was consuming resources that could otherwise have gone into education, healthcare, infrastructure and social protection.

This is the system that the administration of President Bola Ahmed Tinubu inherited and boldly decided to change.

At the Federal Government’s recent presentation of β€œNigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented,” the Honourable Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, disclosed that subsidy savings mobilised N15.8tn in resources for the Federation between June 2023 and December 2025.

Of this amount, approximately N5.43tn accrued to the Federal Government, N6.52tn to states and N3.88tn to local governments.

It is important to explain these figures honestly. The N15.8tn is not sitting in a government account as a separate pool of cash called β€œsubsidy savings.” It represents resources released within the Federation’s wider fiscal system and made available across the three tiers of government.

The additional resources available to states and local governments have strengthened their capacity to meet salaries and pensions obligations and to invest in infrastructure and essential services, including primary healthcare, basic education, roads and other needs. At the federal level, the broader fiscal space created by the reforms has supported major investments and obligations that would have been considerably more difficult to sustain under the old subsidy regime.

The Federal Government’s Reform Scorecard records approximately N6.47tn in additional expenditure on strategic infrastructure, covering major investments in transport, housing, agriculture, security and other strategic projects. These include major national corridors such as the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, and the Trans-Sahara Superhighway.

The reforms have also made room for significant investments in human capital and social support. Over 10 million Nigerian households have benefited from social transfers. The administration has also extended more than N400bn towards landmark social investment initiatives like the Nigerian Education Loan Fund, NELFUND (N223.8bn), the MOFI Real Estate Investment Fund, MREIF (N150bn) and the Nigerian Consumer Credit Corporation, CREDICORP (N50bn).

Renewed domestic and foreign investor confidence founded on the reforms has helped make the Nigerian stock market the world’s best-performing in 2026, pushed the external reserves to the highest level in almost 20 years, and helped the country grow oil production to exceed its OPEC quota for the first time in years.

The additional fiscal space has also supported wage adjustments, minimum-wage obligations and pensions, while expanding the capacity for investments in education, healthcare, agriculture, electricity, security and other critical areas of national development.

Nigeria is also entering a new phase in its petroleum sector, with marked expansion in domestic refining capacity. Reversing policy now will undermine this progress and introduce fresh uncertainty for investors at precisely the time Nigeria should be consolidating domestic refining and strengthening energy security.

See also  β€˜Travellers suffer fraud as unprofessionalism persists’

Our Reform Scorecard also assesses the economic harm that the reforms have helped Nigeria avert. Had the subsidy regime remained unaddressed, petrol scarcity would have returned, pushing prices above ₦3,000 per litre on the black market. The legacy Ways and Means financing, which stood at about ₦30 trillion in May 2023 and has since been curtailed, would have doubled to ₦60 trillion or more. The Scorecard projects that, without the reforms, the inherited situation of 27 States unable to reliably pay salaries would undoubtedly have worsened.

There is another important argument being overlooked. Nigeria already carries a second energy subsidy, on electricity consumption, which cost the country an additional N3.14tn between June 2023 and December 2025. This subsidy helps bridge the gap between actual power production costs and the capped tariffs paid by most consumers. Reintroducing a petrol consumption subsidy on top of this would deal a double blow to Nigeria’s fiscal position.

The above illustrates an important point: restoring the subsidy would almost instantly return Nigeria to the economic conditions of 2022, recreating the same fiscal pressures, distortions, scarcity and incentives for arbitrage that made the old system unsustainable in the first place.

We are not claiming that the reforms have solved all of Nigeria’s economic challenges; there is indeed still much work to be done to translate improved fiscal capacity into better services, jobs, infrastructure and living standards. But the proper response to the hardship associated with reform is not to dismantle the reform; it is to accelerate the benefits – which remains what the Tinubu administration is resolutely focused on.

The objective is clear: to move public resources away from subsidising consumption and towards investing in the Nigerian people and the productive foundations of lasting prosperity.

This is also why the debate over restoring subsidy must ultimately come down to hard choices. Do we restore petrol subsidy, or sustain student loans and consumer credit for young Nigerians? Do we restore subsidy or preserve higher allocations to states and local governments? Do we restore subsidy or continue funding roads, rail, power and security? Do we restore subsidy, or strengthen the fiscal capacity required to expand healthcare, education and social protection for vulnerable Nigerians?

It is equally significant that the Organised Private Sector and the wider economic community have cautioned against reversing the reform, recognising that fiscal sustainability, policy stability and a competitive downstream petroleum sector are essential to investment, job creation and economic growth.

Nigeria cannot build tomorrow’s economy by returning to yesterday’s unsustainable subsidy regime. We have moved beyond that model.

We do not downplay or deny the challenges associated with subsidy removal and other major reforms. President Bola Tinubu and his administration are daily working – and succeeding – at translating these sacrifices into improved living standards, stronger public services and greater economic opportunities for the Nigerian people.

Idris is the Minister of Information and National Orientation.

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Dangote refinery expands free fuel delivery to four states

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The Dangote Petroleum Refinery says it has expanded its free petroleum products delivery initiative to Kano, Imo, Anambra and Nasarawa states, a move it says is expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices.

According to a statement on Sunday, the initiative, which initially covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta states, is designed to bring petroleum products closer to marketers and retailers while eliminating the cost of transporting products over long distances from the refinery to different parts of the country.

By absorbing delivery costs, the refinery is reducing one of the major expenses embedded in the downstream petroleum products distribution chain.

Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Dangote Industries Limited, Fatima Aliko Dangote, said the initiative was aimed at ensuring that the benefits of domestic refining translated into savings for businesses and consumers.

β€œThe value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers. Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”

The expansion was reportedly welcomed by the Independent Petroleum Marketers Association of Nigeria, which said the initiative would reduce some of the financial and logistical pressures confronting independent petroleum marketers and contribute to lower prices for consumers.

See also  NUPENG accuses Dangote of sponsoring division among tanker drivers

National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, was quoted as saying that the initiative addressed a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may then wait for extended periods before their orders are loaded and transported.

β€œThis gesture, if sustained, will be able to alleviate the sufferings of independent marketers. There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down,” he stated.

According to him, the refinery’s delivery arrangement reduces the period for which marketers’ funds remain tied up, improves cash flow and allows businesses to deploy their capital more efficiently.

Dangote said the reduction in distribution costs is particularly significant for marketers supplying areas far from the refinery, as the transportation of petroleum products over long distances attracts additional expenses associated with haulage, vehicle operations, driver costs, insurance, road risks and other logistics.

It was stated that removing or reducing such costs could improve the economics of supplying distant markets and provide marketers with greater room to compete on retail prices.

The initiative also reduces the operational risks associated with moving large volumes of petroleum products over long distances by taking products closer to their destination markets.

The expansion comes as Nigeria’s downstream petroleum sector continues to adjust to increased domestic refining capacity and a more competitive market environment.

The Dangote refinery, with a capacity of 700,000 barrels per day, has been supplying refined petroleum products to the domestic market while also expanding its presence in international markets.

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Banks account for 92% of NFIU suspicious reports

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The Nigerian Financial Intelligence Unit has disclosed that banks, fintech companies and other reporting entities submitted 42,082 Suspicious Transaction Reports to the agency in 2025.

The figure was contained in the NFIU’s 2025 Annual Report, which highlighted continued risks to Nigeria’s financial system and increased regulatory monitoring of transactions.

The agency also received 41,716,214 Currency Transaction Reports and 10,513 Suspicious Activity Reports during the year.

β€œDuring the review period, the NFIU received a total of 41,716,214 CTRs, 42,082 STRs, and 10,513 SARs,” the report stated.

The NFIU said its reporting framework covers threshold-based transactions, suspicious transactions and activities, as well as regulatory submissions relating to anti-money laundering, counter-terrorism financing and counter-proliferation financing compliance.

It noted that it collaborates with the Central Bank of Nigeria, National Insurance Commission, Securities and Exchange Commission and the Special Control Unit Against Money Laundering to ensure that reporting entities comply with applicable regulations.

Deposit Money Banks accounted for the bulk of STR filings, submitting 38,715 reports, representing about 92 per cent of the total received from the various sectors.

Other Financial Institutions submitted 2,185 STRs, while Designated Non-Financial Businesses and Professions accounted for 1,029. Capital market operators and insurance companies filed 104 reports, while Virtual Asset Service Providers, including cryptocurrency-related businesses, submitted 49.

Banks also dominated Suspicious Activity Reports, contributing 8,313 of the 10,513 filings recorded in 2025. Other Financial Institutions accounted for 1,816, capital market and insurance companies filed 295, while Virtual Asset Service Providers submitted 89. The DNFBP sector recorded no SAR during the year.

See also  Dangote Refinery reorganises workforce over sabotage, denies mass sack

The report further showed that financial institutions filed more than 41.7 million Currency Transaction Reports. Deposit Money Banks accounted for 37,214,139 filings, equivalent to about 89.2 per cent of the total, while Other Financial Institutions submitted 4,212,466.

Capital market operators and insurance companies contributed 289,296 CTRs, while Virtual Asset Service Providers filed 313.

According to the NFIU, Section 11 of the Money Laundering (Prevention and Prohibition) Act requires financial institutions to report transactions exceeding N5m for individuals and N10m for legal entities within seven days.

The agency added that Section 3(1) of the law mandates the reporting of incoming and outgoing transfers above $10,000 within 24 hours.

Data from the four quarters showed a steady rise in STR filings by banks. Reports increased from 9,134 in the first quarter to 9,658 in the second, 9,891 in the third and 10,032 in the fourth quarter.

Currency Transaction Reports from Deposit Money Banks followed a similar upward trend, rising from 7,040,493 in the first quarter to 8,197,292 in the second, 10,885,247 in the third and 11,091,107 in the fourth quarter.

Among Other Financial Institutions, STR filings stood at 451 in the first quarter and 432 in the second before climbing to 719 in the third and falling to 583 in the fourth.

The NFIU also reported increased activity among Virtual Asset Service Providers. The sector recorded no STRs during the first half of 2025 but filed 17 in the third quarter and 32 in the fourth quarter.

VASPs also submitted 28 SARs in the first quarter, 12 in the second, 24 in the third and 25 in the fourth. Their CTR filings emerged in the second half of the year, with 103 reports in the third quarter and 210 in the fourth.

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The agency disclosed that reporting entities submitted 28,133,909 reports involving Politically Exposed Persons during 2025.

Deposit Money Banks accounted for most of the PEP filings, recording 7,263,557 in the first quarter, 5,658,079 in the second, 6,235,585 in the third and 8,225,572 in the fourth.

Other Financial Institutions recorded a significant increase in PEP reports, rising from just 12 in the first quarter to 617,286 in the fourth quarter. Capital market and insurance institutions submitted 28,561 reports, while VASPs recorded none.

The NFIU also disclosed that its Designated Non-Financial Businesses and Professions Division conducted joint on-site examinations of 29 reporting entities in the Federal Capital Territory.

The entities were drawn from the real estate, casino, precious metals and stones dealing, and consultancy sectors.

According to the report, the exercise resulted in 20 new registrations on the RapidAML portal and subscriptions to NIGSAC, alongside the submission of 1,029 Suspicious Transaction Reports.

Despite the increased compliance activity, the number of STRs received in 2025 was significantly lower than the previous year. STR filings fell by 40,061, from 82,143 in 2024 to 42,082 in 2025, representing a decline of about 48.8 per cent.

Suspicious Activity Reports also dropped by 12,851, from 23,364 in 2024 to 10,513 in 2025, representing a reduction of approximately 55 per cent.

The contrasting figures indicate that while reporting entities recorded significantly higher volumes of threshold-based transactions and PEP disclosures in 2025, suspicious transaction and activity reports declined sharply compared with the previous year.

Source:Β punchng.com

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