Economy
African Alliance Insurance May Get Fresh N7bn Injection Amid Solvency Margin Deficiency
By Aduragbemi Omiyale
One of the underwriting companies in Nigeria, African Alliance Insurance Plc, has disclosed that it is almost getting fresh capital of up to N7 billion from “an independent investor” to help shore up its capital base.
The firm revealed this in its audited financial statements for the year ended December 31, 2022, filed to the Nigerian Exchange (NGX) Limited and analysed by Business Post.
The external auditors, Ukwuegbu, Ogbeleje & Co, in their note, pointed out that the existence of African Alliance Insurance was at risk because of a deficiency in its solvency margin.
A solvency margin is the equivalent of a capital adequacy ratio (CAR) in the banking sector, which measures the minimum capital base of an organisation in the financial institution.
In summary, solvency margin is a minimum excess on an insurer’s assets over its liabilities set by regulators, in this case, the National Insurance Commission (NAICOM).
For underwriters operating in the life insurance business in Nigeria, they are required to have a solvency margin of N2 billion, but African Alliance Insurance has a negative solvency margin of N4.04 billion.
In its comments in its report on the financial statements, the auditors said, “Without modifying our opinion, we draw attention to note 5.5 to the financial statements which indicate negative solvency margin of N4.04 billion. This is below the minimum regulatory capital of N2 billion required for a life insurance business.
“The total admissible assets of the company less the net insurance and investment contract liabilities were a deficit of N29.8 billion as of December 31, 2022. These conditions indicate the existence of a material uncertainty that may cast doubt on the company’s ability to continue as a going concern.”
But the company said it has taken some capital management policies to address the issue raised by the auditors, including the “maintenance, as a minimum, of capital sufficient to meet the statutory requirement,” and “maintenance of an appropriate level of liquidity at all times.”
“The company further ensures that it can meet its expected capital and financing needs at all times, having regard to business plans to guarantee its going concern status, forecast and any strategic initiatives,” it added.
The insurance company noted that its “board of directors are at the final stages of concluding arrangement with an independent investor with plans to inject about N7 billion into the company as fresh capital,” noting that “the process involves the conduct of due diligence on the financial statements of the company.” The board also emphasised that the success of this transaction is not under its control and “there is material uncertainty as to the probability that this transaction will succeed.”
A look at the performance of the firm in the fiscal year under review showed that its gross premium written (GPW) shrank by 5.56 per cent to N6.8 billion from N7.2 billion in the 2023 financial year due to lower earnings from its individual life insurance product, as gross premium income slightly moved up to N7.1 billion from N7.0 billion.
In the year, the insurer suffered a loss before tax of N2.9 billion versus a pre-tax profit of N2.2 billion in 2021, just as it closed the period with a net loss of N2.9 billion in 2022 compared with a net profit of N2.4 billion in 2021 fiscal year.
By Aduragbemi Omiyale
The deadline for filing of employers’ annual tax returns in Lagos State has been extended by one week from February 1 to 7, 2026.
This information was revealed in a statement signed by the Head of Corporate Communications of the Lagos State Internal Revenue Service (LIRS), Mrs Monsurat Amasa-Oyelude.
In the statement issued over the weekend, the chairman of the tax collecting organisation, Mr Ayodele Subair, explained that the statutory deadline for filing of employers’ annual tax returns is January 31, every year, noting that the extension is intended to provide employers with additional time to complete and submit accurate tax returns.
According to him, employers must give priority to the timely filing of their annual returns, noting that compliance should be embedded as a routine business practice.
He also reiterated that electronic filing through the LIRS eTax platform remains the only approved method for submitting annual returns, as manual filings have been completely phased out. Employers are therefore required to file their returns exclusively through the LIRS eTax portal: https://etax.lirs.net.
Describing the platform as secure, user-friendly, and accessible 24/7, Mr Subair advised employers to ensure that the Tax ID (Tax Identification Number) of all employees is correctly captured in their submissions.
By Adedapo Adesanya
The chief executive of Airtel Africa Plc, Mr Sunil Kumar Taldar, has disclosed that the company is still on track to list its mobile money business, Airtel Money, before the end of June 2026.
Recall that Business Post reported in March 2024 that the mobile network operator was considering selling the shares of Airtel Money to the public through the IPO vehicle in a transaction expected to raise about $4 billion.
The firm had been in talks with possible advisors for a planned listing of the shares from the initial public offer on a stock exchange with some options including London, the United Arab Emirates (UAE), or Europe.
However, so far no final decisions have been made regarding the timing, location, or scale of the IPO.
In September 2025, the telco reportedly picked Citigroup Incorporated as advisors for the planned IPO which will see Airtel Money become a standalone entity before it can attain the prestige of trading on a stock exchange.
Mr Taldar, noted that metrics continued to show improvements ahead of the listing with its customer base hitting 52 million, compared to around 44.6 million users it had as of June 2025.
He added that the subsidiary processed over $210 billion in a year, according to the company’s nine-month financial results released on Friday.
“Our push to enhance financial inclusion across the continent continues to gain momentum with our Mobile Money customer base expanding to 52 million, surpassing the 50 million milestone. Annualised total processed value of over $210 billion in Q3’26 underscores the depth of our merchants, agents, and partner ecosystem and remains a key player in driving improved access to financial services across Africa.
“We remain on track for the listing of Airtel Money in the first half of 2026,” Mr Taldar said.
Estimating Airtel Money at $4 billion is higher than its valuation of $2.65 billion in 2021. In 2021, Airtel Money received significant investments, including $200 million from TPG Incorporated at a valuation of $2.65 billion and $100 million from Mastercard. Later that same year, an affiliate of Qatar’s sovereign wealth fund also acquired an undisclosed stake in the unit.
The mobile money sector in Africa is expanding rapidly, driven by a young population increasingly adopting technology for financial services, making the continent a key market for fintech companies.
By Dipo Olowookere
A cryptocurrency investor and owner of Polyfarm, Mr Bamu Gift Wandji, is currently cooling off in the custody of the Economic and Financial Crimes Commission (EFCC).
He was handed over to the anti-money laundering agency by the Nigerian Security and Civil Defence Corps (NSCDC) on Friday, January 30, 2026, after his arrest on Monday, January 12, 2026.
A statement from the EFCC yesterday disclosed that the suspect was apprehended by the NSCDC in Gwagwalada, Abuja for running an investment scheme without the authorisation of the Securities and Exchange Commission (SEC), which is the apex capital market regulator in Nigeria.
It was claimed that Mr Wandji created a fraudulent crypto investment platform called Polyfarm, where he allegedly lured innocent Nigerians to invest in Polygon, a crypto token that attracts high returns.
Investigation further revealed that he also deceived the public that his project, Polyfarm, has its native token called “polyfarm coin” which he sold to the public.
In his bid to promote the scheme, the suspect posted about this on social media platforms, including WhatsApp, X (formally Twitter) and Telegram. He also conducted seminars in some major cities in Nigeria including Kaduna, Lagos, Port Harcourt and Abuja where he described the scheme as a life-changing programme.
Further investigation revealed that in October, 2025, subscribers who could not access their funds were informed by the suspect that the site was attacked by Lazarus group, a cyber attacking group linked to North Korea.
Further investigations showed that Polyfarm is not registered and not licensed with SEC to carry out crypto transactions in Nigeria. Also, no investment happened with subscribers’ funds and that the suspect used funds paid by subscribers to pay others in the name of profit.
Investigation also revealed that native coin, polyfarm coin was never listed on coin market cap and that the suspect sold worthless coins to the general public.
Contrary to the claim of the suspect that his platform was attacked, EFCC’s investigations revealed that the platform was never attacked or hacked by anyone and that the suspect withdrew investors’ funds and utilized the same for his personal gains.
The EFCC, in the statement, disclosed that Mr Wandji would be charged to court upon conclusion of investigations.
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