General
Fitch Assigns African Risk Capacity IFS ‘BBB+’ With Stable Outlook
By Adedapo Adesanya
Fitch Ratings has assigned African Risk Capacity Limited (ARC Ltd), the commercial subsidiary of the African Risk Capacity Group (ARC Group), an ‘Insurer Financial Strength (IFS) Rating of ‘BBB+’ and a ‘Long-Term Issuer Default Rating (IDR) of ‘BBB’ with a stable outlook.
Announcing the rating on its official website, Fitch indicated that “the ratings reflect the commitment and credit quality of ARC’s sponsors, as well as the company’s good business profile, very strong capitalisation and leverage.”
Continuing, Fitch stated that, ARC Ltd.’s capital position is very strong, and a key strength for the rating level, adding that the company benefits from the treatment of the $67 million of Class C members’ returnable capital as Tier 1 capital under the Bermudan Solvency regime; and as equity capital under Fitch’s Prism Factor-Based Capital Model (Prism FBM).
As a result, ARC Ltd reported a Bermudan enhanced capital requirement (ECR) ratio of nearly 2500 per cent at March 31, 2020, while the company’s score on Fitch’s Prism FBM was “Extremely Strong” at end-2019.
Speaking on this development, the CEO ARC Ltd, Mr Lesley Ndlovu noted, “Obtaining an industry rating is an important enabler for our strategy to access new business by taking on inwards reinsurance, thereby allowing us to better meet the needs of countries by supporting national agricultural insurance schemes and providing capacity to local insurance companies.”
“Considering that this is the first time ARC Limited is being rated, we are gratified for being ranked among the top-notch insurance companies in Africa. With only one notch lower than Africa Re, we are encouraged more than ever to leverage our competitive edge towards becoming the best disaster risk insurer in Africa in the service of our Member States”, Mr Ndlovu concluded.
ARC Ltd is funded by the UK Department for International Development (DFID) and the German Development Bank KfW. Fitch’s assessment of these funders’ willingness and ability to support ARC results in a one-notch uplift to its standalone credit profile.
In addition to their capital contributions, Fitch believes DFID and KfW provide support to the company that is positive to the credit rating through governance and strategic input, while also facilitating sovereign participation in the business through premium subsidy schemes.
Also sharing his satisfaction with the rating, Mr Ibrahima Cheikh Diong, the Group Director-General, ARC Group, agreed that a BBB+ ranking of ARC Ltd, by an internationally acclaimed agency like Fitch, should boost the faith of ARC stakeholders in the viability of its model relative to meeting set obligations to the Member States.
“Our approach in providing sovereign disaster risk insurance coverage to African Union Member States is anchored on the mandate to ensure that vulnerable populations receive immediate support upon the trigger of the set parameters. Ultimately, we want to become the development insurer of choice for Africa offering multiple products; and a BBB+ by Fitch is a bold step in this quest”, said Mr Diong.
By Fitch’s assessment, ARC’s portfolio diversification is still limited as the company currently offers a single parametric insurance product covering drought risk. Geographic diversification is moderate with the 2019/20 risk pool (‘members’) covering only 11 African Union Member States out of a possible 34, with the number of members having been volatile in prior years. Fitch expects ARC’s business profile to improve through increased diversification as more countries sign up to the ARC project attracted by a broader range of products.
ARC was established to be managed on a commercial basis and achieve very modest profits, but this remains secondary to the company’s development goals. Fitch believes a degree of risk tolerance is inherent in the company’s underwriting practices as development goals are prioritised over underwriting margins.
The rating actions factored in Fitch’s current assessment of the impact of the COVID-19 pandemic, including its economic impact, under a set of rating assumptions outlined on Fitch’s website. These assumptions were used by Fitch to develop Pro-forma financial metrics for ARC Ltd that are compared with rating guidelines defined in its criteria. Under the rating-case assumptions, ARC Ltd’s credit fundamentals remain good and commensurate with a ‘BBB+’ IFS Rating.
In just over 6 years of operations, 56 policies have been signed by the ARC Member States with $83 million paid in premiums for cumulative insurance coverage of $641 million and the protection of 64.1 million vulnerable population in participating countries.
From this, ARC Ltd made $60m payouts to the Governments of Senegal, Niger, Mauritania, Malawi, Cote D’Ivoire, the START Network and WFP following droughts episodes in 2014, 2015 and 2019. These funds have gone towards assisting over 2.5 million people whose livelihoods rely on agriculture, preventing the loss of hard-earned developmental gains in addition to 1 million.
Governments have used ARC Ltd insurance payouts to scale up cash transfers, subsidize livestock feeds, replenish depleted food reserves, and distribute emergency food supplies. Recently, in 2020, payouts of $2.13 million were made to the Republic of Madagascar to cover 600,000 vulnerable population; and $1.8m to the Government of Zimbabwe and WFP to support over 500,000 people affected by the drought.
By Aduragbemi Omiyale
Young bloggers, online content creators and digital influencers have been charged to embrace ethical journalism, responsible storytelling and fact-based reporting as they shape public opinion in the digital age.
This task was given by the Minister of Information and National Orientation, Mr Mohammed Idris, during the Niger State Bloggers, Online Publishers and Content Developers Forum on Monday in Abuja.
In a statement on Tuesday by his Special Assistant on Media, Mr Rabiu Ibrahim, the Minister said digital platforms offer enormous opportunities for innovation and civic engagement but must be used responsibly to promote truth, national unity and constructive public discourse.
He urged bloggers and content creators to verify information before publication, reject misinformation and disinformation, avoid sensationalism, and use their platforms to educate, inspire and promote national development.
Mr Idris also encouraged young Nigerians to see digital content creation not only as a source of income but also as a tool for civic engagement and nation-building, stressing that ethical communication is essential to strengthening democracy and public trust.
He further encouraged aspiring bloggers and digital entrepreneurs to continue developing their skills and uphold professional standards that will strengthen the credibility of Nigeria’s online media ecosystem.
“There is no democracy that can thrive without a responsible media. You cannot carry freedom and abandon responsibility,” he stated, adding that the government remains committed to protecting press freedom while encouraging ethical journalism.
The Minister also highlighted the establishment of the International Media and Information Literacy Institute (IMILI), the world’s first UNESCO Category 2 Institute dedicated exclusively to Media and Information Literacy, describing it as a major step in promoting digital literacy and responsible online engagement.
By Adedapo Adesanya
The vice-presidential candidate of the Nigeria Democratic Congress (NDC), Mr Rabiu Kwankwaso, disclosed that Mr Peter Obi, the party’s presidential candidate, signed agreements committing himself to serving only one four-year term if elected in 2027.
Mr Kwankwaso explained that the documents comprised a formal agreement involving the political party and a separate personal accord between himself and Mr Obi.
According to Mr Kwankwaso, the deal stipulates that the presidency will return to Northern Nigeria in 2031 upon the completion of an Obi-led administration’s four-year tenure, if elected next year.
“We have agreed to formalise it in writing,” Mr Kwankwaso stated. “We have executed one document for the party and another between the two of us,” he revealed during an appearance on Channels Television’s Politics Today late on Monday.
He reiterated that Mr Obi would honour his pledge and resist pressure to seek a second term, expressing confidence in the former Anambra State governor, noting that his interactions had convinced him that he would respect the agreement.
“I personally believe him, and, based on what I now know about him, I do not believe he will change his mind when the time comes,” he said. “We are all gentlemen.”
Mr Kwankwaso added that he and Mr Obi would continue to collaborate after the proposed administration completes its term.
“The agreement is that after four years, we will continue to work together as a group, as a party, and as friends and brothers,” he said. “After our four-year term, from 2027 to 2031, power returns to the North. That is the consensus.”
The former defence minister did not state that he would be the NDC presidential candidate in 2031; his comments referred broadly to the presidency returning to the North, rather than to his personal political ambitions.
Mr Obi has repeatedly pledged to serve only one term if elected; however, he has yet to publicly confirm the specific details of the documents described by Mr Kwankwaso.
In the 2023 Presidential polls, Mr Obi was the Labour Party presidential candidate while Mr Kwankwaso contested on the platform of the New Nigeria Peoples Party (NNPP).
By Aduragbemi Omiyale
Over 1.14 million hectares of degraded land have been restored by the Nigerian government, with more than 1.5 million trees planted across the country in the past year.
This information was revealed by the Minister of Environment, Mr Balarabe Abbas Lawal, at the 2026 Top Management Retreat and National Tree Planting Campaign in Maiduguri, Borno State.
He said these achievements were made through initiatives of the federal government like the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project and the National Agency for the Great Green Wall.
According to him, the restoration of the land and the planting of trees demonstrate a clear national commitment to securing environmental sustainability while advancing economic growth.
The Minister reemphasised that the environment is not an abstract concept, pointing out that “it is the air we breathe, the land that feeds us, the rivers that sustain communities, and the climate that shapes the future.”
He praised Governor Babagana Zulum of Borno State for his giant strides in the environment sector in the state, urging other state governors to emulate him by providing sponsorship for their students to the various Federal Colleges of Forestry Resources Management institutions located across the six geo-political zones of the country to encourage and boost Forest education in the country.
He described the decision of Mr Zulum to sponsor 540 indigenes of the state to a forestry college in Maiduguri as commendable.
Mr Lawal also informed the participants of the programme that the Presidential Executive Order on the Prohibition of Exportation of Wood and Allied Products, 2025, is a key policy instrument under President Bola Tinubu’s administration, saying it protects Nigeria’s forest resources, curbs illegal logging, and encourages tree planting as a national duty.
He pledged the Federal Ministry of Environment’s continued partnership with state governments on afforestation, ecosystem restoration, and other interventions tailored to their needs.
“Nigeria’s environmental future can be secured by protecting natural heritage, strengthening climate resilience, and advancing inclusive and sustainable development for present and future generations,” he declared.
