Business
Between FG And Diaspora Investors
Olusegun Aganga is Nigeria’s trade and investments minister. An accomplished investment banker and erstwhile holder of the nation’s finance portfolio. He joined the ministerial train not quite long ago after relinquishing his managing directorship of the prestigious investment firm of Goldman Sachs in Europe.
As part of his new charge, Aganga has the unenviable task of exploring fresh grounds for more robust trade relations with the outside world. And this he has to undertake alongside developing alternative strategies on how best to attract more investments to help rouse the nation’s near prostrate economy.
The minister has already hit the road, running. At a recent parley with a cross section of his Diaspora compatriots, Aganga was reported to have hinted on the Federal Government’s plan to initiate a drive for the mobilisation of at least 10 per cent of the informal remittances made annually by Nigerians living abroad.
According to him, the government intends to float a special financial instrument which will be issued for sale to such Nigerians. Also in the scheme is the planned establishment of a mechanism to advise and properly guide those who are willing to invest but who may have lost touch with the prevailing investment trend in the country.
This new drive is apparently based on the popular postulation that Nigerians living abroad repatriate billions of dollars annually. Some analysts have even placed the amount at over $20 billion while suggesting that the bulk of such remittances end up in the hands of family members back home who use them for feeding allowances, funerals, payment of school fees and medical bills, and also for the construction of exquisite country homes on behalf of their overseas benefactors.
But this multi-billion dollar assumption may be flawed if a recent revelation by Fola Kehinde, executive chairman of the African and Caribbean Chamber of Commerce and Enterprise (ACCCE) in the United Kingdom, is anything to take away.
Kehinde was at the head of a trade delegation which visited Port Harcourt, recently. And while speaking during a luncheon jointly organised by his chamber and the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), he was reported to have said that Diaspora Nigerians repatriate about $60 million (N9 billion) annually.
It is already obvious that Kehinde’s figure is a far cry from the $2 billion (about N300 billion) which the nation is targeting from its surmised yearly diaspora remittances.
Even as comparatively meager and ludicrous as Kehinde’s figure appears, it will be rather too hasty to dismiss it with a mere wave of the hand until an authentic official figure is made available. Unfortunately, there is hardly any such record anywhere because Nigeria had never reckoned with the economic potentials of her Diaspora citizens until now.
Apart from those who became foreign citizens by birth and, perhaps, students who won government scholarships to attend foreign schools and who chose to stay back on completion of their studies, the Nigerian Diaspora comprises mainly of emigrants whose movements where based on economic considerations. They are mostly people who fled the country during the infamous brain drain of the 1980s when the then military governments slammed an enduring embargo on employment as part of the harsh austerity measures of that era.
In those years, anybody who got disgusted with the system and sought to travel out of the country in search of better opportunities was seen as being lily-livered. Such was readily branded an Andrew and caricatured to no end. State-sponsored newspaper cartoons, radio and television jingles were massively deployed in this exercise. Yet the migrants remained undeterred. The lure of the thriving economies of Europe, Asia and the Americas was too tempting to resist. University teachers and other professionals left in their droves. Lesser folks who couldn’t afford an escape via the normal exits, trekked through the treacherous Sahara Desert.
Like their counterparts from other parts of the developing world, most of these migrant Nigerians have, over the years, laboured honourably to achieve successes in their various countries of domicile; so much so that their once scornful home-nation is now more inclined to show greater interest in their affairs and to also seek ways of involving them in national development.
It is apparently in realisation of this new resource base that the House of Representatives Committee on the Diaspora, working with Nigerians In Diaspora Organisation (NIDO), is sponsoring a bill for the establishment of a commission for Nigerians living abroad.
Spearheaded by the committee’s chairman, Hon. Abike Dabiri-Erewa, the bill seeks to recommend the involvement of such Nigerians in policy formulation and execution with a view to drawing from their reservoir of human, capital and material resources for the overall development of the country.
Countries like Mexico, Chile, Poland, Philippines, China and even our sister West African nation of Sierra Leone each has a long-established Diaspora institution that has been very vibrant in overseeing the welfare of its migrant population. And now that it has become fashionable for nations to facilitate the integration of their Diaspora citizens in the development of the homeland, the above-mentioned countries stand on a better moral ground to engage in such endeavour.
Sierra Leone’s approach is particularly instructive here. According to a source, “Sierra Leone’s Office of the Diaspora is directly under the Office of the President. It encourages the return of professionals and other experts from the Diaspora in order to fill critical human resources gaps within the country’s government. Specifically, the office provides a list of jobs in government departments, a list of educational institutions and professional associations in Sierra Leone, contact details of government officials, and information on dual citizenship and other acts.”
Again, Nigeria’s policy makers should avoid the delusion of thinking that patriotism alone is sufficient to guarantee a steady inflow of Diaspora investments. Of course, let it not be lost on anyone that the Diaspora comprises Nigerians with dual citizenship which invariably translates to double allegiance. Therefore, to assume that these Nigerians will, just for mere love of country, sell off their stakes in some blue chip and gilt-edged securities at the world’s most prestigious stock markets and have the proceeds re-invested in the stocks of a local African bourse, is to believe the absurd.
It will surely take more than guaranteed ministerial slots, security reassurances and sustained executive appeals to convince canny Diaspora investors that it is now safe to plough their hard-earned savings into the funding of development projects back home. Certainly not while they still read about high-level bribery and corruption scandals, wanton waste of public resources, bad roads and general decay of transport infrastructure, bureaucratic bottlenecks, unreliable electricity supply, insecurity of lives and property, multiple taxation, bank failures and frequent changes in government policies.
Like Dabiri- Erewa advocates, Nigeria should as well seek the political integration of her Diaspora citizens by establishing overseas voting centres to enable them participate in the nation’s democratic process. It will be utterly ridiculous to know that these foreign-based Nigerians vote in the general elections of their host countries whereas they hardly have a say in the election of the very politicians who will oversee the management of the proposed Diaspora Funds Pool.
Also, and as has already been done in a few states (including Rivers), the Federal Government should always lend the economy to periodic assessment by one or more of the American and world-renowned independent credit rating firms of Fitch, Standard & Poor’s, Moody’s and Duff & Phelps. That way, Diaspora Nigerians and, indeed, the rest of the investing world will be better positioned to make informed judgments.
Ibelema Jumbo
Business
33 Banks Raise N4.65tn As Recapitalisation Ends
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
Business
SMEs Dev: Firms Launch N100m Loan Scheme
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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