Business
2012 Fed Budget: PHCCIMA Faults Sectoral Allocationsa
The Port Harcourt Chamber of Commerce,
Industry, Mines and Agriculture (PHCCIMA), has criticised the 2012 federal
budget, alleging that most of the sectoral allocations are injurious to
government’s economic transformation agenda.
PHCCIMA President, Vincent Furo, described
as inadequate, budgetary allocations to eight of the 15 sectors of the economy,
saying that the allocations will not promote private sector participation,
growth and much-needed security, especially in the Niger Delta region.
Furo, an engineer, made the assertions,
Tuesday in a paper he presented at the 2012 Enpowerment Economic/Business
conference organised by the Sam Ohuabunwa Foundation for Economic Empowerment
(SOFEE) in partnership with PHCCIMA.
In his paper titled: “Business Survival in
a Deregulated Economy”, the PHCCIMA President identified the 2012 federal
budgetary allocations to Agriculture (78.98bn), Water Resources ((N39bn),
Aviation (N49.23bn) and Transport (N54.83bn) as grossly inadequate.
Also suffering from inadequate budgetary
provisions Furo said, were Land and Housing (N26.49bn), Science and Technology
(N30.84bn), Communication Technology (N18.31bn) and Niger Delta (N61bn).
Furo argued that agriculture deserved
better allocation considering government’s desire to achieve food sufficiency
while the dearth of potable drinking water nationwide recommended the sector
for special funding.
He said the obsolete standard of the
nation’s airports and the antiquated and unsafe Nigerian transport sector ought
to have informed higher budgetary allocations than the aviation and transport
sectors received.
The allocations to Land and Housing as well
as to Communication Technology, were also poor, the PHCCIMA boss said, arguing
that the housing crisis across the nation and the need for Nigeria to properly
position itself in an ICT-driven global economy ought to have informed better
allocations to the sectors.
Furo was also saddened that Niger Delta whose
crude oil and gas endowments account for over 85 percent of the nation’s
revenue and which is still ravaged by the side-effects of oil and gas
exploration and exploitation, received only N61bn allocation.
Questioning the rationale for the Jumbo
vote to security (N921.91bn) while Nigerians appear helplessly vulnerable in
the face of unending fatal attacks by the Boko Haram Sect, the PHCCIMA
President said the allocation to the Niger Delta was grossly inadequate to
provide infrastructure, improve welfare and gurantee peace and investment.
He urged the federal government to
effectively deregulate the economy and allow the private sector assume the
driving seat in the development of the nation’s economy, Furo also made a case
for the review of the allocations to the aforementioned critical sectors to
enable the 2012 budget achieve its target.
Earlier, founder of SOFEE, Mazi Sam
Ohuabunwa had noted that the private sector remained the engine room that
drives economic growth.
He said it was the role of government to
make policies which the entrepreneurs leverage on to push the frontiers of
economic growth.
Ohuabunwa noted however that there appears
a disconnect between government policies and its execution.
SOFEE, he said, was committed to resolving the bottlenecks in the way of the
nation’s economic growth through the empowerment of individuals and
stakeholders with needed information.
The theme of the one-day conference which
attracted stakeholders from the private sector, Federal Ministries and
Parastatals was: “Budget 2012 and the Economic Transformation Agenda”.
Donald Mike-Jaja
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.
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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