Business
Mark Wants Enabling Environment For Indigenous Automobile Manufacturers
Senate President, David Mark, has urged the
Federal Government to encourage indigenous automobile manufacturers by
providing them with a conducive environment.
According to him, the effort will also
enable Nigeria to achieve industrial revolution.
Mark made the call during Tuesday’s Plenary
Session while ruling on the bill for an Act to repeal the National Automotive
Council Act and the Centre for Automotive Design and Development Act.
The bill which seeks to provide for an Act
establishing the National Automotive Design and Development Council passed
through second reading on the floor of the Senate.
Mark said, “Government should encourage
private indigenous automobile manufacturing companies.
“We tend to discourage our local automotive
industry and unless we encourage them this country cannot achieve technological
development. ’’
He challenged the executive arm of
government to summon the political will to implement the various laws passed by
the National Assembly.
“My prayer is that we will have the
willpower to implement all the laws and resolutions emanating from the National
Assembly.
“For us, we are very prepared to push as
much as we can and leave it for those who have the power of implementation to
do so accordingly,’’ Mark added.
In his lead debate, the Leader of the
Senate, Sen. Victor Ndoma-Egba (PDP-Cross River) said the merger of the two
agencies would boost efficiency, productivity as well as generate employment opportunities.
Sen. Enyinnaya Abaribe (PDP- Abia) said
that the passage of the bill would spur the new agency to perform its
responsibility efficiently.
“Let the passage of this bill be a
challenge to spur the agency to perform with efficiency. We should not just set
up this agency but we must ensure that it performs, ‘’ he said.
Sen. Shola Adeyeye (ACN- Osun) urged the
Senate to go beyond the automotive industry by considering the merger of other
government agencies with similar functions.
“We can even go further to look at every
ministry and agency to consider where we can merge those who discharged similar
functions.
“We cannot have a functional automobile
industry until we have stable power and a functional steel industry,’’ he
added.
Sen. Chris Anyanwu (APGA- Imo) stressed the
need for government to invest in research and development as key to industrial
development.
“With their merger, I believe there will be
better synergy. “We have to invest on research and development, and shield our
research institutes from politics, ‘’she said.
Opposing the bill, Sen. Olubunmi Adetunmbi
(ACN-Ekiti) said the Senate could only debate the matter after studying the
report of the Stephen Orosanye-led Committee on rationaliation of government
agencies.
“It will be helpful for the Senate to have
access to the Orosanye report, and then we can have a holistic understanding of
the issues.
“This bill and the amendment it is seeking
are cosmetic. What we should concern ourselves with is the value this merger
and what it will add to the automotive industry,’’ Adeyeye argued.
Also opposing the bill, Sen. Ben Ayade
(PDP- Cross River) said there was no basis to merge the two agencies because
they performed different functions.
“Its unfair to merge these two agencies
because they have different functions.
“We should enact law to stop importation of
complete vehicles into the country and compel investor to set up assembly
plants in Nigeria, ‘’ Ayade suggested.
The Bill was referred to the Senate
Committee on Industries for further legislative action and expected to report
to the Senate in two weeks.
Meanwhile, the Senate on Tuesday observed a
one-minute silence in honour of the victims of the terrorist attack in Potiskum
and the late Nigerian football star, Mr Rashidi Yekini who died last week.
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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