Business
… Solicits Support For Transformation Agenda
The Acting Chairman, Federal Inland Revenue Service (FIRS), Alhaji Kabir Mashi has urged tax professionals to support President Goodluck Jonathan’s Transformation Agenda aimed at wealth creation and employment.
Mashi made the call in Abuja at the opening of the “14th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN).’’
The three-day conference was declared open by a representative of President Goodluck Jonathan, Mrs Chidi Ikpechukwu, a Director in the Ministry of Finance.
Mashi said that the Federal Government had clearly articulated its plan for the economic revival of the country as captured in the transformation agenda.
“It is now left for us in our different capacities, whether as revenue generating agencies, tax payers, professional associations or regulatory bodies to contribute our quota to enable government meet its revenue needs.
“In this regard, I believe that there is a clear consensus that taxation is a major tool that can be utilised to bring about this transformation.
“It is, therefore, my expectation that this conference will provide further insight into the use or uses of taxation as a tool for economic transformation,’’ he said.
The acting chairman said that there was the need to improve on the various sources of government revenue to achieve economic transformation for which taxation was the most sustainable.
“In doing this, it should be noted that the building blocks of a prosperous economy include the availability of security, well developed infrastructure, good energy system, health care and education among others.
“Building and maintaining such utilities and infrastructure require sufficient revenue,’’ Mashi noted.
In his address, the President of CITN, Mr John Jegede, stressed the need for revenue generating authorities in the states to be granted autonomy.
According to Jegede, government policies and programmes on increased revenue generation can be better implemented with a State Internal Revenue Service (SIRS) that is autonomous and manned by certified tax professionals.
“Lagos and Adamawa are among states that have autonomous status for the SIRS while Ekiti State Government has sent a bill for the autonomy of the state IRS to the State House of Assembly.
“The states should start to look inwards for alternative sources of funding if they are serious in diversifying their economy and place little or no reliance on monthly allocation which is not forthcoming,’’ he said.
Jegede urged government to ensure that only certified members of the institute were appointed chairmen of the federal and state internal revenue service in compliance with the law.
He also emphasised that only members of CITN had statutory mandate to engage in tax practice.
“This clarification becomes very apt now that the office of the chairman of FIRS is vacant so that government would not make a mistake of appointing a quack to the position thereby contravening the laws of Nigeria.
“In as much as a lawyer has always been appointed to head ministry of justice and a medical doctor to head Ministry of Health or any institution, it will be illogical to appoint anybody who is not a member of CITN as chairman of FIRS and SIRS.’’
The CITN president acknowledged what he called the “giant strides’’ taken by the governments at all levels to improve tax system in Nigeria.
He commended government’s inauguration of the National Tax Policy document last month and the signing into law of the Personal Income Tax (Amendment) Act 2011.
“But a lot still needs to be done particularly in ensuring that obsolete provisions in our tax laws are constantly reviewed and replaced.
“In this wise, yearly review of tax laws is recommended whereby the changes are reflected in the Annual Appropriation Act as obtained in developed nations like UK and South Africa.’’
According to Jegede, the practice will ensure that tax rates and allowances are in tandem with current economic realities and encourage voluntary tax compliance.
The theme of the conference is “Taxation as a Tool for Economic Transformation.’’
More than 3000 participants, comprising policy makers, academics, tax experts and administrators as well as lawmaker are taking part in the conference.
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.
