Business
PENGASSAN Faults NNPC GMD’s Sack
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has faulted the sack of the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Austen Oniwon along with his management team, saying that this move will delay the growth of the oil and gas industry.
In a press statement signed by PENGASSAN’s President, Babatunde Ogun, the union said that incessant changes in the management leadership of the NNPC would affect the on-going reforms policy in the industry.
According to the statement, one of the policy thrusts in the on-going NNPC transformation that is likely to suffer setback is the ongoing Turn Around Maintenance (TAM) and repair of the four refineries intended to put them back on stream to operate at their installed capacity.
Mr Ogun said that in the past few months, “the NNPC management had been working assiduously on how to bring back the refineries and there has been results to this effect, as the Kaduna and Port Harcourt Refineries have started working progressively towards their installed capacities, while there are plans to put back the Warri Refinery.”
The union leader expressed fear that the new management might abandon the ongoing TAM and repairs of the refineries, thereby making it possible for the government to sell those refineries as scraps.
The statement also said that “other vital areas where the outgoing team would have been of tremendous value is in the actualisation of well-articulated visions of a globally competitive national oil company in which their wealth of experience is to be tapped in kick-starting the impending Petroleum Industry law to successfully take off.”
While congratulating the new management team led by the new Group Managing Director, Andrew Yakubu, the PENGASSAN president urged the team to follow the laid down reform policies and plans of the outgoing team; adding that the new team would be held accountable for any policy that truncates the growth of the oil and gas industry.
Ogun said that incessant change of management leadership of the NNPC would affect the investment drive in the oil and gas sector, saying that “no investor will want to put money in a sector that the government can wake up in one day and just decide to change the drivers of the reforms and policies that can grow such sector.”
He said that one of the requests of the union in various engagements it had with the government was that “the appointment and disengagement of the Group Managing Director (GMD) should be standardised and tailored over tenureship like other government agencies and parastatals.
“Without prejudice, we are against the process of appointment and removal of NNPC Group Managing Director because it has always drawn the industry backward. It does not engender continuity of development policies, as each of the appointed GMDs comes with his governance style and discontinue previous administrations growth policies.
“In our various engagements with the government, we demanded that the appointment of the GMD should be based on tenure just as we have it in the Central Bank of Nigeria (CBN), Nigerian Communications Commission (NCC) and Bureau for Public Enterprises (BPE), among others should be put in the PIB.”
The union leader said that in the last 10 years, the national oil corporation had had six GMDs from Jackson Gaius-Obaseki to Austen Oniwon, while the CBN and the NCC had had two each within the same period, adding that “this brings serious challenges of uncertainty and instability with such major appointments, in a volatile and strategic industry like the oil and gas.
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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