Business
Nigeria Tasks US On Non-Oil Trade
The Minister of Trade and Investment, Dr
Olusegun Aganga, has called on the US to focus on trade and investment in the
non-oil sector for sustainable economic growth in Africa.
He made the call on Monday at the 7TH
U.S.-Nigeria Trade and Investment Framework Agreement (TIFA) Council meeting in
Abuja.
The minister said that the meeting
served as an avenue for both countries to address specific trade and investment
matters.
He described Nigeria as the largest
trading partner of the US mainly in oil and gas.
Aganga urged the council to take the
opportunity of the meeting to explore areas in the non-oil and gas sector for
mutual benefits.
“This meeting is far more significant
because we all have a unique opportunity to make that big change and come up
with policies and actions that will help transform our economies and the global
economy.
“Nigeria is the United States’ biggest
trading partner in sub-Saharan Africa.
“This is largely due to the high level
of trade in petroleum products which accounts for nearly 46 per cent of
Nigeria’s daily oil production.
“This ranks Nigeria as the 5th largest
exporter of oil to the United States of America,” he said.
According to Aganga, this indicates
clearly that Nigeria and the US bilateral trading activities for now revolve
around oil and gas.
He stressed the need for accelerated
growth in non-oil trade between the two countries to enhance inclusive economic
growth and development.
“It is important that we make concerted
efforts to exploit the strengths inherent in both economies; to create
employment to generate wealth and enhance economic growth.
“We must turn the nation’s resource
advantage and investment opportunities into economic fortune and the US-Nigeria
TIFA provides a good window for achieving this,” the minister said.
Aganga decried the trade imbalance that
existed between Africa and developed countries and called on the council to
review the policies to achieve a balance on both sides.
“The United States is the world’s number
one in manufacturing and that is where United States can assist Africa much
more.
“Today, Africa contributes only three
per cent of the world’s trade; not because Africa is not exporting.
“It is because Africa for many years,
has remained at the bottom end of the value chain.
“It has been a continent that has
produced raw materials and sent into the world processed in the developed
economies and then sold back to Africa.
“We buy them at higher prices; that is
not a good trade, Aganga explained.
He observed that there was no country
that had successfully moved from being a poor nation to becoming rich by
relying only on exporting raw materials.
“Such nation must have a strong
industrial and service sector just like America has done.”
He called on western nations to
incorporate Nigeria into such collaborative efforts to enable it achieve growth
and development.
“That is one aim that the TIFA needs to
try and achieve.
The minister expressed Nigeria’s
readiness to take advantage of the opportunities to explore the non-oil sector
to boost economic development.
In her remarks, US Trade Representative
for Africa, Florizelle Liser, reiterated the importance of Africa to the US as
a valid trade partner.
Liser expressed optimism
that the US Policy toward sub-Saharan Africa would create opportunities “for
lifting countries out of poverty and giving people hope for a better way of
life.”
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.
