Business
Making Nigeria Investment Haven
On assumption of office on May 29, 2011, President
Goodluck Jonathan created the Ministry of Trade and Investment to boost the fulfilment of his embryonic Economic Transformation Agenda.
The new ministry was carved out from the Ministry of Commerce and Industry, with an expanded mandate of creating the enabling environment to stimulate domestic investments and attract foreign direct investments.
The raison d’être behind the creation of the Ministry was to enhance job creation, wealth generation and all-inclusive economic growth in the country.
A year after the ministry’s creation, stakeholders and industry watchers say that the government’s action is, to a large extent, getting the desired results.
Commenting on the ministry, Gov. Babangida Aliyu of Niger commended the Federal Government for its establishment, saying that it had since been providing quality service delivery.
He noted that the Mr Olusegun Aganga, Minister of Trade and Investment, had also brought his wealth of experience to bear on the affairs of the ministry.
“His (Aganga’s) appointment by President Jonathan, first as the Minister of Finance, and now as Minister of Trade and investment, has resulted in the introduction of policies and reforms which have helped to put Nigeria on a sound footing to attract local and foreign direct investment across all sectors of the economy,” Aliyu noted.
Aganga’s most favourite slogan since his assumption of office has been the popular “Investment Golden Rule’’, which states that “investment flows in, settles and ultimately grows where it is treated well and appreciated.”
As part of efforts to make Nigeria the preferred investment destination, Aganga said that the ministry had embarked on the reform of the country’s investment climate, working in tandem with UK’s Department for International Development (DFID) and the World Bank.
He has also inaugurated committees on “Doing Business’’, “Competitiveness’’ and “Investor Care’’, while establishing the “Competitiveness Council’’.
In addition, the ministry has made concerted efforts to strengthen the One-Stop Investment Centre (OSIC) of the Nigerian Investment Promotion Commission.
Just recently, the Corporate Affairs Commission (CAC) officially inaugurated its start-to-finish 24-hour business incorporation service.
What this means is that it now takes just one day for anyone to register or incorporate a business.
Aganga stressed that the target was to ensure that companies were registered within two hours, while instituting a vibrant and transparent companies’ registry.
“We want a registry where services will be user-friendly; we want to show local and international investors that Nigeria means business,’’ he said.
To ensure the scheme’s effectiveness, the minister directed that a complaints register should be opened to accommodate the complaints of those who were not able to get their companies registered within 24 hours.
All the same, these investment climate reform programmes have been yielding the desired results, going by the latest statistics released by the UN Conference on Trade and Development (UNCTAD).
The statistics placed Nigeria as Africa’s biggest destination for Foreign Direct Investment (FDI) in 2011, with a total FDI inflow of 8.92 billion U.S. dollars (about N1.3 trillion)
According to the 2012 World Investment Report, subtitled “Towards a New Generation of Investment Policies”, released by UNCTAD in Geneva in November, Nigeria received 8.92 billion dollars in FDI, thereby placing it as first in Africa.
In the report, South Africa was ranked second with a total FDI inflow of 5.81 billion U.S. dollars.
Besides, reports from the Ministry of Trade and Investment indicated that Nigeria secured over N6.8 trillion investment commitments from local and foreign investors within the last one year.
Aganga explained that the investment commitments were secured from over 70 investors’ meetings held at home and abroad.
The minister said that such meetings held in 2011 alone showed a total commitment of N3.9 trillion over the next three years.
International relations experts and diplomats have attributed the growing interest in Nigeria by both local and foreign investors to the large untapped investment opportunities existing in the country.
Speaking during his visit to Nigeria, Mr Simon Smits, Kingdom of the Netherlands’ Vice-Minister of Foreign Trade, noted that the opportunities in Nigeria far out-weighed the challenges.
“What I have observed during the past few days of my visit to Nigeria is that when I discussed with business people from Nigeria and The Netherlands, they agreed that the opportunities in Nigeria out-weigh the challenges,’’ Smits said.
Similarly, a renowned economist, Mr Charles Robertson, said in a recent interview with Reuters that Nigeria was currently the best investment destination globally, with prospects for high returns on investments.
“We know Nigeria is not risk free. But look around the world and find another economy with a population of 160 million and with such a great potential. It’s a struggle to find them,’’ Robertson said.
Sharing similar sentiments, Mr Ketan Makwana, the Special Adviser on Youth, Commerce and Culture to the Cabinet Office of the British Prime Minister, said in a recent interview that foreign nationals should disregard insinuations that Nigeria was not safe for investment, visitation, or residency.
“Nigeria is most definitely an emerging economy, with more of its population seeking entrepreneurship as a way of life. I am one of those who believe that you cannot comment on something except you have experienced it yourself.
“I will advise foreigners to disregard the erroneous impression that Nigeria is not safe. Ignore what you hear, come and experience it yourself. Then, you can make a decision. Nigeria has almost become a second home to me,’’ Makwana added.
Economic analysts, nonetheless, appeal tothe government toi sustain the drive for foreign direct investment in the country, while providing to necessary logistics support for the Ministry of Trade and Investment.
“The ministry is well-positioned to boost the country’s economic growth,” some of them noted.
Aregbesola is of the NAN.
Isaac Aregbesola
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.
