Business
Why Fitch Is Impressed With Rivers Financials
Rivers Opens For Business With Ibim Semenitari
On March 1, 2013, one of the world’s most respected rating agencies, Fitch, released new rating for Rivers State in both London and Milan. This was immediately echoed around the world by Bloomberg of London. Rivers State is one of the few states in Nigeria that have the guts to join the global rating system that tells you the truth in your face about your financials. The state is rated by both Fitch and Standard & Poor’s. The latter had earlier in November 2012, upgraded the financial rating of the state. Now, Fitch has come out with its own version and this has been causing positive ripples in investment circles around the world. The moment this latest rating was flashed by Bloomberg, some financial journalists began asking questions. Below are some of the questions they asked and the answers they got.
We hear Rivers State has received new rating, what are the details?
Yes, Fitch has upgraded Rivers State long-term foreign and local currency rating to a BB- stable from the previous B( +). This rating was released on March I, 2013, and so, Rivers State is one notch higher, as it were. This rating admits that there is a lot of stabilisation, and growth of the non-oil sector has played a key role in this. They do believe that our IGR has continued to grow, especially with the new measures put in place by the Ministry of Finance such as digitalisation of tax administration, tax harmonisation, autonomy for the Revenue Board, the one-stop-shop concept, and all efforts to reduce error. Basically, one of the things we clearly see is that Fitch is impressed with the financials of Rivers State.
When an organisation such as Fitch is impressed with a state, how does the citizen care about this?
Everybody knows that it means big. First, it means that people are looking to do business in an environment that is peaceful and conducive. The rating is interpreted to mean, ‘it’s good to do business with you: That is quite a message, especially in an era where people hardly understand the dynamics of an economy. Now, an agency like Fitch says it is good to do business with you. Remember that this is happening at a time most other economies especially in Europe and America are being down-graded by these top rating agencies. This shows that the ratings are no manipulation.
This rating has been consistent in the past couple of years. What could be those things that the administration is doing to sustain this rating?
You are aware of such measures as sanitising our financial system, trying to ensure that all the ministries reduced wastages, leakages and reduced cost especially by cleaning up our financial processes. There is also the biometric system which ensures that the real workforce is captured appropriately to reduce the incidence of ghost workers. There is effort in terms of how the budget is managed in relation to fiscal disciple. Yes, we are not there yet and nobody is, but every year we improve the system. This year, the governor has said it would be stricter, more improved fiscal discipline to ensure that, again, we are able to render accountable stewardship.
Are there tangible points of evidence to show that the investment community out there around the world is reacting to these positive ratings?
Yes, I will like to go by the rule of the thump. If you checked the hotels in Port Harcourt in 2007/8, they returned not more than 25 per cent occupancy rate. National average is about 51 per cent. But in Port Harcourt, by 2011 survey reports, it moved to over 65 per cent. Now, in fact, some hotels are recording 98 or 100 per cent occupancy rate. Novotel is at 100 per cent, Le Meridien and Golden Tulip are at 98 per cent. That tells you what is happening to this economy because the hotels are a good reflection of an economy.
When you look at air travel into the city and out, you hardly will be able to get a seat any day of the week. Clearly, you can see a reflection. Before, you would see an empty plane coming into Port Harcourt but now, most persons have to fight to get a ticket, including the international flights. In January 2013, when I was travelling for a conference outside Nigeria, I could not get a seat, and this was not the boom period, it was the middle of the month. Some persons had to fly to Lagos to get a flight. It was as bad as that. So, you have a situation where seats in airplanes are being sold out and hotel rooms are being sold out. Clearly, these ratings are doing something good for us.
Again, next year, Port Harcourt is the World Book Capital, that is something huge. We were pitched against Oxford, Moscow, etc, but Port Harcourt won. It is the first in Sub-Saharan Africa. The nearest that won it was Cairo, but it was during the system of handpicking. In 2014, Port Harcourt is hosting the Crans Montana Forum (May 2014). It is the first time it is going to be leaving Europe and this is heading to Port Harcourt . Investors are going to come along. Clearly, we have got to be doing something right here.
Culled from Business Day
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.
