Business
Stakeholders Urge FG To Increase Workers’ Salaries
Some financial experts and other Nigerians last Sunday urged the Federal Government to review the salaries of workers upwards.
They told newsmen in Lagos that a substantial increase in workers’ wages would complement the government’s efforts in tackling corruption and other social vices.
Managing Director of Boaz Management and Financial Strategies Ltd., Mr Oluwole Ibikunle, said that the high level of inflation had eroded the value of workers’ salaries which had remained stagnant.
Ibikunle said that periodic upward review of workers’ wages would reinvigorate economic activities and boost the liquidity system as well as encourage investments among workers.
“Low wages make workers less productive, create discord in families and compel majority of the workers to engage in shady deals to make ends meet,’’ he stated.
Managing Director of Remmy Associates Ltd., Mr Remi Alarape, attributed the increase in corruption and other social ills among the working class to the prevailing ‘dismal wages’.
Alarape said that the inability of the Nigerian working class to financially support extended family members to create small businesses had contributed to unemployment and high level poverty nationwide.
“A well-paid worker will not only support extended family members in operating small businesses but would find it difficult to engage in corruption or any social vice,’’ he said.
A Senior Lecturer in the Department of Psychology, University of Ibadan, Mr Ojo Makinde, also told newsmen that the poor wage profile had robbed the country of committed workers interested in professional career growth.
“Job seekers are no longer concerned about the prospect of the jobs they get.
“They are only interested in the salary they will earn. This is the reason why many people want to work in multinational companies and oil firms that pay huge salaries,’’ Makinde said.
Deputy Manager of Integrated Capital Services Ltd., Mrs Dupe Bakare, said that workers in the civil service earned less than their counterparts in the private sector.
“A World Bank research conducted sometime ago shows that over 120 million Nigerians live on less than two dollars per day.
“The situation has not improved. Even with the N18,000 minimum wage, it is very hard for people to survive on that kind of salary in a country where most goods are imported.
“Our salary is not good enough; we are grossly under-paid. We live on loans and without loans we can’t embark on meaningful projects like having houses and cars of our own.
“We would have finished spending the salary before it is even paid at the end of the month and we would have incurred lots of debts.
“We buy necessities like food and clothing on credit; it is like a cycle. At the end of the year, we always have nothing to show for our labour,” she said.
A medical practitioner, Mr Peter Johnson, appealed to government to increase workers’ salaries through improved wages.
“Many Nigerians are struggling to make ends meet; they can’t live the kind of lives they desire because of poor wages.
“How can people buy goods when they do not have money? It is good to encourage the growth of foreign and local businesses in the country. We should, however, empower people who will buy the products,’’ Johnson said.
The Managing Director of Ethical Business and Management Associates (EBAM), Mr Ladi Afolabi, said that poor wages constituted one of the greatest challenges to the Nigerian economy.
“In Nigeria, the computation of salary does not take into consideration the changes that affect the average worker as a result of the economic challenges facing the nation.
“As a result, at the end of the month, take home pay does not take people home again,” Afolabi said.
The managing director suggested that there should be a periodic review of national wages, based on contemporary indices.
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.
