Business
Nestoil, Julius Berger Sign N24bn Contract
An indigenous oil firm, Nestoil Plc, has awarded the contract for the building of its new ultra-modern office headquarters to Julius Berger Nigeria at a whopping cost of N24 billion and a completion time frame of 25 months from date of signing. The office building is to be located on Akin Adesola Street, Victoria Island, Lagos.
In October 2010, the Nestoil Group entrusted ACCL Ltd in cooperation with JBN/Bilfinger Berger Nigeria on the basis of a preconstruction agreement with a design conception of a combination use development of offices, parking and living.
The approximately 75 meters high building offers Nestoil a gross floor area of 32.300m2. The site is located in the centre of Victoria Island, at the junction of Akin Adesola Street, which connects Bar Beach in the South with Falomo Bridge in the North, and Saka Tinubu Street.
The Lagos Nestoil Tower is based on a combined pile raft foundation bored piles with a maximum depth of 54 meters and a foundation slab with a thickness of 1.8 meters.
Due to the high ground water level a secant bore pile wall and a jet-grouting plug are necessary to prevent the building pit from flooding.
The 15 floors provide 9 stories of parking, 19 apartments on 5 levels and 14 office floors including one executive office floor all topped by a helipad and a building crown, which turns the highrise- building to a real landmark in the Victoria Island skyline.
The Nestoil Group wants to achieve a LEED certification for the Nestoil Tower. This will increase the attractiveness especially for international tenants as the LEED certification brings the sustainability and awareness of responsibility for the present but also for the future generations to Nigeria.
The President/ Chief Executive Officer of Nestoil, Dr Ernest Azudialu, and the Managing Director of Julius Berger Nigeria, Wolfgang Goetsch, formerly signed the contract at the Julius Berger headquarters in Abuja.
In his brief remarks before the signing of the contract papers, Azudialu revealed that the idea of building a befitting headquarters for Nestoil started many years ago but never really took off until a few years ago when the idea began to take form.
“The board of Nestoil decided to build something different and befitting, a building that will show the Oil & Gas industry in Sub-Saharan Africa in a different perspective.”
According to him, in the quest to get the best, the company went to great lengths “from what we can see from the model of the building it took a lot for us to get to this level and even to the construction stage where it is today. It took a lot of trips to Wiesbaden Germany for reviews, to choose materials and also to examine what it takes to build a Leadership in Energy and Environmental Design, LEED certified structure (LEED is an internationally recognized green building programme).
“Today is a signing ceremony and is not going to be a speech making day but for us on the Nestoil side this is a very big milestone to have been able to get this project to this stage. We are looking forward to making sure that at the end of the day this building is delivered both on schedule and to world-class standards.
“From the construction work progressing on site which has been visited by other directors and shareholders of Nestoil, we can say that we are very pleased and we commend Julius Berger having done a good job so far to continue in that line for the next 20-25 months when the building should be completed. We expect that the building we be completed by the 1st quarter or before the middle of 2015”.
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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