Business
AU Labour Forum To Tackle Unemployment
The 9TH African Union Ordinary Session on Labour and Social Affairs opened in Addis Ababa last Tuesday to plan ahead for the biennial forum of Labour Ministers and Social partners scheduled for next year.
The objective of the conference is to provide a forum for ministers and social partners to share experiences and learn from each other on ongoing programmes and activities on labour and employment in Africa.
It would also provide opportunity for stakeholders to review progress made in labour and employment issues, particularly those contained in the 4th Biennial Follow-up Report on the implementation of the Ouagadougou Declaration and Plan of Action.
Speaking at the opening of a 4-day conference, Nigeria’s Dr Olawale Maiyegun, AU Commission’s Director of Social Affairs, said the session was taking place during a historic period considered as a watershed year for Africa, which marks 50 years of OAU, later renamed the AU.
“ The 50th OAU/AU anniversary which is being observed and organised under the theme: “Pan Africanism and African Renaissance’’, is providing us with opportunities to take stock of the key milestones of the past 50 years.
“And also to project into the future on how well we have provided decent jobs, social protection for our people, particularly the youth and women and how we tackled poverty in the last 50 years,’’ he asid.
“It is also an opportunity for us to project into the next 50 years that is by 2063, will our narrative still be poverty or we would have eradicated poverty,’’ Maiyegun said.
The Tide source reports that the conference with a theme “Enhancing the Capacity of the Labour Market Institutions in Africa to meet the Current and Future Challenges’’ is chaired by Namibia.
Maiyegun said the LSAC session would consider the 4th Biennial Follow-up Report on the implementation of the Ouagadougou Declaration and Plan of Action; the Draft Youth and Women Employment Pact, as requested by the 17th Ordinary Session of the Summit of Heads of States and Government in Malabo in July 2011.
He said the delegates would also consider the Social Protection Plan for the Informal Economy and Rural Workers; Communication and Implementation Strategy; and the Intra African Technical Cooperation Platform.
“The session will also work on the preparation of the Special Session of the LSAC which will take place in 2014, and deliberate on the review of the Rules of Procedures of the LSAC.
“The meeting will be briefed on the progress made on the AU Labour Market Information Systems Harmonisation and Coordination Framework, including the recommendation of the 5th Joint AUC–ECA Conference of Ministers in charge of Finance, Economy, and Development Planning.
A briefing will also be done on the AU initiative on the establishment of an African Institute for Remittances (AIR).
Reports that the Ordinary Session of the AU Labour and Social Affairs Commission (LSAC) is convened every two years and it is organised on the tripartite principle basis, which provides a policy forum to governmental authorities, and representatives of workers and employer organisations within the AU member states.
The conference is expected to make concrete proposals on how to strengthen the capacity of existing institutions and regulations to meet current and future challenges in relations to inclusive economic growth, youth’s empowerment, labour market governance and accelerated implementation of social protection for workers.
The conference which had gone into a close session is also expected to elect new bureau members with representatives from the Regional Economic Communities.
Reports say that Labour ministers and experts from the AU member states, Social partner organisations, representatives of Regional economic Communities, the UN, NGOs, Civil Society Organisations and other labour professionals are participating in the conference.
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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