Business
BPE, NERC To Probe $1.8bn Investor Commitment
The federal government ,through two of its key agencies, the Bureau of Public Enterprises (BPE) and Nigerian Electricity Regulatory Commission (NERC), has said it is ready to commence a forensic probe of the extent of financial commitments so far made by the new owners of the various electricity distribution companies in the country.
It said the expected forensic probe was in relation with the cumulative $1.8 billion financial commitment which the new owners of the distribution companies had made as part of their five years business expansion plans for the networks during the power assets privatisation programme.
The government noted that the measure was necessary to ensure that the new owners were meeting up with their commitments in reality and not just on papers.
Its disclosure of the intention to monitor the rate of expansion of the various electricity distribution companies came on the same day it sought partnership with states, local governments and related institutions in the development and administration of Nigeria’s electricity sector.
The government stated yesterday at the launch of the National Council on Power (NACOP) in Abuja that it was now willing to concede aspects of the development and administration of Nigeria’s electricity sector to other partners who it advised to key into ongoing reforms in the sector.
The Minister of State, for Power, Mohammed Wakil, said at the inaugural NACOP that the initiative started in 2008 but was delayed until the recent liberalisation of the electricity sector and its somewhat expunge from the federal government’s exclusive list of responsibilities.
He explained that President Jonathan had afterwards approved the constitution of NACOP, having been satisfied that Nigeria’s electricity market was mature enough to assimilate the active participation of other stakeholders in its development.
Similarly, the Director General of BPE, Benjamin Dikki, stated in an update on the status of the privatised successor companies of defunct Power Holding Company of Nigeria (PHCN) at the summit that the government had put in place structured mechanisms to bring investors to account for their $1.8 billion five-year expansion commitments to the distribution networks.
Dikki noted that while the BPE, NERC and ministry of power embark on planned mandatory probe of investors’ commitments to upgrade the networks through agreed and specified annual investments, such mechanisms like NERC’s programmed review of electricity tariff to reflect market realities will not apply to recalcitrant distribution companies.
He said the distribution companies that fail to make its pledged financial commitment to the networks would not be granted the benefits of scheduled tariff reviews among others.
“NERC and BPE have drawn up systemic measures to check and enforce these commitments and this is in addition to structured mechanisms that exist in the market.
“The five-year total CAPEX for distribution companies is almost $1.8 billion and the investment to be made by the Discos cover the commitments they have all made in the following areas; metering (about six million meters), health, safety and environmental practices, among others.
customer interruptions due to network faults, new customer connections and network expansion as well as improving customer services and complaints handling procedures,” Dikki said.
He equally added that: “There will be no tariff review for distribution companies that fail to make investments in their networks and attain certain percentage of the Aggregate Technical Commercial and Collection (ATC and C) loss figures that they submitted to us.
Also, the Chairman of NERC, Dr. Sam Amadi, who said in his presentation that the federal government had in its power sector reform programme, built a strong and coherent electricity market, explained that the commission was on the verge of developing a tight cyber security framework for the country’s electricity market.
Amadi noted that the measure had become necessary to safeguard market transactions in the sector, adding that without such measures, the market would remain vulnerable to potentially risky third-parties manipulations.
Rivers State Commissioner for Youth Development, Sir Owene Wonodi, presenting a starter pack to skills acquisition graduand.
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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