Business
Food Processing Sector Can Replace Oil In Nigeria – NASSI
Chief Executive Officer,
Spectra Foods Ltd, Chief Duro Kuteyi, said yesterday in Lagos that the food processing business can replace oil in Nigeria.
Kuteyi, who is also the South-West Chairman of the Nigerian Association of Small Scale Industrialists (NASSI), said this in an interview with The Tide source in Lagos yesterday.
He urged the Federal Government to monitor the activities of the development banks and the research institutes, in order to appraise the extent of the government’s efforts in supporting local food processors.
“Food processing in Nigeria is a viable business but there were too many challenges plaguing the sub-sector from lack of funds, market share, and also electricity supply.
“With adequate government support, we believe that the number of food processors in the country would have been doubled by the end of this year.
“The increase in the volume of the middle-class is causing the tastes and eating styles of Nigerians to change into a more convenient way of eating and they are also becoming more health-conscious.
“When you go to the malls today, people prefer to pick pre-packaged or pre-cooked food items, due to their busy schedules, while some even opt for home delivery.
“There is a lot of wastage of farm produce due to lack of adequate storage facilities, and this costs the nation billions of naira. Processing can help to reduce the level of wastage, so I dare to say that food processing is the new oil.
“The government should also endeavour to monitor the activities of the research institutes like the Federal Institute of Industrial Research, Oshodi (FIIRO), where there are countless research results on food and industrial items.
“Also, for the development banks like the Bank of Industry, where so many intervention funds have been channelled to, the government should ensure proper monitoring of such funds, so that it can be accessed by the people who truly need them,” he said.
Kuteyi also said that most of the packaged processed food items on Nigerian shelves are imported, which spells doom for the economy, should the trend of massive importation continue.
He said that given all necessary support, local manufacturers and food processors would be able to meet up with the standards of food packaging as most of them were already certified by the regulatory bodies.
Kuteyi said that millions of jobs could be created in the food processing value chain.
The changes in the tastes of the average Nigerian have brought about an increase in the demand for processing and packaging products.
A German Engineering Association, VDMA, in 2014 stated that Nigerian imports of food processing and packaging technology between 2010 and 2012, have increased from 198 million Euros to 275 million Euros,, an increase of 39 per cent.
In the same period, imports of agricultural machinery and equipment went up from 46 million Euros to 62 million Euros.
According to the PCI Film, a consulting firm, the Nigeria’s packaging industry has been growing at the rate of 12 per cent annually in the last five years.
The growth may be linked to the increasing demand for packaged food and cosmetic items.
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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