Business
Nigeria Ranks 10th On African Governance Index
Nigeria is one of 10
countries in Africa that have improved across all four sub-categories of Sustainable Economic Opportunity category, the 2016 Ibrahim Index of African Governance (IIAG) has revealed.
The index, which was launched by the Mo Ibrahim Foundation in Abuja, also ranked Nigeria 36th out of 54 countries in “Overall Governance’’ with a score of 46.5 points from 100.
The index, the 10th edition, is the most comprehensive analysis of African governance undertaken to date, and has brought together data to assess each of Africa’s 54 countries against 95 indicators drawn from 34 independent sources.
It indicated that the country’s score had improved by +2.5 points over the last 10 years.
The statistics, however, showed that Nigeria had the second most deteriorated score in the “National Security’’ sub-category, having declined by -28.6 points over the course of the decade.
It revealed that improvement in overall governance in Africa over the period had been held back by widespread deterioration in “Safety and Rule of Law’’ category.
“Over the last decade, overall governance has improved by one score point at the continental average level, with 37 countries, home to 70 per cent of African citizens, registering progress.
“This overall positive trend has been led mainly by improvement in Human Development and Participation & Human Rights.’’
The index showed that Sustainable Economic Opportunity also registered an improvement, but at a slower pace.
However, it said that the positive trends contrasted with pronounced drop in Safety and Rule of Law, which 33 countries in Africa, home to almost two-thirds of the continent’s population, had experienced a decline since 2006.
“This worrying trend has worsened recently, with almost half of the countries on the continent recording their worst score ever in this category within the last three years.
“This is driven by large deterioration in the sub-categories of Personal Safety and National Security.
“Notably, accountability is now the lowest scoring sub-category of the whole index,’’ it said.
The report said that without exception, all countries that had deteriorated at the Overall Governance level had also deteriorated in Safety and Rule of Law.
It added that the improvement in the Participation and Human Rights category, found in 37 countries across the continent, had been driven by progress in Gender and in Participation.
“However, a marginal deterioration appears in Right sub-category, with some worrying trends in indicators relating to the civil society space.
“Sustainable Economic Opportunity is the IIAG’s lowest scoring and slowest improving category. However, 38 countries – together accounting for 73 per cent of continental Gross Domestic Product (GDP) – have recorded an improvement over the last decade.
“The largest progress has been achieved in the sub-category of Infrastructure, driven by a massive improvement in Digital & Information Technology infrastructure, the most improved of all 95 indicators. “However, the average score for Infrastructure still remains low, with electricity registering a particularly worrying decline in 19 countries, home to 40 per cent of Africa’s population.
“Human Development is the best performing category over the last decade, with 43 countries – home to 87 per cent of African citizens. registering progress.
“All dimensions – Education, Health and Welfare – have improved, although progress in the sub-category of Welfare has been affected by declines in Social Exclusion and Poverty Reduction Priorities indicators,’’ it stated. Speaking during the ceremony, Mo Ibrahim, Chairman of Mo Ibrahim Foundation said: “the improvement in overall governance in Africa over the last decade reflects a positive trend in a majority of countries and for over two-thirds of the continent’s citizens.
“No success, no progress can be sustained without constant commitment and effort.
“As our Index reveals, the decline in safety and rule of law is the biggest issue facing the continent today. “ Sound governance and wise leadership are fundamental to tackling this challenge, sustaining recent progress and ensuring that Africa’s future is bright.’’
The Mo Ibrahim Foundation was established in 2006 with a focus on the critical importance of leadership and governance in Africa, by providing tools to assess and support progress in leadership and governance.
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.
