Business
Recession: CMD Advises MDAs On Prudent Spending
Director-General of Centre for Management Development (CMD), Dr Kabir Usman, has advised Ministries, Departments and Agencies (MDAs) to apply prudent spending, especially in this period of economic recession. Usman gave the advice at the News Agency of Nigeria (NAN) Forum in Abuja.
”Typical example is the attitudinal change, the change of attitudes, business is no longer as usual, what we used to get we’ll never get the same, so we really have to manage what we have with prudence.
”Then the other aspect is the concept of savings, the cost cutting, because you used to get this money and spend, doesn’t mean that life will go on as usual.
”We give them ideas on public private partnership, issues about joint ventures and issues in terms of loan, borrowing to make sure there is value for money, not all the MDAs, relevant MDAs.
”If you look at it, there are about 10 key areas that Nigeria can do to get out of recession.
”Certainly, this 2017 budget gives us a leeway to try to do training assessment and impact assessment so that we can see the value for money and value addition for the training.’’
He said that the Federal Government had a responsibility to make sure that policy makers, implementers, analysts and reviewers were much apt in terms of key element that would bring Nigeria out of recession.
The director-general said that the centre had trained some officers of Planning, Research and Statistics from selected MDAs on how to manage their resources.
He said that the training was very clear about the concept of how Nigeria could come out of recession soon or rather than later.
Commenting on the 2017 budget, Usman said there were a lot of discussion going on about what the benchmarks should be, saying that it was about middle ground, between the executive and the legislature.
He said that looking at the projections in terms of executive function, based on projection, the price of oil was not going to reduce but it would not be a radical change but a gradual.
The director-general said the benchmarks in the budget would be realistic since the revenue was not going to be on oil. ”So, it may not necessary matter much because the emphasis is not going to be on oil but the emphasis is on taxes.
”And that is where we can generate revenue and focus on the area of agriculture and focus on the area of manufacturing and so on and so forth. ”We listen to government policy every now and then and that is why we have to tailor this year our training programme to focus on areas of government needs, monitoring and evaluation.
” Areas in term of agriculture, all the supply and value chain of agriculture and focus in terms of the manufacturing sector.
”If you look at the economy, you can see that usually you start from agriculture and then you go into manufacturing, then you go into services, but Nigeria got it wrong.
”From agriculture, we went into service and now we are struggling because we don’t have jobs while we became consumer country rather than producer.
” We don’t consume what we produce, that is why it is very difficult to look at the benchmark price.
”I am sure that is not what is important. What is important is the peace in the Niger-Delta to make sure that at least two million barrels is achieved in a very sustainable way.
”That will keep the economy going and the priority of government is to not fund the 2017 budget through the oil sector but taxation and I think, it is a right direction for all of us and it is responsibility of all of us not to depend on oil.’’
The Tide gathered that the 2017 Budget proposal of N7.30 trillion is before the National Assembly for consideration.
The Federal Government set a benchmark of 42.5 dollars per barrel and a production estimate of 2.2 million barrels per day for the 2017 fiscal year.
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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