Business
Senate To Strengthen Gas Flare Laws …Set to Punish Nigerian Accomplices
The Nigerian Senate has identified the fact that if Nigeria must meet up with the National Gas Flare-out Target of January 2030, it must have a working legislation, equipped with commensurate penalties for gas flaring offences in the nation.
The Senate has also made it clear that Nigerians who man the Petroleum Ministry and regulatory agencies are as much culpable to gas flaring offences as the multinational oil companies themselves.
These were part of issues raised at plenary, as the Senate considered a bill titled: Gas Flaring ( Prohibition and Punishment bill) 2016 sponsored by the Chairman, Senate Committee on Gas, Senator Bassey Albert Akpan.
The bill among others seeks to address the inadequacies of the 1979 Act; bring gas flare penalty in tune with current economic realities and ensure the achievement of the National Flare out Target of January 2030.
Sen Albert Bassey in his lead debate decried dangerous environmental and energy waste practices in the country’s petroleum industry.
Akpan noted that the flaring of natural gas was one of the most dangerous environmental and energy waste practices in the country’s petroleum industry.
He said that gas flaring had adverse effect on the environment and human health.
The lawmaker added that it had resulted in economic loss, deprived the Federal Government of tax revenues and trade opportunities and deprived consumers of clean and cheaper energy source.
His words: “Available data from the NNPC has shown that Nigeria lost billions in revenue last year. The volume of gas flared is sufficient to generate 3.5 megawatts of electricity. This is not to say the quantifiable social health and environmental impacts
‘It appears that the euphoria of oil discovery and commencement of production in 1958 blinded Nigerians as there was no provision to handle gas in association with the oil.
Government neither stipulated any law nor guidance during the nascent period of our oil production history
“All efforts to stop the flaring of natural gas has not been effective and Nigerians have remained the victims of lack of Gas Flaring Prohibition Act,” he said.
According to the lawmaker ,the bill when passed into law, would help to provide a strong legal framework for effective monitoring and regulation of gas activities in line with current realities.
He stressed that the bill sought to ensure achievement of the national flare out target of January 1, 2030 in line with the United Nations Charter.
In his contribution, the Chairman, Senate Committee on Finance, Sen. John Enoh, said it was disheartening that Nigeria was still battling with stopping gas flaring and called for the passage of the bill in order to put strict measures in place to tackle the problems posed by the flaring of gas.
“We remain an amazing country especially because since 1958 up till now, we are still talking about what to do about gas flaring. So we have to put in measures to make it expensive to flare gas,” he said.
Senator Ben Murray Bruce lamented that gas flaring has continued in Nigeria because the laws against the act are toothless and obnoxious.
Senator Bruce noted that the practice thrived because Nigerians who man the ministries and regulatory agencies are unpatriotic and either allow the foreign companies flare the gas while they look the other way or allow them evade substantial punishment.
His words, ” Nobody ever pays attention to these incompetent people who should be protecting Nigerians.
“I agree we go for the foreign companies because they are very irresponsible themselves but we must deal with the issue of Nigerians who are not patriotic. We must discuss the issue of punishing these Nigerians.”
Nneka Amaechi-Nnadi
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.
-
Opinion4 days ago
Ozoro Festival: Tradition or Tyranny?
-
News4 days agoRSG Reiterates Commitment To Youth Dev
-
News1 day ago
Decentralizing Pipeline Surveillance Poses Greater Dangers To Niger Delta …. Group Warns
-
Politics1 day agoAPC Resumes Electronic Membership Registration Nationwide
-
Rivers1 day agoCourt Rules Out Interim Administration In Jumbo House, Bonny
-
Oil & Energy4 days agoTranscorp Energy, Renewvia Partner On Renewable Energy Gap
-
Politics4 days ago
RIVERS WOMEN RALLY SUPPORT, CONTINUOUS PRAYERS FOR TINUBU
-
Politics4 days ago
AKPABIO, DIRI, OBOREVWORI, OTHERS VOW TO REELECT TINUBU …AS GIADOM RETAINS APC ZONAL CHAIR