Business
Nigeria To Revive Six Fertilizer Plants
The Nigeria Government is to revive six fertilizer blending plants before the end of the year, through the Infrastructure Unit of its Sovereign Wealth Fund.
The Managing Director of Nigeria Sovereign Investment Authority (NSIA), Mr Uche Orji, disclosed this on Monday, in Abuja, when the Minister of Information and Culture, Alhaji Lai Mohammed, paid him a working visit.
Orji said that the six plants set for revival across the country would bring the total number of operational fertilizer blending plants to 17.
He said the project was done through the Fertiliser Initiative Programme of President Muhammadu Buhari’s administration, which was conceived to make the commodity available to farmers at cheaper rate.
The NSIA boss disclosed that since the inception of the programme in December 2016, the authority had delivered more than six million bags of fertilizer below market price to farmers.
Specifically, he said a bag of fertilizer which hitherto sold between N11,500 and N13,000 had been brought down to N5,500 per bag since the beginning of the year.
He added that more than 50,000 jobs had been created by “rehabilitating 11 fertiliser blending plants which were either producing below capacity or moribund’’.
“The programme has saved the government more than N60 billion in subsidy in 2017, as government used to subsidise fertilizer up to the tune of N6,000 per bag.
“The programme has also saved the government foreign exchange through the introduction of local contents in fertilizer blending,’’ he said.
Orji said that the feat was achieved through the local sourcing of two of the four major raw materials for ferltiliser blending.
“You need four materials for fertilizer blending which were hitherto imported, Phosphate, Limestone, Urea and Potash.
“Urea and limestone which accounts for 65 per cent of the raw materials are in abundance in Nigeria while phosphate and potash are what we need to import.
“However, what had happened before now was that all the four raw materials were imported.
“NSIA was therefore invited to work with the Fertiliser Blenders Association of Nigeria in a committee chaired by Jigawa governor.
“So far, we have produced and sold six million bags across the country at the lower rate,’’ he said.
He said that the target of the NSCIA was to revive all the 28 fertiliser blending plants in the country.
According to Orji, the retail price is boldly written on the fertilizer bags with a telephone number for whistle blowing in case of sharp practices by racketeers.
Orji said that NSIA was set up in 2012, as an agency to build a saving base for the country, enhance development of the nation infrastructure as well as provide stabilisation support in times of economic stress.
“The NSIA has three Funds; Stabilisation Fund which holds 20 per cent of the Agency’s asset; Future Generation Fund which holds 40 per cent of the asset and Infrastructure Fund which also holds 40 per cent of the asset.
“The stabilisation fund and the future generation fund are mostly invested outside the country while the infrastructure fund is invested in Nigeria,’’ he said.
The minister commended the Authority for its intervention in the critical sector of the economy through the Infrastructure Fund.
He underscored the need for the NSIA to place priority attention on making public its activities to correct the erroneous impression that the Authority was only to access fund.
Mohammed also assured the management that the Federal Government was addressing the challenges of rail infrastructure which would help in the transportation of fertilizer and its raw materials across the country.
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.
