Business
Foreign Investments: Osinbajo Canvasses Reposition Of Africa’s Economy
Vice President Yemi Osinbajo has called on Africa to reposition its economy in the direction that will attractive investors because investment depends on the advantages derivable.
Osinbajo made the call while interacting with a committee of African Ambassadors to Indonesia led by the dean of the group, Ms Alice Mageza of Zimbabwe, on the sideline of his two-day working visit to Jakarta.
The Ambassadors include those of Egypt, Ethiopia, Algeria, Libya, Morocco, Mozambique, Somalia, South Africa, Sudan and Tunisia.
Spokesperson to the Vice President on Media and Publicity Mr Laolu Akande, disclosed this in a statement made available to The Tide source on Tuesday in Abuja.
The statement quoted Osinbajo as saying that Africa’s indices of having the lowest integration statistics as well as the lowest GDP ratio can only be reversed by preparing the continent for quality investments that will benefit the people.
The vice president, who was responding to questions from the Ambassadors on the future of Africa’s economic prosperity, said, “the quality and quantum of potential investors in Africa is huge.
“But that the way that such investments will go will depend on the advantages that the investors get from investing in such economies.
“We in Africa must prepare our economies in that direction that attracts such huge and qualitative investments. It is for us to push and we must push:, he said.
On the kinds of investments that Africa desires, Osinbajo said Africa must focus on the manufacturing sector.
He noted: “the most important thing for Africa is that whoever wants to invest in our countries should start in manufacturing.’’
He, however, urged African diplomats in Indonesia to work together in the quest for attracting investment opportunities to Africa.
Osinbajo said, “if you negotiate together, it is probably going to be more effective than if we negotiate separately.’’
Earlier, Vice President met with Indonesian business leaders under the auspices of the Indonesian Chamber of Commerce and Industry, where he stressed the need for Indonesian companies to increase their investment portfolios in Nigeria.
“Nigeria would like to see more Indonesian companies invest in the manufacturing sector even though there are quite a few activities going on in Nigeria; there is also room for more collaboration and cooperation.
“The opportunities in the various sectors comprising oil and gas, manufacturing are huge because the major incentive lies in the market, the Nigerian and the West African markets.’’
Giving an overview of ongoing projects in Nigeria and collaborations between Indonesian and Nigerian businesses, Osinbajo said Nigeria would need a rolling stock in its railway revitalisation project.
He outlined the various incentives given by the Federal Government to attract investors into Nigeria as government’s efforts at increasing foreign exchange availability through the NIFEX market.
Others he said include approval of pioneer status for some category of companies to enjoy a range of incentives; establishment of special economic zones; initiatives to increase foreign exchange availability and opening up of marginal fields.
Earlier, some members of the Indonesian Chamber of Commerce and Industry also expressed concern about the declining value of the Indonesia-Nigeria trade which currently stands at $1.70 billion dollars from $3.18 billion in 2012.
The chairman of the Indonesian Chamber of Commerce and Industry, Mr Rosan Roeslani said, “being the 15th largest economy in the world, Indonesia through its investors is desirous of increasing its portfolios to levels that justify Nigeria’s position as the country’s biggest trading partner in Africa.’’
He said Osinbajo’s visit to Indonesia and meeting with the business leaders are strong indications that Nigeria is ready to take her pride of place among Indonesia’s biggest trading partners in the world.
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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