Business
PRAN Supports Bank Staff Salaries Rationalisation
The proactive Shareholder Association of Nigeria (PRAN) has applauded the Central Bank of Nigeria’s directive to banks to rationalise staff salaries saying it would help reduce unnecessary expenses.
National coordinator at the association, Taiwo Aderinde said this last week in Lagos while responding to questions from media representative. He warned that there is no need for downsising in the banking sub-sector, saying that staff salaries should be at reasonably level. According to him, salaries of most bank executive are outrageous and considering the present economic and financial crisis, there is need to review their salaries so as to avoid liquidity problem and to equally project healthy balance sheets.”
He disclosed that since the coming of the financial crisis, organisations and individuals have cut down their expenses and that the issue of banks reviewing staff salaries should not be overemphasized because it is a necessary option, speaking further he maintained that the CBN governor has a genuine intention for the common people. He is a revolutionary who is fighting a war that I know would benefit the market. My prayer is that he does not derail because he has our backing, “ he added.
The CBN governor does not have a northern agenda, noting that his reform polices are for the good of the economy and the nation at large Taiwo said. He however pleaded that the CBN governor should be supported by all stakeholder to enjoy a sound and safe banking institution.
It would be recalled that CBN in its recent memo to the managing directors and Chief executive offices of the embattled banks, directed among other things to reduce executive and other staff emoluments by at least 30 per- cent and submit an action plan for branch and staff rationalisation (reduction) in order to utilise some hidden economics of scale in the bank’s operation.
This directives is said to have given impetus to new policies that penciled down thousands of workers for retrenchment.
Industry sources have, however expressed concerns that while government all over the world work hard to encourage employment and are measured by the number of jobs created, the current reforms in the Nigerian banking industry encourage chief executives to sack workers with impunity.
Elijah Segun, general secretary NUBIFE, described as unfortunate the reform process that could lead to mass sack in banks. According to him, “this has been our predicament in the banking industry. Workers are usually at the receiving end of any reform. No matter the nature of any reform, at the end of the day, you will discover that the workers are the victims. When they recapitalized, we were at the receiving end. They are now sanitising, and we are also at the receiving end, despite the fact that we are not privy in the perpetration of the so-called atrocity in the industry so it is very unfortunate that it is happening this way.
Jarus Erhemosele, secretary general ASSBIF while responding also pleaded with the CBN governor to tread the path of caution in his management’s action in the banks.
At the last count, at least 1,000 workers within the rank of banking officers and above in two banks (one cleared as healthy and the other rescued) alone were either sacked or asked to resign in the last two weeks.
This figure excludes the thousands reportedly penciled down for sack in the other 22 healthy and troubled banks still grappling with economic crisis. Meanwhile the federal government had reportedly asked Sanusi Lamido CBN Governor to intervene and put an end to arbitrary retrenchments in most of the banks, especially the eight rescued ones.
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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