Business
Obama Backs Google In Dispute With China
The Obama administration has leapt to the defence of Google after the internet search giant threatened to pull the plug on its Chinese operations.
Google has threatened threat to quit China
Hillary Clinton, the US Secretary of State, demanded “an explanation” for Beijing of Google’s allegation that its Gmail email system was infiltrated. “The ability to operate with confidence in cyberspace is critical in a modern society and economy,” she said.
Robert Gibbs, Mr Obama’s press secretary, emphasised that the President backed internet freedom and said that Google had co-ordinated with the Obama administration before it had acted.
The alleged cyber attacks have further strained Sino-US relations that are already fraying over issues of trade, currency, climate change and arms sales to Taiwan.
“We have been briefed by Google on these allegations, which raise very serious concerns and questions,” Mrs Clinton said.
Mrs Clinton had also met executives from Google and Microsoft, as well as with Cisco Systems, which provides much of China’s internet infrastructure, to discuss how to stop countries from “stifling” access to information, the state department added.
Next week the US is to launch a new technology policy to help citizens in other countries to gain access to an uncensored internet.
The Chinese authorities said they were seeking clarification over Google’s demand it be allowed to operate its Google.cn search engine free from the increasingly draconian censorship of the Great Firewall of China.
China has spent millions trying to project it’s ‘soft power’, however analysts said its rulers now faced a choice between protecting its power at home and suffering the embarrassment of being rejected by one of the free world’s biggest brands with negative consequences for the investment climate.
“It is setting us up for a clash, and it’s interesting to see who backs down. It’s the US versus China, but the companies will be lobbying,” said Chris McNally, a China analyst at the East-West Centre in Hawaii.
A spokesman for Google said the company was ‘in talks’ with the authorities, while outside Google’s offices in Beijing a handful of citizens braved the cold to lay flowers ‘in mourning’ at the prospect of Google’s departure from China.
Despite hopes that China would start to relax freedom of speech restrictions after the 2008 Olympics, China has in fact tightened of internet controls, blocking popular as social networkings sites such as Twitter, Facebook and YouTube.
The issue of censorship was raised by the US President Barack Obama on his maiden visit to China last November when he told an online town hall that he was “a big supporter of non-censorship.”
“I can tell you that in the United States, the fact that we have free internet – or unrestricted internet access – is a source of strength, and I think should be encouraged,” he said, to the evident irritation of his hosts.
The decision by Google to break ranks from other big corporations doing business in China and openly criticise the country’s autocratic leadership comes after four rocky years during which Google was forced to compromise its core belief in the free-flow of information.
Announcing its sudden change of heart on the company’s blogsite, David Drummond, Google’s chief legal officer, said: “These attacks and the surveillance they have uncovered – combined with the attempts over the past year to further limit free speech on the Web – have led us to conclude that we should review the feasibility of our business operations in China.
“We are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all,” he said.
Human rights groups, which have criticised Google’s decision to submit Chinese censorship after setting up in China in 2006, applauded the company’s stand. The New York-based Human Rights Watch described it as “an important step” to protect human rights online.
“Through international pressure, finally a big business in the West has come to realise its own conscience,” said the prominent Chinese dissident Wei Jingsheng who lives in exile in the United States after 18 years in prison in China.
“Some Western businesses thought that by making compromises with the Chinese communists’ regime, they could do business as they wished.
However, this is impossible because the Chinese government would not be satisfied.”
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.
