Business
Senate Washes Hands Off 2010 Budget Increase
The Senate has said that it is washing its hands off the over N400 billion increase in the N4.6 trillion budget estimate for 2010.
The legislative upper chamber, however insisted that the N4.06 trillion budget remains operational as well as an Act of the National Assembly until amended by the National Assembly.
The Upper House in a reaction said that the increase followed 27 additional requests and inputs from the executive in the 2010 appropriation bill.
Senate spokesman, Senator Ayogu Eze at a news briefing yesterday also insisted that the projected $67 per barrel benchmark for the year was fixed by the National Assembly after due consultation with the budget office in the presidency.
Although he said that Senate was not ready to trade blame with the executive on the budget, he however said “we did every thing together with the executive”.
According to him, it was the same executive that had initially presented a budget of N4.03 trillion that later introduced 27 more additional projects that increased the 2010 estimate.
He explained that the approved oil benchmark of $67 was largely informed by the then prevailing oil price of over $89 per barrel of crude oil at the international market.
He however said that Senate would take another look at the budget in line with the present economic realities, adding that until such amendment is done, the budget as it is, remains an Act of the National Assembly.
On state creation, Senator Eze said that Senate will be guided by the provision of Section 9 of the 1999 constitution.
Eze who confirmed that state creation was still on the card, however said that certain criteria will be considered by the Senate in recommending the states that will be created.
“I want to announce to you that as we come to the conclusion of that first phase, we are already getting ourselves ready for the next phase of the amendment of the Constitution, because there is a need for us to prove skeptics wrong because there are Nigerians that say states cannot be created under civilian dispensation.
“We want to prove in the next outing that indeed our democracy has come of age and we can do mutual discussion through dialogue, through debates and through consensus building among ourselves to restructure and realign the political framework of Nigeria in a manner that will be useful and beneficial and satisfy the aspirations of Nigerians.
“And having said so, when we start, we are going to take request for states creations on their merit. We will be guided by the basic provisions in Section 9 and the relevant sections in the Constitution and we are also going to be guided above all by some of the evidential parameters such as viability, such as ability of such a state being created to promote unity, promote harmony and promote the growth of the Nigerian state, because any state creation exercise that will be rancorous, unfortunately, we will stay away from it. “So, my advice is that those who want to request for state must go and organise themselves properly and do it consensually and come up with request that accord with the provision of 1999 Constitution and hopefully 1999 Constitution would be altered by that time as well as gain the positive response of the Houses of Assembly”.
The Senate spokesman however allayed fears that state governors will prevail on the State Assemblies to withhold their concurrence for the reviewed 1999 constitution
Senator Eze said that Senate has been in constant discussion with the governors and their states Assemblies, adding that the governors are eager to get the constitution amended by the National Assembly and therefore will not work against it now.
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.
