Business
RMRDC Plans Business Clusters In 774 LGAs
The Director General, Raw Materials Research and Development Council (RMRDC), Professor Peter Onwua1u, said lastThursday that the council would develop business clusters in the 774 Local Government Areas of the Federation.
Onwualu said this in an interview with newsmen in Abuja that the council had already started the process of technologically developing those clusters.
“If you look around the country, there are so many naturally existing clusters in Nigeria, like the furniture cluster in Abuja, the leather cluster in Kano, the shoe and bag cluster in Aba.
“Our idea is to look at these clusters, study them, find out their challenges and see how we can assist them to function better and make them produce competitively.
“The whole idea is to inject technology into existing clusters and see how we can solve the challenges they have, using technology and in some cases, establish new clusters,” he said.
Onwualu added that the council was looking at finding research centres with developed technologies and injecting such technologies into clusters that require them, thereby making them competitive.
He said that the council in 2010, began the mapping out of the clusters, which involved a scientific identification and analysis of the existing clusters.
The director general said that the RMRDC had conducted a baseline study in all the states of the federation to identify such clusters.
Onwualu said that the council had already conducted an international training programme in collaboration with the Swedish International Development Agency and Pan-African Competitive Forum with him as the Chairman.
He said that it was difficult to start the development in all council areas and as such, two clusters were selected from each geo-political zone for the training, which a total of 30 clusters were trained.
“The concept of the cluster programme is to see to the emergence of one viable technologically based cluster in every local government area; it is a tall order but it is part of our vision 20:2020.
“Canadian International Development Agency (CIDA) is now collaborating with us to inject technologies into these clusters and fund all projects on a 50-50 basis,” Onwualu said.
He said that the trainees were given templates and told to go back and analyse their problems, especially technologically based ones and come back with intended projects,
Onwualu added that the clusters had submitted their intended technologically-based projects and that the council was synthesising them for submission to CIDA.
He said that a pilot project had begun with the establishment of a technologically based Cashew processing cluster in Kogi, adding that four more would spring up in other states this year.
Onwualu added that one of the clusters to be developed was the organic fertiliser cluster in Enugu State and sheer butter processing plants in Kebbi State.
The director general said that the development of the clusters was going to be of economic importance to the country.
“When these clusters move into full production, they will begin to pay tax to the government.
“One of the aims of assisting them is to know exactly what they do and the quantity they produce with a view to accurately taxing them,” Onwualu said.
He said that the required technologies were not going to be totally imported as the council was partnering with some agencies in Nigeria, which could provide some of the technologies.
“We are already partnering with some agencies in Nigeria, which can have some of the technologies fabricated, it is when we cannot source them locally, that we will resort to importation,” Onwoalu said.
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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