Business
FG Approves N11bn Monthly Wage For PHCN
The Federal Government has approved a new monthly wage bill of N11billion for employees of the Power Holding Company of Nigeria (PHCN).
Vice-President Namadi Sambo stated this on Monday in Abuja while declaring open a two-day Power Sector Reform Workshop at the State House.
He said that the new wage bill followed the approval of a 50 per cent increase in the salary structure of the staff of the company.
“As a further demonstration of our interest in the welfare of electricity workers, we have also favourably considered the recommendation for a 50% increase in the salary structure of the PHCN staff, in spite of the enormous economic challenges of the moment.
“Suffice it to state that we inherited a huge wage bill of over N7 billion monthly for the PHCN staff.
“However, with the new increase, the monthly salary will escalate to over N11 billion. This figure is interestingly about the same amount the PHCN generates monthly.”
He noted that N57 billion was spent by the Federal Government on the payment of the monetised benefits to all PHCN employees.
He added that more than 99 per cent of the staff, both serving and retired, had received the benefits.
According to him, those with incomplete records or whose next of kin have not been ascertained, make up 0.9 per cent of those yet to be paid.
“Once each case is sorted out, the payment shall be made as enough funds still exist with the Central Bank of Nigeria for the settlement of this outstanding liability.”
Sambo said the Federal Government was committed to promoting the interest of electricity workers.
He disclosed that President Goodluck Jonathan had directed that, a percentage of shares in the PHCN successor companies being privatised, be reserved for the workers.
The Vice-President assured the participants of government resolve to appropriate adequate funds for the immediate payment of retirement benefits to all PHCN staff as soon as the unbundling programme was completed.
He stated that the ongoing Power Sector Reform has been embraced by Nigerians, the African Union and the International Community.
He revealed that the National Council on Privatisation had short-listed 40 firms that would benefit from the concessioning of hydro-power stations in the country.
Sambo further explained that 87 other companies would be short-listed for the thermal stations while 80 others would be lined up for the electricity companies.
He expressed optimism that the change of the status of the Federal Government from being the sole owner of the 17 generation and distribution companies, to a minority shareholder would benefit the country.
He described as instructive and revealing, a situation where most of the Federal Government’s plants did not produce up to half of their installed capacities whereas private electricity producers used up their installed capacities.
“The Power Sector Reform will change Nigeria’s socio-economic landscape, far more than we have witnessed in telecommunications sector following the sector’s liberalisation.
“The power sector reform will not only provide Nigerian people with uninterrupted and quality electricity, but will also attract Foreign Direct Investment, create employment and business opportunities, enhance the living standards of electricity workers, like those of their counterparts in the telecoms sector, enable power sector employees to work with state-of-the-art technology and to regularly undergo domestic and international courses.
“It is obvious that the reform will create thousands of job opportunities for the electricity workers through the development of new power infrastructure that will include but not limited to the NIPP 10 new power plants, 4,000km of transmission lines and several hundreds of substations.”
Sambo, therefore, assured that the power reform was “a win-win deal” for all, and urged Nigerians, including trade unions in the sector to embrace the reform programme wholeheartedly.
On electricity tariff, the Vice President said Nigerians should always be ready to pay the appropriate tariff in view of the huge investments being made by both government and the private investors.
In his remarks, the Chief Negotiator/Conciliator between the Federal Government and the Labour Unions of PHCN, Comrade Hassan Sunmonu, commended the Government for implementing the agreements reached between it and the unions.
Sunmonu who is also the Secretary-General, Organisation of African Trade Union Unity (OATUU), challenged Nigerian leaders to bring tens of millions of Nigerians out of poverty, and another 30 million into the middle class, within the next 20 years.
“With our enormous human and natural resources, yes, it is possible. If we fix our power sector, yes it is possible.”
Goodwill messages were delivered at the occasion by Ministers of Labour and Productivity, Power and Trade Unions’ Leaders.
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.
-
Opinion4 days ago
Ozoro Festival: Tradition or Tyranny?
-
News4 days agoRSG Reiterates Commitment To Youth Dev
-
News1 day ago
Decentralizing Pipeline Surveillance Poses Greater Dangers To Niger Delta …. Group Warns
-
Politics1 day agoAPC Resumes Electronic Membership Registration Nationwide
-
Rivers1 day agoCourt Rules Out Interim Administration In Jumbo House, Bonny
-
Oil & Energy4 days agoTranscorp Energy, Renewvia Partner On Renewable Energy Gap
-
Politics4 days ago
RIVERS WOMEN RALLY SUPPORT, CONTINUOUS PRAYERS FOR TINUBU
-
Politics4 days ago
AKPABIO, DIRI, OBOREVWORI, OTHERS VOW TO REELECT TINUBU …AS GIADOM RETAINS APC ZONAL CHAIR