Business
Reactions Trail Planned Removal Of Fuel Subsidy
The plan by the Federal Government to remove fuel subsidy sparked off reactions in Port Harcourt city and its environs over the weekend as majority of people interviewed condemned the step, describing it as one that would upset the current stability in fuel supply and impact negatively on other sectors of the national economy.
One of the respondents, the Managing Director of NEDAL oil Ltd, Prince Emmanuel Ogba said he was surprised that the current administration led by President Goodluck Jonathan which is lauded for checking fuel crises in the country could be thinking of removing fuel subsidy now.
“I think that the step is wrongly timed because government should allow the ongoing reform in the petroleum sub sector to get to an advanced stage such that when subsidy is eventually removed, it would not have abrupt and far-reaching negative effects that would eventually affect other sectors of the nation’s economy”, he said.
The managing director who ackowledged that Nigerians could not run away from removal of fuel subsidy in the future, stressed that the idea of removing fuel subsidy should not even be imagined now.
According to Prince Ogba, “the whole idea of removal of subsidy is about increase in pump price and whence such step is taken at this stage of reform in the oil sector, it affects almost every other calculations in the nation’s economy”.
But to Mrs. Ijeoma Nwankwoala, the idea of removal of fuel subsidy would cause people to create “artificial scarcity because, in the short run, there could be hoarding by marketers who may have feelings of uncertainty over the acceptability of the step”.
In the long run, she continued, “Immediately the increase in pump price tries to stabilise, Nigerians would think of short cut. By that, I mean, black market may present itself as another competitor to organised market”.
Mrs. Nwankwoala, a secondary school teacher also expressed the view that when black market begins to thrive as a negative effect of the increase in the pump price, illegal bunkering and vandalism of pipelines by economic saboteur could become the order of the day.
Some drivers in the metropolis also condemned the removal of the subsidy because of the impact it was capable of having on the transport sector.
“Commuters in Port Harcourt always complain that the transport fare in the city is higher than what obtains in other cities of the country. Now if you remove subsidy in petrol which will result in increase in transport fare, you can imagine how high the fare would be,” said Cletus Chukwu, a taxi driver.
Another commercial driver, Jonathan Charles who operates along Port Harcourt/Aba Express Way advised the president not to give in to anti-people strategies by those he considered enemies of the government and the common Nigerians.
Mr. Charles pleaded with the president to drop the idea, at least, for now until other aspects of the ongoing reforms have been addressed, stating that what the government should be thinking now is the problem with the Nigeria National Petroleum Corporation (NNPC).
He described the non remittal of funds to the government by NNPC to the tune of several hundred billions of naira, the comatose of all the refineries in the nation and undefined standard in allocation of oil blocks as the problems with the industry.
“But government would not see those ones because they concern the big men in the country but whenever any issue concerns the common man, the government applies a different approach,” he said.
“Look at the much talked about implementation of new minimum wage to Nigerian workers, it had been turned to a drama. This attitude should change in the interest of Nigerian masses”, he maintained.
It would be recalled that the Minister of Labour and Productivity, Emeka Nwogu, recently said that federal government has no better alternative to removal of fuel subsidy. Apart from providing more fund to service the nation, government believes that there is great disparity between the cost of petroleum product in Nigeria when compared to other countries.
Chris Oluoh
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.
