Business
FG To Save N1.3 Trn From Oil Subsidy Removal – Maku
The N1.3 trillion savings expected to be realised from the planned removal of oil subsidy will be invested in the development of key infrastructure in the country, the Minister of Information, Mr. Labaran Maku, has said.
Maku, who disclosed this recently in Abuja noted that the policy would yield enormous benefits to Nigerians.
He said government would not just stop at removing the subsidy but would invest the funds in developing key infrastructure in the country.
Maku said that with the removal of subsidy, the few oil importers who have been shortchanging Nigerians would have no such opportunity as corruption would cease in the sector.
“Immediately the subsidy is withdrawn, the idea of spending N1.3 trillion on a few oil importers would end: the corruption that is associated with it would disappear.
“Secondly the money that government is borrowing and wasting on subsidy would now be transferred to deal with issues of infrastructure.
“We want real mass transit in the country: you can’t talk of mass transit without the railways, government has decided to rehabilitate all the existing railway lines in the country to make them functional.
“Already 25 trains have been imported, we want to make sure that this rehabilitation is quickly expeditiously carried out; already the line from Lagos to Kano has been rehabilitated up to Jebba.”
According to Maku, work is also going on the rail line between Zaria and Kano while work has also started on the Standard Gauge between Abuja and Kaduna.
The minister said that the lines between Port Harcourt and Enugu to Otukpo, Markurdi, Lafia, Kafanchan, Jos, Gombe and Maiduguri would also be rehabilitated.
He said that the lines from Gudi in Nasarawa State would also be connected to Abuja, adding that when completed people could travel from Abuja to Port Harcourt by train.
Maku said that some private sector operators have indicated interest in the construction of a speed train line from Lagos to Abuja.
“That is the mass transit we are talking about; it would make our roads safer, it would reduce the level of vehicles on our roads, in addition to that, it will make it cheaper for Nigerians to travel to the rest of the country.
“Even the elite that are going by air now, they would find cheaper ways of travelling: this is what is going to develop Nigeria.
“And then this capital cannot come from government: government money cannot do these things; therefore the rail system would be completely restored and Nigerians will have alternative means of transportation.”
He said that the government would also deliver on all the roads in the country once the fund used in subsidising fuel was withdrawn and invested in the right places.
“We want to deliver on all the roads: the East-West roads, the Ore-Lagos-Benin road up to Port Harcourt: the Abuja-Lokoja-Benin road will be rehabilitated: the Maiduguri-Kano road will be completely built.
“The Oweto bridge which crosses Benue and Niger will be built, all these we are going to deliver.”
Cue-out audio 3 (Maku on infrastructure)
He disclosed that part of the money from the subsidy removal would be directed towards the power plants as part of measures to stabilise electricity supply in the country.
According to the minister, the Mambilla Power Plant, which will be the biggest hydro-electric project in West Africa with a capacity of 2,600 megawatts, will also be built from the money that would be recovered.
Cue-in audio 4 (Maku on infrastructure)
“Plans have been concluded, immediately this subsidy issue has been put behind us, work on that plant will take-off: we are going to make sure that all existing dams in the country will generate electricity.
“So part of this money, 1.3 trillion would go into speeding up the stability of electricity supply in Nigeria.”
Maku said government would deliver on its promises within the next three years so as to guarantee adequate and stable power supply while tackling the problems of unemployment in the country.
On Agriculture, the minister said that the Federal Government was planning a whole scale programme of growing rice to make Nigeria self sufficient in rice production.
He said that about 400 metric tons of rice would be produced in areas with comparative advantage in rice production in the country. (NAN)
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.
