Business
Brazil, US Talks To Focus On Trade
President Barack Obama and visiting Brazilian President Dilma Rousseff on Monday stressed the importance of strong ties between their countries, despite Brazil’s concerns about United States economic policies that it says can work against emerging economies, reports the CNN.
In comments to reporters after a White House meeting, Obama and Rousseff highlighted the areas of cooperation on energy development, education and trade as the two leaders prepare to attend the upcoming Summit of the Americas in Cartagena, Colombia, beginning Friday.
However, they made no mention of less collaborative topics, such as whether each country will purchase new military aircraft from the other, or whether the United States will support Brazil’s efforts to gain a seat at the U.N. Security Council.
Two-way trade between Brazil and the United States last year totaled around $74 billion, according to the U.S. Census Bureau, and the balance has gone from a U.S. deficit to a surplus in recent years.
Brazil has recently announced a series of measures to boost economic growth and rein in its overvalued currency, including slashing interest rates and levying taxes on short-term currency inflows.
At the same time, Brazil complains that low U.S. interest rates amid a sluggish recovery are hurting foreign trade partners.
On Monday, Rousseff and her foreign affairs minister both noted the U.S. trade surplus with Brazil, and Rousseff called for better balance in U.S. monetary and fiscal policies to prevent a depreciation of the dollar that harms emerging market trade partners.
Expansionist monetary policies, such as holding down interest rates, in isolation of fiscal expansion through increased investments, “ultimately lead to depreciation in the value of the currencies of developed countries, thus impairing growth outlooks in emerging countries,” Rousseff said.
Earlier, in comments to U.S. business leaders, Foreign Minister Antonio de Agular Patriota cited increased trade between the countries despite the global economic downturn of recent years, but he also called the Brazilian trade deficit with the United States “not ideal” and “a challenge.”
In particular, he said the United States now buys more Brazilian commodities and fewer of his country’s manufactured goods, adding, “this is something we have to look at very seriously, and we will.”
In her comments, Rousseff noted that the global economy’s “resumption of growth in the medium-term future certainly involves a substantial resumption of growth in the U.S. economy.”
“We very much welcome the major improvements that have been found in the U.S. economy in the recent past, and I am quite certain that that will very much be the emphasis in the next few months and years ahead under the capable leadership of President Obama,” she added in what amounted to either an endorsement or prediction of Obama’s re-election in November.
It is Rousseff’s first official visit to Washington as Brazilian president and comes more than a year after Obama went to Brazil, shortly after Rousseff came to power in the South American country.
In his own remarks to reporters, Obama emphasized Brazil’s rising influence in global affairs as a South American power that has become the world’s sixth-largest economy.
He cited “the extraordinary progress that Brazil has made” to become “not only a leading voice in the region, but also a leading voice in the world.”
In particular, Obama noted Brazil’s growing energy development and its growth into a leader in the biofuel industry as well as a major player in oil and gas development.
“The United States is not only a potential large customer to Brazil, but we think that we can cooperate closely on a whole range of energy projects together,” Obama said at a time when he is under attack from Republicans over rising domestic gas prices.
Speaking through a translator, Rousseff agreed that oil and gas development offered “a tremendous opportunity for further cooperation, both as regards the supply of equipment and provision of services, and also as regards a wider role in our trade relations.”
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.
