Business
New NOSDRA Bill Stipulates N15bn Fine
The Senate has read for the second time a bill to amend the
National Oil Spill Detection and Response Agency (NOSDRA) Act, providing
stiffer penalties for oil companies involved in both onshore and offshore
spills.
When the bill becomes law, oil spillers will pay as high as
N15bn as removal cost for spills occurring at any onshore facility, while those
occurring offshore will attract a removal cost not less than N5bn.
The bill also stipulates the cost per barrel of oil spilled,
depending on the vessels, facilities and places where the spills occur.
A tank vessel will attract not more than N50,000 penalty per
barrel of oil spilled; the fine for a vessel that is less than 3,000 gross
tonnes will be N100,000 per barrel; 3,000 gross tonne vessel, N150,000 per
barrel; and any other vessel, N250,000 per barrel.
The penalties are contained in four new sections (8, 9, 10
and 11) inserted as amendments in the principal Act.
In addition, Section 8(9) states, “Notwithstanding the
limitations established in section 8(1), all removal costs incurred by the
Federal Government of Nigeria or any state, local government, person or agency
in connection with a spill or substantial threat of a discharge of oil or gas
from any facility or vessel carrying oil or gas cargo from such a facility
shall be borne by the owner or operator of such facility or vessel.”
Presenting the lead debate, last wednesday sponsor of the
bill, Senator Abubakar Saraki, who is also the Chairman of the Senate Committee
on Environment, said the amendment of the NOSDRA Act of 2006 would strengthen
the institution and regulatory capacity of the agency to proactively manage oil
spill in a much more robust and effective manner.
He said it would also create a specific regime of penalties
and responsibilities for oil spills, while providing a consistent guide and
procedure for assessing and accessing compensation for oil spill and other
civil liabilities.
According to him, an effective legislative framework for oil
spill management needs to go far enough to ensure that apart from remedying the
environment, it can provide enough to ensure deterrent for bad environmental
behaviour.
Saraki said, “Oil spillage is not an oil business, it is an
environmental problem. Oil spill is not a necessary consequence of oil
exploration. It is an irresponsible environmental behaviour. The fact that it
is as a result of oil exploration does not detract from the impact on the
environment.
“Nigeria has lost over 13 million barrels of oil to
preventable spills. This is not the entire story. Rather, it is the story of
millions of Nigerians struggling to make ends meet, whose livelihood is
impacted by what is going on in the affected areas.”
“The story is that of destruction of the right of
communities to live in a safe environment, to live decently and in good health.
The full story is that we have ended up now victims of our own blessing because
the cost on our people is no longer about economics, now it is about lives,” he
added.
Saraki said the bill canvassed a robust penalty regime,
which would encourage environmental responsibility and care, adding that the
overall principle was that the polluter must pay.
“The benefit of this penalty regime is to cause operators to
take more care to avoid spills and take proactive steps to nip in the bud any
impending spill without much ado,”
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.
