Business
Nigeria Earns N5.5 Trillion In Eight Months
Nigeria earned N5.5 trillion from mineral and non-mineral
revenue between January and August, a data from the Federation Accounts
Allocations Committee (FAAC), said.
The figures obtained in Abuja showed that the country
recorded the highest revenue of N825.39 billion in July.
Out of the total amount generated so far in 2012, a total of
N1.5 trillion was recorded to have been lodged into the Excess Crude Account
(ECA) between January and August.
A portion of the revenues above the benchmark oil price are
saved while the remaining revenue is distributed among the federal, state, and
local governments according to a set formula.
Reports say that records from the FAAC during the months
under review however contained only information on lodgments into the excess
crude account and not withdrawals made from it.
We recall that on Sept. 14, the accountant-general had announced
that the balance in the ECA was 8.03 billion dollars, following lodgment of
N124 billion into the account in August.
Similarly on Aug. 15, the Minister of State for Finance, Dr
Yerima Ngama told reporters that one billion dollars was withdrawn from the
account for distribution among the federal, states and local governments “to
execute some on-going projects.’’
A breakdown of the country’s revenue in the month of July
showed that mineral revenue accounted for N646.47 billion while the non-mineral
revenue amounted to N178.92 billion.
In other months, FAAC recorded N666.32 for January, N766.77
in February, 726.77 in March and N626.17 for the month of April.
Also, a total of N586.91billion was credited to the national
treasury in May, N763.55 billion in June and N564.88 billion for the month of
August.
Notably, the country recorded its least revenue of
N564.88billion in the month of August, compared with figures recorded in the
months of May, April and January, respectively.
The Office of the Accountant-General of the Federation,
headed by Mr Jonah Otunla, computes the figures and also distributes monthly
revenue from the Federation Accounts to the three tiers of government.
The office attributed the shortfall in oil revenue to
decline in production, poor sales and strikes embarked on by Labour unions in
January.
For instance in the month of January, the office reported a
shortfall in revenue from N892.7 billion recorded in December 2011 to N666.32
billion in January 2012.
The one-week nationwide strike called by the Nigeria Labour
Congress and Trade Union Congress because of the removal of fuel subsidy by the
Federal Government was partly responsible for the drop in revenue, the office
said.
The figures from FAAC also recorded that N142.19 billion was
transferred to Subsidy Reinvestment and Empowerment Programme (SURE-P) between
April and August.
It will be recalled that on September 21, Dr Ngozi
Okonjo-Iweala, the Minister of Finance announced that the Federal Government
had so far disbursed N30 billion for projects under SURE-P, out of N180 billion
appropriated for Federal Government projects in the programme.
Since April, the FAAC had transferred the sum of N35.54
billion to SURE-P for distribution to the three tiers of government.
SURE-P was initiated early in 2012 following the partial
removal of subsidy on petroleum products.
Federal Government’s share of the subsidy removal money is
being reinvested in healthcare, public transportation, vocational training and
key infrastructure projects.
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.
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