Business
Nigeria’s Recession’ll Not Prolong -Minister
The Minister of Finance, Mrs Kemi Adeousn, has assured Nigerians that the current economic recession the nation is experiencing will not be prolonged.
She gave the assurance on Friday in Abuja while addressing a news conference.
She said that there was a strategic plan by the administration to see that the recession ended soon and also ensure that the economy recovered fully.
“We have a strategic plan that will take us out of the recession we have found ourselves in; we want to make sure the recession is as short as possible because we do not want a prolonged recession.
“From what we are looking at we do not think that it will be a prolonged recession; we think that some of the initiatives that we are working on will now begin to bear fruits.
“We are on course and are confident that the plan we have put together will work and put the economy back on track. “It is a long term plan that would reposition the economy so that we do not go into this boom and burst circles that are driven by the oil price.
“The economy has to be more resilient than that so that we do not find ourselves back where we are.’’
She said that although there was no specific date to end the recession, the fact that there were measures in place was enough indication that the end of the recession had begun and that Nigeria would come out stronger.
Listing some of the measures the administration had taken to address the situation, she said that since the budget was released in May, over N420 billion had been released and cash backed for capital projects.
She said that the largest sector that the money was spent on was Power, Works and Housing.
She also said that a lot had been done in the defence sector to rebuild the capability of the army, especially on efforts in the North East.
“Agriculture has received significant funding because of the time sensitivity of agriculture and because of the fact that food prices were rising, we needed to intervene so that we could get food prices down.
“There is activity resuming on roads, power projects and health projects and we have released money to water resources and solid minerals.’’
Adeosun also said that there was a cash plan to release another N350 billion which would go into the various MDAs.
“The focus is going to be similar, however, there would also be funding of about N60 billion for the Special Intervention Programme and that is very important in putting money into people’s pockets.
“The school feeding programme and the N-Power teachers corps we will cash back today as part of the N350 billion additional release which would take our total capital spending to about N700 billion.’’
She also said that N50 billion was set monthly as budget support plan for some state governments from the Federation Accounts Allocation Committee (FAAC) to support them with additional money to enable them to pay salaries. She said that the loan had been on for three months for the interested states because some states which were buoyant decided not to participate.
On recovery of assets, Adeosun said that the committee was in the process of collating with the non-cash assets like farmlands, vehicles and houses and that a fixed asset register would soon be opened to determine their value.
She said that the jewelries were from different locations and were being brought together to determine the market value and that the next line of action would be decided by the committee. Adeosun explained that the present recruitment by the police and some other government agencies were made possible by the reduction of ghost workers. She added that the savings that were made from the exercise would enable funding for the new recruitment.
“Sometime in January, personnel cost was N165 billion along with pension cost, but so far so good; we have reduced, through the removal of about 40,000 ghost workers, the personnel cost by around N10 billion per month. “Now we have saved about N100 billion this year.’’
She said that though the times were tough, there was hope for Nigerians, adding that issues around infrastructure were the biggest problems of Nigeria which resulted in high cost of living.
“The biggest problem we have is not wages but the cost of living which is too high so it is not how much money you have but it is what it costs you to live. “The problem we have is that many of the things that people are spending money on are the things government should be doing like roads, power and so on.
“So we have to address these things because that is what will really make impact for the average working Nigerian and so when you address the infrastructure you address the cost of living and that is what this government is working on.’’
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.
