Business
‘We Must Diversify To Boost Local Production’
President Muhammadu Buhari has reiterated the determination of his administration to diversify the economy to boost local production of goods and services.
The president stated this in Abuja on Monday at the opening of the 22nd Nigerian Economic Summit.
He said that with diversification of the economy, Nigeria would never again depend on one commodity to survive as a nation.
“As I have said in the past, we need to diversify the economy so that we will never again have to rely on one commodity to survive as a country so that we can produce the food we eat.
“We also have to make our own textiles work, produce most of the things we use and create the right environment for our young people to be able to innovate and create jobs through technology.
“This has been the commitment and the mandate of this administration and I have remained focused on it each day, since the assumption of this administration.
“There is clearly no better way to achieve this without building our economic foundation of made in Nigeria goods and services,’’ he added.
According to him, the theme of the summit: Made in Nigeria, lies at the heart of so many efforts his administration is making to lead the nation through “this trouble times and lay a firm foundation for the future”.
He noted that that the summit had champions of made in Nigeria that had defied the odds over the years to produce locally and contribute to the economy.
He said his administration would continue to encourage more local production of goods and services, adding that government’s greatest desire was to transform the economy from import dependence to an export-led economy in goods and services.
“My greatest desire is that Nigeria moves from import dependence to self sufficiency in local production and become an export-led economy in goods and services.
“I strongly believe that this summit will bring all stakeholders on board to stay on the course.”
The president expressed the hope that by the end of the summit, the participants would make useful and realistic recommendations and policies aimed at addressing the socio-economic challenges facing the country.
In his remarks, the Minister of Budget and National Planning, Mr Udoma Udo Udoma, assured that the government would continue to improve the enabling environment for businesses to thrive.
“We will continue, among other things, to prioritise our spending towards critical infrastructure to improve Nigerian competitiveness.
“Government agencies will work with the private sector to support research with a view to developing high quality indigenous products and technologies.’’
He explained that many of the government’s programmes had been structured to stimulate domestic production.
He cited the School Feeding Programme as an example, saying the programme would utilise only locally grown and produced food items.
He, however, stated that much more needed to be done by both the public sector and the private sector to encourage and support local production.
Udoma said that “the summit will provide an opportunity to examine what more can be done.
“How do we promote the consumption of more Made in Nigeria goods and services? How do we improve the quality of ‘Made in Nigeria’ goods to international standards so they can be exported?
“How can we support our SMEs to be able to compete?
“It is our expectation that this Summit will provide a platform to sharpen the focus of the conversation and also offer recommendations that will help reinvigorate our industries and services.
He said this would curtail the growing demand for foreign exchange for imported finished goods in the country.
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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