Business
Power Plant: Firms Sign $1.1bn PP Agreement
The Qua Iboe Power Plant Ltd (QIPP) and the Nigerian Bulk Electricity Trading Plc (NBET) yesterday signed a Power Purchase Agreement (PPA) to construct a 540 Mega Watts gas-fired power plant in the country.
The plant, expected to be located in the Akwa Ibom, is expected to cost 1.1 billion dollars.
The QIPP, NBET, Nigerian National Petroleum Corporation (NNPC), Ministry of Finance, had agreed to a Put and Call Option Agreement (PCOA).
The PCOA details Federal Government’s obligations in supporting the QIPP’s PPA.
QIPP is jointly developed by the Africa Energy Infrastructure Company, Black Rhino, Dangote Group and the NNPC, following the purchase of the rights to develop the project from the Mobil Producing Nigeria.(MPN)
QIPP will be one of the lowest cost power thermal power plants in Nigeria because of its efficient combined cycle design and competitive gas price, giving its 20 –year gas sales agreement with MPN.
The power plant, which is expected to add additional power to the grid on completion, is also expected to unlock investments in transmission infrastructure, including a 58 kilometre transmission line to be built by QIPP.
The Chairman of Black Rhino and Emir of Kano, Muhammadu Sanusi the second, said QIPP would utilise Nigeria’s gas resources to increase electricity generation capacity to reduce cost of power.
He said that the agreement was the beginning of financing in the nation’s power sector.
“Hopefully within the next few months, we will be able to get the financial close which will bring in 1.2 billion dollars into this project.
“We hope with Dangote Group and other partners, this is just the beginning of financing in the power sector, after this we have the Kano solar plants.”
Sanusi said QIPP was an example of how Federal Government and private investors could work together to develop infrastructure that had real socio- economic impact on the country.
The Chief Executive Officer of Dangote Group, Alhaji Aliko Dangote, said that Black Rhino Group and Dangote group partnership was designed to close the gap between Nigeria generation capacity and the energy required to underpin economic growth in the country.
The Chief Executive Officer of Black Rhino, Mr Brian Herlihy, said the QIPP would catalyse further infrastructure investment in Nigeria and support government in building a sustainable power sector for Nigerians.
The Minster of Power, Works and Housing, Mr Babatunde Fashola, said that the 540MW PPA was consistent with clear policy of government as indicated in the Economic Growth and Recovery Plan (EGRP).
Fashola said one of the pillars of EGRP was the production and supply of sufficient power to Nigerians.
He says the process that potentially adds 540mega watts of electricity to the nation’s power store, fits into the incremental power programme of government.
He said the ministry had begun a review of the preparation of construction of the Ikot Ekpene line, adding the QIPP would utilise the line on completion.
“We held long meetings with Niger Delta Power Holding Company of Nigeria (NDPHC) and we must acknowledge their commitment that they will deliver.
He urged all partners in the project to actively get involved in it to deliver the project in good time.
Earlier, the Managing Director of NBET, Dr Marilyn Amobi, said that the project had started as an alliance between NNPC and its joint venture partners.
She said that the project was the response to government’s call to investors to contribute to the investment in the Nigerian electricity supply industry.
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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