Business
Reps Want Experts To Destroy Illegal Refineries
The House of Representatives on Tuesday mandated its joint committees to interface with relevant security agencies in the destruction of illegal refineries.
The committees are Petroleum Resources (Upstream and Downstream), Environment, Habitat, Army, Navy, Interior, Niger Delta and Legislative Compliance.
The committees and security agencies would ensure that officials of relevant Ministries, Departments and Agencies (MDAs) were involved in the process of destroying illegal refineries and boats laden with petroleum products in the country.
This followed a motion by Rep. Owoidighe Ekpoattai (Akwa/Ibom-PDP) on the “need for security agencies to involve experts in the destruction of illegal refineries and boats laden with petroleum products to prevent environmental degradation.”
Moving the motion, Ekpoattai said the process would guarantee retrieval of stolen crude oil, avoid spillage, either on land or water as well as minimise economic losses and avoid pollution and degradation of the environment.
She explained that the increase in illegal oil refineries in the creeks of the Niger Delta had become alarming.
The lawmaker said that the development had also added a new twist to the economic and security challenges confronting the nation.
Ekpoattai explained that the quest to acquire crude oil illegally by non-professionals was devastating the environment, destroying wild and aquatic lives as well as stunting the economic development of the nation.
According to her, this has resulted in an estimated loss of 10.9 billion dollars between 2009 and 2011.
“Section 20 of the 1999 Constitution of the Federal Republic of Nigeria provides that the State shall protect and improve the environment and safeguard the water, air, land, forest and wildlife of Nigeria.
”While Section 2 of the Environmental Impact Assessment Act, Cap E12, Laws of the Federation of Nigeria, 2004 also provides for restriction on public or private projects without prior consideration of their impact or effects on the environment,’’ she said.
She emphasised that in a bid to curb the menace of illegal refineries, the Nigerian Security and Civil Defence Corps, the Nigerian Army and the Nigerian Navy had collectively destroyed at least 280 illegal refineries.
The lawmaker added that they had collectively destroyed barges loaded with petroleum products and secured the conviction of 40 perpetrators out of the 118 arrests made in the last one year in the Niger Delta region.
Ekpoattai expressed concern that in spite of the commendable efforts of the various security agencies to curb the menace of illegal refineries, the methods adopted in the destruction of those refineries endangered the environment of the region.
She said it also had negative effect on the general health and well-being of the people because of wastes emanating from the destroyed refineries and barges washed into the creeks and the ocean.
According to her, failure by security agents to involve experts in carrying out the destruction of the refineries poses environmental hazards just as the existence and operation of those illegal refineries themselves.
Supporting the motion, Rep. Henry Ofongo (Bayelsa-PDP) said that soldiers, who were not experts in engineering, environmental or petroleum issues destroying the illegal refineries were causing more harm and damage to the affected areas.
He said that such operations should be strictly carried out by professionals and not any other individual or groups.
Also in her contribution, Rep. Joan Mrakpor (Delta-PDP) noted that the motion was timely since the military carried out its operations every other day, it was good to take precautionary measures now to avoid causing other hazards to the people in the oil region.
The Deputy speaker, Mr Yussuff Lasun in his contribution called for the engagement of those running legal refineries in the Niger Delta in the process.
He said that this would enable them come out with better ways of making use of the refineries instead of destroying them.
The motion was unanimously adopted when it was put to a voice vote by the Speaker, Mr Yakubu Dogara.
The Tide source recalls that Vice President Yemi Osinbajo had recently said that the Federal Government would establish modular refineries in the region to check illegal oil refineries.
In spite of the pronouncement, the refineries are yet to take off.
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.
