Business
World Bank Links Building Collapse To Poor Regulation
World’s apex banking institution, the World Bank, has attributed the frequent building collapse in Nigeria, especially in Lagos State, to gaps and loopholes in the permitting process and the use of unqualified professionals in the design and construction of buildings.
World Bank also listed the absence of a legally adopted building design code, limited land available for development, and lack of systems to ensure the quality of construction materials among reasons buildings cave in regularly in Lagos, and other parts of the country.
The institution made the revealation in its recent report on housing regulatory framework standards in sub-Saharan Africa, which was obtained on Monday.
According to the bank, only about 10 per cent of construction sites obtain permits, and even when permits are obtained, final construction can still deviate from their requirements.
The World Bank noted that as a result of failure in regulation, building collapses occur during the rainy season due to construction on inappropriate sites and/or flood damage to foundations and structures.
It also stressed that the building control authorities were under-resourced and lacked adequate transportation and equipment to carry out effective site monitoring and inspection.
To resolve this, the World Bank proposed collaboration between the government and private sector, as well as bottom-up outreach to inform communities about the risks associated with low-quality construction and design.
By: Corlins Walter
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
