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Beyond Recapitalization Of Banks

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Quote:” Whereas Nigerian banks have seen their real capital eroded by inflation and currency depreciation, the most immediate and positive outcome expected from the recapitalisation is enhanced financial stability”
When the Central Bank of Nigeria (CBN) on April 1, 2024, set a 24-month timeline for banking sector recapitalization, reactions ranged from optimism to skepticism. Now, with barely two quarters to the deadline of March 31, 2026, the heat on the sector is getting to feverish pitch. The new benchmark now requires banks with international operating licenses to shore-up capital bases to N500 billion, up from the previous ?25 billion minimum, while those with national operating licenses are required to up-grade to N200 billion, and regional banks to N50 billion minimum. Realistically, having been over two decades since the last recapitalization exercise which happened under Professor Charles Soludo as the CBN Governor, the current exercise is long over-due. The delay highlights a level of laxity on the side of financial regulators.
Coming more than two decades later, the current recapitalization appears push-driven by inflation, naira depreciation, or by the sheer dream for a $1 trillion economy, rather than a calculation borne by foresight. The exercise might also expose weak governance structures, as shareholders and foreign partners demand greater transparency and accountability before committing funds. But if implemented transparently, it could rejuvenate Nigeria’s banking sector and lay the foundation for sustainable economic growth. The success of the recapitalisation drive will depend upon policy consistency, regulatory clarity, and fairness. Since the last exercise in 2004 the Nigerian economy has changed both in size and dynamics, with most banks having assumed heavier financial undertakings locally and internationally, and some having expanded operations into off-shore frontiers. In 2004, Nigeria’s GDP was estimated at $135.8 billion.
Today the estimate stands at $477 billion, and is being projected to hit $1 trillion by 2030. In the face of a devalued currency, the dynamics of present-day transactions present newer levels of risk exposures, for which banks need to be adequately fortified. The increased volume of transactions following relative economic growth since 2004, require that Nigerian banks be recapitalized even in trillions of Naira in order not to be tossed off-balance. Adequate recapitalization would strengthen the banks to higher resilience against financial shocks, while enabling them to expand lending capacities to an economy starved by cash. Thankfully, 14 banks are confirmed to have hit their required threshold targets, thus are in positions to dominate the industry going forward. These include First Bank, Access Bank, Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Stanbic IBTC, Fidelity Bank, Ecobank Nigeria, Wema Bank, Sterling Bank, Union Bank, First City Monument Bank (FCMB), Standard Chartered Bank, and Citibank Nigeria.
Whereas Nigerian banks have seen their real capital eroded by inflation and currency depreciation, the most immediate and positive outcome expected from the recapitalisation is enhanced financial stability. What was once a ?25 billion minimum capital base in 2004 now holds far less value in dollar terms. By compelling banks to raise fresh capital, the CBN would be reshaping the institutions to withstand global financial headwinds, manage credit risks more effectively, and maintain public confidence in the banking system. Another major benefit could be increased lending capacity. Stronger capital bases would enable banks to fund large-scale infrastructure projects, support manufacturing, agriculture, and the digital economy, and provide long-term financing that Nigeria’s development urgently needs. With Nigeria aspiring to become a trillion-dollar economy, its banks must have balance sheets robust enough to support both government and private sector investment at scale.
Besides, recapitalization is a key stress-test exercise that weeds-out weaker financial institutions to ensure that only the fittest operate in the economy. Evidently, the last exercise in 2004 transformed the sector, after merger and acquisition activities reduced the number of banks from a staggering, but ineffective 89, to 25 strong, better-capitalised banks. Followed by other reforms, the occurrence of distressed banks got drastically reduced. Before then, bank distresses got depositors stranded when they could not access their hard-earned savings. But painfully, not all outcomes would be rosy from the present consolidation exercise. In a sluggish economy and tight global capital market, raising new funds will be a daunting challenge. Even as many of the banks, who have turned to the Nigerian Exchange (NGX) to issue new shares, reported good investor appetites, smaller banks with limited shareholder backings are not as lucky.
This is triggering waves of acquisition and takeover fevers, reminiscent of the 2004 era. As already being witnessed, struggling tier-2 banks which are unlikely to raise sufficient capital from the market, would consider mergers and acquisitions as the only realistic paths to survival. As insider sources reveal, the dire situation is already reshaping boardroom strategies, as may engage financial advisers and investment banks for possible deals. And as the Asset Management Company of Nigeria (AMCON) sold its 34 per cent stake in Unity Bank to Providus Bank weeks ago, the fate of the former is set for acquisition by the latter, while peers like Polaris Bank, Keystone Bank, and SunTrust Bank, may go in similar directions in the rush-up to the deadline.However, other risks remain. Poorly executed mergers could lead to integration challenges, governance conflicts, and cultural clashes that may hurt the system.
While consolidation can bring efficiency and innovation, it could also lead to job losses and reduced competition, especially if regional banks are swallowed by larger, urban-based institutions. The CBN must therefore ensure that the recapitalisation process does not stifle diversity within the financial ecosystem.If successfully managed, recapitalisation could usher-in a competitive, and development-oriented banking industry, that sends strong signals to international investors that Nigeria is serious about financial reforms and economic resilience. A more stable, liquid, and well-capitalised banking system for Nigeria, will not only strengthen domestic confidence but could also attract foreign direct investment and international partnerships.But if plagued by politics, favoritism, or poor timing, it could become a missed opportunity, that leaves the economy burdened with fewer, yet not necessarily stronger, banks.
By: Joseph Nwankwor
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Opinion

Empowering Youth  Through Agriculture 

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Quote:”While job seeking youths should  continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.

The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State  It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has  the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should  continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country.  The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity.  Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.

By: Igbiki Benibo

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Opinion

Of Protests And Need For Dialogue 

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Quote:“.Across Abuja, Anambra, and Lagos, a common thread emerges: a disconnect between authority and empathy. Government actions may follow policy logic, but citizens respond from lived experience, fear, and frustration. When these realities collide without dialogue, the streets become the arena of engagement”

It was a turbulent week in the country, highlighting the widening gap between government intentions and public perception. From Abuja to Anambra and Lagos, citizens poured into the streets not just over specific grievances but in frustration with governance that often appears heavy-handed, confrontational, or insufficiently humane. While authorities may genuinely act in the public interest, their methods sometimes aggravate tensions rather than resolve them.
In Abuja, the strike by workers of the Federal Capital Territory Administration (FCTA) and the Federal Capital Development Authority (FCDA) under the Joint Union Action Committee (JUAC) brought the capital to a near standstill. Their demands included five months’ unpaid wages, hazard and rural allowances, promotion arrears, welfare packages, pension and National Housing Fund remittances, and training and career progression concerns. These are core labour issues that directly affect workers’ dignity and livelihoods. Efforts to dialogue with the FCT Minister reportedly failed. Even after a court ordered the strike to end, workers persisted, underscoring the depth of discontent. Threats and sanctions only hardened positions.
The FCT crisis shows that industrial peace cannot be enforced through coercion. Dialogue is not weakness; it is recognition that governance is about people. Meeting labour leaders, listening attentively, clarifying grey areas, and agreeing on timelines could restore trust. Honesty and negotiation are far more effective than threats.
In Anambra, protests by Onitsha Main Market traders followed the government’s closure of the market over continued observance of a Monday sit-at-home, linked to separatist agitation. Governor Chukwuma Soludo described compliance as economic sabotage, insisting Anambra cannot operate as a “four-day-a-week economy.” While the governor’s concern is understandable, threats to revoke ownership, seize, or demolish the market risk escalating tensions. Many traders comply out of fear, not ideology. Markets are social ecosystems of families, apprentices, and informal networks; heavy-handed enforcement may worsen resistance. A better approach combines persuasion, dialogue with market leaders, credible security assurances, and gradual confidence-building. Coordinated political engagement with federal authorities could also reduce regional tensions.
In Lagos, protests erupted over demolition of homes in low-income waterfront communities such as Makoko, Owode Onirin, and Oworonshoki. The state defended these actions as necessary for safety, environmental protection, and urban renewal. While objectives are legitimate, demolitions drew criticism for lack of notice, compensation, and humane resettlement. Urban development without regard for human consequences risks appearing elitist and anti-poor. Where demolitions are unavoidable, transparent engagement, fair compensation, and realistic relocation must precede action to maintain public trust and social stability.
Across Abuja, Anambra, and Lagos, a common thread emerges: a disconnect between authority and empathy. Government actions may follow policy logic, but citizens respond from lived experience, fear, and frustration. When these realities collide without dialogue, the streets become the arena of engagement.
Democracy cannot thrive on decrees, threats, or bulldozers alone. Leaders must listen as much as they command, persuade as much as they enforce. Minister Wike should see labour leaders as partners, Governor Soludo must balance firmness with sensitivity, and Lagos authorities should align urban renewal with compassion and justice. Protests are signals of communication failure. Dialogue, caution, and a human face in governance are not optional—they are necessities. Police and security agencies must respect peaceful protest as a constitutional right.

By:  Calista Ezeaku

 

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Opinion

Empowering Youth  Through Agriculture 

Published

on

Quote:”While job seeking youths should  continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State  It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has  the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should  continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country.  The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity.  Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
 Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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