Business
Osinbajo Tasks Govt On Fiscal Discipline
The Vice President, Prof. Yemi Osinbajo has urged the three tiers of government to ensure adherence to fiscal discipline, enhance revenue generation, and rational allocation.
He also called on them to be conscious of the efficient use of resources for Nigeria to achieve sustainable growth.
Osinbajo gave the advice at the opening of a three-day workshop organised by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
The theme of the workshop is ” Alternative Sources of Revenue Generation for Sustainable Development in States and Local Government Councils in Nigeria.”
Osinbajo, represented by the Minister of Finance, Mrs Kemi Adeosun, described the workshop as timely, adding that it came at a time the present administration was working hard to re-position Nigeria’s economy after a period of declining revenue.
“The recently announced exit from recession is simply one of the stages in the development of this economy and the growth of this economy for future generation.
“We are determined to build an economy that works for all Nigerians; not just for the rich, not just for when oil prices are high, but also for everybody for the long term.
“This commitment is critical and the engines for this commitment are the state and local government.
“As you know, there are no federal people, everybody lives in a state or local government.
”For this economy to grow in the way it was intended, every state, every local government must be fiscally sustainable and must be able to meet its obligation.
“The obligation of state and local governments is not just the payment of salaries; they have critical roles in development.
Osinbajo said that the President Buhari-led administration had been working very hard to ensure that not only could states pay salaries but were also be able to lay the foundation for growth.
He commended RMAFC for the initiative and opportunity to re-emphasise the need to look beyond traditional revenue sources and strive for the viability of each state government.
Osinbajo advised all states to develop their own sources of Internally Generated Revenue (IGR) while commending those that had started doing that.
According to him, one of the biggest ingredients to getting revenue for states and local governments is accountability.
“People would support government when they can see what is happening to the money; it is important that we approach transparency.
“This is not a time for us to relax, this is a time for us to double our efforts, we deserve a better Nigeria, the future generation of Nigerians are looking up to us,” he said.
The vice-president urged participants to engage actively in the workshop and create implementable plans with specific timelines on how to increase public revenues, sustainable within participating states and local governments.
Earlier, the Acting Chairman, RMAFC, Alhaji Shettima Abba-Gana, said the various economic programmes of the present government had helped in getting the country out of recession.
According to him, new additional sources of revenue are being studied, adding that the commission is designing ways of generating and collecting these revenues for the benefit of the states and local governments.
He expressed optimism that the over dependence on statutory transfers of funds from the federation account for governance by the states and local governments would soon begin to reduce.
Abba-Gana said that the workshop would avail the participants with various untapped revenue sources and would introduce them to modern revenue collection techniques.
“The workshop is geared to among others, achieve the burdens of taxation in the development of states and local governments and strategies in generating revenue in solid mineral sector.
“It will help in improving agricultural activities in states and local governments, to enhance revenue generation and encourage PPP to improve economic activity to generate more revenue
“It will also help to reduce cost of governance in Nigeria in order to save more funds,” he said.
The acting chairman expressed optimism that the programme would address and proffer solutions to the most crucial challenges in revenue generation and collection.
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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