Business
Council Disburses N11bn To 36 Auto Firms – DG
National Automotive Design and Development Council (NADDC) has disbursed N11 billion to 36 auto companies in an effort to boost local production of vehicles and spare parts in the country.
The Director-General, NADDC, Mr Jelani Aliyu, made this known in Abuja on Wednesday during a meeting with the Governor of Katsina State, Alhaji Aminu Masari.
He said the meeting with the governor and state’s officials was to discuss a proposal for the setting up of an integrated automobile mechanic and motor spare parts village in Katsina state.
According to him, the disbursement of the fund was also to support the auto policy of the Federal Government.
“ I tell you that out of the N11 billion loan, 20 companies have repaid their loan of N7.75 billion in full,” aliyu said.
He said the council was constructing three automotive service hubs as part of strategies to ensure the successful implementation of the auto policy.
“Other things to improve our standards are the construction of three automotive testing centres, three automotive industrial parks and seven automotive training centres,” Aliyu said.
He said establishment of the mechanic village in Katsina state was in line with the automotive policy to empower Nigerians and boost local contents in the production of made in Nigeria vehicles.
Aliyu said that Nigerians spent about 8 billion dollars annually on importation of vehicles.
“About 8 billion dollars go to overseas for importation of vehicles while Nigerians are suffering, also most of the used vehicles imported are unsafe and not good for the citizens,’’ he said.
According to him, the council has trained 20, 000 youths on N-Power in order to boost the sector.
Masari said the plan to establish the mechanic village in Katsina state would reduce the level of unemployment and boost the level of development in the state.
He said there was need for the government to strictly implement the auto policy to enable the country save about 8 billion dollars spent annually on vehicles and spare parts importation.
“We all appreciate the role of transportation in the economy because it is the backbone of the economy that have enough potential.
“The problem we have in the sector is that things are not done in an organised manner. If there is regulation, I think a lot of money will be saved. Nigeria is the only country where you can bring in a 50 years old car and will even be plying the roads.
“ The slightest problem is to cause loss of lives, because the vehicles are tired vehicles,” he said.
According to him, the law on importation of vehicles that states all imported vehicles must enter the country through the port will go a long way to addressing the issue of over used vehicles.
He advised that there was need for mechanics to have basic education as such would go a long way to addressing lots of problems.
Masari promised to assist the council on the planned project on mechanic village in the state.
He commended the Federal Government for working with the Central Bank of Nigeria (CBN) in its effort to boost local production of vehicles and spare parts
“Commercial banks are for profit making, so CBN is the best option,” Masari said.
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.
