Business
FG Tasks States Infrastructure Master Plan
The Minister of National Planning, Dr Abubakar Suleiman, has urged state governments to redouble their commitments to the full implementation of States Integrated Infrastructure Master Plans (SIIMPs).
Suleiman gave the advice in Abuja while meeting with Commissioners of Economic Planning and Chief Executives of states Planning Commissions on the development and implementation of the plan.
He said the SIIMP was developed to improve the living standards of people in the country.
“ SIIMP as an extension of National Integrated Infrastructure Master Plan (NIIMP) is designed to give Nigerians improved infrastructure services accelerated economic growth and better standard of living.
“The development and implementation of SIIMP in our various states will help the nation to have a unified drive in all sectors of our infrastructure development,’’ the minister said.
According to him, the states are and federal governments are expected to establish infrastructure delivery units within relevant ministries, departments and agencies to drive implementation of the master plan.
“Governments should develop priority of infrastructure projects and identify other sources of funding for infrastructure development such as bonds, loans and others.
“They are also expected to establish a legal framework and streamline bureaucracy to attract private sector investment and build a strong synergy for infrastructure development,’’ Suleman said.
He expressed optimism that the decisions, recommendations and steps taken at the meeting would help in closing infrastructure gap in the country.
The Secretary, National Planning Commission, Mr Fidelis Ugbo, said the commission would commence the process of implementing the national infrastructure master plan beginning from 2015 budget.
Expert Identifies Reason For Money Market Rates Increase
Executive Secretary, Financial Market Dealers Association (FMDA), Mr. Wale Abe has attributed the upward trends in the money market rates to the volatilities in the Nigerian capital market.
Volatility is a measure for variation of price of a financial instrument over time. It is a measure of risk based on the standard deviation of the asset return.
It is a measure of security’s stability calculated as the standard deviation from a certain contnuously compounded return over a given period of time.
Abe told The Tide source in Lagos that the volatilities were because of the socio-political uncertainties and national security challenges.
He said the uncertainties had led to investment lethargy as noticed in the sustained dropping of the All Share Index (ASI).
ASI shows the movement in the price of stocks of companies on the Nigeria Stock Exchange (NSE).
Abe said that the volatilities in the capital market had made foreign investors to pull out their investments following low yields from the listed equities.
He also said that the development had made the stock market to remain unattractive to both domestic and foreign investors.
The executive secretary added that the downward movement in the price of listed equities could be traced to the Central Bank of Nigeria (CBN) induced liquidity through its tight monetary policy.
Abe said that the sustained fall in ASI was a threat that would make the nation’s portfolio investment climate unattractive.
He added that short term investors in the capital market preferred to put their money in the money market because of artificial returns noticeable in the money market.
Abe also said that the sustainability of the upward trend in the money market could only be retained by the law of demand and supply.
He added that the force of the law of demand and supply in the ideal and real market made it not possible for the rates to be manipulated.
“The net yield of treasury is higher than that of the stock market.
“The two markets differ, especially because of the tax deduction in the stock market therefore making the short-term investors to be attracted to the money market.
“The higher the interest rates in money market, the lower the interest rate in the stock market,” he 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.
