Category: Daily Trust

Nigeria’s banking industry has entered a new era following the successful completion of the Central Bank of Nigeria’s (CBN) sweeping recapitalisation programme, a reform many analysts believe could redefine the future of the country’s financial system and broader economy.

After raising an estimated N4.65 trillion within two years, banks are now confronting a more important question: what comes next after recapitalisation?

For regulators, investors, and industry stakeholders, the answer lies not only in stronger balance sheets but in how effectively banks utilise their fresh capital to drive economic growth, strengthen governance, improve service delivery, and position Nigeria as a stronger financial hub in Africa.

The recapitalisation exercise, initiated under the leadership of the CBN Governor, Olayemi Cardoso, was designed to prepare the banking sector for a more demanding economic environment and align it with Nigeria’s long-term ambition of becoming a $1 trillion economy.

Under the new capital requirements, international commercial banks are expected to maintain a minimum capital base of N500 billion, national banks N200 billion, and regional banks N50 billion.

The exercise triggered one of the largest capital mobilisation efforts in the history of Nigeria’s financial sector, with lenders tapping the equities market, strategic investors, and retained earnings to meet the new thresholds.

Now that most banks have either completed or significantly advanced their recapitalisation plans, the focus is shifting from raising money to deploying it productively.

Industry analysts say the post-recapitalisation era will test the capacity of banks to convert stronger financial positions into measurable economic impact.

For many observers, recapitalisation marks only the beginning of a broader transformation process that will determine whether Nigerian banks can evolve into institutions capable of financing large-scale development, competing globally, and supporting sustainable growth.

One of the immediate consequences of recapitalisation is the stronger financial resilience now evident across the banking sector.

Most banks currently operate with improved capital adequacy ratios, enhanced liquidity buffers, and greater capacity to absorb economic shocks.

This stronger financial footing is particularly important at a time when global markets remain volatile due to geopolitical tensions, fluctuating oil prices, inflationary pressures, and tighter international financial conditions.

The International Monetary Fund (IMF) recently acknowledged the importance of Nigeria’s recapitalisation programme during the IMF/World Bank Spring Meetings in Washington.

According to the IMF, stronger capital buffers are essential for safeguarding financial stability during periods of economic stress and external shocks.

The Fund noted that well-capitalised banks are better positioned to support economic expansion, sustain lending activities, and strengthen confidence in the financial system.

The IMF Financial Counsellor and Director of the Monetary and Capital Markets Department, Tobias Adrian, said recapitalisation becomes most valuable during periods of uncertainty.

‘Concerning bank recapitalisation, it is in times of stress where the value of bank capital really comes to the fore. What we are aiming at for global financial stability is a banking sector that is capitalised against adverse shocks,’ he stated.

For Nigerian banks, however, the conversation is increasingly moving beyond stability toward expansion and impact.

With stronger balance sheets, lenders are expected to finance larger projects and support sectors that are critical to economic diversification.

Infrastructure development remains one of the biggest areas where banks are expected to play a transformative role.

Nigeria continues to face significant infrastructure deficits in transportation, power, housing, and logistics. Analysts believe recapitalised banks now possess the financial capacity to participate more actively in long-term infrastructure financing that was previously beyond their reach.

Manufacturing is another sector expected to benefit from stronger banks.

For years, manufacturers have complained about limited access to long-term credit and the high cost of borrowing. Industry stakeholders believe the recapitalisation exercise could improve banks’ appetite for lending to the real sector, particularly if macroeconomic conditions become more stable.

Agriculture and small and medium enterprises (SMEs) are also expected to attract greater attention from lenders.

These sectors remain central to job creation and economic inclusion, yet many businesses continue to struggle with inadequate financing.

Economists argue that one of the true tests of recapitalisation will be whether banks can extend more affordable and accessible credit to productive sectors capable of stimulating industrial growth and employment.

At the same time, Nigerian banks are expected to expand their influence beyond the domestic market.

With stronger capital positions, many lenders are likely to deepen their regional presence and take advantage of opportunities under the African Continental Free Trade Area (AfCFTA).

Analysts believe recapitalised banks are now better positioned to support cross-border transactions, finance regional trade, and compete with larger African financial institutions.

The reforms could also improve Nigeria’s attractiveness to foreign investors.

A stronger and better-capitalised banking system often serves as a key indicator of economic stability, making it easier to attract international capital and partnerships.

For foreign investors, strong banks provide confidence that the financial system can support large-scale investments and withstand periods of uncertainty.

However, industry observers say the post-recapitalisation era will not be defined by capital alone.

Corporate governance is emerging as one of the most critical priorities for regulators and stakeholders.

The CBN has already signalled that it intends to adopt a stricter regulatory posture after the recapitalisation exercise.

Speaking recently at the Chartered Institute of Directors Nigeria’s induction ceremony in Lagos, Cardoso, represented by the Director of Banking Supervision, Olubukola Akinwunmi, said the next phase of reform would focus heavily on governance, accountability, and risk management.

According to him, stronger capital must be matched with stronger oversight.

‘The role of directors becomes even more critical in this new phase. Stewardship must now be exercised with sharper focus on consolidation, confidence and stability,’ he said.

The renewed emphasis on governance follows previous regulatory interventions in the banking sector, including the dissolution of boards and management teams of some financial institutions over governance breaches and regulatory infractions.

To prevent future failures, the CBN has introduced stricter rules relating to board oversight, succession planning, insider lending, and disclosure requirements.

Among the measures is a directive requiring systemically important banks to obtain regulatory approval for incoming chief executives at least six months before transitions, while successor announcements must be made three months ahead.

The apex bank has also intensified scrutiny of related-party transactions and insider lending practices that previously contributed to governance failures within the industry.

Analysts say the stronger governance framework is intended to ensure that recapitalisation translates into sustainable financial stability rather than reckless expansion.

Another major development in the post-recapitalisation landscape is the adoption of risk-based supervision.

Under the new approach, banks are expected to align their capital planning more closely with the risks they undertake.

This means lenders must improve risk management systems, strengthen internal controls, and maintain greater discipline in lending practices.

The CBN believes risk-based supervision will help create a more resilient banking system capable of navigating economic cycles without excessive dependence on regulatory interventions.

Beyond governance and regulation, customers are also expecting significant improvements in banking services.

The stronger capital positions of banks are expected to support greater investments in technology, digital banking platforms, cybersecurity, and customer experience.

Competition within the banking industry is already shifting toward innovation and service delivery.

Many banks are investing heavily in financial technology solutions, artificial intelligence, digital payments, and mobile banking infrastructure to remain competitive in an increasingly technology-driven market.

Customers are therefore anticipating faster transactions, improved dispute resolution mechanisms, more accessible financial products, and better overall service quality.

The growing competition between traditional banks and fintech firms is also expected to shape the future of the industry.

While fintech companies have disrupted several areas of financial services, recapitalised banks now possess greater financial capacity to invest in technology and defend market share.

Some analysts predict that the post-recapitalisation era may lead to stronger collaborations between banks and fintech firms, particularly in areas such as digital payments, lending, and financial inclusion.

Despite the optimism surrounding recapitalisation, experts caution that significant challenges remain.

High interest rates continue to limit credit expansion and increase borrowing costs for businesses and households.

Inflationary pressures, exchange rate volatility, infrastructure deficits, and policy uncertainties also remain major constraints to economic growth.

There are also concerns that some lenders could prioritise investments in government securities rather than productive lending due to prevailing economic risks.

The recapitalisation exercise has strengthened confidence in the financial system and demonstrated the ability of Nigerian banks to undertake major reforms without triggering systemic instability.

For many stakeholders, the sector is now entering a period of strategic repositioning where banks are expected to evolve from institutions focused primarily on short-term profitability into stronger development partners capable of supporting national economic transformation.

The coming years are therefore likely to determine the true legacy of recapitalisation.

Gunmen suspected to be cultists reportedly shot dead an undergraduate of the University of Benin (UNIBEN), identified simply as Alexander and injured three others, including a female, in an attack on Sunday in Benin.

The attack reportedly happened in the evening at about 6pm outside the Ugbowo campus of the UNIBEN, along the Benin-Lagos Road.

The deceased was said to be driving his GLK Mercedes-Benz out of the campus with two other occupants when a white unregistered white GLK Mercedes-Benz reportedly intercepted the vehicle.

Witnesses said some masked gunmen immediately opened fire on the vehicle, targeting the driver’s side and zooming off, leaving the occupants of the vehicle in a pool of blood.

It was gathered that the deceased, a part-time student of the Department of Political Science, had reportedly finished his exams about an hour earlier before he was reportedly shot dead.

The three other victims, who sustained injuries during the attack, were said to have been rushed to the University of Benin Teaching Hospital, where they are currently receiving treatment.

The spokesperson of the Edo State Police Command confirmed the incident, saying one person died while three others sustained injuries in the incident.

She said the gunmen opened fire on the vehicle coming out of the school at close range, injuring the three occupants of the vehicle and a female passerby whose identity is yet to be ascertained.

She said the victims were rushed to the hospital, where the driver, identified as Alexander, was confirmed dead, while others are receiving treatment.

She said the State Commissioner of Police, Monday Agbonika, has ordered investigations into the matter to unravel the perpetrators and bring them to justice.

The university management has distanced its staff and students from the violent clash that led to Alexander’s death.

Spokesperson Benedicta Ehanire said preliminary findings linked the incident to cult-related activities outside the campus.

Meanwhile, Monday Okpebholo condemned the killing, assuring that security agencies are working to arrest those responsible and ensure justice for the victims’ families.

The Nigerian Shippers’ Council (NSC) has facilitated the savings of over N348.8 million for stakeholders in Nigeria’s maritime sector during the first quarter of 2026 through its complaints and dispute resolution mechanism.

According to the Council’s quarterly data, the agency handled a total of 32 complaints in the period under review and successfully resolved 19 cases, while 12 others are still being investigated and one remained closed.

The report also showed that the various interventions made by the Council helped importers, exporters, freight forwarders, shipping agents and other port users to recover or avoid losses amounting to N348,813,072.06.

Similarly, shipping companies and their agents recorded the highest number of complaints with 22 cases filed against them.

Other complaints were directed at seaport terminal operators, government agencies, exporters, importers, de-consolidators, as well as freight forwarders and clearing agents.

The report further revealed that container deposit refund disputes topped the list of complaints with five cases, followed by arbitrary charges with four cases.

Other recurring issues included unsettled demurrage, missing cargo, service failures, damaged cargo, wrong port of discharge and non-release of auction cargo.

Additional complaints handled by the Council involved delays in cargo transfer, invoice cancellation, breach of trust, export fraud, lack of telex release, delay in export documentation, waiver-related disputes, vessel demurrage and breach of contract.

The data showed that most complainants were shippers, including importers and exporters, alongside freight forwarders and shipping agents, underscoring the persistent operational and commercial challenges facing stakeholders in the nation’s port system.

Leading underwriting firm, NEM Insurance Plc, has released its audited financial results for the year ended December 31, 2025, showing strong growth in assets and revenue across its group and parent operations.

At the Group level, total assets rose significantly by N61.81 billion to N186.04 billion in 2025, up from N124.23 billion recorded in 2024.

Group liabilities also increased to N101.58 billion from N58.79 billion, in line with higher underwriting activities and obligations, while total equity climbed to N84.46 billion, compared to N65.44 billion in the previous year, underscoring improved shareholder value.

The Group recorded a strong rise in total revenue, which grew to N173.04 billion from N121.6 billion in 2024, representing a substantial increase driven by enhanced premium income and investment performance.

However, profitability moderated during the period, with Profit Before Tax (PBT) declining to N27.98 billion from N33.7 billion, while Profit After Tax (PAT) stood at N23.9 billion, down from N29.24 billion in the prior year.

At the Parent Company level, NEM Insurance Plc also posted notable growth in key balance sheet indicators.

Total assets increased to N178.59 billion in 2025 from N121.93 billion in 2024, while total liabilities rose to N94.59 billion, compared to N56.49 billion recorded in the previous year.

Revenue for the parent company grew to N165.72 billion, up from N119.88 billion, reflecting sustained business expansion and improved operational performance.

Similar to the Group, profitability declined, with PBT falling to N27.56 billion from N33.52 billion, and PAT decreasing to N23.55 billion from N29.08 billion in 2024.

Commenting on the results, the company noted that the performance demonstrates resilience and strong market positioning, driven by revenue growth and asset expansion, despite prevailing economic and industry challenges that impacted margins.

The company reaffirmed its commitment to delivering value to shareholders, strengthening underwriting capacity, and sustaining growth through innovation and customer-focused insurance solutions.

The Head coach of Doma United, Najib Mabo, has said his team’s underwhelming performance at the just concluded Nigeria National League (NNL) Super 4 is an eye opener as the ‘Savanah Tigers’ prepare for top flight football next season.

The former Mighty Jets of Jos coach said critics of Doma United shouldn’t judge his team by the performance in Ikenne.

At the championship deciding tournament which was held at the Remo Stars Stadium, Doma United who topped Conference C to return to the Nigeria Premier Football League (NPFL) won their opening match 1-0 against Inter Lagos but suffered losses in the remaining matches to Sporting Lagos 0-4 and 0-3 to Ranchers Bees.

In a chat with Daily Trust, coach Mabo who acknowledged the unwavering support of the club owner, Alhaji Suleiman Umar (Mai Doma}, blamed his team’s unsatisfactory performance on loss of concentration and inability to convert chances.

He said ‘It was unfortunate that after winning our first match, we couldn’t win in our second and third game.

‘What happened was largely due to loss of concentration at critical moments. In most cases, before we settle down, the damage was done.

‘Our opponents punished us for our failure to convert our chances. The Super 4 is an eye opener for us to prepare well for the NPFL.’

Mabo disclosed that Doma United would return to the drawing board and inject more players in the present squad for better results in the future.

‘No NNL team will go into the NPFL without reinforcement. Moreover, you can’t judge us with this Super 4 because we just discovered many new things which we are going to correct,’ he assured.

Vigilantes have arrested a 37-year-old man, Yunana Adamu, over alleged possession of a stolen Hajoue motorcycle at a friend’s wedding in Dafara community in Kuje Area Council of the FCT.

A member of the vigilante group, Auta Solomon, said the suspect was arrested on Saturday when he visited the community to attend the wedding with the motorcycle.

He said the motorcycle was stolen last Thursday at Kwali Market after the owner, identified as Samson Gambo, parked the bike and went into the market to buy some items.

According to him, Gambo discovered that the motorcycle was missing when he returned and immediately alerted the vigilante group.

Solomon said the vigilantes obtained details of the motorcycle, including its registration number, and alerted members in Kuje, Iddo, Zuba and Gwagwalada.

He said one of the vigilante members in Kuje, who also attended the wedding in Dafara community, spotted the motorcycle and alerted others.

‘It was one of the vigilante members who went to the wedding that saw the bike, checked the details and confirmed it was the stolen motorcycle before apprehending the suspect,’ he said.

He said the suspect claimed he bought the motorcycle as a fairly used bike from someone in Gwagwalada.

The vigilante member added that the suspect had been handed over to the police at the Kuje Division along with the motorcycle, while efforts were ongoing to trace the alleged seller.

A police source at the Kuje Division, who preferred anonymity, confirmed the arrest, saying the suspect was assisting investigators with information that could lead to the arrest of the principal suspect.

Niger State has airlifted the first batch of 345 intending pilgrims from the state for the 2026 Hajj exercise.

The airlifting was conducted Monday night through the Bola Ahmed Tinubu International Airport, Minna.

Flynas Airline took off at about 10:15pm with the 345 pilgrims on board.

The intending pilgrims comprised 227 males and 118 females from Chanchaga and Borgu LGA.

Bidding the intending pilgrims farewell, Niger State Governor, Mohammed Umaru-Bago, urged them to be good ambassadors of the state and the country.

He also advised them not to receive items from strangers for safekeeping and asked them to keep their personal belongings secure at all times.

Addressing the intending pilgrims, the State Amirul Hajj and Emir of Agaie, Alhaji Yusuf Nuhu, said he was satisfied with the level of preparation for the exercise.

He enjoined the intending pilgrims to obey the Saudi Arabian laws as well as rules and regulations guiding the hajj rites throughout their stay in the Holy Land.

A former House of Representatives member, Abba Anas Adamu, has died in captivity after being abducted by bandits along the Kaduna-Abuja highway.

Anas, a prominent chieftain of the African Democratic Congress (ADC), represented the Guri, Kiri-Kasamma and Birniwa Federal Constituency in Jigawa State between 2007 and 2011.

He was kidnapped last Wednesday while travelling from Kano to Abuja for a political meeting alongside another ADC stalwart, Ali Tukur Gantsa.

Sources said the two men were intercepted by armed bandits along the Kaduna-Abuja axis and taken into a forest near Jere.

The abductors initially demanded N200 million ransom but later agreed to N50 million after days of negotiations.

While Gantsa regained freedom after the ransom was paid, Anas reportedly died in captivity due to ill health.

Family and community sources disclosed that the late politician suffered from asthma and hypertension and was denied access to his medication throughout the period of captivity.

The harsh conditions and trauma were said to have worsened his condition.

It was gathered that despite efforts by his fellow captive to encourage and comfort him, Anas’ health deteriorated until he eventually died.

Sources further revealed that the kidnappers initially concealed his death before later hinting at it during negotiations.

An insider said Anas’ son and driver eventually delivered the ransom to the abductors, after which Gantsa was released.

The gunmen reportedly led the deceased’s son to the location where his father’s body had been kept.

The incident has thrown members of the ADC in Jigawa State and political associates of the deceased into mourning, with many describing him as a humble and compassionate politician committed to public service.

Spokesman of the Jigawa State Police Command, Lawan Shiisu Adam, said the command was unaware of the incident, noting that it did not occur within the state.

The Presidential Enabling Business Environment Council (PEBEC) has announced plans to commence a two-day clean-up and enforcement operation along the Lagos Port Corridor beginning May 14, 2026, in a bid to address persistent traffic congestion and improve cargo movement around the Apapa and Tin Can port access roads.

The exercise, scheduled for May 14 and 15, is expected to target major issues hindering smooth operations within the corridor, including extortion of truck drivers, indiscriminate dumping of refuse, unauthorized checkpoints, indiscriminate parking, and other uncoordinated activities contributing to gridlock and rising logistics costs.

In a notice issued to members of the Association of Maritime Truck Owners (AMATO), the association directed truck owners and operators to remove all broken-down trucks obstructing port access roads ahead of the operation.

The notice also instructed to strictly comply with the approved single-lane arrangement and avoid indiscriminate parking along the corridor during the enforcement period.

The association further urged truck operators to maintain orderly conduct and cooperate fully with enforcement agencies to avoid sanctions and heavy penalties.

The notice, signed by AMATO Secretary General Mohammed Sani Bala, warned members that failure to comply with the directives could attract enforcement actions during the clean-up exercise.

The Lagos Port Corridor, particularly around Apapa and Tin Can Island ports, has long suffered from severe traffic congestion caused by indiscriminate truck parking, poor traffic management, and illegal activities along the access roads, resulting in delays in cargo evacuation and increased operational costs for port users.

A former chairman of the Kano Municipal Local Government and chieftain of the All Progressives Congress (APC), Faizu Alfindiki, has questioned the emerging political romance between former Kano State Governor, Senator Rabiu Musa Kwankwaso, and former Anambra State Governor, Peter Obi.

Alfindiki accused Kwankwaso of failing to prioritize Northern unity and the region’s political future.

Addressing newsmen in Kano, Alfindiki stated that many Northerners were surprised that Kwankwaso appeared intent on aligning with Obi’s political camp instead of building a stronger consensus among influential Northern leaders.

Alfindiki argued that the North currently requires greater unity and cooperation among its political elite to protect the region’s interests and strengthen its position in national politics.

‘Many people in the North view this move as a failure to prioritize regional unity, especially since major leaders are expected to focus more on uniting the North and protecting its interests,’ Alfindiki said.

He further contended that Peter Obi has not demonstrated sufficient concern regarding critical Northern challenges, such as insecurity, agriculture, and economic development.

‘He is rarely heard speaking on major Northern challenges in the way many people would expect from someone seeking broad support from the region,’ he stated.

Alfindiki also alleged that Kwankwaso’s reluctance to work closely with other heavyweight Northern politicians, such as former Vice President Atiku Abubakar, has created the impression that his political decisions are driven more by personal ambition than collective regional interests.

‘In politics, one is judged by their stance and the type of alliances they build. The people of the North need leaders who will unite to ensure the region’s development and protect its political integrity,’ he added.

Alfindiki urged politicians across the country to promote alliances capable of strengthening national unity rather than deepening political divisions.