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Bank Recapitalisation : “We must address banks capital adequacy to grow economy” Says Bayo Onanuga
….Investors inject N110bn in UBA, FBNH, Zenith, Access, other stocks in two days
Presidency on Tuesday expressed support for the banking sector consolidation initiative of the Central Bank of Nigeria, saying it would help the country to grow the economy to a new height.
This came barely five days after the CBN said it would ask banks to raise new capital.
According to the Presidency, it has become important to consider the capital adequacy of Nigerian banks in light of the projected $1tn economy in eight years.
Representing President Bola Tinubu at the 40th Anniversary Celebration of The Guardian Newspapers in Lagos on Tuesday, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said there would be a strong need to revisit the capital adequacy levels of banks
Onanuga said, “On the economy, that is facing all of us, our ambition to attain the $1tn appears daunting but we believe that it is achievable with God on our side and our collective determine. This explains the reason the VP and I have been on the road trying to attract huge investments into various phases of our economy; agriculture, oil and gas and others.
“To arrive at the $1tn economy, we must address the capital adequacy of our banks that will prepare the fuel for this journey.”
At the 58th annual Bankers’ Dinner last Friday, CBN Governor, Olayemi Cardoso, had said a stress test performed on Nigerian banks revealed that while they would withstand mild to moderate stress, they would be unable to service a $1tn economy projected by Tinubu in seven years, hence the need for recapitalisation.
Cardoso said, “Stress tests conducted on the banking industry also indicate its strength under mild-to-moderate scenarios of sustained economic and financial stress, although there is room for further strengthening and enhancing resilience to shocks. Therefore, there is still much work to be done in fortifying the industry for future challenges.”
He added, “Considering the policy imperatives and the projected economic growth, it is crucial for us to evaluate the adequacy of our banking industry to serve the envisioned larger economy. It is crucial to evaluate the adequacy of our banking industry to serve the envisioned larger economy. It is not just about its current stability. We need to ask ourselves, can Nigerian banks have sufficient capital relative to the finance system needs in servicing a $1tn economy shortly, in my opinion, the answer is no, unless we take action. As a first test, the central bank will be directing banks to increase their capital.”
Meanwhile,findings show investors have begun positioning themselves in the stocks of Tier-1 banks listed on the Nigerian Exchange Limited following the announcement of the proposed recapitalisation of the banks.
There are reports some big banks may be eyeing smaller and weaker ones in the event the proposed consolidation in the sector fuels possible acquisitions.
Meanwhile, findings showed that some listed financial institutions gained over N101.18bn on Monday and Tuesday, following the announcement of the proposed banking sector recapitalisation.
An analysis done by one of our correspondent at the close of trading on Tuesday revealed that at least six of the lenders added to their market capitalisation in the two trading sessions this week, while five banks shed their value and two remained unchanged.
The lenders who gained included United Bank for Africa Plc, whose market capitalisation rose to N731.87bn on Tuesday from N713.06bn on Friday, the market cap of Zenith Bank Plc appreciated by one per cent to N1.10tn and Access Holdings Plc’s market cap rose by four per cent to close Tuesday’s trading at N639.81bn.
FBN Holdings Plc has been the biggest gainer so far as its market cap stood at N800.47bn on Tuesday from N717.91bn on Friday, marking an 11 per cent appreciation. The market cap of Sterling Financial Holdings Plc rose by 4.51 per cent to N106.81bn and the value of FCMB Group’s share rose by one per cent to N137.63bn.
The five lenders who lost during the period under review include; Guaranty Trust Holding Company (-1 per cent), Jaiz Bank (-2 per cent), Unity Bank (-8.69 per cent), Wema Bank and Stanbic IBTC Holdings (-3.08 per cent) to close with their market capitalisation at N1.13tn, N55.27bn, N19.64bn, N66.61bn and N816.29bn respectively.
The market capitalisation of two lenders, Ecobank Transnational Incorporated Plc and Fidelity Bank remained unchanged over the two-day period at N293.59bn and N288.11bn respectively.
A bank CEO, who earlier spoke to The PUNCH, welcomed the CBN policy direction regarding the recapitalisation of the banks, saying his institution was ready to raise fresh capital though it had yet to conclude the modality.
“Even before the CBN governor made the pronouncement, our bank was already considering raising fresh capital to significantly increase the capital base. This should happen in the first quarter of 2024. So, we are in tune with the CBN governor,” the CEO of a Tier-1 lender told one of our correspondents on Saturday.
In the last few months, First Bank of Nigeria Holdings, Wema Bank and Jaiz Bank have proposed Rights Issues, while Fidelity Bank has announced plans to raise additional capital via the issuance of 13,200 billion ordinary shares via public offer and rights issue. It was gathered that Wema Bank would commence its Rights Issue on December 1.
Already, players in the capital market have expressed varied views as to the capability of the market to support the proposed recapitalisation drive.
While the doyen of the Nigerian Exchange Limited, Rasheed Yusuf, in his comments, believed the local bourse could support such a major capital raise, even without the presence of foreign investors, the Managing Director of Afrinvest Securities Limited, Ayodeji Ebo, expressed doubts the capital market could support the recapitalisation.
He said, “The Nigerian capital market may not be able to fully support the recapitalisation of the banks given the market is currently been driven by domestic investors. To also achieve this, the banks must adopt technology to drive the capital raise process as we saw during the MTN public offer.
Ebo added, “We believe if the foreign exchange policy is clear and consistent in the medium term, we expect to begin to attract FPIs to the capital market.”
Meanwhile, some minority shareholders community have expressed the conditions under which they will support the financial institutions. Mr Boniface Okezie of the Progressive Shareholders Association of Nigeria, said that minority investors must do their due diligence and invest in stocks with track records.
“What we will be looking out for include those who have been paying dividends in the past, those with good capital appreciation and a good track record from their management team. How have they been communicating with shareholders when the situation was rosy or not? I have my fears and some of those banks can’t convince me, not when my money has been trapped. In the past, they have been reckless. Even those who acquired the shares of those banks did not pay compensation to shareholders and are using the assets of the bank as leverage to build up their branches. They are not paying dividends to shareholders but have created an empire. For such banks, shareholders must be on the lookout for them and this is the time to pay them back in their coins, “he said.
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Ekiti APC: Controversy Trail Cyril Fasuyi’s Second-Term Ticket as Fayemi, Oyebanji Alliance Sparks Debate
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There are growing political discussions within the Ekiti State chapter of the All Progressives Congress (APC) following allegations surrounding the emergence of Senator Cyril Fasuyi for a second term ticket.
Some party members and political observers in the state have alleged that Governor Biodun Oyebanji and former Governor Dr. John Kayode Fayemi remain politically aligned despite public perceptions suggesting otherwise. According to the claims, the relationship between Governor Oyebanji and Fayemi remains cordial and influential in the state’s political structure.
Critics further alleged that Senator Cyril Fasuyi was advised to reconcile with Fayemi in order to secure support for his return bid, a move they claim eventually strengthened his chances of getting the ticket.
The development has reportedly generated concerns among some APC stakeholders, who believe certain political interests are working behind the scenes to shape the future direction of Ekiti politics ahead of upcoming political contests.
The allegations also claim that internal power struggles within the party may affect relationships with key figures at the national level, particularly supporters loyal to President Bola Ahmed Tinubu.
However, no official statement has been issued by Governor Oyebanji, Dr. Fayemi, or Senator Fasuyi regarding the allegations.
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Drama in Rivers APC as Fubara and Tonye Cole Step Down from Governorship Primary
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Rivers State Governor, Siminalayi Fubara, has announced his withdrawal from the All Progressives Congress governorship primary election in the state.
Fubara made this known in a statement personally signed on Wednesday, saying he would support whoever emerges as the party’s candidate, The Nations reported.
The governor said his decision followed extensive consultations with his family, friends, and political associates.
“After deep reflection and extensive consultations with my family, friends, and associates, I have taken the difficult but necessary decision to withdraw from the APC governorship primaries. I do so with a full heart and with a firm commitment to support whoever emerges as the candidate of our great party,” Fubara said.
The development comes amid ongoing political realignments ahead of the 2027 general elections in Rivers State.
Fubara said although the decision was difficult, he remained committed to supporting whoever would emerge as the APC governorship candidate.
According to him, leadership demands sacrifice and personal ambition must sometimes give way to the collective interest of the people.
“Rivers State is bigger than any individual, and at this critical moment, the peace, stability, and unity of our dear state must take precedence over every personal interest,” he said.
Meanwhile, the embattled governor expressed appreciation to his supporters for their loyalty, prayers and sacrifices throughout the political process, acknowledging that many would feel disappointed by his withdrawal.
He said his silence in recent weeks was “deliberate and strategic,” adding that it was guided by the higher interest of the state.
Newsthumb had earlier reported that APC chieftain and 2027 governorship aspirant in Rivers State, Tonye Cole, also announced his withdrawal from the race, saying his decision was, among other reasons, in the interest of the party’s unity.
Fubara thanks Tinubu, dismisses cowardice
The governor hinted at undisclosed pressures surrounding the political process, saying: “As our elders say, not everything a hunter sees in the forest is spoken of in the marketplace.”
He added that some truths were best kept quietly “not out of fear, but out of wisdom and restraint for the sake of peace and a greater purpose.”
Fubara thanked the APC leadership for the opportunity given to him during the process and also expressed gratitude to President Bola Tinubu for his support and encouragement.
He urged party faithful to remain united and committed to the APC, describing the party as their “collective home.”
The governor, however, insisted that his withdrawal should not be interpreted as an act of weakness or surrender.
“I stepped aside not out of weakness, fear, or surrender, but out of conviction and sacrifice so that Rivers State may move forward in peace and unity,” he said.
Fubara also pledged to continue serving the people of Rivers State until the end of his tenure.
He further stated, “Leadership is ultimately about sacrifice. There comes a time when personal ambition must yield to the greater good of the people. Rivers State is bigger than any individual, and at this critical moment, the peace, stability, and unity of our dear state must take precedence over every personal interest.
“To my supporters who stood firmly with me throughout this journey who gave their time, resources, prayers, and unwavering hope, I offer my deepest gratitude. I understand the disappointment, the anger, and the pain many of you may feel.
“Much has indeed been invested and much sacrificed along the way. But please know that your loyalty and trust were never in vain. My silence over this period was deliberate and strategic, guided always by the higher interest of our state and our people.”
Our correspondence earlier reported that Fubara rose politically under the administration of his predecessor and political godfather, Nyesom Wike, serving as Accountant-General of Rivers State before emerging as the PDP governorship candidate and winning the 2023 election with Wike’s backing.
Shortly after assuming office, however, the relationship between both men collapsed over control of the state’s political structure, appointments and finances, leading to a bitter power struggle involving the Rivers State House of Assembly led by Speaker Martin Amaewhule, who remained loyal to Wike.
The crisis escalated when 27 lawmakers attempted moves seen as targeting Fubara, while the governor’s camp questioned their legitimacy after alleged defections.
The Assembly complex was later demolished and governance became paralysed as both camps traded court actions and political attacks.
In March 2025, President Bola Tinubu declared a state of emergency in Rivers State, suspending Fubara, his deputy and all lawmakers for six months, citing political instability and threats to governance and oil infrastructure.
During the suspension, retired naval chief Ibok-Ete Ibas was appointed sole administrator.
Fubara was later reinstated after political negotiations reportedly brokered by Tinubu, with conditions said to include working with the Amaewhule-led Assembly, maintaining peace with Wike’s camp and shelving immediate political confrontation ahead of 2027, although some reported terms — including speculation about reelection concessions — remained unofficial.
The House of Assembly saga remained central to the crisis, with repeated disputes over budget presentation, impeachment threats and Supreme Court rulings affirming the Amaewhule faction as the recognised Assembly leadership.
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APC Primary Crisis Deepens in Osun as Aspirants Accuse Party Leadership of Imposition, Manipulation, and Delegate Exclusion
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The All Progressives Congress (APC) primary election held on Saturday, May 16, 2026, in Ife Federal Constituency has sparked widespread controversy, with aggrieved aspirants and party stakeholders alleging massive irregularities and manipulation during the exercise.
The aspirants accused certain party leaders of compromising the credibility of the primary process, alleging that the exercise was hijacked by desperate political actors allegedly working under the influence of the Osun State APC Chairman, Hon. Tajudeen Lawal, popularly known as “Sooko.”
According to reports gathered from several wards and local government areas within the constituency, many party members and stakeholders were allegedly denied the opportunity to participate in what was expected to be a transparent, free, and fair election. The aggrieved members described the exercise as a deliberate attempt to impose a preferred candidate against the collective will of delegates and party faithful.
Several stakeholders further alleged widespread intimidation, manipulation, and exclusion of recognized party members during the exercise, a development they said has generated tension and dissatisfaction within the party.
The aggrieved aspirants reportedly described the primary as a “scam,” alleging that results and figures were arbitrarily allocated to candidates by the party leadership.
They also alleged that incidents of violence and thuggery characterized parts of the exercise across Ife Federal Constituency, claiming that such developments have raised concerns over fairness, transparency, and internal democracy within the Osun APC.
Some party members further recalled a similar controversy during the May 27, 2022, APC primary election in the constituency, alleging that the same pattern of irregularities occurred during that exercise.
Meanwhile, the aspirants maintained that the outcome of the disputed primary election has yet to receive official recognition from the National Secretariat of the APC, as several petitions and complaints have reportedly been submitted over the conduct of the exercise.
They also noted that the Independent National Electoral Commission (INEC) has not officially validated the disputed process, thereby raising further questions regarding the legitimacy and credibility of the primary election.
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