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Bank Recapitalisation : “We must address banks capital adequacy to grow economy” Says Bayo Onanuga

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….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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Humanity, Leadership and Legacy: Ooni of Ife Celebrates Prince Eludoyin at 78

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The Permanent Chairman of the Southern Nigerian Traditional Rulers Council (SNTRC), Arole Oodua Olofin Adimula and the Natural Head of the Oduduwa race worldwide, the Ooni of Ife, Ooni Adeyeye Enitan Ogunwusi, CFR, Ojaja II, has celebrated renowned businessman and illustrious son of Ile-Ife, Prince Eludipo Elusanmi Eludoyin, on the occasion of his 78th birthday.

In a statement on Monday released by the Director of Media and Public Affairs, Ooni’s Palace, Otunba Moses Olafare, the Ooni who is also the Permanent Co-chairman of the National Council of Traditional Rulers of Nigeria (NCTRN) described Prince Eludoyin as one of the shining lights of Ile-Ife whose life has remained dedicated to hard work, service to humanity and the growth of Nigeria’s economy.

The Ooni praised the Ife-born business mogul for his remarkable achievements in the international business community, noting that his contributions through Paragon Holdings Limited and other business platforms have created employment opportunities for thousands of people while also supporting meaningful development projects within and outside Nigeria.

Ooni Ogunwusi said Prince Eludoyin’s impact goes beyond business, describing him as a man who has consistently used his success to uplift people and support communities through various philanthropic activities.

According to the Ooni, the celebrant’s humility, wisdom and commitment to humanity have earned him respect across different sectors both in Nigeria and abroad.

The royal father also acknowledged Prince Eludoyin’s longstanding relationship with President Bola Ahmed Tinubu, describing the celebrant as a trusted confidant and loyal friend whose influence and experience continue to contribute positively to national development.

“Prince Eludoyin is a pride to Ile-Ife and the Yoruba race. His life story is one of vision, resilience and service. At 78, he remains a source of inspiration to younger generations who desire success built on integrity, excellence and compassion,” the Ooni stated.

The Ooni prayed for more years of sound health, peace, strength and continued accomplishments for the elder statesman as he continues to serve humanity and contribute to the progress of society.

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Between Hope and History: What Nigerians Expect from Tegbe as Power Minister

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By Michael Olukayode
For decades, electricity has remained Nigeria’s most enduring national embarrassment. From military administrations to democratic governments, promises of stable power supply have come and gone with little to show beyond recurring darkness, collapsing grids, abandoned projects and rising public frustration.

Now, with the appointment of Joseph Olasunkanmi Tegbe as Minister of Power, expectations are once again rising. Yet unlike in previous eras, Nigerians are no longer impressed by ambitious declarations. They are demanding results.

The question confronting Tegbe is not whether he understands the scale of the crisis. It is whether he can succeed where many before him failed.

Nigeria’s electricity sector is littered with the ruins of grand promises.

From the Olusegun Obasanjo administration’s multi-billion dollar National Integrated Power Projects (NIPP), to the Goodluck Jonathan-era privatisation of generation and distribution companies, successive governments repeatedly promised that stable electricity was around the corner. Under former President Muhammadu Buhari, Nigerians were told that the Siemens-backed Presidential Power Initiative would revolutionise transmission and distribution. The current administration of President Bola Ahmed Tinubu also pledged sweeping reforms, improved generation and a more efficient market-driven electricity sector.

Yet millions of Nigerians still rely on generators as their primary source of power.

The irony remains painful: Africa’s largest economy continues to generate barely between 4,000 and 5,000 megawatts for over 200 million people, despite an installed capacity exceeding 13,000MW.

Entire industries have collapsed under the burden of self-generated electricity. Small businesses spend more on diesel than on salaries. Manufacturers complain of rising operational costs. Students study under torchlights. Hospitals struggle to preserve vaccines and operate life-saving equipment. For many Nigerians, electricity is not merely an infrastructure issue; it is the dividing line between poverty and productivity.

That is why Tegbe’s appointment comes with enormous pressure.

Unlike many previous political appointees in the sector, Tegbe comes into office with the image of a technocrat rather than a career politician. A chartered accountant and management consultant, he built his reputation in the private sector through years of corporate advisory work, investment strategy and institutional restructuring. He previously served as the Director-General and Global Liaison for the Nigeria-China Strategic Partnership, where he was credited with helping to deepen investment engagement between Nigeria and Chinese investors in infrastructure, manufacturing and industrial development initiatives.

Before that appointment, Tegbe had a long corporate career spanning consulting, finance and business transformation. He worked with multinational consulting firm Deloitte and later became a senior business strategist with extensive experience in public-private partnerships, governance systems and economic planning. Supporters argue that this background gives him a better understanding of the financial and structural complexities that have crippled Nigeria’s power sector for years.

His defenders also point to his record in economic coordination and institutional reforms, arguing that the electricity crisis is no longer just a technical problem but a management and governance challenge requiring strategic execution, investor confidence and policy discipline.

At his Senate screening, Tegbe outlined a reform agenda focused on improving gas supply, strengthening grid reliability, accelerating metering, enforcing accountability among distribution companies and restoring financial discipline across the sector.

Those priorities are significant because Nigeria’s electricity crisis is no longer just about generation. The problems are systemic.

Generation companies complain of unpaid debts and inadequate gas supply. Distribution companies struggle with huge financial losses, weak infrastructure, electricity theft and poor revenue collection. Transmission infrastructure remains fragile and outdated, leading to frequent system collapses and stranded power capacity.

The national grid itself has become symbolic of institutional weakness. Grid collapses have repeatedly plunged large sections of the country into darkness, disrupting businesses and exposing the fragility of the system. Regulatory reports continue to show wide gaps between installed generation capacity and actual available electricity supply.

For many Nigerians, these recurring failures have destroyed public confidence.

Citizens openly question whether government officials genuinely intend to solve the crisis or merely manage it politically. Some blame corruption and weak regulation; others argue that decades of policy inconsistency and poor implementation are the real culprits.

That skepticism explains why Tegbe’s promises are being greeted with cautious optimism rather than celebration.

Still, his supporters believe he enters office with certain advantages. His experience in corporate restructuring and investment negotiations may prove useful in a sector desperate for efficiency, investor confidence and credible execution. But technical knowledge alone will not solve Nigeria’s electricity crisis.

What the sector requires most is political courage.

Any meaningful reform will involve difficult decisions: enforcing payment discipline, restructuring failing distribution companies, addressing subsidy distortions, improving tariff transparency, tackling electricity theft and compelling stronger private sector accountability. These reforms are politically sensitive because electricity affects every household and business in the country.

The minister must also confront the deeper institutional problem that has undermined previous reforms — weak governance.

Over the years, billions of dollars have reportedly been invested in power infrastructure with minimal impact on supply. Projects are often launched with fanfare only to disappear into bureaucratic delays, contractual disputes or funding crises. Nigerians have grown weary of ceremonial commissioning without measurable outcomes.

That is why measurable targets will matter more than speeches.

If Tegbe hopes to build public trust, Nigerians will expect clear timelines, transparent reporting and visible improvements in supply stability. Citizens want fewer excuses and more accountability. They want to know why power plants cannot get gas despite Nigeria’s enormous natural gas reserves. They want to know why transmission bottlenecks continue years after repeated intervention programmes. They want to know why estimated billing still persists despite promises of mass metering.

Most importantly, they want leadership that acknowledges that electricity is central to national development.

No serious industrial economy can thrive in darkness.

Countries that transformed their economies invested heavily in stable electricity infrastructure. Without reliable power, Nigeria’s ambitions for industrialisation, digital innovation, manufacturing growth and foreign investment will remain severely constrained.

The challenge before Tegbe therefore goes beyond fixing transformers or stabilising the grid. His real assignment is to restore credibility to a sector where public trust has nearly collapsed.

There are signs that structural reforms may finally be gaining momentum. The Electricity Act 2023 has opened the door for states to develop independent electricity markets, reducing overdependence on the fragile national grid. Several states are already moving toward decentralised power arrangements.

But Nigerians have heard reform language before.

What they seek now is evidence.

The success or failure of Tegbe’s tenure may ultimately depend on one simple question: can his administration deliver stable and predictable improvement, even if gradual?

If he succeeds, he could become the minister who finally begins the long-delayed transformation of Nigeria’s electricity sector.

If he fails, he risks joining a long list of officials whose promises disappeared into the darkness Nigerians know too well.

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Ekiti North Residents Reject Fasuyi, Fault Repeated Claims Against Tinubu on Project Funding

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……Stop Using Governor Oyebanji’s Name” — Orin Ora

…….Ward Fires Warning Over Fasuyi Endorsement

Fresh political tension reportedly erupted in Orin Ora Ward, Ido/Osi Local Government Area of Ekiti State, as aggrieved party members and residents allegedly rejected the re-election bid of Senator Cyril Fasuyi over what they described as “three years without visible development.”

The protest mood in the ward was said to have intensified following claims that the senator had repeatedly blamed President Bola Ahmed Tinubu for not funding constituency projects and budget allocations.

According to sources within the ward, residents expressed frustration over what they called “unfulfilled promises, lack of empowerment, and absence of meaningful projects” since the senator assumed office.

Political stakeholders in Orin Ora Ward were also said to have rejected alleged attempts to impose Senator Fasuyi on the people ahead of the 2027 elections.

“There is no Sakamaje endorsement here. Orin Ora Ward cannot be forced into supporting any candidate,” a party source reportedly declared.

The stakeholders further warned against dragging the name of Governor Biodun Oyebanji into what they described as “political imposition tactics.”

Residents reportedly insisted that any endorsement must reflect the genuine wishes of the people and not political pressure from powerful interests.

 

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