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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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Update : FG Outlaws Meter Installation Charges, Vows to Sanction Defaulters

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The Federal Government has banned electricity distribution companies and installers from collecting any form of payment for meters, warning that DisCo officials and installers found extorting customers will be prosecuted.

The Minister of Power, Adebayo Adelabu, issued the warning on Thursday during an on-site inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.

Adelabu said the meters were procured under the World Bank–funded Distribution Sector Recovery Programme and must be installed for consumers free of charge, stressing that any demand for money would be treated as an offence.

Adelabu, who was received into the Apapa Port Command of the Nigerian Customs Service by Area Controller Emmanuel Oshoba, expressed happiness over the importation of another tranche of 500,000 smart meters under DISREP.

He said the meters would be given to all electricity customers, regardless of their band. “I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer. It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime.

It has to be installed free of charge so that billings and collections will improve for the sector.

“The main objective of coming here today is to carry out a physical on-site inspection of shipments of smart meters that the Federal Government has imported under the World Bank-funded Distribution Sector Recovery Programme. This programme is supporting the Federal Government to import a total of about 3.4 million meters in two batches; the first batch is 1.43 million meters, out of which we have received close to about a million meters. Currently, almost 150,000 meters have already been installed across all distribution companies in the country.

“And what we have today is close to 500,000 meters that we just received. They are all smart meters, and I believe that the journey of completely eliminating the meter gap in the Nigerian power sector has just begun,” Adelabu said, even as he expressed dissatisfaction with the pace of metering.

Adelabu was optimistic that in a couple of years, every household, business, and institution would be fully metered so that billings and collections in the power sector would become more transparent, fair, and just. He added that it would also improve the readiness of electricity consumers to pay their bills, leading to improved liquidity in the sector.

“I’m quite excited and elated with what’s happening because it’s unprecedented. This is the first time in the history of this country that a government will be importing and locally buying this number of meters to ensure that the power sector is completely transformed. This is like walking the talk. Our target reform in the sector is not just verbal. Nigerians can see that this is real; it’s not just a promise of the tongue.

“We said it is free. We are not saying this behind closed doors. We are telling Nigerians that the distribution and installation of these meters in every location is free of charge, and it is declared an offence—an illegality—for any DisCo official or installer to request money from the beneficiaries of these meters. We will track and monitor this installation. We also await tip-offs. We have the regulatory commission (NERC), which has offices in some of these locations, and the state regulatory authorities also have offices in each state.

“We are going to open a customer complaint desk whereby, if you notice any such requests for illegal money, you report it, and the authorities will follow up. We are not leaving the installation to the DisCos alone; we’re also creating an interface between the installers and consumers to accelerate the pace of installation. We have some issues with the data and addresses of unmetered customers. We are working hand-in-hand with the DisCos to ensure clean data so that we can accelerate installation.

“We also want to maintain a register whereby unmetered customers can register their names. Once we have a list, we will validate it with the DisCos, improving the pace of installation. We are looking for confirmed cases of requests for money by any DisCo official or installer. Nigerians will know what we can do, and it will serve as a deterrent for others not to commit such an offence or illegality. That’s the plan.

“Extortion is not allowed, but there must be confirmed cases of such extortion, and the officials involved—no matter how high—will be prosecuted. It will be publicised and serve as a deterrent to others with similar intentions. We will not allow that. This is a government effort, and no activity of a DisCo or installer should frustrate government efforts to ensure that life is made easy for Nigerians and that we have a stable, reliable, and functional power sector,” he said.

Adelabu added that the Tinubu administration is resolving a decades-long problem that has affected liquidity. “But the boldness, courage, and political will of the government to go ahead with this should be commended. We will track it end-to-end to ensure that the government’s effort is well implemented and our desired objectives are achieved.

“The aggregate meter gap covers all categories of customers. We are not discriminating. We are prioritising every Nigerian, every customer, every electricity user. The issue of Band A, Band B, or Band C is temporary; it is our systematic way of ensuring this reform reaches everyone. The meters will be given to all levels of customers and not restricted to a single band. I am committing to that,” he stressed.

As journalists expressed doubts over the possibility of free meter distribution to customers, the Director-General of the Bureau of Public Enterprises, Ayo Gbeleyi, stated that the bureau coordinates the implementation of the Distribution Sector Recovery Programme on behalf of the Federal Government and serves on the boards of all 11 electricity distribution companies.

Gbeleyi said, “Regarding concerns that DisCos are delaying meter installations, you will soon see a new order or circular from the Nigerian Electricity Regulatory Commission prescribing the protocols and processes DisCos must follow to ensure unhindered access for meter installations.

“We are monitoring this. We have our dashboard, trackers, and all stakeholders’ hands on deck to ensure seamless and rapid deployment of these meters. One more thing—the meters here are manufactured to the specific requirements of each DisCo. They are inscribed on the meter, with an anti-theft protocol embedded. The configuration is for a particular DisCo, so a meter configured for Eko DisCo cannot be installed in Ibadan.”

Speaking, the Chairman of Mojec, Mojisola Abdul, said the meters supplied by the Federal Government are designed to genuinely generate more revenue for the country and supply more power.

“I’m telling you, physically, we have installed almost 150,000 meters, and they are free. Don’t give anybody money. You are not allowed. We had a meeting Wednesday with the minister and the DG of BPE about further progress on making it easy for every Nigerian. We are calling it mobile registration of free meters. If you register today, your meter will be installed within three days,” she said.

On the delay in meter installations after months of application and payments made, the minister reassured, “This is our country. It is valid that there will be apprehensions and reservations because of past experiences. Previously, there was limited meter availability, and payment was required.

“But this programme has two advantages: first, the volume is now sufficient—we have received almost 1 million meters, with another 1.55 million meters coming in the second phase. Second, the meters must be installed free of charge. The complications experienced in the past will be completely eliminated. We had a meeting on Wednesday for almost two to three hours to discuss all existing complications and foreseeable difficulties, and I assure you we already have effective solutions to all these problems.”

Adelabu also visited the National Meter Test Station in Oshodi, where meters are tested by the Nigerian Electricity Management Services Agency to ensure they meet required standards. Nigeria currently has over five million customers under estimated billing.

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Impeachment Saga : Rivers Chief Judge Acknowledges Assembly’s Submissions Against Fubara

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….Gov throws jibe, describes impeachment notice as ‘love letter’

Vows to avoid actions capable of breaching peace
The office of the Rivers State Chief Judge, Justice Simeon Amadi, has received the letter from the State House of Assembly requesting him to constitute a seven-man committee to probe the allegations of gross misconduct leveled against the state Governor, Sir Siminalayi Fubara and his Deputy, Prof. Ngozi Odu.

The House of Assembly Committee Chairman on Petitions, Information and Complaints, Dr Enemi George, confirmed that the Chief Judge had acknowledged receipt of all the documents.

Also received by the CJ’s office were other documents detailing the allegations of gross misconduct against the governor and the deputy governor, copies of the Rivers State Impeachment Panel (Conduct of Investigations) Procedure 2025 and photocopies of The Nation, The Guardian and The Sun, among others.

George said: “It is important to inform the good people of Rivers State that Mr. Speaker has already complied with the Constitution and letters sent by him to the Chief Judge have been received and acknowledged.

“All relevant documents including the Notices of Allegations of Gross Misconduct were attached”.

He added: “Every step going forward, what can happen or what cannot happen is clearly stated in Section 188 of the Constitution.

“The good people of Rivers State should remain calm and should not listen to those who want to truncate our democracy.”

He commended and thanked the good people of Rivers State for their support and prayers for the 10th Assembly in particular and Rivers people at large.

The Rivers State High Court sitting in Oyigbo Local Government Area has however issued an interim injunction restraining the CJ from receiving, forwarding, considering or acting on any request, resolution, articles of impeachment or any form of communication from Speaker Martin Amaewhule and other members of the State House of Assembly for the purpose of constituting a panel to investigate the alleged misconduct against the governor and his deputy.

They just landed me a ‘love letter’, says Fubara

Governor Fubara, in a veiled reference to the impeachment notice, called it a love letter.

“This 2026 that I thought would have been the finest, they just landed me a love letter,” he said while speaking as special guest during the finals of the 2026 Port Harcourt Polo Tournament in Port Harcourt, the Rivers State capital.

He added:”That notwithstanding, we must move on and carry on the responsibilities as a government. We will continue to support everyone who means well for Rivers State.”

He vowed that he would not support, directly or indirectly, any action capable of undermining peace and safety in the state.

He insisted that the protection of lives and property remained the primary responsibility of his administration.

He emphasised that he remained the governor of the state and would continue to deliver on the promises made to the people.

Fubara expressed satisfaction that the 2026 Port Harcourt Polo Tournament was held for one week without any incident.

He described the peaceful conduct of the event as a clear indication that Rivers is safe for residents, visitors and investors.

A supporter of the governor, Amb.Chijioke Ihunwo, asked the assembly members to perform their functions independently.

He pleaded with President Tinubu to intervene on the matter, insisting that the governor had done nothing to warrant his removal.

He said: “This assembly must remain independent to allow peace to prevail in the state.

“Governor Fubara has done nothing to warrant his removal. President Tinubu should intervene in this matter as the leader of the party.”

The high powered committee set up by the Pan Niger Delta Forum (PANDEF) to reconcile the feuding sides in the Rivers imbroglio is said to be working round the clock to stop the planned impeachment.

The committee members have already met with Federal Capital Territory (FCT) Minister Nyesom Wike in Abuja and separately with Fubara and some other stakeholders.

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Alleged Arms Discovery: Malami Faces DSS Probe as EFCC Denies Victimisation

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Economic and Financial Crimes Commission (EFCC) chairman Ola Olukoyede has faulted the persecution claim by the immediate-past Attorney-General of the Federation and Minister of Justice, Mallam Abubakar Malami (SAN).

He described it as unfortunate that some Nigerians were buying into the narrative when Malami’s probe started before his appointment.

Malami is standing trial alongside some family members on 16 counts of money laundering involving about N8.7 billion.

Speaking on a national television yesterday, Olukoyede dismissed Malami’s claim of vendetta against him, saying the commission has not wavered in investigating and prosecuting those suspected to have been involved in corruption cases.

“There’s nothing like that. The particular case predated my appointment. And, I didn’t give a nod to initiate proceedings until I found that we have a water-tight investigation,” he said.

The EFCC boss denied being indicted by Justice Ayo Salami’s panel.

Olukoyede said: “I challenge those making such claims of indictment against me by Justice Ayo Salami Panel to publish the report.

“Let me tell Nigerians that the commission’s investigation panel cleared me of any wrongdoing. The presidency at the time also cleared me. Also, the law enforcement agencies handed me a clean bill.

“I can say clearly that there’s no report anywhere that I’ve been involved in any fraudulent dealings, whether as the commission’s chief of staff, secretary, and now, the chairman of the commission.”

Noting that the commission, under his watch, made notable achievements last year, he said: “Our big win in 2025 was our ability to review and revive old cases that Nigerians thought were dead.

“Some of the cases affect past governors and ministers, and many such cases are in courts.

“We were able to recover assets. Nigerians are aware of the Lokogoma assets. One major recovery was a university.”

The EFCC recovered Nok University in Kachia, Kaduna, after a court ordered its final forfeiture because it was built with stolen public funds by a former civil servant.

It was converted to the Federal University of Applied Sciences,
Immediate-Past Attorney-General of the Federation and Minister of Justice, Mallam Abubakar Malami (SAN), is facing a fresh investigation over the arms and ammunition found in his house.

Newsthumb learnt that the arms were uncovered at his Kebbi country home by the operatives of the Economic and Financial Crimes Commission (EFCC) during a search.

The anti-graft agency, it was further learnt, handed them over to the Department of State Service (DSS) for a comprehensive probe because it is not within its remit to do so.

The number of arms and ammunition could not be immediately ascertained, but it was gathered that they are high in number to attract a full DSS investigation.

Malami, who was granted bail last week along with his sons – Abdulaziz, Abiru-Rahman, and others – is still in the Kuje correctional centre, having been unable to perfect his bail conditions.

But, sources said he might be taking things slowly to stall the DSS investigation into the weapons found in his house.

“The former minister is being separately investigated for allegedly having arms in his house in Birnin Kebbi. The inventory of the shock find has been handed over to the DSS.

“It is now left to Malami to explain to the DSS how he came about the arms. That’s why he is yet to perfect his bail conditions. He is holed up in prison to avoid arrest by the DSS.

“DSS operatives are within the precincts of Kuje Correctional Service to invite Malami. He got wind of their presence and raised the alarm. But the law must take its course.”

Another source within the EFCC said Malami had yet to meet his bail conditions.

“By our records, the ex-AGF is still in custody. We saw all manners of fake clips on social media on his purported arrival and rousing reception in Kebbi State,” the source said.

The source added: “The investigation into Malami’s activities during his tenure began when former EFCC Acting Chairman Ibrahim Magu was in office.

“Investigation continued through the administration of another Acting Chairman, Ibrahim Chukkol, to the present Executive Chairman. Chukkol, who works in the agency, was in charge briefly before Olukoyede’s appointment.

“There is nothing vindictive about his investigation since 2019. It is an inherited case, and the ex-AGF knows this.”

Olukoyede confirmed that he inherited the Malami case during an interview last night on a national television.

A Federal High Court in Abuja last week ordered the interim forfeiture of 57 assets linked to Malami and his two sons.

The assets have been valued at N213, 234,120,000.

The court has, however, given Malami and the sons or any other claimant a 14-day leave to show proof that the assets were legally acquired.

Failure to present legitimate claims within 14 days may lead to the permanent loss of the assets to the Federal Government.

The court’s order was based on the invocation of the Non-Conviction Asset Forfeiture Clause in the EFCC Establishment Act.

The EFCC had applied to the Federal High Court to seize the suspicious properties in Abuja, Kano, Kaduna, and Birnin-Kebbi.

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