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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.
… Prays for Nigeria’s peace, unity, security, prosperity
… Holds farewell meeting with Makkah Deputy Governor
President Bola Ahmed Tinubu departed Saudi Arabia for Abuja on Wednesday after completing his Umrah pilgrimage in the holy city of Makkah, where he offered special prayers for Nigeria’s peace, security, unity and prosperity.
The President’s aircraft took off from the Royal Terminal of King Abdulaziz International Airport, Jeddah, at exactly 5:13 p.m. Saudi time, bringing his spiritual visit to the Kingdom to an end.
According to a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu was seen off at the airport by the Deputy Governor of Makkah Region, Prince Saud bin Mishaal bin Abdulaziz Al Saud; Nigeria’s Ambassador to Saudi Arabia, Yakubu Gambo; and the Consul-General, Ambassador Muazam Ibrahim Nayaya.
Before his departure, the President held a brief farewell meeting with the Deputy Governor of Makkah at the Royal Guest Palace within the airport.
Tinubu, who arrived in Saudi Arabia last Thursday, led members of the Nigerian delegation in performing the Umrah rites, including circumambulation of the Holy Ka’abah.
A major highlight of the pilgrimage was Sunday’s rare opportunity granted to the President and members of his delegation to enter the sacred Ka’abah, where they performed two raka’at prayers.
During the spiritual exercise, Tinubu offered supplications to Almighty Allah for enduring peace, improved security, national unity and economic prosperity, while seeking divine wisdom, guidance and strength to discharge his responsibilities to Nigerians. Nigerianews subscription
He also prayed for divine blessings upon the country, its leaders and citizens, expressing hope that Nigeria’s ethnic, religious and cultural diversity would become a source of national strength, cohesion and shared prosperity.
The President described the pilgrimage as an opportunity for spiritual reflection, thanksgiving and renewed dedication to the task of building a peaceful, united and prosperous Nigeria. Nigerianews subscription
He expressed appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Crown Prince Mohammed bin Salman for the hospitality and special courtesies extended to him and his delegation.
Tinubu particularly acknowledged the rare privilege of accessing the Holy Ka’abah, describing the opportunity to pray within the sacred structure as spiritually significant. FollowPolitics
According to the statement, the President concluded the pilgrimage with renewed faith, gratitude to Almighty Allah and a strengthened resolve to pursue his administration’s Renewed Hope Agenda.
Onanuga said Tinubu remained committed to translating Nigerians’ aspirations into tangible improvements in living conditions and building a better country for all. Nigerianews subscription
The presidential delegation included the National Security Adviser, Mallam Nuhu Ribadu, and the governors of Sokoto, Jigawa, Kaduna, Borno and Yobe states, among other senior government officials.
The President’s return concludes a visit that combined religious observances with prayers for national stability, improved security and the success of ongoing efforts to reposition Nigeria for sustainable growth and development.
The All Farmers Association of Nigeria (AFAN) has called on the Federal Government to urgently restore the National Agricultural Growth Scheme and Agro-Pocket (NAGS-AP) programme to improve farmers’ access to affordable agricultural inputs and strengthen food production across the country.
The association said the revival of the programme would provide farmers with better access to essential agricultural inputs, including fertilisers, improved seeds and other farm support services required to boost productivity and ensure food security.
AFAN noted that the rising cost of agricultural inputs has continued to place enormous pressure on farmers, particularly smallholder farmers, who play a critical role in Nigeria’s agricultural value chain.
According to the association, restoring the programme would help reduce the financial burden on farmers, encourage increased participation in agricultural production and support the Federal Government’s efforts to achieve food security under its agricultural transformation agenda.
The association further stressed that affordable and timely access to farm inputs remains essential to improving crop yields, expanding agricultural activities and making farming more attractive to young Nigerians.
AFAN also urged the Federal Government to strengthen collaboration with relevant agricultural institutions, state governments, financial institutions and private-sector stakeholders to ensure that farmers benefit directly from government intervention programmes.
It maintained that a sustainable agricultural sector requires consistent policies, adequate funding and effective implementation of programmes designed to support farmers at every stage of production.
The association expressed optimism that restoring NAGS-AP would contribute significantly to increased food production, job creation, rural economic development and the stabilisation of food prices across the country.
AFAN therefore appealed to the Federal Government to give the programme urgent attention as part of broader efforts to strengthen Nigeria’s agricultural sector and achieve sustainable food security.
…….Tegbe, REA MD Commend Lawal as Zamfara Unveils Electricity Policy today
The Minister of Power, Chief Joseph Olasunkanmi Tegbe, and the Managing Director/Chief Executive Officer of the Rural Electrification Agency (REA), Dr. Abba Abubakar Aliyu, have joined the Zamfara State Governor, Dauda Lawal, to launch the state’s Electricity Policy and inaugurate renewable energy projects aimed at enhancing electricity supply across the state.
The event, held on Wednesday, November 4, 2026, in Zamfara State, was themed “Enhancing Power Supply” and attracted key stakeholders in the electricity and renewable energy sectors.
A major highlight of the occasion was the signing of a Memorandum of Understanding (MoU) between the Zamfara State Government, the Rural Electrification Agency and other stakeholders, in the presence of the Minister of Power, to strengthen collaboration and accelerate the development of renewable energy infrastructure in the state.
Speaking at the event, Tegbe and the REA Managing Director emphasised the importance of renewable energy, particularly solar power generation, as a sustainable solution to the country’s electricity challenges.
They highlighted the need to harness Zamfara State’s abundant solar energy potential to expand electricity access, strengthen power generation capacity and provide reliable and affordable electricity to residents, businesses and industries.
The officials also commended Governor Dauda Lawal for his commitment and initiative towards developing solar-powered electricity infrastructure, describing the state’s efforts as a significant step towards achieving sustainable energy development and improving the living conditions of the people.
They further highlighted the ambition to upgrade solar power generation capacity to 200 megawatts (MW), noting that increased investment in renewable energy would contribute significantly to the state’s economic growth and development.
The Minister and the REA Managing Director also stressed the importance of collaboration between federal and state governments, development partners and private-sector investors in achieving sustainable electricity supply.
The launch of the Zamfara State Electricity Policy, alongside the inauguration of renewable energy projects and the signing of the MoU, represents a significant step in the state’s efforts to strengthen its electricity sector and embrace cleaner and more sustainable energy sources.
The initiative is expected to improve electricity access, stimulate commercial and industrial activities, attract investment, create employment opportunities and support socio-economic development across Zamfara State.
The development also aligns with the Federal Government’s commitment to expanding electricity access and accelerating Nigeria’s transition towards sustainable and renewable energy.
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