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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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Security Reform: Tinubu Calls for Urgent Constitutional Backing for State Police

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…raises fresh alarm over terrorism, banditry at State House Iftar

…Akpabio pledges more support, vows no executive bill will die in Senate

President Bola Ahmed Tinubu on Wednesday night formally urged the Senate to begin the process of amending the 1999 Constitution to provide for the establishment of state police, declaring that Nigeria must urgently restructure its security architecture to confront terrorism, banditry and insurgency.

Speaking at an interfaith breaking of fast with the leadership and members of the Senate at the State House, Abuja, the President said the time had come for lawmakers to “start thinking” about embedding state policing in the Constitution to enable governments at subnational levels better secure their territories.

“Nigeria is extremely challenged, we are facing terrorism, banditry, insurgency, but you never failed to make a right response to these calls. What I will ask for tonight is for you to start thinking how best to amend the Constitution to incorporate the state police for us to secure our country, take over our forests from marauders, free our children from fear”, Tinubu said.

The President’s latest appeal adds momentum to a campaign he has sustained since early in his administration.

In February 2024, during an emergency meeting with the 36 state governors at the State House, Tinubu approved the creation of a joint committee of federal and state representatives to explore modalities for establishing state police, insisting that the country must “move aggressively” to improve security of lives and property.

He renewed the call in November 2025, urging the National Assembly to begin reviewing relevant laws to allow states willing to establish their own policing structures to do so.

At the APC National Caucus meeting in December 2025, he again pressed governors and lawmakers to back constitutional reforms for state police and local government autonomy.

Only days ago, at an interfaith breaking of fast with governors at the Presidential Villa, the President declared that state police “can’t wait” and “will not be postponed,” urging preparations for what he described as a necessary shift in the nation’s security architecture.

At Wednesday’s gathering with senators, Tinubu framed the proposed reform as a constitutional obligation anchored on unity and shared responsibility.

“What you have faced in the challenging period of this country, the terrorism and banditry, is causing us havoc and we should pull together, unite in a way that our forefathers contemplated to bring about a constitutional democracy and pull us together. They didn’t say we should fight,” he said.

Beyond security, the President expressed deep appreciation to lawmakers for supporting what he described as bold and necessary economic reforms.

“I have a lot of credit for bold reforms. Without your collaborations, without your inspirations, those reforms are not possible. We are reformists together,” he said.

Tinubu defended the removal of petrol subsidy and foreign exchange reforms, describing them as steps taken to halt “monumental corruption.”

“What we gave up and what we stopped is a monumental corruption in subsidy. We gave it up. We don’t want to participate in monumental corruption, in arbitrage, foreign exchange,” he stated.

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According to him, the reforms have laid the foundation for economic stability.

“You don’t have to chase me for dollars. In the past, you could see what Nigeria is today. You should be proud… What we are enjoying is stable economy, prosperity beckoning on us. We just need to work hard for it,” he added.

Responding to criticisms from political opponents, the President dismissed claims that he was stifling opposition voices.

“When they accused me of killing oppositions, I didn’t have a gun… I can’t blame anybody from jumping out of a sinking ship if they did,” he said, in apparent reference to recent defections.

He described the coincidence of Ramadan and Lent as symbolic of national unity and called for continued harmony between the executive and legislature.

“We are committed to Nigerian entity succeeding. We are committed to make law for the welfare, prosperity of the country. I think we are committed together to govern together,” he said.

In his response, President of the Senate, Senator Godswill Akpabio, assured the President of the chamber’s loyalty and continued cooperation.

“We have nothing to give to you than to assure you of our loyalty,” Akpabio said. “I’m sure you have noticed that nothing you have ever sent to us died in first reading, and it will never happen.”

He said the Senate painstakingly reviews executive proposals to ensure they serve national interest, even when they initially attract criticism.

“We sit down to painstakingly go through everything that comes before us, and then at the end, we see that it is in the interest of Nigerians, even when the social media is not seeing it,” he said.

Akpabio commended Tinubu’s tax reforms, foreign exchange unification, fuel subsidy removal and the recent electoral amendment, noting that the President promptly assented to the revised Electoral Act when convinced it served national interest.

He expressed optimism that by 2031, Nigeria would be more prosperous under Tinubu’s leadership and offered prayers for peace amid what he described as “troubles and sponsored insecurity” in parts of the country.

The Senate President also thanked Tinubu for appointing former Senator Jimoh Ibrahim as an ambassador, describing it as recognition of legislative talent.

The interfaith gathering ended with prayers for unity, wisdom and strength for the nation’s leaders as they navigate security and economic challenges.

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BREAKING: Tinubu Names Tunji Disu Acting Inspector General After Egbetokun’s Exit

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President Bola Tinubu has accepted the resignation of the Inspector-General of Police, Kayode Egbetokun, and approved the appointment of Tunji Disu as Acting Inspector-General of Police with immediate effect.

Our correspondent had earlier reported that Egbetokun tendered his resignation letter on Tuesday, citing pressing family considerations.

Appointed in June 2023, Egbetokun was serving a four-year term scheduled to conclude in June 2027, in line with the amended provisions of the Police Act.

In a statement issued on Tuesday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President received the letter earlier on Tuesday and expressed appreciation for his service to the nation.

He also commended Egbetokun’s “decades of distinguished service to the Nigeria Police Force and the nation,” acknowledging his “dedication, professionalism, and steadfast commitment to strengthening internal security architecture during his tenure.”

“In view of the current security challenges confronting the nation, and acting in accordance with extant laws and legal guidance, President Tinubu has approved the appointment of Assistant Inspector-General of Police Tunji Disu to serve as Acting Inspector-General of Police with immediate effect.

“The President is confident that AIG Disu’s experience, operational depth, and demonstrated leadership capacity will provide steady and focused direction for the Nigeria Police Force during this critical period,” the statement read.

It added that in compliance with the provisions of the Police Act 2020, the President will soon convene a meeting of the Nigeria Police Council to formally consider Disu’s appointment as substantive Inspector-General of Police, after which his name will be forwarded to the Senate for confirmation.

The President reaffirmed his administration’s commitment to enhancing national security, strengthening institutional capacity, and ensuring that the Nigeria Police Force remains professional, accountable, and fully equipped to discharge its constitutional responsibilities.

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Breaking : Nigeria Gets New Electoral Act as Tinubu Signs 2026 Reform Bill

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President Bola Tinubu has signed the Electoral Act 2026 (Amendment) into law, days after the Independent National Electoral Commission (INEC) released the timetable for the 2027 general elections.

The signing ceremony took place at the State House, Abuja, at about 5:00pm on Wednesday, with principal officers of the National Assembly in attendance.

The National Assembly had on Tuesday passed the Electoral Act 2026 (Amendment) Bill.

The latest amendment comes amid intense public debate over the electronic transmission of election results in real time.

Last week, protests erupted at the National Assembly complex as civil society organisations and opposition figures mounted pressure on lawmakers to mandate live transmission of results from polling units directly to INEC’s central server.

The protesters argued that real-time transmission would reduce result manipulation and strengthen public confidence in the electoral process.

However, the ruling All Progressives Congress (APC) and some stakeholders have raised concerns about the technical feasibility of live transmission, particularly in communities with weak telecommunications infrastructure. They have argued for a phased or hybrid approach that would allow manual collation where electronic systems fail.

 

 

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