Connect with us

Business

Keyamo: Flying Nigeria’s Aviation Sector To New Heights* By Cletus Agada

Published

on

Aviation Unions Commend Keyamo Over Relocation of FAAN Headquarters to Lagos

Keyamo: *Flying Nigeria’s Aviation Sector To New Heights*

By Cletus Agada

 

 

It is no longer news that the honourable Minister of Aviation, Mr. Festus Keyamo, S.A.N. directed that the headquarters of the Federal Airport Authority of Nigeria (FAAN) be relocated back to Lagos. This directive was not difficult to comply with because the Abuja Headquarters status was just on paper as the day-to-day administrative and operational activities of the agency have always been carried out from Lagos.

 

 

Keyamo: *Flying Nigeria's Aviation Sector To New Heights*
By Cletus Agada

 

 

 

A statement by Mrs. Obiageli Orah, the Director of Public Affairs and Consumer Protection of the agency, said those affected by the decision have since returned to Lagos as there is no office space for them in Abuja That was even before the relocation order of the Honourable Minister was effected.

 

 

 

 

 

 

The question begging for an answer is how a critical, hands-on agency like FAAN relocated to a new city without first making provisions for adequate offices to accommodate her working staff. The second paragraph of Mrs. Orah’s statement should draw the attention of all men of conscience as it brings to mind how important government decisions are taken just to satisfy a few.

 

 

 

 

 

With an agency as technical as FAAN, decisions are supposed to go through some laid-down procedures, and the input of industry stakeholders is sought at all times but this never seems to have been done in this particular case.

 

 

 

In her widely circulated statement, Mrs Orah said; “Having returned to Lagos, the Authority would be liable to pay them DTA (DUTY TOUR ALLOWANCE) because technically they are working OUT OF STATION as their official posting is to ABUJA. The Minister has decided to stop this waste of public resources and rip-off on the public purse”.

 

 

 

 

 

 

This shows that the relocation of the Headquarters to Abuja was a very crafty way to line the pockets of some fat cats and big men in the agency who will be living their normal lives and working from the comfort of their offices in Lagos while smiling to the bank through claims of estacodes and other travelling allowances as Lagos would have been designated as an out-station when in a real sense, it is the actual corporate headquarters. Thankfully, the Honourable Minister intervened.

I believe this must have pricked the conscience of Keyamo. As someone who spent his early childhood going about with his father, a Jehovah’s Witness faithful; sharing tracks, handbills, and newsletters to the public for free, Mr. Keyamo was tutored in the act of bringing the ‘gospel’ to the doorsteps from infant and the aviation gospel is now beginning to feel the impact of this activist in government. This background could also be partly responsible for Mr. Keyamo’s vast knowledge in fields assumed to be strange to him and his strength in approaching every argument from an informed position, always quoting facts and figures to buttress his points.

For a man who began his professional legal practice at the Law Firm of the erudite social critic and rights activist, the Late Chief Gani Fawahinmi, Keyamo has found it difficult to divorce himself from the crusade for prudence and cost savings in government. To think that he can continue to cohabit with the wrongs of the past is like asking an architect to live in a house built on quicksand. I’m sure wherever Chief Fawehinmi is watching from right now, he would certainly be proud of the man Mr Keyamo has become.

The Bible says “When the foundation is faulty, what can the righteous do?”. Mr Keyamo is now providing an answer to this age-long question as a faulty foundation needs to be destroyed and a new one laid. For efficient and effective service delivery, a new solid base is needed to accommodate the realities of today and the dreams for tomorrow in the country’s aviation industry and that’s exactly what the Honourable Minister is doing.

An outspoken man and a fierce lawyer, Mr Keyamo who served as the Minister of State in the Ministry of Labour and Employment under the immediate past administration, shocked his former colleagues in his speech during the valedictory session by President Mohammadu Buhari to thank his Ministers and those who served in his government. Taking to the microphone with great confidence, Mr Keyamo who was first appointed as Minister of State for Niger Delta Affairs before being redeployed said the position of Minister of State was unconstitutional.

He explained that it is difficult to rate the performances of Ministers of State since their prudence was shackled with that of the substantive Ministers as any original ideas developed have to pass through the table of another colleague in the cabinet before they can sail through for consideration by Council.

If Mr Keyamo had any regret as Minister of State or an unimplemented policy during his time playing second fiddle in the office, God answered his prayers through President Bola Tinubu and allowed him to showcase and distinguish himself as a top-notch administrator and policy expert and so far, he has not betrayed the trust nor abused the confidence of Mr. President.

The laudable plans by the Minister as contained in the statement by Mrs Orah to get concessionaires to build befitting offices for the Authority in Lagos and Abuja must be commended. Over time, estate developers and rent-seekers have continued to connive with agencies of the federal government to milk the public purse through inflated rent bills that under normal circumstances, are big enough to erect permanent structures of a high standard for those agencies.

The aviation sector in the country today can be said to be in safe hands with Mr. Keyamo as Minister because he has proven himself to be a team player, ready to listen and work with expert opinions while building capacity across the board. He has put everyone concerned with the safety of our airspace on their toes and strived to rid the industry of indolence. The relocation of the FAAN Corporate Headquarters to Abuja in the first case was intended to encourage highly trained personnel to roam about without an office or equipment to work with.

It would be recalled that barely one month to the expiration of the tenure of the last administration of President Mohammadu Buhari in May 2023, the then Minister of Aviation, Senator Hadi Sirika ordered the relocation of some aviation agencies from the Muritala Mohammed International Airport Lagos for their office buildings to be demolished and pave way for the construction of an acropolis. If the idea is a developmental step worthy of commendation, the right thing to do would have been to find another befitting structure to accommodate those agencies rendering critical services in the aviation industry within the city.

The proximity of these services to the Lagos Keyamo: *Flying Nigeria’s Aviation To New Heights*

By Cletus Agada

It is no longer news that the honorable Minister of Aviation, Mr. Festus Keyamo, S.A.N directed that the headquarters of the Federal Airport Authority of Nigeria (FAAN) be relocated back to Lagos. This directive was not difficult to comply with because the Abuja Headquarters status was just on paper as the day-to-day administrative and operational activities of the agency have always been carried out from Lagos.

A statement by Mrs. Obiageli Orah, the Director of Public Affairs and Consumer Protection of the agency, said those affected by the decision have since returned to Lagos as there is no office space for them in Abuja. That was even before the relocation order of the Honourable Minister was effected.

The question begging for an answer is how a critical, hands-on agency like FAAN relocated to a new city without first making provisions for adequate offices to accommodate her working staff. The second paragraph of Mrs. Orah’s statement should draw the attention of all men of conscience as it brings to mind how important government decisions are taken just to satisfy a few.

With an agency as technical as FAAN, decisions are supposed to go through some laid-down procedures, and the input of industry stakeholders is sought at all times but this never seems to have been done in this particular case.

In her widely circulated statement, Mrs Orah said; “Having returned to Lagos, the Authority would be liable to pay them DTA (DUTY TOUR ALLOWANCE) because technically they are working OUT OF STATION as their official posting is to ABUJA. The Minister has decided to stop this waste of public resources and rip-off on the public purse”.

This shows that the relocation of the Headquarters to Abuja was a very crafty way to line the pockets of some fat cats and big men in the agency who will be living their normal lives and working from the comfort of their offices in Lagos while smiling to the bank through claims of estacodes and other travelling allowances as Lagos would have been designated as an out-station when in a real sense, it is the actual corporate headquarters. Thankfully, the Honourable Minister intervened.

I believe this must have pricked the conscience of Keyamo. As someone who spent his early childhood going about with his father, a Jehovah’s Witness faithful; sharing tracks, handbills, and newsletters to the public for free, Mr. Keyamo was tutored in the act of bringing the ‘gospel’ to the doorsteps from infant and the aviation gospel is now beginning to feel the impact of this activist in government. This background could also be partly responsible for Mr. Keyamo’s vast knowledge in fields assumed to be strange to him and his strength in approaching every argument from an informed position, always quoting facts and figures to buttress his points.

For a man who began his professional legal practice at the Law Firm of the erudite social critic and rights activist, the Late Chief Gani Fawahinmi, Keyamo has found it difficult to divorce himself from the crusade for prudence and cost savings in government. To think that he can continue to cohabit with the wrongs of the past is like asking an architect to live in a house built on quicksand. I’m sure wherever Chief Fawehinmi is watching from right now, he would certainly be proud of the man Mr Keyamo has become.

The Bible says “When the foundation is faulty, what can the righteous do?”. Mr Keyamo is now providing an answer to this age-long question as a faulty foundation needs to be destroyed and a new one laid. For efficient and effective service delivery, a new solid base is needed to accommodate the realities of today and the dreams for tomorrow in the country’s aviation industry and that’s exactly what the Honourable Minister is doing.

An outspoken man and a fierce lawyer, Mr Keyamo who served as the Minister of State in the Ministry of Labour and Employment under the immediate past administration, shocked his former colleagues in his speech during the valedictory session by President Mohammadu Buhari to thank his Ministers and those who served in his government. Taking to the microphone with great confidence, Mr Keyamo who was first appointed as Minister of State for Niger Delta Affairs before being redeployed said the position of Minister of State was unconstitutional.

He explained that it is difficult to rate the performances of Ministers of State since their prudence was shackled with that of the substantive Ministers as any original ideas developed have to pass through the table of another colleague in the cabinet before they can sail through for consideration by Council.

If Mr Keyamo had any regret as Minister of State or an unimplemented policy during his time playing second fiddle in the office, God answered his prayers through President Bola Tinubu and allowed him to showcase and distinguish himself as a top-notch administrator and policy expert and so far, he has not betrayed the trust nor abused the confidence of Mr. President.

The laudable plans by the Minister as contained in the statement by Mrs Orah to get concessionaires to build befitting offices for the Authority in Lagos and Abuja must be commended. Over time, estate developers and rent-seekers have continued to connive with agencies of the federal government to milk the public purse through inflated rent bills that under normal circumstances, are big enough to erect permanent structures of a high standard for those agencies.

The aviation sector in the country today can be said to be in safe hands with Mr. Keyamo as Minister because he has proven himself to be a team player, ready to listen and work with expert opinions while building capacity across the board. He has put everyone concerned with the safety of our airspace on their toes and strived to rid the industry of indolence. The relocation of the FAAN Corporate Headquarters to Abuja in the first case was intended to encourage highly trained personnel to roam about without an office or equipment to work with.

It would be recalled that barely one month to the expiration of the tenure of the last administration of President Mohammadu Buhari in May 2023, the then Minister of Aviation, Senator Hadi Sirika ordered the relocation of some aviation agencies from the Muritala Mohammed International Airport Lagos for their office buildings to be demolished and pave way for the construction of an acropolis. If the idea is a developmental step worthy of commendation, the right thing to do would have been to find another befitting structure to accommodate those agencies rendering critical services in the aviation industry within the city.

The proximity of these services to the Lagos airport which handles more than 50% of aviation passenger traffic in Nigeria daily should have been a thing to consider in relocating the agency. It was for this singular reason the Obasanjo administration relocated the Nigerian Shippers Council out of Abuja back to Lagos even after they had built a magnificent structure in the nation’s capital to accommodate their services.

The decision to demolish those structures and relocate the agencies to Abuja didn’t bode well with labour unions in the aviation sector and they embarked on an industrial strike to drive home their point. The Senate of the 9th Assembly quickly tried to intervene and ordered a stop to all activities pending a comprehensive investigation by its standing committee on aviation but a defiant Sirika, himself a former senator called a bluff of his colleagues and in a press conference after the Federal Executive Council Meeting on May 3, 2023, insisted that there was no going back and the demolition must continue.

Time and chance have now changed that. The building housing FAAN and other sister agencies in Lagos won’t be demolished immediately because there’s a new sheriff in town. Hopely, the design of the structures to house the proposed acropolis would also make provisions for agencies like FAAN to operate within, even if that would entail adding additional floors to what was originally proposed.

Mrs. Orah concluded by saying “The Honourable Minister is committed to making decisions that are in the best interest of the country, especially as it concerns public funds, and will not yield to ethnic or sectional sentiments that will derail this commitment”.

I can attest to this fact. This decision is in the best interest of Nigerians, and what Mr Keyamo needs is a pat on the back for a job well done.
We need many more Keyamos in places of authority. Those who are bold and fearless with clean hands and a clear conscience. That is the surest way to move Nigeria forward and achieve the renewed hope agenda of Mr. President and the APC.

Agada wrote this piece from Abuja. handles more than 50% of aviation passenger traffic in Nigeria daily should have been a thing to consider in relocating the agency. It was for this singular reason the Obasanjo administration relocated the Nigerian Shippers Council out of Abuja back to Lagos even after they had built a magnificent structure in the nation’s capital to accommodate their services.

The decision to demolish those structures and relocate the agencies to Abuja didn’t bode well with labour unions in the aviation sector and they embarked on an industrial strike to drive home their point. The Senate of the 9th Assembly quickly tried to intervene and ordered a stop to all activities pending a comprehensive investigation by its standing committee on aviation but a defiant Sirika, himself a former senator called a bluff of his colleagues and in a press conference after the Federal Executive Council Meeting on May 3, 2023, insisted that there was no going back and the demolition must continue.

Time and chance have now changed that. The building housing FAAN and other sister agencies in Lagos won’t be demolished immediately because there’s a new sheriff in town. Hopely, the design of the structures to house the proposed acropolis would also make provisions for agencies like FAAN to operate within, even if that would entail adding additional floors to what was originally proposed.

Mrs. Orah concluded by saying “The Honourable Minister is committed to making decisions that are in the best interest of the country, especially as it concerns public funds, and will not yield to ethnic or sectional sentiments that will derail this commitment”.

I can attest to this fact. This decision is in the best interest of Nigerians and what Mr Keyamo needs is a pat on the back for a job well done.
We need many more Keyamos in places of authority. Those who are bold and fearless with clean hands and a clear conscience. That is the surest way to move Nigeria forward and achieve the renewed hope agenda of Mr President and the APC.

Agada wrote this piece from Abuja.

Business

BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025

Published

on

BUA FOODS PLC RECORDS 101% PROFIT GROWTH IN H1 2025, CONSOLIDATES LEADERSHIP IN NIGERIA’S FOOD SECTOR …Revenue Rises to ₦912.5 Billion; PBT Hits ₦276.1 Billion

BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025

By femi Oyewale

BUA Foods Plc has delivered one of the most impressive financial performances in Nigeria’s fast-moving consumer goods (FMCG) sector, recording a 91 per cent increase in Profit After Tax (PAT) for the 2025 financial year.
According to the company’s unaudited financial results for the year ended December 31, 2025, Profit After Tax rose sharply to ₦508 billion, compared with ₦266 billion recorded in 2024, underscoring strong operational efficiency, improved cost management, and resilience despite a challenging macroeconomic environment.
The near-doubling of profit reflects BUA Foods’ ability to navigate rising input costs, foreign exchange volatility, and inflationary pressures that weighed heavily on manufacturers throughout the year. Analysts note that the performance places the company among the strongest earnings growers on the Nigerian Exchange in 2025.
The company’s Q4 2025 performance further highlights this momentum. Group turnover stood at ₦383.4 billion, while gross profit came in at ₦151.5 billion, demonstrating sustained demand across its core product lines including sugar, flour, pasta, and rice.
Despite a year marked by higher operating costs across the industry, BUA Foods maintained disciplined spending. Administrative and selling expenses were kept under control relative to revenue, helping to protect margins.
Operating profit for Q4 2025 stood at ₦126.9 billion, reinforcing the company’s strong core earnings capacity. Although finance costs and foreign exchange losses remained a factor, reflecting the broader economic realities, BUA Foods still closed the period with a Net Profit Before Tax of ₦102.3 billion for the quarter.
Earnings Per Share Rise Sharply
Shareholders were among the biggest beneficiaries of the strong performance. Earnings Per Share (EPS) rose significantly, reflecting the substantial growth in net income and strengthening the company’s investment appeal.
Market watchers say the improved earnings profile could support sustained investor confidence, especially as the company continues to consolidate its leadership position in Nigeria’s food manufacturing space.
BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025

By femi Oyewale
Industry Leadership Amid Economic Headwinds
BUA Foods’ 2025 results stand out against a backdrop of currency depreciation, energy cost spikes, and logistics challenges that constrained many manufacturers. The company’s scale, backward integration strategy, and local sourcing advantages are widely seen as key contributors to its resilience.
Outlook
With a 91% year-on-year growth in PAT, BUA Foods enters 2026 on a strong footing. Analysts expect the company to remain a major driver of growth in the consumer goods sector, provided macroeconomic stability improves and cost pressures ease.
For now, the 2025 numbers send a clear signal: BUA Foods is not only growing—it is accelerating.
Continue Reading

Business

Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards

Published

on

Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards

Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards

In celebration of the season of love, Adron Homes and Properties has announced the launch of its special Valentine campaign, “Love for Love” Promo, a customer-centric initiative designed to reward Nigerians who choose to express love through smart, lasting real estate investments.

The Love for Love Promo offers clients attractive discounts, flexible payment options, and an array of exclusive gift items, reinforcing Adron Homes’ commitment to making property ownership both rewarding and accessible. The campaign runs throughout the Valentine season and applies to the company’s wide portfolio of estates and housing projects strategically located across Nigeria.

 

Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards

Speaking on the promo, the company’s Managing Director, Mrs Adenike Ajobo, stated that the initiative is aimed at encouraging individuals and families to move beyond conventional Valentine gifts by investing in assets that secure their future. According to the company, love is best demonstrated through stability, legacy, and long-term value—principles that real estate ownership represents.

Under the promo structure, clients who make a payment of ₦100,000 receive cake, chocolates, and a bottle of wine, while those who pay ₦200,000 are rewarded with a Love Hamper. Payments of ₦500,000 attract a Love Hamper plus cake, and clients who pay ₦1,000,000 enjoy a choice of a Samsung phone or a Love Hamper with cake.

The rewards become increasingly premium as commitment grows. Clients who pay ₦5,000,000 receive either an iPad or an all-expenses-paid romantic getaway for a couple at one of Nigeria’s finest hotels, which includes two nights’ accommodation, special treats, and a Love Hamper. A payment of ₦10,000,000 comes with a choice of a Samsung Z Fold 7, three nights at a top-tier resort in Nigeria, or a full solar power installation.

For high-value investors, the Love for Love Promo delivers exceptional lifestyle experiences. Clients who pay ₦30,000,000 on land are rewarded with a three-night couple’s trip to Doha, Qatar, or South Africa, while purchasers of any Adron Homes house valued at ₦50,000,000 receive a double-door refrigerator.

The promo covers Adron Homes’ estates located in Lagos, Shimawa, Sagamu, Atan–Ota, Papalanto, Abeokuta, Ibadan, Osun, Ekiti, Abuja, Nasarawa, and Niger States, offering clients the opportunity to invest in fast-growing, strategically positioned communities nationwide.

Adron Homes reiterated that beyond the incentives, the campaign underscores the company’s strong reputation for secure land titles, affordable pricing, strategic locations, and a proven legacy in real estate development.

As Valentine’s Day approaches, Adron Homes encourages Nigerians at home and in the diaspora to take advantage of the Love for Love Promo to enjoy exceptional value, exclusive rewards, and the opportunity to build a future rooted in love, security, and prosperity.

Continue Reading

Business

Why Nigeria’s Banks Still on Shaky Ground with Big Profits, Weak Capital

Published

on

*Why Nigeria’s Banks Still on Shaky Ground with Big Profits, Weak Capital*

*BY BLAISE UDUNZE*

Despite the fragile 2024 economy grappling with inflation, currency volatility, and weak growth, Nigeria’s banking industry was widely portrayed as successful and strong amid triumphal headlines. The figures appeared to signal strength, resilience, and superior management as the Tier-1 banks such as Access Bank, Zenith Bank, GTBank, UBA, and First Bank of Nigeria, collectively reported profits approaching, and in some cases exceeding, N1 trillion. Surprisingly, a year later, these same banks touted as sound and solid are locked in a frenetic race to the capital markets, issuing rights offers and public placements back-to-back to meet the Central Bank of Nigeria’s N500 billion recapitalisation thresholds.

 

The contradiction is glaring. If Nigeria’s biggest banks are so profitable, why are they unable to internally fund their new capital requirements? Why have no fewer than 27 banks tapped the capital market in quick succession despite repeated assurances of balance-sheet robustness? And more fundamentally, what do these record profits actually say about the real health of the banking system?

 

The recapitalisation directive announced by the CBN in 2024 was ambitious by design. Banks with international licences were required to raise minimum capital to N500 billion by March 2026, while national and regional banks faced lower but still substantial thresholds ranging from N200 billion to N50 billion, respectively. Looking at the policy, it was sold as a modern reform meant to make banks stronger, more resilient in tough times, and better able to support major long-term economic development. In theory, strong banks should welcome such reforms. In practice, the scramble that followed has exposed uncomfortable truths about the structure of bank profitability in Nigeria.

 

At the heart of the inconsistency is a fundamental misunderstanding often encouraged by the banks themselves between profits and capital. Unknown to many, profitability, no matter how impressive, does not automatically translate into regulatory capital. Primarily, the CBN’s recapitalisation framework actually focuses on money paid in by shareholders when buying shares, fresh equity injected by investors over retained earnings or profits that exist mainly on paper.

 

This distinction matters because much of the profit surge recorded in 2024 and early 2025 was neither cash-generative nor sustainably repeatable. A significant portion of those headline banks’ profits reported actually came from foreign exchange revaluation gains following the sharp fall of the naira after exchange-rate unification. The industry witnessed that banks’ holding dollar-denominated assets their books showed bigger numbers as their balance sheets swell in naira terms, creating enormous paper profits without a corresponding improvement in underlying operational strength. These gains inflated income statements but did little to strengthen core capital, especially after the CBN barred banks from using FX revaluation gains for dividends or routine operations. In effect, banks looked richer without becoming stronger.

 

Beyond FX effects, Nigerian banks have increasingly relied on non-interest income fees, charges, and transaction levies to drive profitability. While this model is lucrative, it does not necessarily deepen financial intermediation or expand productive lending. High profits built on customer charges rather than loan growth offer limited support for long-term balance-sheet expansion. They also leave banks vulnerable when macroeconomic conditions shift, as is now happening.

Indeed, the recapitalisation exercise coincides with a turning point in the monetary cycle. The extraordinary conditions that supported bank earnings in 2024 and 2025 are beginning to unwind. Analysts now warn that Nigerian banks are approaching earnings reset, as net interest margins the backbone of traditional banking profitability, come under sustained pressure.

Renaissance Capital, in a January note, projects that major banks including Zenith, GTCO, Access Holdings, and UBA will struggle to deliver earnings growth in 2026 comparable to recent performance.

 

In a real sense, the CBN is expected to lower interest rates by 400 to 500 basis points because inflation is slowing down, and this means that banks will earn less on loans and government bonds, but they may not be able to quickly lower the interest they pay on deposits or other debts. The cash reserve requirements are still elevated, which does not earn interest; banks can’t easily increase or expand lending investments to make up for lower returns. The implications are significant. Net interest margin, the difference between what banks earn on loans and investments and what they pay on deposits, is poised to contract. Deposit competition is intensifying as lenders fight to shore up liquidity ahead of recapitalisation deadlines, pushing up funding costs. At the same time, yields on treasury bills and bonds, long a safe and lucrative haven for banks are expected to soften in a lower-rate environment. The result is a narrowing profit cushion just as banks are being asked to carry far larger equity bases.

 

Compounding this challenge is the fading of FX revaluation windfalls. With the naira relatively more stable in early 2026, the non-cash gains that once flattered bank earnings have largely evaporated. What remains is the less glamorous reality of core banking operations: credit risk management, cost efficiency, and genuine loan growth in a sluggish economy. In this new environment, maintaining headline profits will be far harder, even before accounting for the dilutive impact of recapitalisation.

 

That dilution is another underappreciated consequence of the capital rush. Massive share issuances mean that even if banks manage to sustain absolute profit levels, earnings per share and return on equity are likely to decline. Zenith, Access, UBA, and others are dramatically increasing their share counts. The same earnings pie is now being divided among many more shareholders, making individual returns leaner than during the pre-recapitalisation boom. For investors, the optics of strong profits may soon give way to the reality of weaker per-share performance.

Yet banks have pressed ahead, not only out of regulatory necessity but also strategic calculation.

 

During this period of recapitalization, investors are interested in the stock market with optimism, especially about bank shares, as banks are raising fresh capital, and this makes it easier to attract investments. This has become a season for the management teams to seize the moment to raise funds at relatively attractive valuations, strengthen ownership positions, and position themselves for post-recapitalisation dominance. In several cases, major shareholders and insiders have increased their stakes, as projected in the media, signalling confidence in long-term prospects even as near-term returns face pressure.

 

There is also a broader structural ambition at play. Well-capitalised banks can take on larger single obligor exposures, finance infrastructure projects, expand regionally, and compete more credibly with pan-African and global peers. From this perspective, recapitalisation is not merely about compliance but about reshaping the competitive hierarchy of Nigerian banking. What will be witnessed in the industry is that those who succeed will emerge larger, fewer, and more powerful. Those that fail will be forced into consolidation, retreat, or irrelevance.

 

For the wider economy, the outcome is ambiguous. Stronger banks with deeper capital buffers could improve systemic stability and enhance Nigeria’s ability to fund long-term development. The point is that while merging or consolidating banks may make them safer, it can also harm the market and the economy because it will reduce competition, let a few banks dominate, and encourage them to earn easy money from bonds and fees instead of funding real businesses. The truth be told, injecting more capital into the banks without complementary reforms in credit infrastructure, risk-sharing mechanisms, and fiscal discipline, isn’t enough as the aforementioned reforms are also needed.

 

The rush as exposed in this period, is that the moment Nigerian banks started raising new capital, the glaring reality behind their reported profits became clearer, that profits weren’t purely from good management, while the financial industry is not as sound and strong as its headline figures. The fact that trillion-naira profit banks must return repeatedly to shareholders for fresh capital is not a sign of excess strength, but of structural imbalance.

 

With the deadline for banks to raise new capital coming soon, by 31 March 2026, the focus has shifted from just raising N500 billion. N200 billion or N50 billion to think about the future shape and quality of Nigeria’s financial industry, or what it will actually look like afterward. Will recapitalisation mark a turning point toward deeper intermediation, lower dependence on speculative gains, and stronger support for economic growth? Or will it simply reset the numbers while leaving underlying incentives unchanged?

The answer will define the next chapter of Nigerian banking long after the capital market roadshows have ended and the profit headlines have faded.

 

 

Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]

Continue Reading

Cover Of The Week

Trending