Business
My Reasons For Edo’s Head Of Service Sacks- Oshiomhole
Governor Adams Oshiomhole of Edo State said he asked the immediate past Head of Service of the State, Jerry Obazele, to proceed on compulsory retirement over gross negligence tending towards fraud.
Speaking during the swearing-in of the New Head of Service of the State, Gladys Idahor, at the Government House, Benin City, yesterday, Mr. Oshiomhole said, “I am a defender of jobs. I believe experience is a value to be celebrated, not to be punished. But I have had to arrive at the painful conclusion that Obazele had to be relieved of his services because not only did he fail to provide leadership, he also conducted himself in a way that would have led me to approve of a fraudulent claim for pensioners.
“He was appointed according to my judgment and I accept responsibility for my poor sense of judgment but I also have the courage to correct my mistakes once I discovered it was a mistake.
“The responsibility of a Head of Service is to be a superintendent over the Civil service. There are many of our senior citizens who had retired from service from as far back as 1999, some even under the military and by the time I assumed office, many of these senior citizens had not received their gratuity for over a period of 12, 13 years.
The situation was compounded by the thousands of workers that were retrenched by a former PDP government between 2000 and 2001 and all of those people were not paid their gratuity.
“There is no worst crime to a working man or woman than to deny him his deferred wage which we call gratuity which is meant to be paid at the point of disengagement so he can use the money to establish and face the rigors and reality of retirement.
“We tried to deal with this problem from inception. First, I gave a standing instruction to the Accountant General that pensioners must be paid exactly the same day as the current Civil Servants. It is not that we pay them if there is something left because at the end of the day, nothing will be left when you pay for every other thing. You must give priority accordingly.
“Two months ago, I called the Head of Service and I said, I am looking forward to the end of my tenure. When I say I want to finish strong and finish well, it is not only in the area of physical infrastructure, but I also want to deal with the social sector. I want to look for money and pay a chunk of money to these pensioners so that we can reduce the waiting time.
“So I asked him, do you have the numbers and the cost and he said yes and I told him, let me have the documents. He produced a document which detailed the number of pensioners year-by-year and the amount required year by year.
“No more gratuity based on who you know, it is batch by batch depending on when you retired. So I saw from the records that Obazele gave me that we have paid up to 2010. We have paid many people who retired in 2010 and according to the document, we had 130 persons who retired in 2010 who have not been paid and we had some other persons in 2011, 2012, 2013 and 2014.
“These numbers were stated clearly and he also stated clearly to me how much we required to pay for each year. For 2010, the figure was N175 million to settle the 130 persons. I said, OK, you let me have the names of these 130 persons for 2010 and the names of those who retired in 2011 through 2014 and the amount. The date of the retirement, the day of employment, the total number of years served which is the basis of calculating gratuity.
“One week passed, two weeks and by the 3rd week, I was watching news and I saw pensioners protesting but I had given instructions three weeks earlier that I want to pay these pensioners but I needed the details to do it.
“I told my secretary to call the Head of Service to submit all the details by 11am the next day since he already has the summary so we could start the process of payment. He should come also with the Pension Board Members and all the documents that have to do with pension payments.
“At 11am, they were in my office and they gave me a voluminous document. Just looking at it straight, I tried to look at 2010. Whereas the first document that was given says 130 pensioners have gratuity pending, the total value of which was N175 million, the new document shows 2010 that we have 377 people and we now need N490 million to pay them. For 2011, 2012, 2013, all the figures had changed.
“So I said, I don’t know all the details but 2010, I remember asking you, and you said many have been paid and that only 130 is the number left. So how has this number increased by 300% to 377? Obazele you are an Accountant, you have been Auditor-General, you have been Accountant-General, Permanent Secretary and now Head of Service. You more than me should be at home with figures, how do you explain this?
“The first thing he said was that, you know maybe they changed the mode of calculations. Maybe they are looking at when the papers were prepared rather than when people retired so I said, whatever formula you used, the number must remain the same. The total cost will not change. The only possibility of the numbers changing is if you have doctored the documents.
“In any case, the first document was given to me by you, prepared by ICT and this one you are giving me is also prepared by the same unit. Why should differences occur? If two people use different formula, I can understand.
This is the same source and then he said, ‘oh, I didn’t actually look at the documents’. I said, you didn’t look at the documents you brought to me?
“The document, four persons signed: Accountant and DFA Pension Board signed, Secretary Pension Board signed, Director, ICT Software signed, Permanent Secretary, ICT signed, four signatories .Now, if I hadn’t remembered what they gave me before, seeing four signatories, I would have approved it and the numbers had changed radically.
“Now, the simple thing was that in the past, when they bring this document, I normally minute it to the ICT to crosscheck. So now, they got ICT person to sign so that I have no escape route but trust, there was an escape route and I could see through it. So I called the Director of SSS to send me security officers to the pensions board to retrieve all the files so we could prepare fresh documents that would form the basis to pay those pensioners.
“As a result, my hope and determination to pay those pensioners before my 7th year anniversary was dashed. You see, I had the will, I had looked for the money but somebody in the Civil service compromised my intention by falsifying numbers. That is Civil Servants inhumanity to Civil Servants.
“We had to appoint a new audit firm and they have shown something that will shock you that in the Pensions Board, they prepared for 1 person, 2 pensions with 2 original documents. Same date of birth, same salary, everything same, but two original vouchers. So whereas the real man is old and dying, those that the government has put in place to prepare their pension are busy feasting on the lives of these senior citizens.
“We are disbanding the Pensions Board because they have lived on fraud. Now we are reviewing and re organizing even the ICT, clean it up and ensure we have responsible and competent people with character to man it.
“I believe and I am determined that before Christmas, not later than next week, we will do everything possible to commence the process of paying many of these pensioners whose records have been cleaned up.
“This is the reason I had to take the painful decision of relieving the former Head of Service of his job and in searching for replacement. I know a lady who had managed, easily the most difficult ministry and under whom we have sanitized the ministry of education.
“So I believe that Mrs. Idahor possesses not just the qualification and experience but also the boldness and I know that the service will be in very good hands.”
The governor explained that his decision was taken to protect the interest of the Pensioners and Edo taxpayers and does not have any ethnic or religious colouration.
In her response, the new Head of Service, Mrs. Idahor said, “I want to appreciate the Comrade Governor for finding me worthy of this elevation to the position of Head of Service.
“I want to assure you sir, that the trust and confidence you have reposed in me by this elevation will not be betrayed.
“I’m not unaware of the challenges facing the Civil Service but I want to believe they are not insurmountable. I promise, with God helping me, to re-orientate, reinvigorate and re-organise the public Service for better performance realizing that the Civil service is the engine room of the government.”
Source: Premium Times
Recapitalisation Without Transformation is a Risk Nigeria Cannot Afford
BY BLAISE UDUNZE
In barely two weeks, Nigeria’s banking sector will once again be at a historic turning point. As the deadline for the latest recapitalisation exercise approaches on March 31, 2026, with no fewer than 31 banks having met the new capital rule, leaving out two that are reportedly awaiting verification. As exercise progresses and draws to an end, policymakers are optimistic that stronger banks will anchor financial stability and support the country’s ambition of building a $1 trillion economy.
The reform, driven by the Central Bank of Nigeria (CBN) under Governor Olayemi Cardoso, requires banks to significantly raise their capital thresholds, which are set at N500 billion for international banks, N200 billion for national banks, and N50 billion for regional lenders. According to the apex bank, 33 banks have already tapped the capital market through rights issues and public offerings; collectively, the total verified and approved capital raised by the banks amounts to N4.05 trillion.
No doubt, at first glance, the strategy definitely appears straightforward with the idea that bigger capital means stronger banks, and stronger banks should finance economic growth. But history offers a cautionary reminder that capital alone does not guarantee resilience, as it would be recalled that Nigeria has travelled this road before.
During the 2004-2005 consolidation led by former CBN Governor Charles Soludo, the number of banks in the country shrank dramatically from 89 to 25. The reform created larger institutions that were celebrated as national champions. The truth is that Nigeria has been here before because, despite all said and done, barely five years later, the banking system plunged into crisis, forcing regulatory intervention, bailouts, and the creation of the Asset Management Corporation of Nigeria (AMCON) to absorb toxic assets.
The lesson from that experience is simple in the sense that recapitalisation without structural reform only postpones deeper problems.
Today, as banks race to meet the new capital thresholds, the real question is not how much capital has been raised but whether the reform will transform the fundamentals of Nigerian banking. The underlying fact is that if the exercise merely inflates balance sheets without addressing deeper vulnerabilities, Nigeria risks repeating a familiar cycle of apparent stability followed by systemic stress, as the resultant effect will be distressed banks less capable of bringing the economy out of the woods.
The real measure of success is far simpler. That is to say, stronger banks must stimulate economic productivity, stabilise the financial system, and expand access to credit for businesses and households. Anything less will amount to a missed opportunity.
One of the most critical issues surrounding the recapitalisation drive is the quality of the capital being raised.
Nigeria’s banking sector has reportedly secured more than N4.5 trillion in new capital commitments across different categories of banks. No doubt, on paper, these numbers may appear impressive. Going by the trends of events in Nigeria’s economy, numbers alone can be deceptive.
Past recapitalisation cycles revealed troubling practices, whereby funds raised through related-party transactions, borrowed money disguised as equity, or complex financial arrangements that recycled risks back into the banking system. If such practices resurface, recapitalisation becomes little more than an accounting exercise.
To avert a repeat of failure, the CBN must therefore ensure that every naira raised represents genuine, loss-absorbing capital. Transparency around capital sources, ownership structures, and funding arrangements must be non-negotiable. Without credible capital, balance sheet strength becomes an illusion that will make every recapitalization exercise futile.
In financial systems, credibility is itself a form of capital. If there is one recurring factor behind banking crises in Nigeria, it is corporate governance failure.
Many past collapses were not triggered by global shocks but by insider lending, weak board oversight, excessive executive power, and poor risk culture. Recapitalisation provides regulators with a rare opportunity to reset governance standards across the industry.
Boards must be independent not only in structure but also in substance. Risk committees must be empowered to challenge executive decisions. Insider lending rules must be enforced without compromise because, over the years, they have proven to be an anathema against the stability of the financial sector. The stakes are high.
When governance fails, fresh capital can quickly become fresh fuel for old excesses. Without governance reform, recapitalisation risks reinforcing the very weaknesses it seeks to eliminate.
Another structural vulnerability lies in Nigeria’s increasing amount of non-performing loans (NPLs), which recently caused the CBN to raise concerns, as Nigeria experiences a rise in bad loans threatening banking stability.
Industry data suggests that the banking sector’s NPL ratio has climbed above the prudential benchmark of 5 percent, reaching roughly 7 percent in recent assessments. Many of these troubled loans are concentrated in sectors such as oil and gas, power, and government-linked infrastructure projects, alongside other factors such as FX instability, high interest rates, and the withdrawal of Covid-era forbearance, which threaten bank stability.
While regulatory forbearance has helped maintain short-term stability, it has also obscured deeper asset-quality concerns. A credible recapitalisation process must confront this reality directly.
Loan classification standards must reflect economic truth rather than regulatory convenience. Banks should not carry impaired assets indefinitely while presenting healthy balance sheets to investors and depositors.
Transparency about asset quality strengthens trust. Concealment destroys it. Few forces have disrupted Nigerian bank balance sheets in recent years as severely as exchange-rate volatility.
Many banks still operate with significant foreign exchange mismatches, borrowing short-term in foreign currencies while lending long-term to clients earning revenues in naira. When the naira depreciates sharply, these mismatches can erode capital faster than any credit loss.
Recapitalisation must therefore be accompanied by stricter supervision of foreign exchange exposure, as this part calls for the regulator to heighten its supervision. Banks should be required to disclose currency risks more transparently and undergo rigorous stress testing at intervals that assume adverse currency scenarios rather than best-case outcomes. In a structurally import-dependent economy, ignoring FX risk is no longer an option.
Nigeria’s banking system has long been characterised by excessive concentration in a few sectors and corporate clients, which calls for adequate monitoring and the need to be addressed quickly for the recapitalization drive to yield maximum results.
Growth in most advanced economies comes from the small and medium-sized enterprises that are well-funded. Anything short of this undermines it, since the concentration of huge loans to large oil and gas companies, government-related entities, and major conglomerates absorbs a disproportionate share of bank lending. This has continued to pose a major threat to the system, as the case is with small and medium-sized enterprises, the backbone of job creation, which remain chronically underfinanced. This imbalance weakens the economy.
Recapitalisation should therefore be tied to policies that encourage credit diversification and risk-sharing mechanisms that allow banks to lend more confidently to productive sectors such as agriculture, manufacturing, and technology rather than investing their funds into the government’s securities. Bigger banks that remain narrowly exposed do not strengthen the economy. They amplify its fragilities.
Nigeria’s macroeconomic conditions, which are its broad economic settings, are defined by frequent and sometimes sharp changes or instability rather than stability.
Inflation shocks, interest-rate swings, fiscal pressures, and currency adjustments are not rare disruptions; but they have now become a normal part of the economic environment. Despite all these adverse factors, many banks still operate risk models that assume relative stability. Perhaps unbeknownst to the stakeholders, this disconnect is dangerous.
Owing to possible shocks, and when banks increase their capital (recapitalization), it is required that banks adopt more sophisticated risk-management frameworks capable of withstanding severe economic scenarios, with the expectation that stronger banks should also have stronger systems to manage risks and survive economic crises. In Nigeria today, every financial institution’s stress testing must be performed in the face of the economy facing severe shocks like currency depreciation, sovereign debt pressures, and sudden interest-rate spikes.
Risk management should evolve from a compliance obligation into a strategic discipline embedded in every lending decision.
Public confidence in the banking system depends heavily on credible financial reporting.
Investors, analysts, and depositors need to be able to understand banks’ true financial positions without navigating non-transparent disclosures or creative accounting practices, which means the industry must be liberated to an extent that gives room for access to information.
Recapitalisation provides an opportunity to strengthen the enforcement of international financial reporting standards, enhance audit quality, and require clearer disclosure of capital adequacy, asset quality, and related-party transactions. Transparency should not be feared. It is the foundation of trust.
One thing that must be corrected is that while recapitalisation often focuses on financial metrics, the banking sector ultimately runs on human capital.
Another fearful aspect of this exercise for the economy is that consolidation and mergers triggered by the reform could lead to workforce disruptions if not carefully managed. Job losses, casualisation, and declining staff morale can weaken institutional culture and productivity. Strong banks are built by strong people.
If recapitalisation strengthens balance sheets while destabilising the workforce that powers the system, the reform risks undermining its own economic objectives. Human capital stability must therefore form part of the broader reform strategy.
Doubtless, another emerging shift in Nigeria’s financial landscape is the rise of digital financial platforms that are increasingly changing how people access and use money in Nigeria.
Millions of Nigerians are increasingly relying on fintech platforms for payments, microloans, and everyday financial transactions. One of the advantages it offers, is that these services often deliver faster and more user-friendly experiences than traditional banks. While innovation is welcome, it raises important questions about the future structure of financial intermediation.
The point here is that the moment traditional banks retreat from retail banking while fintech platforms dominate customer interactions, systemic liquidity and regulatory oversight could become fragmented.
The CBN must see to it that the recapitalised banks must therefore invest aggressively in digital infrastructure, cybersecurity, and customer experience, while cutting down costs on all less critical areas in the industry.
Nigerians should feel the benefits of recapitalisation not only in stronger balance sheets but also in faster apps, reliable payment systems, and responsive customer service.
As banks grow larger through recapitalisation and consolidation, a new challenge emerges via systemic concentration.
Nigeria’s largest banks already control a significant share of industry assets. Further consolidation could deepen the divide between dominant institutions and smaller players. This creates the risk of “too-big-to-fail” banks whose collapse could threaten the entire financial system.
To address this risk, regulators must strengthen resolution frameworks that allow distressed banks to fail without triggering systemic panic, their collapse does not damage the whole financial system, and do not require taxpayer-funded bailouts to forestall similar mistakes that occurred with the liquidation of Heritage Bank. Market discipline depends on credible failure mechanisms.
It must be understood that Nigeria’s banking recapitalisation is not merely a financial exercise or, better still, increasing banks’ capital. It is a rare opportunity to rebuild trust, strengthen governance, and reposition the financial system as a true engine of economic development.
One fact is that if the reform focuses only on capital numbers, the country risks repeating a familiar pattern of churning out impressive balance sheets followed by another cycle of crisis.
But the actors in this exercise must ensure that the recapitalisation addresses governance failures, asset quality concerns, risk management weaknesses, and transparency gaps; and the moment this is done, the banking sector could emerge stronger and more resilient.
Nigeria does not simply need bigger banks. It needs better banks, institutions capable of financing innovation, supporting entrepreneurs, and building economic opportunity for millions of citizens.
The true capital of any banking system is not just money. It is trust. And whether this recapitalisation ultimately succeeds will depend on whether Nigerians see that trust reflected not only in financial statements but in the everyday experience of saving, borrowing, and investing in the economy. Only then will bigger banks translate into a stronger nation.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
FirstBank Makes Home Ownership Possible for Nigerians with Single-Digit Interest Rate Loan
For millions of Nigerians, homeownership has long felt like an ambition deferred. Squeezed by rising property prices, persistent double-digit inflation and high commercial lending rates, the dream of owning a home has remained just that – a dream.
But that narrative is quietly changing. Thanks to FirstBank.
The N1 Trillion Intervention Reshaping Access
In partnership with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), FirstBank has unveiled a mortgage opportunity that could redefine access to housing finance in Nigeria.
Backed by the Federal Government’s N1trillion mortgage fund, the initiative is designed to empower Nigerians with affordable, long-term credit to own their homes.
9.75% Interest Rate in a 30% Lending Environment
MREIF is priced at 9.75% per annum, dramatically lower than prevailing commercial loan rates. Eligible Nigerians can access up to N100 million and repay within 20 years. This translates into significantly more manageable monthly repayments and greater long-term financial stability.
Built for Salary Earners, Entrepreneurs and the Diaspora
The MREIF mortgage facility has been structured to be inclusive. It is available to salary account holders, business owners and diaspora customers. Whether you are a young professional aiming to exit the rent cycle, an entrepreneur building generational stability, or you’re a Nigerian abroad looking to secure assets locally, the product opens a pathway that has historically been out of reach for many.
Taking the First Step
For those who have been waiting for the right time, this is definitely it. The question is no longer whether homeownership is possible. The real question is: will you act before the window narrows?
Visit https://www.firstbanknigeria.com/personal/loans/mreif-home-loan/ and in no time you could be the latest homeowner in town.
Alpha Morgan Bank Deepens Presence in Abuja with New Branch in Utako
Marking another milestone in its expansion drive, Alpha Morgan Bank has opened a new branch in Utako, Abuja, reinforcing its strategy of building closer institutional ties within key business communities and bringing its financial expertise closer to individuals, and enterprises driving the city’s growth.
The new branch, located at Plot 1121 Obafemi Awolowo Way, Utako, Abuja is strategically positioned to serve individuals, entrepreneurs, and corporate clients within Utako and surrounding districts.
The expansion follows the Bank’s recently concluded Economic Review Webinar held in February 2026, as the bank continues to position as a thought-leader in the financial services industry.
Speaking on the opening, Ade Buraimo, Managing Director of Alpha Morgan Bank, said the move underscores the Bank’s commitment to accessibility and service excellence.
“Proximity matters in banking. As communities grow and commercial activity expands, financial institutions also evolve to meet customers where they are. The Utako Branch allows us to deliver our services to people in that community efficiently while maintaining the high standards our customers expect,”
The Utako location will provide a full suite of retail and corporate banking services, including account opening, deposits, transfers, business banking solutions, and financial advisory support.
Customers and members of the public are invited to visit the new Utako Branch to experience the Bank’s approach to satisfying banking.
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