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OPINION: Buhari’s Dilemma, Naira Fall, Nigerians’ Suffering & National Security Question
MEN make history and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better”, postulates Harry S. Truman.
Nigerians had high hopes. Nigerians believe basic amenities of life would be readily available. Nigerians were sure health institutions in the country would be better off. The people of Nigeria were certain they would not go to bed in hunger as three square meals would be made available. Millions of Nigerians had belief that house rents payment would be easily affordable. Electricity supply, the masses were sure would have improved and be more constant.
Graduates of Nigerian tertiary colleges were hopeful that securing jobs after school completion would be a walk-over. Farmers were bold enough to agree that they would have access to soft loans to produce food in large capacity to guide against food insecurity in the county. Market women resolved in their several meetings to make prices of food affordable to Nigerians.
Nigerians were joyful that they would be able to sleep with their two eyes closed, not afraid of hoodlums or armed robbers invading their homes. From the East to West, North and South of Nigeria, everyone was certain Naira, Nigeria’s currency would appreciate in the Foreign Exchange Market (Forex) soon as the nation witnessed new administration.
Nigerians had all of these high expectation since on May 29, 2015 when President Muhammadu Buhari assumed power as Nigeria’s leader, the people saw in him: a firm leader going by his antecedent as a military ruler of Nigeria from 1984-1985; an incorruptible personae, a disciplinarian who would be willing to go extra mile ensuring sanity in politics and economy, which are the core promises he made to Nigerians in his manifesto before all of us entrusted our collective destinies in his hands by overwhelmingly voting out Peoples Democratic Party (PDP) and had All Progressives Congress (APC), an opposition party take over the reigns of power. During the election, many Nigerians died in the process, as some of them became victims of gun shots, party-rivalry attacks, stray bullet.
In short, Mr. President rode to power on the wings of Nigerian lives who sacrificed themselves, faced all odds, queued long in the sun, kept vigil on ballot boxes so they are not stolen by hooligans: all in their sorrows, tears and blood. So what did Nigerians get in return for all these sacrifices? Empty promises, disappointment, regret, inflation, sufferings; more joblessness, shattered dreams, unfulfilled aspiration, propaganda and deceit in the most alarming rate ever in Nigeria’s history. It is akin to dancing on dead Nigerians’ graves. Many of them are wishing if the earlier young, vibrant, energetic and resourceful Buhari whom they knew as a military leader in the 80’s could be reincarnated into this 21st Century by his vibrancy. Alas, veils have fallen off Nigerians’ eyes since it is now realized that Buhari of the 80’s is not the same as Buhari of this 21st modern Century. As at today, Buhari is 73 years old, an old man that has obviously lost the energy, vigour, strength, ingenuity and profound thinking capacity of the 80’s.
There comes a time in the life of every man when that man looks himself straight in the mirror and tells himself the truth. At Mr. President’s age of 73 years, if he continues in this path as at present, it is either he his not telling himself the truth by looking closely in his appraisal-mirror of performance or gullible to the high-praise of political sycophants whom General Ibrahim Badamasi Babangida (retired) also a former Nigerian military ruler described in his recent tweeter handle as glutton, hungry politicians with voracious appetite whose main visit to Aso Rock, seat of power is to consume food. IBB, as fondly called captured it in these words: “I strongly believe our Politicians are well fed. Aso Rock is Not A Place to Feed Nigerian Politicians.” A popular adage in Nigeria says “A fool at 40 is a fool forever,”, then how do you describe someone at the age of 73years?
It is becoming more crystal clear daily that there are some political wolves in the corridor of power whom Mr. President must have seen as harmless, political sheep that would not wrongly advise, guide, inform him of the pulse of Nigerians’ expectation; rather these same politicians are not only misinforming, misguiding but seems set to rubbish earlier legacies of Buhari’s accomplishment in the 80’s through his lackluster political performance as being witnessed by all and sundry today.
Regarding Nigeria’s Naira fall to over N300, which has for the first time almost brought the nation’s economy down on its knees due to oil reliant to an all time shame, the words of Douglas MacArthur, an American great philosopher, a five-star Army General and a former Chief of Staff of the United States who died April 5, 1964 in Washington DC readily comes to mind. He said: “A true leader has the confidence to stand alone, the courage to make tough decisions and the compassion to listen to the need of others. He does not set out to become a leader, but becomes one by the equality of his actions and the integrity of his intent.”
Yes, Buhari has been a true leader standing alone. Yes, Mr President has had the confidence to make tough decisions. No, he has not had the compassion to listen to the need and suffering of the masses. Nigerians damned all odds across ethnicity, social barriers, political affiliations to elect him their leader by seeing through the prism of his unquestionable integrity, but the equality of his actions buoyed by his non-compliance to his own electoral promises, willful desecration of his own Oath, now cast shadows of doubt on his economic prowess to save Nigeria from the woods.
Godwin Emefiele, a former Chief Executive officer and Group Managing Director of Zenith Bank Plc has been Governor of Central Bank of Nigeria (CBN) since June 3, 2014. He brought in various economic theories, fad, ideas and policies. On the long run, right under Mr President eyes, Emefiele has found it so difficult to ‘arrest’ the rising of Nigeria’s Naira in Foreign Exchange Market to the extent that One United States Dollar now goes for over N300 in the open market. Under Goodluck Jonathan, Buhari’s predecessor, the then CBN Governor, now Emir of Kano State, Sansusi Lamido Sanusi, ensured Naira exchange to a Dollar was stable at N150. Today, Nigerian politicians due to economic orders handed down to the nation’s financial institutions by CBN; majority of them have literally been buying-out dollars everywhere, anywhere they found it the country, which they now keep at home to avert the slamming hammer of CBN regulations.
These realities have brought untold hardship to majority of Nigerian homes, with money becoming further scarce in circulation as Buhari’s anti-corruption drive steep lower into the standard of living of the masses. Unlike Buhari who had military background, Emefiele would have imprinted his name in the Hall of Infamy at the end of his tenure as ‘one of the worst economists with bad policies that worsened the value of Naira.’ Mr President, it is time you wake up from this slumber that is obviously blowing weird air on Nigerians. Do the right thing: give a deadline to the CBN Governor to put into pragmatic use sound economic policies that would ensure Naira is strong, stable and higher in value compared to other currencies in the Foreign Exchange Market.
Just like every other Nigerians, it is needful that I tell you this Mr President. Great that you are all out fighting Nigeria’s economic saboteurs, corruption, political thieves that have stolen the nation’s wealth by bringing them to justice, blocking all loopholes in the Federal Civil Service to avoid financial waste, having Treasury Single Account (TSA) an initiative which requires that government revenue collection is put into single account to centralize control on effective cash management. But have you asked yourself of what effects are your economic drives on the people you are leading as being guided by the CBN Governor?
Emir of Kano recently said Mr President needs urgent help economically to steer the nation. He also accused Emefiele not to be in denial of being able to artificially hold up the currency. His words: “Let’s stop being in denial, we cannot artificially hold up the currency. President Buhari needs help on the economy. CBN Governor should devalue the Naira. Our economy, the biggest in Africa is in danger of a long slump unless the government confronts slowing growth.”
Another former CBN Governor, Charles Soludo carpets Buhari’s economic direction which he described as ‘Old Buharinomics.’ While delivering a lecture recently in Lagos under the title ‘Avoiding the mistakes of the last Buharinomics’, Soludo said: “There seems to be a perception of the sense of nostalgia, a thing about the command and control regime battling with what is required in a competitive market economy worldwide. The element of the old Buharinomics that we need to change include Fix Exchange Rate, Fix Capital Control, Import Bans and Forex Rationing.”
In his reaction, Emefiele in a grand-standing way to impress Mr President that his economic policies are good and rebuff criticisms daily enumerated by other economic experts so as to keep his job, he recently states during 49th Annual Bankers’ Dinner hosted by the Chartered Institute of Bankers of Nigeria (CBN) in Lagos that “My economic policies are bitter pills with long term benefits. While it is too soon to articulate the benefits, the economy is headed in the right direction. The CBN will always act in good faith in pursuing price and financial system stability. The CBN had instituted many polices, including the Treasury Single Account (TSA), restrictions of foreign exchange (Forex) for the importation of some 41 items, financial bailout for some states and capital controls. I insist that the Naira will not be further devalued and we have been implementing fixed exchange rate regime instead of flexible exchange rate.” Except Buhari takes urgent step to re-write this wrong economic policies, else his administration economy will eventually go down in ruins, as Nigerians are now coerced to swallow the bitter pills of Emefiele’s clueless economic daftness by way of harsh inflationary realities.
On National Security, Mr President should answer the following posers in truth and honesty: Do you have an empirical data of how many Nigerians that goes to bed daily on empty stomach? Do you know the sufferings most businesses in Nigeria are going through without steady electricity supply? Do you have a track record of how many graduates that are jobless yet walking the streets daily in search of non-existing jobs? Have you a collation of how many Nigerians that goes to work daily without any salary to pay their bills by month end? Do you know how many underage girls in Nigeria today that have left secondary schools or still in high schools but have taken to prostitution to help their families eke out a living so they would not die in starvation? Can you give us details of how many Nigerians literally ‘sleeping’ outside various foreign embassies in Nigeria in search of visa to run away from effect of your anti-people economic policies? The hypothetical questions are limitless. Without doubt, Buhari is presently in dilemma.
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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