Business
How Benue state Governor, Sam Ortom turned ‘deaf ears’ to my advice on Fulani Herdsmen – Plateau state Governor, Lalong
The Governor of Plateau State, Simon Lalong, on Thursday said he advised his Benue State counterpart, Samuel Ortom, against implementing the anti-grazing law on his state.
Clashes between locals and herdsmen had led to the death of several people in Benue State since the beginning of the new year.
Speaking with State House correspondents after meeting with President Muhammadu Buhari on Thursday, Mr. Lalong said his state used to face the same problem as Benue.
He said, however, that his decision to embrace ranching has led to peace in Plateau State. Excerpt:
Q: What dis you discuss with the President?
A: I just returned from my vacation and I felt I should come and see Mr. President especially as my state celebrated Christmas and new year peacefully, to wish him happy new year and brief him on the happenings in the state in the last one year. With the support I am getting from Mr. President, we are having relative peace. So I came to brief him, especially when you see insecurity in neighbouring states, so that if there are areas of improvement, we will also do the improvement so that we don’t have cases like we are seeing.
Q: So what’s the secret to the relative peace you are enjoying in the state?
A: I have said it a number of times, it is a matter of accommodating interests; you take everybody as your own. In Plateau state, I did that because when I came, I inherited a protracted crisis in the state. And so my first priority was how to handle this crisis and ensure we have peace in Plateau State. Within three months, we were able to achieve peace in Plateau State. Most of the lingering crisis were between farmers and herdsmen in Plateau. But today in most parts of the state, you will see beautiful relationship between herdsmen and farmers.
At the end of last year, something small happened. But I’m not saying it was between herdsmen and farmers. It was as a result of criminal activities, and so we focused on fishing out those criminals. Most of the crisis that happened was not on the farm, it was just pockets of people; Christians and Muslims killing one another; and so we addressed those issues, we are handling them.
Let me also say that Plateau was one of those that embraced ranching. I had a lot of opposition initially when I said Plateau was keying into ranching. Some states said they don’t have land but I said whether I have land or not, we have to provide land for ranching, because that I see as solution to the conflicts. In Plateau, we have gone far, we have donated land voluntarily, many people donated land for ranching.
Last year, I sent a 12-man team to the Federal Ministry of Agriculture, they spent almost a week there to study and the team was headed by former Vice Chancellor of University of Jos, Professor Onazi. We went round all the communities in Plateau, it took three months and Plateau people, including the Fulanis accepted that we must embrace ranching.
Ranching as a concept is a policy and there are states realizing the importance of the policy. I cannot wake up like some people said last year that I should go and do anti-grazing law. And I asked: anti-grazing law for what? We are talking about ranching, we are talking about development of livestock business and I cannot use the word anti to start driving people who are interested. It is for those who are interested to come and get involved in it.
Secondly, I can’t implement anti-grazing law. There are levels of implementation which will require government intervention, provision of ranchers. And thirdly, when you are talking of ranching, it is a component of agriculture business, you will also require subsidy. Subsidy must come from federal and state governments. And by the time we develop it and put every structure on ground, then we can bring laws to regulate the implementation. So I don’t want to jump one step before the other.
Q: So why did you not advise your colleagues about this?
A: To be honest with you, I did. I told the Governor of Benue when he was doing the law; I said look, why don’t you tread softly, just be careful, take other steps before you start implementation. But you see, states are different, his own concepts are different and for us on the Plateau is different. I said I will not do the law before implementation. I have not developed the ranching areas, so I cannot go and say I will put a law, to stop who? If I stop the people, what is the alternative?
So I said do consultations, allow the people to understand and buy into the concepts.
Q: You are talking about ranching and the federal government is now talking about colonies, what does that mean?
A: For me, anytime I hear anything about agriculture, I don’t jump into conclusions, I go and study it. Yesterday (Wednesday), I was at the federal ministry with my agricultural team, commissioner and others, we spent almost five hours because I said they must convince me and explain to me what colony is. So that when I go back, just like I did with ranching, I will go and tell my people that this is the concept. When I had the briefing with them, I was convinced about colony.
They said the difference between colony and ranches is that one is bigger than the other. You get a very big field, you get investors, demarcate the area, somebody will ranch bees, somebody will ranch goats, somebody will ranch cattle, but government will develop the place, put grasses, water and anybody who is coming in must pay. And you cannot go and force any land, is voluntary land that government has. For me in Plateau, we have two large areas already, that is the concept and my eyes is already going back.
So, they are saying they are going to visit the place as part of the solution to farmers/herdsmen clashes in my state.
When Plateau wanted anti-grazing law and I asked against who? and they said against a particular tribe. And I said, tell me who in Plateau who is not into open grazing? Seventeen local governments we are all into open grazing. Is either you are grazing cattle, goat, sheep, or even chicken because the law will protect and restrict the movement of all these animals, these are general livestock. If you are talking of this thing, we will take a holistic approach in preparing for implementation. And when you do that, with a lot of consultation like we are done in Plateau… when I got back, I heard the Fulanis were moving from state to state sensitizing their people on the need to embrace ranching.
Q: But people say providing colony is a way of pampering the herdsmen?
A: Let me tell you, nobody said ranching is only for Fulani herdsmen. Like I said, in Plateau, I said ranching is everybody’s business. Many youths, thousands of graduates have registered, ready to go into that business. It is everybody’s business. We must help the federal government to find ways of addressing issues because agriculture is not just agriculture now, it is now a means of diversification. And if you have to diversify, it is serious business for everyone, it is not for a tribe.
So I said if we have to encourage people to go into ranching, I will not use the word anti.
Q: What is your comments regarding the coming local government elections in your state?
A: I want to assure that sometimes when you see conflicts or problems in an election, it is when there is no primaries, when people engage themselves in carnivals.
In Plateau, when you go and ask of the best primaries, they will tell you it was the last primaries organised by the APC. So, if we had good primaries, definitely you can be rest assured that you are looking forward to the best of local government elections.
Q: What was the President’s response after your meeting?
A: He was very happy. Of course, the president is always happy when he hears that, number one, your state is peaceful; and two, that you are paying salaries up to date. For me, salary is no longer an issue. Last December, I started paying gratuity. So, I came to tell him that through his efforts, you can see what bailout is doing to compliment the efforts of what some state governors are doing, so that we don’t start condemning governors anyhow.
In my state, I inherited 11 months arrears and eight months of pensions; and today I have cleared them. I am now into payment of arrears of gratuity and development projects. Let me not forget, part of the visit was to ask for a shift of date in the president’s visit to the state from January to February, and he has agreed. And he said I will come any time you want me to come.
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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