Business
The Second Coming of Goodluck Jonathan By Dele Momodu
Fellow Nigerians, before I get into my main gist of today, let me quickly apologise for my inability to write this column last week. Truth is I had a mental block, pure and simple. Contrary to speculations that I couldn’t write because my great heroine, Hillary Clinton, lost her election, I was just so physically and mentally fatigued because this is one year that I’ve worked so hard on every project at hand. There was no doubt that I was solely disappointed that Donald Trump won the American presidential election but I was able to adjust quickly. My darling mum had taught me about the wisdom of the ancient. You can put your all into any project but the results ultimately remain the exclusive preserve of God. Only God determines the winner or the outcome.
There is so much to learn from the political trajectory of Nigeria. What happened in America had happened repeatedly in our dear beloved country. I will explain in a jiffy. Who would have expected Alhaji Shehu Usman Shagari to defeat a political colossus like Chief Obafemi Awolowo? Who would have expected a Shagari to beat a political philosopher like Dr Nnamdi Azikiwe so black and blue? Who would have expected a stupendously wealthy man like Chief Moshood Kashimawo Olawale Abiola, without any political experience to take on the likes of Baba Gana Kingibe and Alhaji Atiku Abubakar and come out victorious?
What Abiola did in Jos at the National Convention of the Social Democratic Party in 1993, when he mesmerised and hypnotised the party chieftains was what Donald Trump did recently in the United States of America when he razzle-dazzled the Republicans and virtually hijacked their party.
Trump was lucky that he and Abiola belonged in different realms and climes. Abiola was not able to realise his dreams of running government like a business but Trump is set to take power and display the wizardry he flaunted endlessly before the elections. The world is waiting to see if Trump would plunge America into the abyss or perform the miracle of turning water into wine.
The main reason many of us non-Americans opposed Trump so vehemently was because of his supposed bigotry and divisive rhetoric on all fronts. But on a personal note, I’m not too bothered. I have learnt my lessons. Politicians can tell any ignominious lie just to grab power. Voters can believe obvious scams and vote for artful pretenders out of foolish emotions and live to regret it. There is nothing we have not seen before. It is very obvious even this early that the millions of Americans who voted for Trump may never get a quarter of what he promised. Every man has the right to change his mind or beliefs and no one can hang him for it. Trump obviously knew what the Americans wanted to hear and knew how to sell a dead horse at a premium. That is politics. His message resonated with his core base no matter how retrogressive it sounded. As a matter of fact, it became even more attractive the crazier it sounded. Politics and religion are quite similar in that they thrive on pure faith.
The same Trump that appeared a rabid hater of President Barack Obama has since visited his “sworn enemy” in the White House. You would have expected both former warriors to exchange some terrible blows but far from it; they came out behaving like two newly joined love birds. Trump now says Obama is actually a nice guy. Obama also reassures a jittery nation and a confused global community that Trump would actually behave decently and that their allies have nothing to fear.
The two opponents must have known that it was all a game all along while their followers actually believed and embraced the charade. One of the things I love about America is the ability of its leaders to rise above pettiness. Every leader comes in after a bitterest electioneering campaign to embrace the one who lost. I do not hear sing-songs of wasting too much energy on the past. Who would have thought Obama and Bush would become as close as they are now? American leaders are wise enough to know that we are all actors and must quit the stage after playing our assigned roles. We may have sharp differences but we must be able to calculate the cost of war-war against the price of jaw-jaw.
When tomorrow comes, I’m sure Donald Trump would have calmed down and welcome everyone in the true tradition and character of America. No American leader can ever be allowed to transfigure into an Adolf Hitler or a Benito Mussolini. Americans collectively are stronger than their leaders. This is one of the major reasons I’m not worried about Donald Trump and his tantrums. If he returns to the giddiness of his pre-election period, Americans across party lines would know what to do. That is the power of their democracy.
This now brings me back home. I have been reading about the rising profile of our former President, Dr Goodluck Ebele Jonathan, and wish to state without equivocation that no one should rule him out of the 2019 presidential race. I first hinted this possibility about two months ago and wish to reiterate that Nigerians should prepare for the shock that awaits us. The story of Donald Trump should bring us back to our senses. Nothing is impossible. The second coming of Goodluck Jonathan may be so far-fetched or even belong in those categories of impossibilities but I wish to plead with our government and my fellow citizens not to rule it out. As one of those who made our modest and humble contributions to the coming of this Buhari government, I’m pleading with trepidation.
Jonathan’s popularity is rising not because of anything he has done to atone the sins that must have led to his waterloo but as a result of what our change government has failed or refused to do. The obsession of our government with going all out after Jonathan is the main reason the Otuoke man is beginning to smell like roses after the odoriferous position he landed himself last week. Only if our government had succeeded in maintaining the economy it met, Nigerians would have been ready to enter fire with Buhari. But there are just too many unresolved problems and challenges. The excuses that Jonathan and company left this peculiar mess behind has refused to fly. The groans might not be loud enough to reverberate all the way to the Aso Rock Presidential Villa, as of now, but trust me it may become deafening, sooner than later. I do not care if men and women of power dismiss my submission with a wave of the hand but they should mark my word, there is a thickening conspiracy in the clouds. It would be a shame if we inadvertently play into the hands of those hovering and ready to pounce on Buhari.
I read about “persecution complex” long ago and I understand how it works. If you beat your own child so ruthlessly as if you want to kill him, the tilt of public opinion would always go against you. Many would wonder why you want to kill your own child. In our anger, let us pick our fights. There is too much tension in the land. I would be delighted if anyone could educate and convince me that Nigeria has gained much more than we’ve lost to this war of attrition. If we haven’t, we may need to retrace our steps urgently.
The BBC reported on Friday how Jonathan caused a stir in Sokoto State during his visit to the state to pay his respects to Ibrahim Dasuki, the late former Sultan of Sokoto. According to the report, Jonathan was received by a large crowd of admirers, some holding banners bearing the words “Come Back Baba Jonathan”. The same voices that chanted “Sai Baba” and “Jonathan Must Go” are now fiddling with the tunes of the possibility of a Jonathan to stage a comeback. Here lies the irony of political triumph and the paradox of high expectations.
The euphoria and momentum that saw the exit of Jonathan and the emergence of the Buhari change administration has since begun to wane following the inability of the new government to hit the ground running with the tenacity of a government in a hurry!
There are many who believe that the poor management of the ensuing economic recession didn’t help matters. Suddenly, Nigerians who had high hopes and voted massively for change are now caught in a limbo between confusion and uncertainty. As it stands today, the average Nigerian is confronted with the reality of an economic recession they never planned for; a situation they did not experience under the Jonathan administration and under previous governments.
Many of President Buhari’s supporters are worried that the humongous goodwill that engineered the Buhari change mantra is now being frittered away at the speed of light. The unfolding plot has now thrown up former President Jonathan as a new protagonist in Nigeria’s theatre of the absurd. For many of us who are ardent students of history, we have since learnt that nothing is impossible in the game called politics. Will history repeat itself again? Time is pregnant with answers!
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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