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WHO D-G Election: How Ethiopian Tedros’s Track Records Makes Him Best Man For The Job
This May, at the 70th World Health Assembly, the new Director-General of the World Health Organization (WHO) will be elected by Health Ministers of Member States.
The race for the plum job couldn’t come at a more crucial time for the WHO, considering its failures during the Ebola epidemic, which hit several countries around the World. Thus, the WHO needs urgent reforms, if it is to make the impact globally. With a future pandemic inevitable, the WHO really needs needs reforms at this auspicious point in time.
It could be recalled that Names of candidates for the next Director-General nominated by Member States were announced on 23 September 2016.
In October 2016, Member States and candidates were given the opportunity to interact in a password-protected web forum hosted on the WHO website.
On 1–2 November 2016, a live forum was held, at which candidates presented their vision to WHO Member States and were also able to answer questions on their candidacy. The candidates’ forum was webcast on the WHO website in all official languages.
Then In January 2017, WHO’s Executive Board drew up a short list of 5 candidates. Executive Board members then interviewed these candidates and up to 3 of them are to go forward to the World Health Assembly this May 2017. The man who emerges new Director-General, will take office on 1 July 2017.
THE CANDIDATES
There are three candidates left in the race to lead the WHO.
They are Dr. Sania Nishtar, a Pakistani National. Nishtar has a unique combination of experience as minister, civil society trailblazer, leader in multilateral institutions, physician scientist, thought leader, and founder of institutions.
Another candidate is Dr. David Nabarro from the Great Britain. Nabarro has extensive experience in the field of international public health. He is a fine international civil servant.
But by convention the five permanent members of the United Nations Security Council, of which Britain is one do not supply the heads of such agencies as the WHO.
It’s expedient to state that Health Ministers of Member States must now look the way of Dr. Tedros Adhanom Ghebreyesus, an Ethiopian National, born March 3, 1965.
Reason being that if elected, Dr. Tedros would be the first African and first Health Practitioner to head the WHO. This is no mean feat, therefore the world must throw their weight behind this cerebral man who has the potential and the ability truly to transform the WHO. By doing so, there would be massive improvement to the health of billions of people around the world.
The new WHO leader needs to have demonstrated clear success in building up access to healthcare in poor countries.
Proven leadership in reforming important global agencies will be helpful and, crucially, the new leader will need political skills to bring together very different interest groups so that real change can be achieved.
Without much ado, Tedros possess the track record that the WHO needs at this critical point in time, having distinguished himself over three decades as a performing leader who has saved and improved lives in Africa and around the world.
HIS NOTABLE ROLES AND QUALIFICATION
It is apt to state that Dr. Tedros has over the last three decades of his professional career in public health held the several portfolios and performed key roles at different points towards improving the lives of Africans and people around the globe. Among them include:
* Minister of Foreign Affairs, Ethiopia
* Minister of Health, Ethiopia
* Chair, Global Fund to Fights AIDS, Tuberculosis and Malaria Board
* Chair, Roll Back Malaria Partnership Board
* Co-Chair, Partnership for Maternal, Newborn and Child Health Board
* Ph.D. in Community Health, Master of Science in Immunology of Infectious Diseases
* Globally recognised expert and author on health issues, including health workforce strengthening, emergency responses to epidemics, and malaria
PROFILING TEDROS ADHANOM GHEBREYESUS
Tedros Adhanom Ghebreyesus has a distinguished health leadership, political and diplomatic career, spanning almost 30 years. He is currently the Minister, Special Advisor to the Prime Minister of the Federal Democratic Republic of Ethiopia and also serves as a Member of Parliament.
Prior to his current appointment, he served as Minister of Foreign Affairs from November 2012 – November 2016. Dr. Tedros has dedicated most of his career to leadership and service within Ethiopia’s Ministry of Health, where his outstanding contributions led to his appointment as Minister of Health in October 2005.
As Health Minister, Dr. Tedros spearheaded a comprehensive agenda of reform which resulted in a dramatic transformation of Ethiopia’s health system in a span of just seven years. By investing in critical health infrastructure, building the health workforce and initiating pioneering financing mechanisms, he helped expand health care access to tens of millions of Ethiopians, achieving ambitious health targets, and setting Ethiopia on a path to sustain and expand this success.
Today, Ethiopia stands as a global model for effective health system reform and governance and as an inspirational story of successful African-led development.
Dr. Tedros’ specific achievements in health leadership and diplomacy at both the national and international levels are highlighted below:
1. Improving health outcomes for millions of Ethiopians through a comprehensive sector-wide reform agenda
2. Expanding Access to Universal Health Care: When Dr. Tedros was appointed Minister of Health, there were only 600 health centers to serve Ethiopia’s entire population of 76 million. Dr. Tedros’ initiatives led to the construction of more than 3,500 health centers and 16,000 health posts—dramatically expanding access to basic health care and helping Ethiopia achieve its target of reducing child mortality by two-thirds between 1990 and 2015.
During the same period, new HIV infections also fell by 90%, malaria-related mortality by 75% and mortality from tuberculosis by 64%.
3. Putting Women and Girls First: Establishing the Revolutionary Health Extension Programme (HEP): Foundational to Ethiopia’s dramatic expansion of access to health care and achievement of its ambitious targets, was the flagship HEP.
Dr. Tedros recognized that millions of Ethiopian women either had no access to health services or were choosing not to seek care, largely because few of the limited health workers available were women.
His response was the roll-out of HEP, which trained and deployed 38,000 health workers—the vast majority of them women. HEP revolutionized health service delivery throughout the country by fostering more assertive care-seeking behavior among women, on behalf of themselves and their families.
By linking leaders at the global, national, regional, and district levels with women’s groups in every village across the country, Dr. Tedros leveraged the HEP platform to realize his overarching vision of building a sustainable health system with women at its core. Today, Ethiopia’s HEP model of community-based health service delivery is being replicated in more than a dozen countries.
4. Reforming Health Financing: Under Dr. Tedros’ leadership, the MOH developed innovative health financing mechanisms, including a community and social health insurance scheme that promoted cost- sharing between care seekers, donors and the Ethiopian Government and resulted in increases in both revenue and demand for health services.
5. Building Human Resource Capacity: At the beginning of Dr. Tedros’ service as Minister of Health, there were only three medical schools in Ethiopia, and just one physician for every 30,000 people.
In partnership with the Ministry of Education, Dr. Tedros devised and led the successful implementation of a wide-ranging national strategy for investing in Ethiopia’s health care work force. The dramatic returns on these strategic investments include:
• An almost seven-fold increase in the overall number of health professionals in the country, from 16,500 to 115,000, with every district in the country having at least one appropriately staffed and operational health center.
• A significant, affordable and sustainable growth in the number of medical schools in Ethiopia, from just three—training 120 doctors annually—in 2005, to 33 medical schools training 3,000 doctors today – achieved by leveraging the infrastructure of Ethiopia’s existing hospitals.
• Initiation of a three-year master’s programme that trained and deployed more than 9,000 non- physician clinicians to perform emergency gynecological and obstetric operations, thereby accelerating reductions in maternal and newborn deaths during child birth.
• A significant increase in the country’s disease surveillance capacities, through the establishment of a master’s programme for field epidemiologists and laboratory technicians.
• Initiation of the country’s first master’s level training programme for hospital administrators, and establishment of hospital governing boards to oversee the efficiency and effectiveness of operations, resulting in significant improvements to the management and governance of hospitals and overall patient satisfaction.
6. Improving Pharmaceutical Services and Access to Life-saving Medicines: Recognizing the urgent need to address Ethiopia’s inadequate pharmaceutical services and recurrent stock-outs of essential medicines, Dr. Tedros helped to establish Ethiopia’s Pharmaceutical Supply Fund Agency, instituting transparent and accountable business processes and ensuring the availability of a reliable supply of affordable, quality- assured medicines to all Ethiopians.
7. Transforming the Health Management Information System: Dr Tedros was also instrumental in the transformation of Ethiopia’s inadequate health information system and poor health data collection and use capacities. Under his leadership, the Ministry of Health developed an integrated health information management system which resulted in significant improvements in data collection, monitoring and evaluation. The new system has had the greatest impact at the local level – right at the source of data collection—resulting in more effective use of data for improving service delivery and programme implementation.
8. Promoting Country Ownership and Donor Coordination: Ethiopia’s health system was for years largely beholden to the funding priorities of various development partners. Earmarked funds were designated only for vertical single-disease programmes, neglecting other pressing needs in the health system.
To address this, Dr. Tedros helped institute the pooled MDG Health Fund and the One Plan, One Budget, One Report country-driven roadmap for improving harmonization within the Ethiopian health sector. These efforts enhanced country ownership and resulted in increased donor harmonization and alignment in planning, financing and programming to address key health system strengthening priorities.
This country coordination across the health sector complements similar alignment initiatives in other sectors. Ethiopia, which hosts 27 UN agencies, implements the UN Delivering as One model to coordinate UN programmes at the national level for higher impact. Ethiopia has been closely working with the UN funds, programmes and agencies in the implementation of the six pillars of the Growth and Transformation Plan.
LEADING INTERNATIONAL HEALTH INITIATIVES
Dr. Tedros has also served in prominent leadership roles in a number of major global health organizations and partnerships, leaving an indelible mark on international efforts to tackle the most pressing global health challenges.
His leadership of these governing bodies built upon his track record of success in achieving important health reforms and strengthening country ownership and partner coordination at the country- level. His specific accomplishments in global health governance are set out below:
1. Leading Comprehensive Reform at the Global Fund: In July 2009, the Board of the Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund) elected Dr. Tedros as its new Chair for a period of two years, in recognition of his sound understanding of the Global Fund’s unique business model and successful experience in leveraging Global Fund support in reforming Ethiopia’s health system, while adhering to its rigorous performance-based funding metrics.
As Board Chair, his leadership skills were immediately put to the test. At the time of his election, the Global Fund faced an escalating funding shortfall—with estimates as high as US$ 3 billion—threatening to slow tremendous advancements in 140 countries since 2002. Building on his track record of successful system reforms, Dr. Tedros guided the Board to systematically address these challenges in order to ensure the continued success of the organization.
Under his leadership, the Board initiated a comprehensive reform agenda aimed at improving the Global Fund’s financing model with a focus on value-for-money and efficiency; enhancing performance and impact; strengthening national health systems; instituting robust financial management and oversight mechanisms; and promoting the transparency of Global Fund operations and governance. He also succeeded in securing significantly increased financial commitments from the European Commission and other major donors.
2. Elevating Malaria on the Global Development Agenda: Since its founding in 1998 by UN agencies involved in the fight against malaria, the Roll Back Malaria (RBM) Partnership has been a powerful coalition-builder in coordinating action against this deadly disease.
In 2007, Dr. Tedros was appointed as Chair of the RBM Board in recognition of his accomplishments in advancing malaria research, his understanding of the challenges faced by malaria endemic countries, and his success in tackling malaria in Ethiopia as Minister of Health. In 2008, Dr. Tedros worked with Board members to develop the Global Malaria Action Plan— the first comprehensive blueprint for global malaria control and elimination.
Under his leadership, the Board voted to expand its reach beyond African countries to include Asia and Latin America with a view to achieving malaria elimination goals. Throughout his two-year term as RBM Board Chair, he prioritized support for countries in developing successful proposals to the Global Fund and helped mobilize a record US $3 billion to support malaria programmes around the world.
3. Championing Country Ownership at UNAIDS: From 2009 to 2010, Dr. Tedros chaired the Programme Coordinating Board (PCB) for the Joint United Nations Programme on HIV/AIDS (UNAIDS). The PCB serves as the governing body for UNAIDS and its efforts to coordinate global action on the HIV/AIDS epidemic.
Joining the PCB while still serving as Ethiopia’s Minister of Health, Dr. Tedros played a key role in advocating for greater country ownership as a means to accelerating the fight against HIV/AIDS and intensifying the work of UNAIDS in health systems strengthening and HIV prevention. He also oversaw the Implementation of recommendations of the second Independent Evaluation of UNAIDS, which includes the development of a new mission statement to guide its work.
4. Elevating Maternal, Newborn and Child Health on the Global Agenda: From 2005 to 2009, Dr. Tedros served as Co-chair of the Partnership for Maternal, Newborn & Child Health, an alliance of more than 700 organizations in 75 countries. Reflecting his commitment to women and children’s health, Dr. Tedros oversaw the development of a three-year strategic framework that helped raise the profile of maternal, newborn and child health issues at the global and country levels, mobilize more resources, harmonize and scale-up coverage rates for essential interventions and improve leadership and governance.
Dr. Tedros’ global leadership also includes service on the Boards of GAVI, the Vaccine Alliance; the Stop TB Partnership; and the Institute for Health Metrics and Evaluation. In 2007, he served as first Vice-President of the Sixtieth World Health Assembly.
In 2009, he represented Ethiopia as the Chair of the Fourth Conference of Ministers of Health of the African Union (AU) and also served as a member of the High-Level Task Force for Innovative Financing for Health Systems, co-chaired by World Bank President Robert Zoellick and former UK Prime Minister Gordon Brown.
From 2012 -2014, Dr. Tedros served on the Advisory Board for the Ministerial Leadership in Health Program at Harvard University, a joint program between the T.H. Chan School of Public Health and the John F. Kennedy School of Government which provides leadership development for 10-12 serving health and finance ministers from Africa, Southeast Asia, and Latin America annually. In June 2013, Dr. Tedros chaired AIDS Watch Africa in Abuja, Nigeria.
CHAMPIONING HEALTH DIPLOMACY
As Minister of Foreign Affairs, Dr. applied his proven diplomatic and negotiation skills to continue championing global health priorities in bilateral and multilateral forums. He has also been a leader in a paradigm shift in Africa’s political and socio-economic governance and development in order to realize the continent’s long-term agendas:
1. Financing the Sustainable Development Goals: In July 2015, he led the organization of the landmark Third International Conference on Financing for Development, held in Addis Ababa, which convened high-level policy makers from across the world to develop and agree on a new framework for financing the ambitious post-2015 development agenda.
Dr. Tedros contributed as a key consensus builder in view of the divergent and opposing views among delegations. The conference ended successfully with the adoption by 193 UN Member States, of the Addis Ababa Action Agenda.
The agreement marked an historic milestone in forging a global partnership to advance economic prosperity while protecting the environment, and provides countries with a strong foundation for financing their efforts to achieve the Sustainable Development Goals, including health.
Under his leadership, Ethiopia drafted and sponsored a resolution at the 24th African Union Summit in January 2015, which led to the establishment of the African Communicable Diseases Centers with a view to build continental capacity in health research, early detection and avail rapid response to epidemic outbreaks.
2. Responding to Epidemics: In 2014, Dr. Tedros was instrumental in the establishment of the African Union response to the Ebola epidemic in West Africa.
He supported the African Union’s Executive Council decision affirming that travel bans to Ebola affected African countries should be in line with WHO guidelines. Working with the Ministry of Health, Ethiopia sent nearly 200 health workers as part of the African Union team during the Ebola outbreak in West Africa.
3. Strengthening regional social and economic integration: Dr. Tedros became Chair of the Executive Council of the Foreign Ministers of the African Union in 2013. He oversaw the successful celebration the 50th Anniversary of the African Union, which was held in Addis Ababa. He emphasized the need for Africa to focus on issues of economic emancipation, peace and stability, the acceleration of rapid economic growth, governance and democratization.
During his tenure, the AU adopted its First Ten Year Implementation Plan for Agenda 2063 – a roadmap for achieving a prosperous Africa based on inclusive growth and sustainable growth, which has placed health as its centrepiece. In December 2015, he oversaw a successful negotiation with Djibouti towards full economic integration while he led Ethiopia join the Northern Corridor Integration Projects, East African body that strives to stimulate regional integration through hard and soft infrastructure.
4. Fostering regional peace and security: As Chair of Executive Council of Intergovernmental Authority on Development since 2008, Dr. Tedros helped Ethiopia enjoy unprecedented level of cooperation with its neighbours and countries of the region through astute diplomacy.
Dr. Tedros’ skills in negotiation and conflict resolution have also helped resolve regional disputes, such as the agreement between the Federal Government of Somalia and Jubaland Political Actors, which was critical to improving the delivery of the Juba Agreement and provided an important model for regional state formation and upcoming election in Somalia. He also left indelible mark in Nile diplomacy as the country’s top diplomat in the successful negotiation between Ethiopia, Egypt and Sudan over Ethiopia’s Grand Ethiopian Renaissance Dam and the signing of the Declaration of Principles Agreement.
EDUCATION, RESEARCH AND SCHOLARSHIP
Dr. Tedros holds a Doctorate of Philosophy (PhD) in Community Health from the University of Nottingham and a Master of Science (MSc) in Immunology of Infectious Diseases from the University of London (UK).
In 2014, he co-edited the widely acclaimed book “The Labor Market for Health Workers in Africa: A New Look at the Crisis,” which challenged established views on the migration of doctors from Africa.
A globally recognized malaria researcher, Dr. Tedros has contributed to knowledge about malaria, including successful approaches to its prevention and control.
In 1999, he was recognized as the Young Investigator of the Year by the American Society of Tropical Medicine and Hygiene for his community-based research on malaria incidence among children living near dams in northern Ethiopia published in the British Medical Journal. He has published numerous articles in prominent scientific journals on a range of global health topics.
RECOGNITION AND AWARDS
2016: The Decoration of the Order of Serbian Flag – the highest honor that can be bestowed upon a person by the Serbian Presidency.
2015: New African Magazine (UK) Recognition: ‘One of the 100 Most Influential Africans’ (December 2015)
2012: Honorary Fellowship from the London School of Hygiene and Tropical Medicine – the highest honor bestowed by the School to recognize exceptional distinction in international health or tropical
medicine.
2012: Wired Magazine (UK) Recognition: ‘One of 50 People Who will Change the World’ (January 2012)
2011: Jimmy and Rosalynn Carter Humanitarian Award – becoming the first non-American recipient of this award which recognizes individuals for their significant contributions to improve the health of humankind.
SELECTED PUBLICATIONS
2016: Co-author. “Pro–poor pathway towards universal health coverage: lessons from Ethiopia.” Journal of Global Health.
2014: Author, “True Partnership: Working Together to Strengthen Health Systems in Ethiopia” The Work Continues: A Collection of Essays. Clinton Presidential Center.
2014: Author, “The Nile is Symbol of Cooperation and Collaboration.” Global Dialogue Review.
2014: Co-Author, “Time Series Analysis of Trends in Malaria Cases and Deaths at Hospitals and the Effect of Antimalarial Interventions, 2001–2011, Ethiopia.” PLoS ONE.
2013: Co-editor, “The Labor Market for Health Workers in Africa: A New Look at the Crisis.” World Bank Group.
2012: Co-Author, “What Will it Take to Eliminate Preventable Maternal Deaths?” The Lancet.
2012: Author, “In Support of the US Centers for Disease Control and Prevention.” The Lancet.
2011: Co-Author, “Game Changers: Why did the Scale-Up of HIV Treatment Work Despite Weak Health Systems?” Journal of Acquired Immune Deficiency Syndromes.
2011: Co-Author, “Managing Health Partnerships at the Country Level.” Innovative Health Partnerships: The Diplomacy of Diversity. World Scientific.
2010: Co-Author, “Shrinking the Malaria Map: progress and prospects.” The Lancet
2010: Author, “The Global Fund: replenishment and redefinition in 2010.” The Lancet
2010: Author, “Achieving the health MDGs: country ownership in four steps.” The Lancet
2010: Lead Author, “Tuberculosis and HIV: time for an intensified response.” The Lancet
2010: Co-Author, “Rapid Increase in Ownership and use of Long-Lasting Insecticidal Nets and Decrease in Prevalence of Malaria in Three Regional States of Ethiopia (2006-2007).” Journal of Tropical Medicine.
2008: Co-Author, “Responding to the challenge to end Malaria deaths in Africa.” The Lancet.
2008: Co-Author, “Malaria: Efforts Starting to show Widespread Results.” Nature.
2007: Co-Author, “Understanding Barriers to Emergency Care in Low-Income Countries: View from the Front Line.” Prehospital and Disaster Medicine.
2005: Co-Author, “Making the World’s Children Count.” The Lancet.
2005: Co-Author, “Can Source Reduction of Mosquito Larval Habitat Reduce Malaria Transmission in Tigray, Ethiopia?” Tropical Medicine and International Health.
2002: Lead Author, “Schistosome Transmission, Water-Resource Development and Altitude in Northern Ethiopia.” Annals of Tropical Medicine and Parasitology.
2000: Lead Author, “Household Risk Factors for Malaria among Children in the Ethiopian Highlands.” Transactions of the Royal Society of Tropical Medicine and Hygiene.
2000: Lead Author, “The Community-Based Malaria Control Programme in Tigray, Northern Ethiopia. A Review of Programme Set-Up, Activities, Outcomes and Impact.” Parassitologia.
1999: Lead Author, “Incidence of malaria among children living near dams in northern Ethiopia: community based incidence survey.” British Medical Journal.
1999: Lead Author, “Community-Based Malaria Control in Tigray, Northern Ethiopia.” Parassitologia.
1998: Lead Author, “Malaria, Schistosomiasis, and Intestinal Helminths in Relation to Microdams in Tigray, Northern Ethiopia.” Parassitologia.
1996: Lead Author, “Community Participation in Malaria Control in Tigray Region Ethiopia.” Acta Tropica 61.2 (1996)
Business
Aare Adetola Emmanuelking Welcomes President Tinubu to Gateway International Airport Commissioning in Iperu-Remo
Aare Adetola Emmanuelking Welcomes President Tinubu to Gateway International Airport Commissioning in Iperu-Remo
In a momentous occasion that underscores the rapid infrastructural advancement of Ogun State, renowned real estate mogul and philanthropist, Aare Adetola Emmanuelking, warmly received the President of the Federal Republic of Nigeria, Bola Ahmed Tinubu, at the official commissioning of the Gateway International Airport, located in Iperu-Remo.
The landmark event, held under the visionary leadership of the Ogun State Governor, Dapo Abiodun, marks a significant stride in the state’s economic transformation agenda, positioning Ogun as a key hub for aviation, commerce, and investment in Nigeria.
Aare Emmanuelking, who is also the Chairman/CEO of Adron Homes and Properties, commended the Ogun State Government for its foresight and commitment to infrastructural excellence. He described the airport project as a “game-changer” that will not only boost connectivity but also stimulate real estate growth, tourism, and industrial expansion across the region.
Speaking during the commissioning, President Tinubu lauded Governor Abiodun’s administration for delivering a world-class facility that aligns with the Federal Government’s Renewed Hope Agenda, emphasizing the importance of strategic infrastructure in driving national development.
The Gateway International Airport is expected to serve as a critical gateway for investors and travelers, further enhancing Ogun State’s reputation as one of Nigeria’s most business-friendly environments.
The presence of top dignitaries, industry leaders, and stakeholders at the event underscores the project’s significance and its anticipated impact on the state’s socio-economic landscape and beyond.
N4.65 Trillion in the Vault, but is the Real Economy Locked Out?
BY BLAISE UDUNZE
Following the successful conclusion of the banking sector recapitalisation programme initiated in March 2024 by the Central Bank of Nigeria, the industry has raised N4.65 trillion. No doubt, this marks a significant milestone for the nation’s financial system as the exercise attracted both domestic and foreign investors, strengthened capital buffers, and reinforced regulatory confidence in the banking sector. By all prudential measures, once again, it will be said without doubt that it is a success story.
Looking at this feat closely and when weighed more critically, a more consequential question emerges, one that will ultimately determine whether this achievement becomes a genuine turning point or merely another financial milestone. Will a stronger banking sector finally translate into a more productive Nigerian economy, or will it be locked out?
This question sits at the heart of Nigeria’s long-standing economic contradiction, seeing a relatively sophisticated financial system coexisting with weak industrial output, low productivity, and persistent dependence on imports truly reflects an ironic situation. The fact remains that recapitalisation, by design, is meant to strengthen banks, enhancing their ability to absorb shocks, manage risks and support economic growth. According to the apex bank, the programme has improved capital adequacy ratios, enhanced asset quality, and reinforced financial stability. Under the leadership of Olayemi Cardoso, there has also been a shift toward stricter risk-based supervision and a phased exit from regulatory forbearance.
These are necessary reforms. A stable banking system is a prerequisite for economic development. However, the truth be told, stability alone is not sufficient because the real test of recapitalisation lies not in stronger balance sheets, but in how effectively banks channel capital into productive economic activity, sectors that create jobs, expand output and drive exports. Without this transition, recapitalisation risks becoming an exercise in financial strengthening without economic transformation.
Encouragingly, early signals from industry experts suggest that the next phase of banking reform may begin to address this long-standing gap. Analysts and practitioners are increasingly pointing to small and medium-sized enterprises (SMEs) as a key destination for recapitalisation inflows, which is a fact beyond doubt. Given that SMEs account for over 70 percent of registered businesses in Nigeria, the logic is compelling. With great expectation, as has been practicalised and established in other economies, a shift in credit allocation toward this segment could unlock job creation, stimulate domestic production, and deepen economic resilience. Yet, this expectation must be balanced with reality. Historically, and of huge concern, SMEs have received only a marginal share of total bank credit, often due to perceived risk, lack of collateral, and weak credit infrastructure.
Indeed, Nigeria’s broader financial intermediation challenge remains stark. Even as the giant of Africa, private sector credit stands at roughly 17 percent of GDP, and this is far below the sub-Saharan African average, while SMEs receive barely 1 percent of total bank lending despite contributing about half of GDP and the vast majority of employment. These figures underscore the structural disconnect between the banking system and the real economy. Recapitalisation, therefore, must be judged not only by the strength of banks but by whether it meaningfully improves this imbalance.
Nigeria’s economic challenge is not merely one of capital scarcity; it is fundamentally a problem of low productivity. Manufacturing continues to operate far below capacity, agriculture remains largely subsistence-driven, and industrial output contributes only modestly to GDP. Despite decades of banking sector expansion, credit to the real sector has remained limited relative to the size of the economy. Instead, banks have often gravitated toward safer and more profitable avenues such as government securities, treasury instruments, and short-term trading opportunities.
This is not irrational. It reflects a rational response to risk, policy signals, and market realities. However, it has created a structural imbalance in which capital circulates within the financial system without sufficiently reaching the productive economy. The result is a pattern where financial sector growth outpaces real sector development, a phenomenon widely described as financialisation without productivity gains.
At the center of this challenge is the issue of credit allocation. A recapitalised banking sector, strengthened by new capital and improved buffers, should theoretically expand lending. But this is, contrarily, because the more important question is where that lending will go. Will Nigerian banks extend long-term credit to manufacturers, finance agro-processing and value chains, and support scalable SMEs or will they continue to concentrate on low-risk government debt, prioritise foreign exchange-related gains, and maintain conservative lending practices in the face of macroeconomic uncertainty? Some of these structural questions call for immediate answers from policymakers.
Some industry voices are optimistic that the expanded capital base will translate into a broader loan book, increased investment in higher-risk sectors, and improved product offerings for depositors; this is not in doubt. There are also expectations that banks will scale operations across the continent, leveraging stronger balance sheets to expand their regional footprint. Yes, they are expected, but one thing that must be made known is that optimism alone does not guarantee transformation. The fact is that without deliberate incentives and structural reforms, capital may continue to flow toward low-risk assets rather than high-impact sectors.
Beyond lending, experts are also calling for a shift in how banking success is measured. The next phase of reform, according to the experts in their arguments, must move from capital thresholds to customer outcomes. This includes stronger consumer protection frameworks, real-time complaint management systems and more transparent regulatory oversight. A more technologically driven supervisory model, one that allows regulators to monitor customer experiences and detect systemic risks early, could play a critical role in strengthening trust and accountability within the system.
This dimension is often overlooked but deeply significant. A banking system that is well-capitalised but unresponsive to customer needs risks undermining public confidence. True financial development is not only about capital strength but also about accessibility, fairness, and service quality. Nigerians must feel the impact of recapitalisation not just in improved financial ratios, but in better banking experiences, more inclusive services, and greater economic opportunity.
The recapitalisation exercise has also attracted notable foreign participation, signaling confidence in Nigeria’s banking sector. However, confidence in banks does not necessarily translate into confidence in the broader economy. The truth is that foreign investors are typically drawn to strong regulatory frameworks, attractive returns, and market liquidity, though the facts are that these factors make Nigerian banks appealing financial assets; it must be made explicitly clear that they do not automatically reflect confidence in the country’s industrial base or productivity potential.
This distinction is critical. An economy can attract capital into its financial sector while still struggling to attract investment into productive sectors. When this happens, growth becomes financially driven rather than fundamentally anchored. The risk therefore, is that recapitalisation could deepen Nigeria’s financial markets but what benefits or gains when banks become stronger or liquid without addressing the structural weaknesses of the real economy.
It is clear and explicit that the current policy direction of the CBN reflects a strong emphasis on stability, with tightened supervision, improved transparency, and stricter prudential standards. These measures are necessary, particularly in a volatile global environment. However, there is an emerging concern that stability may be taking precedence over growth stimulation, which should also be a focal point for every economy, of which Nigeria should not be left out of the equation. Central banks in emerging markets often face a delicate balancing act and this is putting too much focus on stability, which can constrain credit expansion, while too much emphasis on growth can undermine financial discipline, as this calls for a balance.
In Nigeria’s case, the question is whether sufficient mechanisms exist to align banking sector incentives with national productivity goals. Are there enough incentives to encourage long-term lending, sector-specific financing, and innovation in credit delivery? Or does the current framework inadvertently reward risk aversion and short-term profitability?
Over the past two decades, it has been a herculean experience as Nigeria’s economic trajectory suggests a growing disconnect between the financial sector and the real economy. Banks have become larger, more sophisticated and more profitable, yet the irony is that the broader economy continues to struggle with high unemployment, low industrial output, and limited export diversification. This divergence reflects the structural risk of financialization, a condition in which financial activities expand without a corresponding increase in real economic productivity.
If not carefully managed, recapitalisation could reinforce this trend. With more capital at their disposal, banks may simply scale existing business models, expanding financial activities that generate returns without contributing meaningfully to production. The point is that this is not solely a failure of the banking sector; it is a systemic issue shaped by policy design, regulatory priorities, and market incentives, which needs the urgent attention of policymakers.
Meanwhile, for recapitalisation to achieve its intended purpose and truly work, it must be accompanied by a deliberate shift or intentional policy change from capital accumulation to productivity enhancement and the economy to produce more goods and services efficiently. This begins with creating stronger incentives for real sector lending with differentiated capital requirements based on sector exposure, credit guarantees for high-impact industries, and interest rate support for priority sectors can encourage banks to channel funds into productive areas and this must be driven and implemented by the apex bank to harness the gains of recapitalisation.
This transformative process is not only saddled with the CBN, but the Development finance institutions also have a critical role to play in de-risking long-term investments, making it easier for commercial banks to participate in financing projects that drive economic growth. At the same time, one of the missing pieces that must be taken into cognizance is that regulatory frameworks should discourage excessive concentration in risk-free assets. No doubt, banks thrive in profitability, as government securities remain important; overreliance on them can crowd out private sector credit and limit economic expansion.
Innovation in financial products is equally essential. Traditional lending models often fail to meet the needs of SMEs and emerging industries as this has continued to hinder growth. Banks must explore new approaches, including digital lending platforms, supply chain financing, and blended finance solutions that can unlock new growth opportunities, while they extend their tentacles by saturating the retail space just like fintech.
Accountability must also be embedded in the system. One fact is that if recapitalisation is justified as a tool for economic growth, then its outcomes and gains must be measurable and not obscure. Increased credit to productive sectors, higher industrial output and job creation should serve as key indicators of success. Without such metrics, the exercise risks being judged solely by financial indicators rather than its real economic impact.
The completion of the recapitalisation programme represents more than a regulatory achievement; it is a defining moment for Nigeria’s economic future. The country now has a banking sector that is better capitalised, more resilient, and more attractive to investors. These are important gains, but they are not ends in themselves.
The ultimate objective is to build an economy that is productive, diversified, and inclusive. Achieving this requires more than strong banks; it requires banks that actively power economic transformation.
The N4.65 trillion recapitalisation is a significant step forward. It strengthens the foundation of Nigeria’s financial system and enhances its capacity to support growth. However, capacity alone is not enough and truly not enough if the gains of recapitalisation are to be harnessed to the latter. What matters now is how that capacity is deployed.
Some of the critical questions for urgent attention are as follows: Will banks rise to the challenge of financing Nigeria’s productive sectors, particularly SMEs that form the backbone of the economy? Will policymakers create the right incentives to ensure credit flows where it is most needed? Will the financial system evolve from a focus on profitability to a broader commitment to the economic purpose of fostering a more productive Nigerian economy and the $1 trillion target?
The above questions are relevant because they will determine whether recapitalisation becomes a catalyst for change or a missed opportunity if not taken into cognizance. A well-capitalised banking sector is not the destination; it is the starting point. The real journey lies in building an economy where capital works, productivity rises, and growth becomes both sustainable and inclusive.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
Precision and Heritage: How Fifi Stitches Is Rewriting African Fashion Narratives
A Nigerian-born designer is gradually carving out a cross-continental footprint in contemporary fashion, blending African textile heritage with British technical discipline.
Esther Fiyinfoluwa Adeosun, Founder and Creative Director of Fifi Stitches, is gaining recognition for structured womenswear and bridal couture that reinterprets traditional fabrics through architectural tailoring and precision construction.
Born in Ibadan, Oyo State, Adeosun’s fashion journey began at home, seated beside her mother’s sewing machine. What started as childhood curiosity, sometimes jamming the machine just to understand its mechanics—evolved into a disciplined design practice now operating between Nigeria and the United Kingdom.
During an interview with journalists the fifi Stitches once mentioned “I was fascinated by how flat fabric could transform into something structured and meaningful”.
In her Story , early designs made for her family, though imperfectly finished, were worn with pride—an encouragement that laid the foundation for her professional confidence.
Today, Fifi Stitches is recognised for sculpted bodices, controlled tailoring, corsetry construction, and the contemporary reinterpretation of Ankara, Aso Oke, and Adire textiles.
The brand challenges the long-held perception that African fabrics belong solely in ceremonial contexts, instead positioning them within global luxury and modern design spaces.
Adeosun’s training reflects this dual perspective. She studied Fashion Design and Entrepreneurship at the Institute for Entrepreneurship and Development Studies, Obafemi Awolowo University, and earned a Diploma in Fashion Design through Alison Online.
In the UK, she undertook industry-focused technical training with Fashion-Enter Ltd and gained fashion business exposure through Fashion Capital UK.
Her technical expertise spans pattern drafting, draping, garment technology, structured tailoring, corsetry, and bespoke fittings—skills she describes as central to credibility in fashion. “Precision builds trust,” she says. “A designer must understand construction as deeply as creativity.”
Fifi Stitches has showcased collections at the Suffolk Fashion Show, Liverpool Fashion Show – FB Fashion Ball, Red Carpet Fashion Event in London, and through editorial features in London Runway Magazine.
The brand has also received coverage in The Guardian Nigeria and Vanguard Allure, expanding its visibility across markets.
Beyond couture, Adeosun integrates community impact into her practice.
She has facilitated garment construction workshops, draping sessions, and introductory training programmes for women and emerging creatives, promoting fashion as both artistic expression and vocational empowerment.
Fifi Stcithes Boss operates between Nigeria and the UK, in order to continue to shape her brand identity.
According to her “Nigeria provides cultural richness and expressive textile traditions, while the UK offers structured production systems, sustainability conversations, and institutional frameworks”.
Looking ahead, Adeosun said she plan to establish a fully structured fashion house spanning Africa and the UK, develop scalable production partnerships, launch capsule collections, and expand independent editorial visibility.
Her broader ambition is clear: to position African textile craftsmanship within global contemporary design conversations—through structure, discipline, and technical excellence.
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