Business
‘You lack common sense’ – Ex-President, Olusegun Obasanjo blasts Awujale of Ijebuland over Telecommunication Mogul, Mike Adenuga
Few weeks ago, the Awujale of Ijebuland, Oba Sikiru Adetona, released his autobiography titled “Awujale: The Autobiography of Alaiyeluwa, Oba S. K. Adetona, Ogbagba II”.
In the book, the monarch alleged that former President Olusegun Obasanjo used the Economic and Financial Crimes Commission EFCC to blackmail and extort money from some wealthy Nigerians, particularly his cousin, Mike Adenuga, who had a running with the Antigraft agency in 2006.
Although the monarch’s autobiography was published in 2010, extracts from the book was circulated by some unknown individuals recently.
In his response, Obasanjo wrote a letter dated December 30th 2016 to the monarch, countering his allegations and addressed him as a serial liar who lacked common sense. According to Obasanjo, common sense suggests that rumor mongering should not be associated with a monarch of the caliber of the Oba of Ijebuland. Full text of Obasanjo’s letter to the monarch after the cut
December 30, 2016
His Royal Highness,
Oba Alaiyeluwa S. K. Adetona,
The Awujale & Paramount Ruler of Ijebuland,
Oba Adetona Road,
P. O. Box 263, Ijebu Ode.
The extract from your Autobiography “Awujale: The Autobiography of Alaiyeluwa Oba S. K. Adetona, Ogbagba II”, published by Mosuro Publishers 2010, pp. 187-195, which I attach to this letter was presented to me for my attention.
Your assertion in the publication was a tissue of lies and untruths. Olopade is one of my best friends and yes, I would be at his birthday celebration but I would not have invited Mike, your cousin, to meet me anywhere other than my office or official residence as President of Nigeria. Kabiyesi, do you think I would set the press up to capture me and Mike in a photograph for the newspapers? That would be puerile of me as President. Of course, I could not say that Mike could not do that. That you think that I, as President of Nigeria, would descend to such depravity makes me think of you much less than I thought of you, until now.
The invitation to Mike to contribute to the building of the Library block of Bells University was issued to him by the then Vice-Chancellor, Professor Julius Okogie, who never told me about inviting Mike to so contribute until Mike pulled out. And that I have not and I will not talk to Mike about it should convince you that I know nothing about its genesis.
Under my watch, Economic and Financial Crimes Commission, EFCC, was free to do its job as it saw fit. Common sense would suggest that wild rumours should not be perpetrated by an Oba of your calibre. Kabiyesi, your cousin did not tell you that My Chief of Staff, Abdul Mohammed, put his reputation on line by assuring EFCC that Mike would go nowhere and they should trust him to give him his passport. I did not even know that Abdul had done that until the Chairman of EFCC, Nuhu Ribadu, reported the case of my Chief of Staff seemingly colluding with Mike to run out of the country. But I had implicit confidence in my Chief of Staff and I was to resolve the issue. Should your cousin not have mentioned to Abdul who guaranteed the release of his passport his fears and intention to go on exile?
On several occasions, Nuhu Ribadu has asserted that, under my watch, he was a free agent to do his work as he deemed fit. Where it was necessary, he reported the outcome of his work to me and the subsequent or follow-up actions he intended to take. On no occasion did I guide, lead or direct him on what to do.
Mike did not need to send anything to me to satisfy me, he needed to satisfy EFCC and so your sending any documents to me was insinuating that I am the one to be satisfied rather than the EFCC. So, such documents were not paid any attention by me. You, as the cousin and part beneficiary from Mike as you have told me in the past, would not be able to see the tree from the forest as far as the mode of operation of Nuhu Ribadu was concerned viz-a-viz Mike. If the EFCC was investigating anybody, I did not consider it right for me as the President of Nigeria to be undermining EFCC by hobnobbing with that person. EFCC must be given free hand to do its work. Even if such a person was my child, the best I could do would be to secure a good lawyer to handle the matter before the EFCC for that child.
It is not only in the case of Obajana Cement that you were rumour-mongering about me. You have done that repeatedly on many occasions. The latest one you did in 2016 was you telling me that you heard that I had gone to Rasak Okoya to seek to marry her daughter, Abiola, when it was the girl that came to appeal to me to intervene to placate and appeal to her father to forgive her for all her misbehaviour to her father. I did and the father and daughter were reconciled. I told you even then that it was unbecoming of an Oba. Of course, I am used to such rumours, slandering and insinuations since my days as a Unit Commander in the Army and I have developed thick skin. If ten per cent of the rumours ascribing businesses and properties I know nothing about were true, I would be the richest man on earth.
But recently, when Aliko, yourself and myself were together, Aliko assured you that I never ever had a single share in any of Aliko’s business interests but whenever he has called on me to help within and without to promote his business interest, I have always helped and I will always do because that is part of my job as a Nigerian leader – to help Nigerians grow their businesses or interests – and I have done that for other Nigerians and indeed for non-Nigerians, Africans and non-Africans who have requested me for help.
It was revealing to me on that occasion when Aliko made the point that one of his directors on his cement company is somebody very close to you.
I owed nobody any apologies in the course of doing my work as I believe I should do it or in the course of defending the interest of Nigeria and defending my integrity. As I could not open the treasury for S. O. Bakare for your so-called political support to me, I did not regard that as an offence. To the extent that I believed and regarded as proper, I instructed Tony Anenih as Minister of Works to patronize S. O. Bakare as a Peugeot car dealer. I will not comment on Atiku issue that you touched upon in your book because I have dealt with that elsewhere and you were only dabbling into an area where and thing you are absolutely ignorant about.
All that you wanted me to do in respect of Mike was improper whether when I was President or when I was out of office. I must not be seen to be in the way of allowing law to take its natural course. All I should do is to help the course of the law and help secure a good lawyer to help the process.
It is of interest to me that Mike did not tell you that when he wanted national honour, he came to me and I did not react until Babangida recommended him and said, “Of all those I have helped, Mike is one of the most appreciative.”
Kabiyesi, if I have squandered all the goodwill I had, you would not have contacted me on behalf of All Progressive Party, APC, to receive them in 2014 and you would not have been personally present when I received them as I demanded. I probably have greater goodwill today internally and externally than I had in office.
Kabiyesi, the total sum of what you have put down in those pages of your book is that I dislike Mike. Maybe I need to remind you that if there was any iota of truth in such a position or mindset, Mike would not have been granted the mobile telephone licence which made him a billionaire. It was my prerogative as the President so to do. You may also be reminded that in the first round of the auction which Mike did not make, the country earned US$285 million for each licence. The country earned only US$200 million from the licence transaction with Mike and in the subsequent transaction with Etisalat, the country earned US$400 million. It was a deliberate action on my part that a Nigerian should own one of the licences. Anybody else but Mike could have been that Nigerian.
Kabiyesi, the type of hate propaganda you have tried to project in that section of your book against my person is grossly unbecoming of an Oba let alone an Oba of your status and stature.
However, I still accord you the respect which I believe an Oba should be accorded and one for that matter who I presume to be a friend. In spite of your unfortunate projection, my position remains the same – respect for you as an Oba and a friend.
Kabiyesi, I believe that I should set the record straight for posterity and to caution you from engaging in unedifying rumour-mongering and untruth. Accept the assurances of my highest consideration.
OLUSEGUN OBASANJO
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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