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CBN tightens oversight on banks

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By Philippine Duru

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Nigeria’s apex bank has signalled a tougher regulatory stance on lenders following the completion of a sweeping recapitalisation exercise, as it moves to strengthen corporate governance, rebuild investor confidence, and safeguard financial system stability.

Speaking at the Chartered Institute of Directors Nigeria’s induction ceremony in Lagos, Governor of the Central Bank of Nigeria, Olayemi Cardoso—represented by the Director of Banking Supervision, Olubukola Akinwunmi—said the regulatory focus has shifted from capital raising to enforcing discipline across bank boards and executive management.

Cardoso described the recapitalisation programme as a “strategic imperative,” aimed at strengthening the resilience of financial institutions and positioning them to support sustainable economic growth. He emphasised, however, that stronger balance sheets must now be matched with stricter governance standards.

“The role of directors becomes even more critical in this new phase,” he said, noting that stewardship must prioritise consolidation, confidence, and stability.
The move reflects a broader pivot by the apex bank toward tighter oversight following a period marked by governance lapses and regulatory interventions. In January 2024, the Central Bank dissolved the boards and management of three banks over serious breaches, underscoring its readiness to act decisively where financial stability is at risk.

Since then, regulators have introduced a series of measures targeting accountability and transparency in bank leadership. These include a directive requiring systemically important banks to obtain regulatory approval for incoming chief executives at least six months before transitions, as well as mandatory public announcements of successors three months in advance—steps aimed at preventing leadership gaps.
The apex bank has also tightened restrictions on related-party lending to curb insider abuses, while reinforcing expectations around board independence, transparency, and disclosure of financial and governance information.

“These measures are not punitive,” Cardoso said. “They are enabling, providing directors with the framework to exercise stewardship with discipline, foresight and confidence.”
A key feature of the post-recapitalisation framework is the introduction of risk-based capital requirements, which align banks’ capital levels more closely with their risk exposures. This marks a shift from earlier regulatory forbearance toward a more rules-based supervisory approach.

Under the new regime, bank directors are expected to take greater responsibility for aligning capital planning with risk exposure, strengthening oversight of credit, market, and operational risks, and ensuring compliance without relying on regulatory leniency.
The Central Bank said the reforms are designed to embed risk awareness into strategic decision-making, ensuring that recapitalisation translates into genuine financial stability rather than simply expanding balance sheets.

Beyond capital requirements, regulators are placing increased emphasis on governance structures, including annual board evaluations, structured succession planning, and stricter “fit and proper” criteria to ensure only individuals with the required integrity and competence oversee financial institutions.

The renewed focus comes as Nigeria’s banking sector faces a more complex environment shaped by economic reforms, technological disruption, and evolving customer expectations. Regulators say this demands more proactive and accountable boards capable of balancing profitability with long-term sustainability.

Cardoso urged directors to move beyond passive oversight and become “active stewards,” guiding institutions through economic cycles while maintaining ethical standards and protecting stakeholder interests.
“As directors, your responsibilities extend beyond boardrooms,” he said. “The choices you make will shape the future of Nigeria’s economy.”
The Central Bank’s post-recapitalisation push is expected to extend beyond the banking sector, raising governance standards across corporate Nigeria as stricter rules on disclosure, accountability, and risk management take hold.

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North African Airline incurs Nigeria’s wrath

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By Philippine Duru

philippineobetoduru@gmail.com

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Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.

The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.

According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.

The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.

Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.

“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.

He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.

According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.

Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.

He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.

The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).

Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.

He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.

The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).

“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.

The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.

 

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₦10m monthly made from akara and bread business -Umo Eno

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Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

 

Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.

Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.

According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.

“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.

The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.

Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.

His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.

The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.

Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.

His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.

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All share index gains about 0.81% as NGX rebounds

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The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.

 

The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.

 

With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.

 

The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.

 

Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.

 

Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.

 

Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.

 

Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.

 

As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.

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