Connect with us

latest

Banks Set For Massive ₦900bn Capital Injection In 2025 Shake-Up

Published

on

According to Nivo News, Nigeria’s banking sector is projected to receive an additional ₦900 billion capital injection in 2025 as lenders intensify efforts to meet new recapitalisation requirements ahead of the Central Bank of Nigeria’s March 2026 deadline. The development was highlighted in the latest Nigerian Banking Industry Report by pan-African rating agency Agusto & Co., which maintained a “stable” outlook for the sector.....KINDLY READ THE FULL STORY HERE▶

In March 2024, the CBN directed commercial banks to strengthen their capital bases, mandating institutions with international licences to raise at least ₦500 billion, those with national licences to meet ₦200 billion, and regionally authorised lenders to achieve ₦50 billion. Non-interest banks were also given new thresholds of ₦20 billion and ₦10 billion for national and regional operations respectively. Analysts estimate that the industry must mobilise roughly ₦4.2 trillion to achieve full compliance. By the end of 2024, the Securities and Exchange Commission confirmed that about ₦1.7 trillion had already been raised through the capital market.

The CBN Governor, Olayemi Cardoso, recently disclosed that eight banks have met the recapitalisation benchmark, while others are entering subsequent fundraising phases to close the gap. Agusto & Co. reported that 16 banks secured ₦1.7 trillion in 2024, with an additional ₦800 billion raised in the first seven months of 2025. The firm expects a further ₦900 billion to be mobilised before the end of the year as lenders shore up buffers against market volatility and position for growth. Domestic investors have provided most of this capital, reflecting confidence in Nigeria’s financial institutions.

The report, however, warned that the CBN’s termination of regulatory forbearance in June 2025 would weigh on profitability this year. Impaired loans previously enjoying temporary relief are now being fully classified, with Agusto & Co. projecting the industry’s non-performing loan ratio could rise to 6.9 per cent before improving in 2026. While some banks are expected to accelerate write-offs under transitional provisions, stricter compliance with single obligor limits and provisioning requirements may push impairment charges higher in the short term.

Profitability indicators, which surged in 2024 on the back of foreign currency revaluation gains and a high-yield environment, are forecast to decline in 2025. Agusto & Co. anticipates profit before tax will fall by 19.2 per cent, with pre-tax return on average equity dropping to 27.3 per cent from 48.2 per cent in the previous year. A recovery is projected for 2026 as fresh capital is fully deployed and impairment costs normalise.

In a series of circulars issued earlier this year, the CBN restricted some banks from paying dividends or funding foreign subsidiaries over breaches linked to regulatory forbearance. It also ordered all lenders to submit detailed capital restoration plans outlining strategies such as cost optimisation, risk transfer, and portfolio restructuring. Furthermore, banks are now required to file quarterly disclosures covering provisioning status, capital adequacy calculations, and comprehensive data on additional tier-1 instruments to enhance transparency and regulatory oversight.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

latest

“I’ll Prove It In Court!” Sowore Doubles Down On Branding President Tinubu A “Criminal”.

Published

on

Omoyele Sowore, a prominent human rights activist and the former presidential candidate for the African Action Congress (AAC), is standing firm by his controversial description of President Bola Tinubu as a “criminal.” During a recent interview on Arise Television, Sowore asserted that his labeling of the President was rooted in what he considers hard facts rather than mere political theater.....KINDLY READ THE FULL STORY HERE▶

Sowore declared that he is fully prepared to defend his claims in a court of law, arguing that his statements are backed by serious allegations that demand legal attention. He emphasized that accusations regarding drug trafficking do not expire, stating, “If anybody has been involved in drug dealing or drug trafficking, there is no statute of limitation. Even if you are president, when your presidency is over, the law can still take its course.”

Unresolved Allegations

The activist also pointed to an alleged tax-related case involving the company Alpha Beta, which he contends remains an unfinished matter following the #EndSARS protests.

Sowore claimed that during the unrest, vital court documents related to the case were destroyed. He recounted a frustrating experience in his attempts to pursue the matter, alleging that:

  • A judge prevented his legal counsel from presenting key evidence when the case was at a critical stage.

  • Rather than allowing the issues to be heard in full, he has faced persistent attempts by authorities to arrest and harass him.

Allegations of Tech Interference

Beyond the courtroom, Sowore alleged that government authorities pressured major social media platforms, including Facebook and Twitter, to withdraw from his ongoing legal battles. According to the activist, this intervention was aimed at suppressing access to documentation that could have exposed government actions against free speech.

Continue Reading

latest

“You Have No Right To Insult Me!” Umahi Fires Back In Explosive Clash With Obidients.

Published

on

The Minister of Works, Dave Umahi, has issued a sharp challenge to the Obidients Movement, urging them to compare the track record of their principal, Peter Obi, with his own achievements during his time as the governor of Ebonyi State.....KINDLY READ THE FULL STORY HERE▶

A Call for Objectivity

Speaking on Thursday at the flag-off ceremony for the Babban-Lamba Sharam Road (Phase II) in Plateau State, Umahi addressed the online criticism he has faced from Peter Obi’s supporters.

  • Umahi questioned the basis of these attacks, demanding that followers of the former Anambra State governor be more objective in their criticism.

  • He highlighted his extensive political career—having served as a party chairman, deputy governor, governor, senator, and minister—to emphasize his experience in governance.

  • The Minister warned the group, stating, “You have no right to insult me. But if you call on the president, I will call on you”.

Accusations of “Comedy” in Governance

The tension between the two political figures escalated further on Wednesday during the launch of the Akwanga-Jos superhighway construction. During the event, Umahi accused Peter Obi of being ignorant of the realities of governance.

Umahi criticized the former governor for allegedly seeking “cheap political points” by sharing photos of poor road conditions on social media. The Minister expressed disappointment, remarking, “I saw his social media when he got to a point where the road is bad, and he snapped it. When did governance reduce to comedy?”.

In response to what he perceived as personal attacks on his integrity, Umahi has formally challenged Peter Obi to a public debate. He noted his readiness to discuss the technicalities of road construction, specifically stating, “I’m always ready for a debate, I’m always ready to disaggregate the unit cost of concrete and to debate with him”.

Continue Reading

entertainment

“Marriage Over, If You Do This!” Toyin Abraham Opens Up On Husband’s Strict Final Warning

Published

on

Popular Nollywood actress Toyin Abraham has credited her husband, Kolawole Ajeyemi, for his pivotal role in helping her quit smoking cigarettes.....KINDLY READ THE FULL STORY HERE▶

In a recent interview with Morayo Afolabi, the star actress reflected on her past habits, revealing that she has successfully moved away from cigarette smoking, though she noted she still uses a vape occasionally.

A Husband’s Firm Stance

Toyin shared that her journey toward quitting began during her pregnancy, when her husband reminded her that smoking was no longer a viable option for the sake of their unborn child—a sentiment that left a lasting impression on her.

The actress recounted a significant moment following the birth of their child when she smoked during an outing. While her husband noticed, he chose not to argue or lecture her. Instead, he made his boundary clear: while she was free to make her own personal choices, he would never tolerate those habits in their child.

The Ultimate Ultimatum

The actress revealed the weight of her husband’s words, explaining that he set a firm boundary for the future of their household. According to Toyin, her husband warned that if he ever discovered their child smoking or drinking alcohol, it would mark the end of their marriage.

Describing Kolawole Ajeyemi as the “best thing that has ever happened” to her, Toyin expressed appreciation for his support, stating, “He let me be me”.

Continue Reading

Trending

Copyright © 2023 NIVONEWS