Feature/OPED
Oliver Fejiro, Journalist Of Many Lies Against Delta State Government
By Ephraim Okwuosa
In any credible democratic setting, it is elementary knowledge that a journalist is at liberty to think, decide and write on what is believed to be independent opinion on an issue that is topical or of common interest.
However, it is also low in logic and intellect for any journalist to assume that the right of free expression is a license to convey baseless, superfluous and reckless aspersions against some persons or group.
Indeed, any journalist that assumes such an exclusive preserve to create improper and unfair remarks without just, rational and legitimate basis is huge joke and disaster to professional journalism.
Unfortunately, the tendency of few journalists to misuse the seeming unbridled license extended to the practice of journalism is enormous minus for this honourable profession. This self-styled journalism of advancing skewed motives and biased reporting is quite evident in this era of new media where it has become a common practice to publish articles without thorough investigation.
Most of the time, this minority set of writers in their attempt to tarnish the reputation and dignity of their targets for self-interest, write scurrilous articles with conclusions that not only impute partiality but covey improper motives. Sadly, such reports are converse to tolerable standards in the conduct of proper journalism in Nigeria.
A telling example of such media negativity is found in a recent article, titled ‘Gov Okowa, Goodbye to Second Term’ by one Fejiro Oliver which was published in many online media. The write up which ought to have conveyed views that should provide credible reasons why the incumbent Governor Okowa of Delta State does not deserve a second term deviated entirely from readers’ expectation. Rather it dwelled on an unconnected but sensitive issue relating to Delta state Governor’s unwillingness to go the usual old way of sharing money amongst politicians and supposed friends including the writer, Fejiro.
Frankly put, it would not have even mattered whether or not the views expressed in the article are in favour or against Governor Okowa as it is a moral task of any responsible citizen in a democratic setting to hold their elected leadership accountable and critique or interrogate their policies which are considered bad.
Unfortunately, the article on prediction of 2019 Delta governorship elections is a far departure from constructive analysis on Governor Okowa’s performance or inadequacy in government.
That Oliver Fejiro’s article did not contain any meaningful deconstruction of the efforts or otherwise of the Delta State government is not strange but remains very disturbing and misleading in this modern era where readers reach conclusions based on newspaper opinions.
The write up which did not offer readers any genuine basis for judgement is best regarded as a work of fiction and deliberate attempt to advance deception through journalism. According to the writer’s comments on Governor Okowa, “As a governor, he’s extremely nice and dedicated to work. He has the heart of gold to deliver prosperity to Deltans.
He has the desire to truly make Delta the hub of industrialization and a commercial city of repute, but unfortunately swallowed by unseen hands that manipulate him”.
These remarks on Governor Okowa are very conflicting, self-contradicting and may not even call for any meaningful argument on the topic.
Unequivocally, from this singular narrative, it is obvious that the writer’s major focus was certainly not do any honest analysis on the Okowa’s administration or on what it portends for the people of Delta state but to pour a baggage of criticisms on the aides of the Governor.
In fact, it is very twisty, crude and unrefined for any responsible journalist to describe a Governor as good, yet openly stimulate fears into him that he is carrying burning coals in his hands because money is not being shared to persons termed political supporters.
Granted that in a democracy, it is the right of any person to express personal views on issues but from additional comments in Fejiro’s article, the substance in his allegations against Governor Okowa’s aides is of little value to good governance and appraisal of an administration’s performance.
Actually, If the real intent of the article was to embarrass and infuse confusion in the minds of the public about Delta State Government’s estimation, then the writer foundered on his weak ability to find quality logic and proof.
His introduction of half-truths that have no relevance to evaluating Okowa’s governance clearly buttresses the assumption that the assessment of Governor Okowa’s leadership was not a major interest.
Specifically, Fejiro’s political write up which lays great emphasis on Governor Okowa’s defiance to ‘share the money’ after his claim of personal meeting in which he proffered suggestions that have not been implemented probably for Delta State resources to be transferred to individual pockets of politicians and appointees is not only dubious, wicked but exposes his myopic and selfish interest which does not serve common good.
Fejiro’s lack of understanding that it is no longer business as usual is because he may not possess an analytical mind to do a simple analysis of the Delta State troubling financial situation nor can he understand that the nation’s recession era has a direct proportionate impact on the State’s revenue especially in the period where militant activities have affected oil derivation revenue and by extension resources of Delta State Oil Producing Areas Development Commission, DELSOPADEC’ which he mentioned has been deprived of appropriate funding.
The question herein, is what nature of development one should expect without cessation of violence.
In fact, Fejiro’s engagement in journalism based on distortion of facts to advance non-objective criticisms is very unacceptable. The writer’s spotlighting of Governor Okowa’s aides whom from several accounts refused to recognise him as a credible journalist or patronize his demands is outright blackmail and extortion on the part of Fejiro.
This was even affirmed by the writer in his remarks on his interaction with the Delta State Commissioner for Economic Planning, Kingsley Emu whom he mocked and adjudged as being a mediocre in politics for the disclosure that ‘the governor has blocked the loopholes through which funds are siphoned’. Perhaps, this private discussion could have taken place when Fejiro went soliciting for financial support.
Besides the above postulations and facts, truly, if Fejiro was of stable mind, he would have known that there would be historical obstacles to his career in the type of journalism he practices. The point herein is that if he thinks that time would have healed his self-inflicted wounds or blocked our memory on his past misdeeds, he has certainly failed on such assumptions by his quick return to public forum of controversy.
In fact, any time I read stories by Oliver Fejiro, I wonder at his claims of being an investigative reporter without an intrinsic probing mind and knack for details.
If really, investigative journalism were to be all about engaging in loose reporting ethics and blackmail, then Fejiro is on a good track.
Otherwise, he may just be counted as one of those that integrity means little to and would at any slight opportunity use such a title of investigative journalist to advance sinister motivations.
Indeed, it is actually shocking that Fejiro forgets that when he writes and publishes on new media, his old articles are readily available for review and critique. Indeed, after reading some of his previous articles where he praised the actions of Governor Okowa and his aides, my guess now is that his initial idea was to pretentiously promote the government with the expectation that so much millions of naira will be tossed in his pocket.
Obviously, when this ploy did not yield immediate harvest, he reverted to his plan B by terming Governor Okowa “a promise and fail politician” and began to attack the many aides of Governor. Unfortunately, for him, these aides may be more clever than he had rated them as they have little or no respect for him given his ugly antecedent of failed attempt at extorting the former Governor of Niger State, Babangida Aliyu, an incident which was foiled by the gallant officers of the Department of State Services and was widely reported in National news media.
From all superior logic, Fejiro cannot be regarded as an asset to credible media and journalism in Nigeria.
Certainly, he is not the everyday journalist that is satisfied with “thank you for coming’ brown envelop even in all its dishonourable forms. Rather, he runs a media outfit a.k.a ‘Secret Reporters’ which he purports conducts investigative journalism but in reality it is a phony scheme with a special agenda that is alleged to be a first class brand of blackmailers which not only churns out negative stories but manufactures lies to make them look like truth against individuals he has marked out for extortion.
That the aides of a governor are not collaborating with a particular journalist cannot be termed a political negative against such a Governor but Fejiro definitely feels different on this and he is entitled to his opinion. Nevertheless, from every good judgement and wisdom, it is easy to decipher that there is a bit more to Fejiro’s motivation in journalism. Particularly, his remarks that some persons in Delta State are not happy probably because money is not being distributed, suggests that Fejiro must be seen as he is, a nagging worry for more money. His deliberate, motivated and calculated attempt to bring down the image of the Governor in the estimation of the public because of self-aggrandizement is quite disappointing too.
Any credible journalist should be aware of the diminished economic situation in Delta state as an oil producing State but to Fejiro, everything else is less important including the Governor’s attempt in tackling the high levels of poverty and ensuring equity through the new job creation initiative, improved security, construction of link roads in all sections of the State, appointment of political appointees across the state, facilitation of visible major socio-economic development, struggle to ensure monthly salary are paid to oversized sixty thousand civil servants, bridging gap in communication with the governed through establishment of a very vibrant Orientation Directorate and credible efforts to sustain on-going economic empowerment of youths and women. In truth, if Fejiro was not blinded by falsehoods, he would have noticed that all these bear testament to the quality leadership of his state Governor that operates with less than a third of monthly revenue earned by his predecessors.
In any case, such achievements remain a visible chapter in the Governor Okowa’s less than two years stay in office and are signposts of developments ahead.
Specifically, on Fejiro’s ranting on Governor Okowa’s appointment his personal aides from his region, I doubt if any politician will resist the temptation to do what is needful provided it does not affect the even distribution of major appointments across the State.
Fejiro’s reference on alleged payment of two billion naira for Asaba airport safety enhancement by the State Government is false.
In fact, from this it is obvious that Fejiro is a man that is comfortable with conflicts and engages in a spiral of distortion of facts.
Perhaps, this could have been his reason for stating that a project which is contractor financed through a bank guarantee and under the direct supervision of certified experts by the Nigerian Aviation Authorities has been paid for.
Again, his analysis on Delta Sports Commission is clear exhibition of ignorance because what the former Governor Uduaghan disbursed as monthly grant to the Commission through his in law, Amaju Pinnik which Fejiro referenced to as a performer is more than what the present leadership of the same Sports Commission has collected in the past one year despite the fact that it being headed by Tony Okowa, a seasoned politician and brother of Governor Okowa.
This is where it is expected that the fundamental action for Governor Okowa’s media aides should be to call for an end to Fejiro’s impunity and engagement in falsehood by providing credible evidence to counter Fejiro’s many lies especially given that a lie becomes truth when it is repeated without objection.
From Fejiro’s antecedent, he appears like a man trapped in a lazy world of blackmailers that use the media to persuade people to think and behave in a certain manner that will ensure that money is disbursed to him. Indeed, his style of journalism not only makes a caricature of many credible unbiased media outfits that erroneously publish his lies but creates anxiety in the minds of the reading people on the quality and integrity of Nigerian journalism.
The only comfort herein, is that Fejiro’s practice of journalism will in little or no time be crushed by greed and selfishness.
Fejiro’s unceasing desire to write Okowa’s government to tatters with a plethora of half-truths cannot change the reality in Delta State recent improvements.
In truth, Ifeanyi Okowa may not really be an angel in politics because it is calling where angels don’t thrive, however, he remains a man that stands head and shoulders above his predecessors given his leadership style and work done with minimal resources.
For now, let the leadership in Delta State remain focused and undistracted by Fejiro’s tricks as 2019 elections will confirm the veracity of claims in favour or against Governor Okowa.
Dr Ephraim Okwuosa is the co-ordinator, Anti-Corruption Advocates, Area 11, Garki, Abuja
Not too long ago, streaming in Nigeria was seen as a convenience, an alternative to traditional television, used mostly to catch up on missed shows or explore international content. Today, it has evolved into something far more ingrained. Streaming is now a culture: a daily habit that shapes conversations, influences pop culture, drives fandoms and even dictates how stories are told.
From late-night binge sessions and group watch parties to live-tweeting reality shows and football matches, streaming has become woven into how Nigerians experience entertainment. As mobile devices, smart TVs and affordable data options continue to expand access, the platform has moved from the fringes to the centre of everyday life. In 2026, this cultural shift will become even more pronounced.
Here’s what to expect as streaming continues to evolve in Nigeria and across Africa.
Value Will Define Loyalty in an Overcrowded Streaming Market: As streaming becomes mainstream, Nigerian audiences are becoming more discerning. Subscription fatigue is real, and users are no longer impressed by platforms with limited libraries or infrequent updates.
In 2026, loyalty will belong to platforms that offer sustained value, not just headline titles. This means:
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Deep content libraries that go beyond a handful of popular shows
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A healthy mix of live TV, sports and on-demand entertainment
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Regular content refreshes that keep audiences engaged month after month
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Viewers now understand value, and they will gravitate towards platforms that consistently deliver variety and relevance.
Local Stories Will Drive Cultural Relevance: Streaming has amplified the power of Nigerian storytelling, giving local productions the scale and visibility once reserved for traditional TV. Viewers are showing a clear preference for stories that feel familiar, authentic and culturally grounded.
In Nigeria, titles like Omera, Glass House, Italo, The Real Housewives of Lagos, Nigerian Idol and Big Brother Naija have become shared cultural moments, driving online conversations and real-world buzz. These shows are not just being watched; they are being experienced.
Across the continent, similar patterns are emerging, reinforcing the role of hyperlocal content in building loyalty and identity. In 2026, investment in African creators will remain central to streaming growth.
Streaming Becomes Personal and Predictive: As streaming matures, platforms will increasingly rely on AI to understand viewers on a deeper level. In 2026, Nigerian users can expect:
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More intuitive recommendations tailored to individual tastes
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Smarter content discovery that reduces the time spent searching
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Interactive experiences that respond to viewer behaviour
Beyond content, AI will also enhance advertising relevance and customer support, creating a smoother, more personalised user journey.
Live Sports Will Continue to Anchor Streaming Culture: While binge-worthy series drive daily engagement, live sports remain one of streaming’s biggest cultural anchors. Football, in particular, continues to command passionate followership in Nigeria.
With the 2026 FIFA World Cup scheduled for June–July, live streaming will dominate viewing behaviour once domestic leagues conclude. Nigerian football fans demand quality, reliability and immediacy, making official platforms with full broadcast rights, such as SuperSport, essential destinations during major tournaments.
In 2026, sports will further reinforce the value of legitimate, high-quality streaming experiences.
Security Becomes Non-Negotiable: As streaming cements its cultural relevance, content protection will take on greater importance. Premium sports and entertainment remain prime targets for piracy, but the response is becoming more sophisticated.
Technologies from cybersecurity firms like Irdeto now enable real-time monitoring, rapid takedowns and legal action against illicit streaming networks. These measures protect not just platforms, but creators and the broader creative ecosystem, a critical consideration as local production continues to grow.
Innovation Makes Streaming More Inclusive: One of the most significant shifts in Nigeria’s streaming landscape is how inclusive it has become. Platforms are innovating around:
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Flexible pricing
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Bundled services that combine TV and streaming
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Multi-device access, including mobile-first options
Whether premium or entry-level, users can now find options that suit their lifestyle and budget, reinforcing streaming’s position as an everyday entertainment staple.
A More Conscious Streaming Audience Emerges: As streaming culture matures, so does audience awareness. Nigerian viewers are increasingly able to identify illegal streaming platforms and understand the long-term damage piracy causes to the industry.
In 2026, conscious viewing will continue to gain ground, with users learning to avoid red flags such as “free” premium streams, unofficial apps, VPN-only access and excessive pop-up advertising.
Streaming is no longer simply about watching content, it is about belonging to moments, communities and conversations. In Nigeria, it has evolved into a cultural force that shapes how stories are told, shared and celebrated.
As 2026 unfolds, streaming will continue to thrive at the intersection of technology, culture and creativity, offering entertainment that is accessible, relevant and deeply local.
By Anne Mureithi
Provision of banking services in Africa continues to undergo profound digital transformation where most transactions are conducted virtually via digital devices and cash moved electronically. Mobile banking, fintech innovation, and cross-border digital payments have reshaped how individuals and businesses consume financial services.
In Nigeria and across the continent face, banks face sharp scrutiny from expanding regulatory landscape, including Anti-Money Laundering (AML), combating the financing of terrorism (CFT) and combating the financing of proliferation (CPF) that involves disrupting funds for weapons of mass destruction (WMD) through targeted financial sanctions.
With increased cross border trade, everyone including governments look upon banks to provide Know Your Customer (KYC) services, fraud risk management, and increasingly adhere to stringent data protection and privacy regulations as well as Environmental, Social, and Governance (ESG) reporting standards.
Compliance is no longer a back-office obligation, and this calls for increased investments in technology, particularly Artificial Intelligence (AI) and Machine Learning (ML) to enable banks to meet compliance requirements.
This is important as local traders want a banking partner who offers one-stop shop services on compliance matters. For banks, this is a competitive advantage, a core capability, and a source of differentiation. By embedding compliance into product and process design, banks can meet regulatory obligations efficiently while fostering innovation through a compliance-by-design approach.
In March 2025, the Central Bank of Kenya published the results of a survey on AI adoption in the banking sector, revealing moderate uptake, with 50% of respondents indicating some level of implementation. The survey found that among institutions that had adopted AI and machine learning, the leading applications were credit risk assessment (65%), cybersecurity (54%) and customer service (43%), followed by e-KYC (41%) and fraud risk management (40%).
These findings underscore significant untapped potential for AI to transform customer experience and strengthen risk management, particularly in AML and compliance monitoring. As intra-Africa trade continues to increase, compliance teams within banks must play a leading role in establishing strong governance, ensuring transparency, and preparing institutions for emerging regulatory expectations.
The Central Bank of Kenya has confirmed that it is in the final stages of developing a Guidance Note on Artificial Intelligence, with 95% of surveyed institutions having requested formal regulatory direction. The anticipated principles-based framework will focus on governance, risk management, transparency, and the ethical use of AI, laying the foundation for responsible innovation in the financial sector.
AI and ML models offer practical solutions to compliance challenges by learning and tracking typical behavioural patterns by customer, product, and corridor, flagging anomalies such as unusual counterparties, transaction values, or routing patterns in cross-border flows. These tools can also generate more accurate and complete assessments of ongoing customer due diligence and customer risk, which can be updated to account for new and emerging threats in real time.
By detecting potential violations of normal customer profiles in data or groups of customers with higher-risk characteristics, AI has streamlined priorities towards high-risk cases and reduced the time spent on false positives. This capability is increasingly critical as transaction volumes and complexity grow. Such technological advances transform compliance from a costly obligation into a strategic advantage.
Customers do not need to know one another to execute a transaction since AI-powered identity authenticates customer identity through document scanning, biometric verification and mobile-based identity solutions. These solutions have also enabled banks to onboard new customers remotely without the need to visit a physical bank to fill in registration details.
Accounts are fully secure and only users who pass the mobile-based identity verification are allowed access thereby preventing fraud. This also supports financial inclusion by enabling access to financial services for individuals who struggle to provide adequate identification documents for opening bank accounts.
In addition, Regulatory Technology (RegTech) solutions enable financial institutions to monitor regulatory developments, map obligations across their operations, conduct initial gap assessments, ensure that policies and procedures are always up to date and streamline regulatory reporting.
This capability is particularly valuable for pan-African institutions in ensuring agility while responding to regulatory changes across multiple jurisdictions. With its presence in 34 African countries, Ecobank advocates for harmonised payment systems and regulatory frameworks as a catalyst for accelerating intra-African trade.
Regional regulatory alignment further amplifies these gains. As African regulators work towards greater harmonisation of standards, banks with pan-African footprints are uniquely positioned to bridge local realities with global expectations, enabling smoother cross-border transactions and reducing friction for businesses operating across multiple markets.
The convergence of digital innovation and regulation presents an opportunity to support regional integration and strengthen public confidence. Banks that integrate compliance into their digital strategies, invest in ethical AI, enforce strong governance, and actively engage regulators will be best positioned to compete, facilitate trade, and protect financial integrity.
On an Africa-wide platform, traders from Nigeria want a synchronised platform that provides them with end-to-end solutions. Say Ecobank Group’s AML monitoring and sanctions screening capabilities within its SWIFT payment infrastructure ensure that all cross-border payment messages undergo real-time compliance checks prior to fund settlement.
With increased intra-Africa trade that rides on online platforms, accelerated digitalisation of cross-border transactions, timely, efficient, and secure payment processing is paramount. Real-time compliance monitoring is a non-negotiable cornerstone of safeguarding the integrity of international payment flows.
Ultimately, the future of banking in Africa will be defined by how institutions harness technology to meet regulatory obligations, deter financial crime, and foster trust among businesses, consumers, and public institutions alike. Compliance is no longer a constraint on growth; it is a foundation for sustainable innovation, regional integration, and long-term confidence in Africa’s financial system.
Ms Mureithi is a director in charge of compliance at Ecobank, Central, Eastern and Southern Africa (CESA)
By Blaise Udunze
Nigeria’s economy will be experiencing yet another round of reform; after the new tax implementation, the banking sector recapitalisation exercise will begin within less than three months until the March 31, 2026, deadline. The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, disclosed that 27 banks have tapped the capital market via public offers and rights issues.
The figures show that of 21 the 37 commercial, merchant, and non-interest banks in the country have met or exceeded the revised minimum capital thresholds of N500 billion for internationally authorised banks, N200 billion for national banks, N50 billion for regional banks, and N10-20 billion for non-interest banks. With the developments above, policymakers are betting that stronger balance sheets will help banks withstand macroeconomic shocks, finance growth, and restore confidence in the financial system. On the surface, the logic is sound, capital matters. But history warns us that capital alone is not a cure-all.
Nigeria has been here before, going by the 2004-2005 era of the then-governor of CBN, Charles Soludo, whose banking consolidation dramatically reduced the number of banks from 89 to 25 and created national champions. Yet barely five years later, the system was back in crisis, requiring regulatory intervention, bailouts, and the creation of the Asset Management Corporation of Nigeria (AMCON) to absorb toxic assets. The lesson here is clear, which revealed that recapitalisation that ignores structural weaknesses merely postpones failure.
If the current exercise is to succeed, the CBN must use it not only to raise capital but to repair the deeper fault lines that have long undermined the stability, credibility, and effectiveness of Nigeria’s banking sector.
More Capital isn’t Always Better Capital
The first and most critical issue is the quality of capital being raised. Disclosures made by the banks have shown that the combined capital base of about N5.142 trillion is already locked in by lenders across the different licence categories. Bigger numbers on paper mean little if the capital is not genuinely loss-absorbing. In past recapitalisation cycles, concerns emerged about funds being raised through related parties, short-term borrowings disguised as equity, or complex arrangements that ultimately recycled the same risks back into the system.
This time, the CBN must insist on transparent, verifiable sources of capital. Every naira raised should be traceable, free from conflicts of interest, and capable of absorbing real losses in a downturn. Otherwise, recapitalisation becomes an accounting exercise rather than a resilience-building one.
Why Corporate Governance Remains the Achilles’ Heel
Perhaps the most persistent weakness in Nigeria’s banking sector is corporate governance failure. Many bank crises have not been caused by macroeconomic shocks alone, but by poor board oversight, insider abuse, weak risk culture, and excessive executive power.
Recapitalisation provides a rare regulatory leverage point. The CBN should use it to reset governance standards, not just capital thresholds. Boards must be independent in substance, not just in form. Being one of the critical aspects of the banking challenge, insider lending rules should be enforced without exception. Risk committees in every financial institution must be empowered, not sidelined by dominant executives.
Without the apex bank fixing governance, new capital risks become fresh fuel for old excesses.
The Unresolved Burden of Non-Performing Loans (NPLs)
Data from the CBN’s latest macroeconomic outlook showed that the banking industry’s Non-Performing Loans ratio climbed to an estimated 7 percent, pushing the sector above the prudential ceiling of 5 percent. Nigeria’s banking sector continues to be drowned with high volumes and recurring non-performing loans (NPLs), and this is often concentrated in sectors such as oil and gas, power, and government-linked projects. Though with the trend of events, one may say that regulatory forbearance has helped maintain surface stability in the sector, no doubt it has also masked underlying vulnerabilities.
The truth is that a credible recapitalisation exercise must confront this reality head-on. Loan classification and provisioning standards should reflect economic truth, not regulatory convenience. Banks should not be allowed to carry impaired assets indefinitely while presenting healthy balance sheets to investors and the public.
Transparency around asset quality is not a threat to stability; it is a foundation for it.
How Foreign Exchange Risk Quietly Amplifies Financial Shocks
Few risks have damaged bank balance sheets in recent years as severely as foreign exchange volatility. Many banks continue to carry significant FX mismatches, borrowing short-term in foreign currency while lending long-term to clients with naira revenues.
During periods of FX adjustment, these mismatches can rapidly erode capital, no matter how well-capitalised a bank appears on paper. Recapitalisation must therefore be accompanied by tighter supervision of FX exposure, stronger disclosure requirements, and realistic stress testing that assumes adverse currency scenarios, not best-case outcomes.
Ignoring FX risk is no longer an option in a structurally import-dependent economy.
Concentration Risk and the Narrow Credit Base
Another long-standing weakness is excessive concentration risk. A disproportionate share of bank lending is often tied to a small number of large corporates or government-related exposures. While this may appear safe in the short term, it creates systemic vulnerability when those sectors face stress.
At the same time, the real economy, particularly SMEs and productive sectors, remains underfinanced because, over the years, Nigeria’s banks faced significant concentration risk, particularly in the oil and gas sector and in foreign currency exposure, while grappling with a narrow credit base characterised by limited lending to the private sector. This is due to high credit risk and tight monetary policy. Owing to this trend, recapitalisation should therefore be in alignment with policies that encourage credit diversification, improved credit underwriting, and smarter risk-sharing mechanisms, and not the other way round.
Therefore, it will be right to say that banks that grow larger but remain narrowly exposed do not strengthen the economy; they amplify its fragilities.
Risk Management in a Volatile Economy
The recurring inflation shocks, interest-rate swings, fiscal pressures, and external shocks are frequent features, not rare events, which show that Nigeria is not a low-volatility environment.
Currently, the Nigerian banking sector’s financial performance and investment returns are equally affected by various risks, including credit, liquidity, market, and operational risks.
Today, many banks still operate risk models that assume stability rather than disruption. Time has proven that risk management is essential for mitigating these risks and ensuring stability and profitability.
The apex bank must ensure that the recapitalisation process mandates robust, Nigeria-specific stress testing, and banks must demonstrate resilience under severe but plausible scenarios. This includes sharp currency depreciation, interest-rate spikes and sovereign stress. It must evolve from a compliance function to a strategic discipline.
Transparency and Financial Reporting
Investors, depositors, and analysts must be able to understand banks’ true financial positions without navigating a lack of transparent disclosures or creative accounting. Hence, public trust in the banking sector depends heavily on credible financial reporting.
The CBN should use recapitalisation to strengthen the International Financial Reporting Standard enforcement, disclosure standards, and audit quality. In championing this course, banks’ financial statements should clearly reflect capital adequacy, asset quality, related-party transactions, and off-balance-sheet exposures. Transparency is to enable confidence, not about exposing weakness.
Regulatory Consistency and Credibility
Policy credibility has been one of the greatest challenges for Nigeria’s financial regulators.
Abrupt changes, unclear timelines, and inconsistent enforcement undermine investor confidence and weaken reform outcomes.
Recapitalisation must be governed by clear rules, predictable timelines, and consistent enforcement. Both domestic and foreign investors need assurance that the rules of the game will not change midstream. Regulatory credibility is itself a form of capital.
Consumer Protection and Banking Ethics
While recapitalisation focuses on banks’ balance sheets, the public experiences banking through fees, service quality, dispute resolution, and ethical conduct. Persistent complaints about hidden charges and poor customer treatment erode trust in the system and a stronger banking sector must also be a fairer and more accountable one. It must be noted that strengthening consumer protection frameworks alongside recapitalisation will help rebuild public confidence and reinforce financial inclusion goals.
Too Big to Fail and How to Resolve Failure
Looking at what is obtainable in the system, larger, better-capitalised banks can also become systemically dangerous if failure resolution frameworks are weak. This requires that recapitalisation should therefore be accompanied by credible plans for resolving distressed banks without destabilising the entire system or resorting to taxpayer-funded bailouts, which has been the norm in the Nigerian banking sector today. The cynic might say that recapitalisation simply made big banks bigger and empowered dominant shareholders. However, a more prospective approach invites all stakeholders, including regulators, customers, civil society and bankers themselves, to co-design the next chapter of Nigerian banking; one that balances scale with inclusion, profitability with impact, and stability with innovation.
Clear resolution mechanisms reduce moral hazard and reinforce market discipline.
A Moment That Must Not Be Wasted
Recapitalisation is not merely a financial exercise; it is a governance and trust reset opportunity. If the CBN focuses solely on capital numbers, Nigeria risks repeating a familiar cycle of apparent stability followed by crisis.
The banking sector can lay a solid foundation that truly supports economic transformation if recapitalization is used to address governance failures, asset quality, FX risk, transparency, and regulatory credibility.
Nigeria does not just need bigger banks. It needs better banks, institutions that are resilient, transparent, well-governed, and trusted by the public they serve. Hence, it must be a system that creates a more robust buffer against shocks and positions Nigerian banking as a global competitor capable of funding a $1 trillion economy, as the case may be.
This recapitalisation moment must be about building durability, not just size. The cost of missing that opportunity would be far greater than the cost of getting it right.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
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