Feature/OPED

Systemically Weak Banks Put Nigeria’s $1 trillion Ambition at Risk

Published

2 months ago

27/04/2026

By Blaise Udunze

Nigeria’s banking sector has just undergone one of its most ambitious recapitalisation exercises in two decades, all thanks to the Central Bank of Nigeria under the leadership of Olayemi Cardoso. About N4.65 trillion ($3.38) has been raised. Balance sheets have been strengthened, at least the improvement could be said to exist in reports or accounting figures. Regulators have drawn a new line in the sand, proposing N500 billion for international banks, N200 billion for national banks, and N50 billion for regional players. This is a bold reset.

Meanwhile, as the dust settles, an uncomfortable question refuses to go away, which has been in the minds of many asking, “Has Nigeria once again solved yesterday’s problem, while tomorrow’s risks gather quietly ahead?”

At a period when banks globally are being tested against tougher buffers, cross-border shocks, and higher regulatory expectations, Nigeria’s revised benchmarks risk falling short of what the global system demands.

In a world where scale, resilience, and competitiveness define banking credibility, capital is not measured in isolation; it is judged relative to peers, risks, and ambition.

Because when placed side by side with a far more unsettling reality, that a single South African bank, Standard Bank Group, rivals or even exceeds the valuation and asset strength of Nigeria’s entire banking sector, the celebration begins to feel premature.

The recapitalisation may be necessary. But is it sufficient? The numbers are not just striking, they are deeply revealing. Standard Bank Group, with a market valuation hovering around $21-22 billion and assets approaching $190 billion, stands as a continental giant. In contrast, the combined market capitalisation of Nigeria’s listed banks, even after recent capital raises, struggles to match that scale.

The combined value of the 13 listed Nigerian banks reached N16.14 trillion (11.9 billion) using N1.367/$1 in early April 2026, following the recapitalisation momentum.

Even more revealing is the contrast at the top. Zenith Bank is valued at N4.7 trillion ($3.44 billion), Guaranty Trust Holding Company, widely admired for efficiency and profitability, is valued at under N4.6 trillion ($3.37 billion), while Access Holdings, despite managing tens of billions in assets, carries a market value below the upper Tier’s N1.4 trillion ($1.02 billion).

This is not merely a gap. It is a structural disconnect. And it raises a critical point, revealing that recapitalisation is not just about meeting regulatory thresholds; it is about closing credibility gaps.

With accounting figures or reports, Nigeria’s new capital thresholds appear formidable. But paper strength is not the same as real strength.

The naira’s persistent depreciation has quietly undermined the meaning of these figures. What looks like N500 billion in nominal terms translates into a much smaller and shrinking figure in dollar terms.

This is the misapprehension at the heart of Nigeria’s banking reform, as we are measuring financial strength in a currency that has been losing strength.

In real terms, some Nigerian banks today may not be significantly stronger than they were years ago, despite meeting much higher nominal thresholds. So while regulators see progress, global investors see vulnerability. Markets are rarely sentimental. They price risk with ruthless clarity.

The valuation gap between Nigerian banks and their South African counterparts is not an accident; it must be made known that it is strategic intentionality. By this, it truly reflects a deeper judgment about currency stability, regulatory predictability, governance standards, and long-term growth prospects. Investors are not just asking how much capital Nigerian banks have. They are asking how durable that capital is.

Even when Nigerian banks post strong profits, much of it has been driven by foreign exchange revaluation gains rather than core lending or operational efficiency. The CBN’s decision to restrict dividend payments from such gains is telling; it acknowledges that not all profits are created equal. True strength lies not in accounting gains, but in economic impact.

Nigeria has travelled this road before. Under Charles Soludo, the 2004-2006 banking consolidation raised minimum capital from N2 billion to N25 billion, reducing the number of banks dramatically and producing industry champions like Zenith Bank and United Bank for Africa. For a time, Nigerian banks expanded across Africa and became formidable competitors.

But the momentum did not last, emanating with lots of economic headwinds. One amongst all that played out was that the global financial crisis exposed weaknesses in governance and risk management, leading to another wave of reforms under Sanusi Lamido Sanusi. The lesson from that era remains clear, which revealed that capital reforms can stabilise a system, but they do not automatically transform it. Without bigger structural changes, the gains fade.

The real weakness of Nigeria’s current approach is not the size of the thresholds; it is their rigidity. Fixed capital requirements do not adjust for inflation, reflect currency depreciation, scale with systemic risk, or capture the complexity of modern banking.

In contrast, global regulatory frameworks are increasingly dynamic and risk-based. This is where Nigeria risks falling behind again. Because while the numbers have changed, the philosophy has not.

Nigeria’s economic aspirations are bold. The country speaks confidently about building a $1 trillion economy, expanding infrastructure, and driving industrialisation, but in dollar terms, many Nigerian banks remain small, too small for the scale of ambition the country now proclaims. Albeit, it must be understood that ambition alone does not finance growth. Banks do.

And here lies the uncomfortable mismatch, which is contradictory in nature because the economy Nigeria wants to build is significantly larger than the banks it currently has.

In South Africa, what Nigerian stakeholders are yet to understand is that large, well-capitalised banks play a central role in financing infrastructure, corporate expansion, and consumer credit. Their scale allows them to absorb risk and deploy capital at levels Nigerian banks struggle to match. Without comparable financial depth, Nigeria’s development ambitions risk being constrained by its own banking system.

At its core, banking is about channelling capital into productive sectors, as this stands as one of its responsibilities if it truly wants to ever catch up to a $1 trillion economy. Yet Nigerian banks have increasingly, in their usual ways, leaned toward safer, short-term returns, particularly government securities. This is not irrational. It is a response to high credit risk, regulatory uncertainty, and macroeconomic instability.

But it comes at a cost. Yes! The fact is that when banks prioritise safety over lending, the real economy suffers. What this tells us is that manufacturing, agriculture, and small businesses remain underfunded, limiting growth and job creation.

Recapitalisation is meant to change this dynamic. Stronger capital buffers should enable banks to take on more risk and finance larger projects. But capital alone will not solve the problem. Confidence will.

One of the most persistent obstacles facing Nigerian banks is currency volatility. Each major devaluation of the naira erodes investor returns and reduces the dollar value of bank capital. This creates a contradiction whereby banks appear profitable in naira terms, but unattractive in global markets.

In contrast, South Africa benefits from a more stable currency environment and deeper capital markets. Without much ado, it is clear that this stability attracts long-term institutional investors that Nigeria struggles to retain. Until this macroeconomic challenge is addressed, recapitalisation alone cannot close the gap because, without making it a priority, even the strongest banks will remain constrained.

In a global competitive financial market, one would agree that capital is necessary, but not sufficient. Beyond the capital, one crucial lesson stakeholders in Nigeria’s banking space must understand is that investors’ confidence is heavily influenced by governance standards and operational efficiency, which mainly guarantee more success and capability. Also, another relevant trait to sustainable banking is transparency, regulatory consistency, and accountability, which matter as much as balance sheet strength.

While Nigerian banks have made progress, lingering concerns remain around insider lending, regulatory unpredictability, and complex ownership structures. If policymakers revisit and reflect on the episodes involving institutions like First Bank of Nigeria and the liquidation of Heritage Bank, this will reinforce the perceptions of systemic risk.

Recapitalisation offers an opportunity to reset governance standards, but only if it is accompanied by stricter enforcement and greater transparency, with the key stakeholders seeing beyond the capital growth.

As if traditional challenges were not enough, Nigerian banks are also facing increasing competition from fintech companies. Nigeria has emerged as a leading fintech hub in Africa, reshaping payments, lending, and digital banking.

To remain relevant, banks must invest heavily in technology, an area that requires not just capital, but smart capital, ensuring that digital innovation becomes a core strength rather than an external add-on. The recapitalisation exercise provides the financial capacity. Whether banks use it effectively is another matter entirely.

So, are Nigeria’s new capital thresholds already outdated? Not yet. But they are already under pressure, pressure from inflation, currency weakness, global competition, and Nigeria’s own economic ambitions.

The truth is that the reforms are a step in the right direction, but they may already be systemically weak in the face of global realities. Whilst the actors keep focusing heavily on capital thresholds without addressing deeper structural issues, the reforms risk creating a system that is compliant, but not competitive, stable but not strong.

The recapitalisation exercise has bought Nigeria time. That is its greatest achievement. But time is only valuable if it is used wisely.

If policymakers treat this reform as a destination, the thresholds will age faster than expected. If they treat it as a foundation, Nigeria has a chance to build a banking system capable of supporting its ambitions.

It can either strengthen its financial foundations to match its economic ambitions or continue to pursue growth on a fragile base.

The warning signs are already visible. Systemic weaknesses, if left unaddressed, will not remain contained; they will surface at the worst possible moment, undermining confidence and limiting progress.

Otherwise, the uncomfortable truth will persist; one well-capitalised bank elsewhere will continue to stand taller than an entire banking system at home. Whilst a $1 trillion economy cannot be built on a weak banking system. The sooner this reality is acknowledged, the better Nigeria’s chances of turning ambition into achievement.

Blaise, a journalist and PR professional, writes from Lagos and can be reached via: bl***********@***il.com

Feature/OPED

Stocks vs Forex: Which is Better for Beginners in 2026?

Published

2 days ago

26/06/2026

Business Post Contributor

By Onah Ishioma Adaeze

As a beginner, choosing between stocks and forex for your investment goals in 2026 can feel overwhelming. Before investing your hard-earned money, it is important to understand how both markets work.

While both markets present investors with opportunities to grow their wealth, they also differ in terms of volatility, liquidity, market hours, and leverage. Stocks involve owning portions of a company, while forex has to do with trading a base currency against a quote currency.

In this article, we will be going through the basics of stocks and forex, pointing out their differences, and helping you decide which asset better suits your investment journey in 2026.

What is Stock Trading?

When it comes to stock trading, you are buying shares of a company, which makes you a shareholder of that company. As a shareholder, you may be entitled to receive dividends whenever the company decides to pay dividends.

As for those companies that do not pay dividends, there are other benefits a shareholder may enjoy, like being called upon to attend shareholder meetings and having voting rights on certain company matters.

On a global scale, over $100 trillion worth of shares are traded annually. Also, the rising popularity of AI companies and technological innovations continues to drive investor participation and market growth.

If you’re an investor looking to buy and hold capital assets, then stock trading is definitely for you, as it allows for short-term, medium-term and long-term investment goals.

When you buy shares of a company and the company performs well, your shares increase in value. Another benefit of stock trading is access to index funds and ETFs.

These funds consist of companies that are grouped under an index. They are carefully selected and monitored under the fund, sparing the investor the stress of actively tracking the fund.

They can be a way of building a long-term, diversified portfolio, and some of these funds may pay dividends.

What is Forex Trading?

Forex trading has to do with buying one currency and selling another. With a pair like USD/JPY, USD is the base currency being bought against JPY, which is the quote currency.

In order to execute a trade in the forex market, you have to analyse and make predictions based on price movement, as well as pay attention to what’s going on in the global news scene.

The forex market runs twenty-four hours every weekday, with over $9 trillion traded in the market every day. Being the largest financial market in the world, there is very high liquidity.

Forex trading involves buying one currency against another, making predictions based on price movements on the forex charts. Price moves based on the activities of large institutions like hedge funds, big banks, the government, etc.

The forex market runs 24 hours a day, every weekday, with global forex turnover reaching $9 trillion per day in the BIS 2025 survey. Being the largest financial market in the world, there is very high volatility and price fluctuations.

At the same time, there is high liquidity in the market, which means that currency pairs can easily be bought and sold without hassle. Highly liquid instruments that are traded regularly include: EUR/USD, USD/JPY, GBP/USD, and gold (XAU/USD).

As a retail trader, knowing when to enter and exit the market is important. As easy as it is to make profits from price fluctuations, it is also very easy to lose money if the market moves against you. This is why it is important to set stop losses and take profits. This helps manage your trading capital.

Major Differences Between Stocks and Forex

While investing in stocks and forex can yield great capital gains, there are lots of ways in which they differ.

As a beginner, stock trading provides opportunities for long-term investments, ensuring slow but consistent returns for wealth building. But if you are looking for an active, short-term style of investment, then forex trading is for you, as it allows you to enter and exit the market within a shorter time frame.

Which is Better in 2026?

Choosing an asset to invest in all boils down to personal preference. At the same time, if you are not averse to risk, nor opposed to asset diversification, then it’s okay to invest in both.

For beginner investors in 2026, stock trading is easier to understand and get into, especially because of mutual funds, index funds and ETFs. With those funds, you don’t have to be an expert to start investing. You can just buy a fund that suits your needs and hold it over a long period of time.

If you are an investor who enjoys technical analysis, highly volatile and liquid markets, as well as trading under short time frames, then forex trading is the right pick for you.

Conclusion

You do not need to put all your eggs in one basket. There are investors who invest in both stocks and forex simultaneously. When starting out, you can start investing in stocks while learning forex. Take calculated risks and do not invest above your means. Diversify your investments and remember, when starting out, you should prioritise acquiring knowledge over profits.

Onah Ishioma Adaeze is a finance writer who is passionate about simplifying complex concepts into easily digestible pieces. Her hobbies are reading and watching anime

Feature/OPED

Building 234 Solutions: A Response to Everyday Workforce Challenges

Published

3 days ago

25/06/2026

Business Post Contributor

By Owoloye Emmanuel

Every business starts with a problem. For us, that problem was hiding in plain sight.

Across organisations, we kept seeing HR professionals, payroll teams, and business leaders spend significant time navigating processes that should be simpler. Employee records sat across multiple systems, payroll processes required manual intervention, and routine workforce tasks often became more complicated than they needed to be.

As businesses grow, workforce operations naturally become more complex. Yet many organisations still rely on disconnected tools and workflows that create unnecessary friction for both employers and employees.

The consequence is more than operational inefficiency. HR teams spend valuable time managing systems instead of supporting people. Business leaders struggle to access timely workforce insights, while employees experience delays in processes that should be seamless.

These weren’t isolated challenges. They were recurring realities across workplaces, regardless of industry or size.

That observation led us to a simple question: what if workforce management could be easier?

What if HR, payroll, and workforce operations could work together within a single, connected experience?

That question became the foundation for 234 Solutions.

We are building 234 Solutions with a clear belief that workplace technology should reduce complexity, not add to it. Our goal is to help organisations spend less time navigating processes and more time focusing on productivity, growth, and people.

As we prepare for launch, our focus remains simple: building practical solutions for real workplace challenges and helping organisations create better experiences for the people who power them every day.

Owoloye Emmanuel is the founder of 234 Solutions

Feature/OPED

The Role of TV in Preserving African Stories and Identity

Published

4 days ago

24/06/2026

Business Post Contributor

Scroll through social media today, and you will notice something interesting: everyone is either reacting to a series, quoting a movie line, or debating a character as though they personally know them. Beneath the memes and binge-watch culture, however, lies something deeper. Television remains one of the most powerful tools shaping how Africans see themselves, remember their history, and tell their own stories. In a continent as diverse and expressive as Africa, that matters more than ever.

TV as a Cultural Archive, Not Just Entertainment

Long before streaming algorithms began shaping our viewing habits, television was already preserving African identity. From Nollywood dramas that capture the rhythm of everyday Lagos life to documentaries exploring Maasai traditions and Ghanaian folklore, TV has served as a living archive of the continent’s stories.

It preserves more than entertainment; it preserves language, culture, humour, values, and shared experiences. Unlike fleeting social media content, television allows stories to unfold with depth, exploring the realities of family, tradition, ambition, and modern African life without reducing them to stereotypes. That is the power of TV: preserving not just stories, but perspective.

Why Representation on TV Still Matters

There is a subtle but important truth: if people do not see themselves on screen, they may begin to believe their stories are not worth telling. This is why African TV content is more than entertainment; it is affirmation.

Seeing a character who speaks like you, struggles like you, or celebrates like your community does something powerful. It validates identity and challenges outdated narratives that have historically defined Africa through external lenses.

This is where MultiChoice Group, through platforms such as DStv and GOtv, plays an important role. They do not simply broadcast content; they help distribute cultural memory at scale.

GOtv, DStv, and the Everyday African Viewer

Think about a typical evening in many African homes: the TV is on in the background, someone is laughing at a comedy show, another person is watching a local series, and someone else is catching up on the news. That shared viewing experience remains very real.

Through platforms such as DStv and GOtv, African households are exposed to a blend of local storytelling and global content. More importantly, they have helped amplify African-produced content by bringing Nollywood films, African reality shows, talk shows, and documentaries into mainstream rotation.

It is not just about access. It is about visibility.

A young filmmaker in Lagos today is more likely to believe their story matters because they have seen similar stories broadcast widely. A child in Accra grows up hearing familiar accents and seeing environments that look like their own on screen, not as exceptions, but as the norm.

TV Is Also Shaping Modern African Identity

African identity is not static; it is evolving. Television reflects that evolution in real time.

Today, audiences see:

Young Africans balancing tradition and modern dating culture
Stories tackling mental health in African households
Fashion and music influences spreading through TV series
Political satire shaping public conversation

Conversations that were once confined to homes are now being explored on screen, giving audiences the language to discuss issues that were previously unspoken.

In many ways, television is doing what oral tradition has always done: passing stories, values, humour, warnings, and history from one generation to the next. The difference is that today’s griots are writers, directors, and broadcasters.

The Future: From Watching to Owning Our Narratives

The next stage of African storytelling is not just about being seen; it is about ownership.

As more African creators produce content and platforms continue to invest in regional storytelling, television becomes more than a mirror. It becomes a tool for shaping how Africa is represented to itself and to the world.

While streaming continues to grow, television, particularly accessible platforms such as GOtv, remains one of the most effective ways to reach everyday audiences across different income levels and regions. After all, storytelling only matters if people can access it.

African stories are not new. They have always existed in families, on streets, in markets, in history books, and through oral traditions. What television has done, and continues to do, is give those stories a stage wide enough for millions to experience them at once.

The next time you watch a local series or documentary on DStv or GOtv, remember that you are not just being entertained. You are participating in the preservation of African identity itself.