Feature/OPED

Upholding Governor Okowa’s Gbaramatu Initiative As Panacea For Niger Delta Peace

Published

9 years ago

18/12/2016

By Ephraim Okwuosa

The recent initiative of the Delta State Governor, Dr Ifeanyi Okowa, in requesting the company of immediate past President Goodluck Jonathan for a joint visit to Gbaramatu kingdom in the oil producing area of Niger Delta in pursuit of peace, is clear demonstration that a new wave of patriotic support has emerged to boost the on-going efforts of the President Buhari’s leadership to restore peace in the Niger Delta region.

Governor Ifeanyi Okowa’s role as a new dove in the Niger Delta crisis despite his contrasting partisan interest with the Nigeria’s ruling government of President Buhari is not only highly commendable but demonstrates unique intent for collective pursuit of peace.

Nevertheless, this Okowa’s presumed desire for peace demands a thorough substantive discussion that should not end with mere rhetoric.

For now, it is wise to recognise that the fresh initiative for calm by Governor Okowa may be the much needed rational response to the Niger Delta uncertainty. In truth, Governor Okowa’s idea of taking former President Goodluck Jonathan to appeal to the King of Gbaramatu for peace in the Niger Delta region is considered an effective and purposeful diplomacy. Indeed, it is an indication that peace in the Niger Delta may no longer be a distant prospect because this particular action shares a number of features with the past strategy employed in restoring peace in the Niger Delta by the late President Umaru Yar’Adua.

Without a doubt, the problems of militancy in the Niger Delta region of Nigeria’s oil producing areas have had real bite in reducing the Federal Government’s revenue particularly in its era of economic recession. Presently, under President Muhammadu Buhari’s leadership, where both oil production and price have sharply reduced, what this simply portends is likely threat of economic turmoil for a nation with inadequate foreign reserves, yet highly dependent on troubled proceeds from oil sales which accounts for over eighty percent of its foreign revenue.

That the crisis situation in Niger Delta has largely contributed in casting Nigeria led democratic government of President Buhari to be described a nation with seeming economic uncertainty does not call for any expanded debate. In any case, the fact is that at the moment, any purposeful discourse on Nigeria cannot end without including the depressing reality associated with vandalization of oil facilities and insecurity caused by some disgruntled persons. These illegitimate actions have not only brought about so much devastation on the country’s economy but also introduced an unprecedented level of suffering to a majority of the Nigerian population. All these combined with issues of inappropriate and confusing government economic policies have resulted in the dwindling value of Nigeria’s currency, growing unemployment, complications in the management of the economy, delayed salaries and disappearing business outfits.

Succinctly put, Nigeria’s pathetic situation has left over half of its population reeling in economic hardships. Conceivably, the current state of affairs might be the reason why some economic analysts strongly believe that without the stoppage of hostilities in the Niger Delta, Nigeria’s quest to overcome its recession may just be a dream too distant for actualization. Such analysts, even though recorded to have commended the tasking efforts of the seventy four year old President Buhari in addressing corrupting, remain sceptical that the global conversing by the Nigerian government for fresh investments will translate to meaningful gains without appropriately addressing the domestic problems of the Niger Delta disturbances which has projected Nigeria as unsafe for investment especially for oil related activities.

Even so, one twisty contradiction herein is that these acts of violence perpetuated by persons largely termed Niger Delta militants are best described as self-inflicted injuries. This is particularly so because those that advance such ignoble activities are not immune to the economic hardship they cause the Nigerian people.

Specifically, even the nine oil producing states that were hitherto classified as rich and distinctively different courtesy of billions of naira they earn as monthly allocation from oil derivation have witnessed diminished revenue which has made them incapable of paying salaries to their workers.

On this Niger Delta predicament, the factual reality is that even though there is no amount of logic that would provide legitimate excuses for the violent acts and ill motivations of the Niger Delta militants, their claim of being the goose that lay the golden eggs yet neither feeds appropriately from it nor enjoys a proportionate share cannot be dismissed in any quality dialogue. Arguably, some persons may wish to use similar premises like Nigeria’s days of groundout pyramids to reach a set of varied troubling conclusions or raise skewed questions on the alleged preferential treatment of Niger Delta oil producing communities but this does not reflect the realities in oil production activities and the dangers it brings to the communities at a gain to the Federal Government.

Consequently, the actuality remains that people from oil producing areas and those causing problems in the Niger Delta should be treated as mere trouble makers but pacified through rational responses and constructive dialogue. Indeed, the recent renewed violence in the Niger Delta region even though suspicious of skewed motive is a specific situation that calls for definite practical and sensible responses. This why I find the recent visit of Governor Okowa and Former President Jonathan to Gbaramatu Kingdom very relevant and necessary for an expansive discussion.

Presently, the Niger Delta region though summed with the tag of complex unsettled issues is certainly not beyond remediation either by brute force or dialogue. However, on a sensible reasoning, dialogue remains a best option for peace if really Nigeria is desirous of continuing its oil production in the said region.

In fact, it is also important to state that in any diverse society like Nigeria, at times unity may not suggest absolute uniformity because of existing varied interest groups and agitations. None the less, on some issues, national interest must take first place as there are lines that should not be crossed even by the most focused agitation; otherwise such may upturn the security and economic interests of a country.

Certainly, this is what I think the President Muhammadu Buhari’s administration has tried to preach to the Niger Delta people.

Unfortunately, the government’s approach of communication does not seem most appropriate especially for a people that have ears that seem blocked on the assumption of righteous anger.

Again, on this dismal issue of Niger Delta restiveness, a lot of objective observers have posited that the Nigerian government is not blame free because contrary to its claim of doing so much for the Niger Delta, there exist a lot of contentious issues.

Fundamentally, to the majority of Niger Delta people, the Nigerian Government is largely termed as another bullying masquerade that claims it is assisting on the one hand, yet on the other divide; it silently kills host communities through oil exploration activities without apposite corresponding development and remediation measures over issues of environmental degradation. Indeed, this remains a major disputation in government’s involvement in oil production activities in Niger Delta.

On the other hand, granted that various efforts have been made by the Buhari’s administration to establish likely mechanisms it thinks would stop the violence in Niger Delta, however with due acknowledgement to the good efforts of the present Minister of State for Petroleum Resources, Dr Ibe Kachikwu, the reality is that such efforts are yet to provide any signal for long lasting peace. Consequently, the big question herein is, how best can the Nigerian government achieve stability in the Niger Delta region with neither force nor needless deaths, an issue which was hitherto almost perfectly tackled for almost a decade until the arrival of the President Buhari’s administration. Politely put, is it not possible to create a new line of diplomacy that can constructively persuade the militants to understand that there can never be any reasonable justification or righteousness for any group of persons to engage in extreme violence of murder of security personnel, innocent citizens and workers in guise of pursuit of self-aspirations? On this, the Nigerian Government seems to be missing the woods for the trees.

In any case, the need to support peace with determined action is a must for both the people of Niger Delta and the Nigerian government.

However, while the Niger Delta militants must get over the delusion that their inappropriate actions will provide credible solutions to their seeming neglect, on the converse, the Government should stop listening to only those that think vandalization of oil facilities by militants can be stopped by the power of military confrontation. With hindsight, it is easy to say this may just end up as an unnecessary war that the Nigerian military is woefully underprepared to win without causing thousands of civilian casualties and huge damage to the human rights of persons the government claims it is desirous to give better lives.

Besides the many ambiguities that surround Niger Delta and the widely presumed attitude of Government’s neglect, the essential truth is that it is hopelessly naïve for any reasonable person to think that meaningful development will take place in Niger Delta region without peace.

Indeed, even though it is not far from fact that the Niger Delta people believe they have been highly marginalized by previous governments until the emergence of the late President Umaru Yar’adua’s

Amnesty in exchange for peace programme, in the present situation, what is essentially needed is not much squabble but a quick resolution of the differing issues for common good. Indeed, many polity watchers believe that the unique approach of peace employed by the late President Yar’Adua did not only clear the major obstacles of doubt but opened possibilities of trust on many issues of common interest between the government and the Niger Delta people.

Realistically, any reasonable analyst on Niger Delta crisis will automatically understand that the exclusive peace initiative of the late President Yar’Adua was actually what guaranteed tranquillity in the Niger Delta region for almost a decade. Indeed, the Yar’adua’s peace initiative actually did show that talking frankly with the militants is not an admission of incompetence.

Rather, it is wisdom which opens doors to strategic partnership for worthwhile deal for all parties in the Niger Delta crisis. Unfortunately, with Muhammadu Buhari as President and the militants back to the creeks to continue violence, there is no doubt that the late President Yar’adua’s peace initiative has been weakened to a state of near collapse. A regrettable incident and sad issue is that many people do not have the understanding that the entire blame should not be on the door steps of President Buhari but more on the greed of some different actors from the Niger Delta extract over socio political and economic personal gains. This is why the President must be clear eyed on what he reads about the Niger Delta crisis from some of trusted persons.

For now, it may not be strange that even those politicians close to Mr President may be offering half-truths that give the an erroneous impression of the Niger Delta mess, thus sadly creating apprehension that may negatively motivate those that have sympathy for the militants not to embrace any patriotic zeal that will encourage an end to the conflict. This is for sure the extend that greed and politics have thrust Niger Delta.

Interestingly, despite the above stated conjectures, all hope does not appear lost for genuine peace in Niger Delta. This is because after long months of chaos and imbroglio, it does seem that some persons from Niger Delta are beginning to think more creatively. The recent visit of Governor Okowa and former President Jonathan to Gbaramatu is clear testament that the quest for peace has gained steam. Indeed, any good follower of Niger Delta crisis ought to know the historical significance of Gbaramatu Kingdom. For avoidance of doubt, Gbaramatu is strategically located in the oil producing area of Delta State in the Niger Delta Region. It is a major Ijaw ethnic settlement that consists of many communities including Okerenkoko and Oporoza.

Also, it is the home of one Chief Government Ekpemupolo a.k.a Tompolo, a well-known influential ex militant or militant depending on how one’s lenses are polarized. Certainly, given the new realities in the Niger Delta, the categorization of Tompolo will form sufficient discourse elsewhere but for now, let this peace go with the healthy assumption of Ex militant because the Nigerian constitution accords his the status of innocence until proven guilty.

Never the less, it is on record that Tompolo was the force behind encouraging his co agitators to embrace the Amnesty of the late President Umaru Yar’Adua, unfortunately, that bond of peace between the Nigerian government and Tompolo faded as soon as the Buhari’s led Government charged him to court on multiple allegations of corruption and froze his bank accounts with billions of naira, he claimed he earned genuinely through contracts of pipeline monitoring and other related transactions related to sustaining peace in the Niger Delta.

Ever since the government decent on Tompolo and issuance of arrest warrant, neither, Niger Delta, Gbaramatu, Tompolo, oil production nor Nigerian economy has known peace. Whatever this means, can be easily interpreted by the average mind but the truth is that Tompolo is still at the heart of Niger Delta matters and no amount of pretence or denial can diminish the fact of his influence over his people, an attribute the late President Yar’adua aptly utilized to attain peace in the Niger Delta.

For ease of comprehension on Gbaramatu’s significance and Tompolo’s influence, in May 2009, according to Media reports, the Gbaramatu kingdom was attacked by a combined team of Army, Navy and Air force known as Joint Task Force (JTF). Military aircraft was used in attacking Tompolo’s infamous Camp 5 and his personal house at Oporoza.

During the said military operation, it was alleged that innocent women and children were reportedly killed. Indeed, the military was said to have been provoked into taking the action because some of their personnel were allegedly attacked by the militants.

Thereafter, at the instance of the late President Yar’Adua, his then Vice President, Goodluck Jonathan visited the Gbaramatu kingdom for successful peace talk with Tompolo and his fellow travelers. Definitely, the 2009 visit to Gbaramatu was highly instrumental to ending Niger Delta violence under the late President Umaru Yar’Adua; an event that will be too difficult to discard in the documentation of the history of Niger Delta.

Specifically, the recent joint visit of Governor Okowa and former President Goodluck Jonathan to Gbaramatu in search of peace signals a personal commitment of these leaders that are indigenes of Niger Delta. That these men have spoken openly on an issue of national concern implicitly acknowledging that peace in the Niger Delta is a necessity, deserves commendation. The primacy of the visit by the duo of Governor Okowa and former President Goodluck Jonathan to Gbaramatu is that it has the potential of accomplishing success like the 2009 visit to Gbaramatu by former Delta State Governor, Dr Emmanuel Uduaghan and the same Goodluck Jonathan.

While it is unrealistic to assume that the mere presence of Okowa and Goodluck Jonathan will magically bring about cessation of violence in Niger Delta without necessary corresponding actions by major parties in the crisis, nevertheless, the simple fact herein is that what Governor Okowa has resurrected at Gbaramatu will provide opportunity for some behind-the-scenes work that is certain to offer a more holistic approach to resolving the Niger Delta crisis. Such a vital peace initiative should not be allowed to crash on the basis of Government’s usual attitude of Talk only, No action, NATO or swallowed by unnecessary political cynicism, and bitterness.

Consequently, now that Governor Okowa has provided a decent chance for what appears to be a short but effective road to peace, this diplomacy should not be thrown to the dustbin of history. The government of President Buhari must take on this positive momentum because if genuine actions for peace are swiftly pursued including quashing cases in court against some militants like Tompolo, then Yar’adua’s success on quelling militancy in Niger Delta may repeat itself.

Certainly, there would be deep misgivings about the wisdom of this recommendation but the naked fact and unpretentious ugly reality is that Tompolo and company are significant interest group in this Niger Delta issue. Any denial of this should best be regarded as an assault to the sensibilities of any credible analyst.

Be that as it may, the fact is that with present circumstances in Niger Delta, the capturing of Tompolo by the gallant men of Nigeria’s military on the basis of suspicion for alleged connection with militancy may just take a little time but will that ever suggest lasting peace in Niger Delta? Even the pursuit of seeming justice for the incarceration of Tompolo on issues related to alleged corruption is very unwise especially given that the entire momentary value in question is less than what is lost by the Nigerian government to violence in just a day in the Niger Delta crisis. Without quality reason and diplomacy, such actions of government may introduce a fresh set of complications.

Fortunately, many analysts have already stated that such a judicial pursuit though apt is certainly deficient in common sense and the cost of sustaining military presence in the region is huge waste for a country in recession. This is even twisty for the people of Niger Delta that controversially lay ceaseless claim that they deserve 50 percent of resource control from oil production in their region against the existing 13% offered by the Nigerian Government. This is why this writer believes that those that have the ears of President Buhari must not be petty minded on their nature of advice relating to this sad issue that has grossly affected the Nigerian economy put millions of Nigeria in hunger and angry. Firmly put, if the government ever agrees to embrace the wisdom of genuine especially for a soft landing for the assumed new militants and enhancement of the Paul Boroh led

Amnesty, Rehabilitation and Reintegration Initiative of President Buhari, then failure of these new militants to adhere to peace will be a self-inflicted tragedy that would not only ruin them but will make them miss a last viable opportunity to access a likely new form of Amnesty which the focused Okowa’s initiative might negotiate for them.

All said, Governor Okowa in his capacity as the Leader of an area that accounts for about sixty percent of this new militancy must further his peace initiative to actually demonstrate that he is both good at talking peace and walking the walk. On the other side, both the government and militants must see this Governor Okowa’s diplomacy as the best hope for the salvation of the Niger Delta and Nigeria’s economic concerns, thus encourage and embrace it.

Dr Ephraim Okwuosa, a concerned citizen from Niger Delta and Co-ordinator, Anti-Corruption Advocates, writes from Area 11, Garki, Abuja.

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Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Feature/OPED

From Convenience to Culture: How Streaming Will Shape Entertainment in Nigeria in 2026

Published

2 days ago

16/01/2026

Business Post Contributor

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:

Deep content libraries that go beyond a handful of popular shows
A healthy mix of live TV, sports and on-demand entertainment
Regular content refreshes that keep audiences engaged month after month
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:

More intuitive recommendations tailored to individual tastes
Smarter content discovery that reduces the time spent searching
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:

Flexible pricing
Bundled services that combine TV and streaming
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.

Feature/OPED

How Compliance through Technology among Banks can Promote Intra-Africa Trade

Published

2 days ago

16/01/2026

Business Post Contributor

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)

Feature/OPED

The Missing Pieces in Nigeria’s Banking Recapitalisation

Published

3 days ago

14/01/2026

Business Post Contributor

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]