Business
NIPC Strategises To Boost Investment, Economy
The Nigerian Investment
Promotion Commission (NIPC) says it will deepen the existing investment and inject fresh capital into the economy through its newly inaugurated committees.
The commission’s Executive Secretary, Mrs Uju Baba, disclosed this in Abuja at the inauguration of the technical committees on Doing Business and Competitiveness and Investors After-Care.
Baba, represented by Mr James Ebuatse, Director, Department of National Competitiveness and Policy Advocacy, said the committees would come up with strategies to ensure that recommendations advanced were adopted by government.
She said the committees were composed of heads of Ministries, Departments and Agencies (MDAs) of the Federal Government whose mandates were directly related to regulating the act of doing business in the country.
Baba said the objectives of the committees on Doing Business and Competitiveness were to review the causes for unimpressive ratings of the economy by various global rating agencies which had affected investors’ confidence.
“Others are to take an in-depth review of global reports in the context of the mandate of your various MDAs coupled with the comments from investors and organised private sector.
“Then, recommend improvement on existing policies and legislation that govern the act of doing business in Nigeria,’’ Baba said.
According to her, the committee on investors care is a problem solving organ constituted to appraise complaints from investors operating in the country.
The executive secretary added that it would also proffer interventions by government for the purpose of ameliorating the day to day challenges faced by investors.
Baba lamented that with the abundance of potential possessed by the country, it should attract more fresh capital than it currently did.
“According to the United Nations Conference on Trade and Development (UNCTAD), the economy attracts an annual average of six billion dollars foreign direct investment.
“Whereas the economy agenda demands an annual minimum private capital inflow of about 13 billion dollars,’’ she stressed.
The Chairman of the Committee on Investors After-care, Mr Amos Sekaba, said it would ensure that the six billion dollars foreign direct investment would be doubled.
Sekaba said existing investors would be supported to encourage new investors in the country.
“We will ensure that challenges faced by investors are properly addressed because our economic development plan is hinged on private sector development,’’ he said.
Also, Mr Craig Giesze, Senior Operations Officer, Trade and Competitiveness Global Practice, said countries that had improved significantly in their investment climate had committees such as the ones inaugurated by the NIPC.
Giesze said inauguration of the committees was the right step, adding that it was a process, and changes would not happen overnight.
He lauded the country for its regulation which ensured that a company could be established within 24 hours.
“Right now in Nigeria, a company can be established within 24 hours, which is progress,’’ Giesze said.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
