Business
Nigerian Content: ‘FG’s 70% Target By 2010, Impossible’
Nelson Chukwudi
More than a decade after the Federal Government began the process to ensure that the strategic oil and gas industry achieves 70 per cent Nigerian content in all aspects of its operations by 2010, the major beneficiaries of the policy have said the set target is absolutely not feasible.
President of Petroleum Technology Association of Nigeria (PETAN), Engr. Shawley Coker, told The Tide in an exclusive interview last Tuesday, that the “Federal Government’s target of 70 per cent Nigerian content in the oil and gas business by 2010 is absolutely impossible to achieve”.
However, the leading oil and gas exploration and production companies led by Shell and the Nigerian National Petroleum Corporation (NNPC), represented by the National Petroleum Investment Management Services (NAPIMS), had Monday, assured they would do everything to comply with the federal government directives on Nigerian content development and the achievement of the 70 per cent target by 2010.
With membership of more than 40, PETAN is the umbrella body of leading indigenous technical oilfield service companies in the upstream and downstream sectors of the oil and gas industry, whose vision is the domestication of petroleum technology in Nigeria, and an arm of the very influential Oil Producers Trade Section (OPTS) of the Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NCCIMA).
Coker spoke in the backdrop of the first-ever Nigerian Content Development Day/Exhibition, hosted by Shell Petroleum Development Company of Nigeria in Port Harcourt, last Monday, which he described as a very significant milestone in the effort to facilitate the development of Nigerian content in the oil and gas business.
The PETAN president praised the doggedness and resilience of most indigenous entrepreneurs in the oil and gas sector, who he said, “are doing their best to make an impact in the industry, even as they face the turbulent and gloomy business climate in the country,” stressing that most of the indigenous service companies were only struggling to remain in business because the conditions in the country have failed to encourage local investors in the industry.
According to him, “the federal government is making mockery of the whole idea of Nigerian content. Why are they always in a hurry to set targets they know are not feasible? For the policy to achieve its goals, the government has to create the enabling environment for local industries to thrive. Until they muster the political will to take actions in the interest of the ordinary Nigerian, the 70 per cent Nigerian content target will remain a mirage.”
Coker noted that “the overall NCD goal is good and well-intentioned,” but insisted that the conditions on the ground, accentuated by “official corruption and lack of political will”, have made the government’s policy on NCD a mere mockery of Nigerian people’s desires for speedy industrialisation and economic development.
The PET AN boss regretted that most economic policies of the government were articulated and formulated by officials, whose innate interests are to frustrate emerging local entrepreneurs, bolster their political and economic influence, thereby stagnating the growth of majority of indigenous businesses.
He drew attention to the worrisome state of the steel and the wobbling manufacturing sectors, the epileptic power supply situation, which has inflicted huge losses on investors, the comatose and sorry state of infrastructures, particularly roads, and a litany of legislation working against the growth of the economy, as areas the government has failed to address, adding that except all the enabling structures are put in place, sound policy frameworks were bound to fail.
The industrialist, who has huge investments in the upstream and downstream sectors of the oil and gas industry in Nigeria, regretted that “most Nigerian investors in the oil and
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.
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