Finance
Expected benefit of Sanusi bank reform
By Omoh Gabriel
Sanusi Lamido Sanusi, Governor of CBN at the 1st Distinguished Lecture of the Sylvester Monye Foundation at Asaba on Friday titled Consolidating the gains of the banking sector reforms out lined the expected benefits the nation stand to derive from the ongoing banking sector reform. He also stated the challenges facing the economy that the federal government through its fiscal policy must address to compliment the CBN reform if the benefits would be realised. He said at the end of the reform the nation will see “a strong corporate governance in banks” which at the moment is lacking. It was the lack of corporate governance that plunge the nation into the current financial crisis which became very visible in the crave situation that the ten rescued banks were in before the apex bank intervention. He further said that “effective competition in the Industry” will benefit the economy as the banks that will emerge from the reforms will be stronger than before to deliver quality services to the banking public. The banks at the end of the reform are “expected to deliver to the Nigerian economy an efficient financial intermediation” through more access to loans and advances by both large, small and medium enterprises unlike the situation now where only strong corporate bodies are able to access loans from banks. He stated that Nigerians will benefit from the ongoing banking reforms through the “provision of diverse financial products” by the various banks to cater for segmented markets in the country.According to him when the reform would have run its full course the economy will witness “improved financial flow to real sector” as against what obtains now where banks shy away from lending to agriculture, manufacturing and mining and when they do at very high and unsustainable interest rate. He also said that “strong and sustained customer confidence in the system” will return to the sector when the reforms are completed.
However, Sanusi was quick to add that “economic growth has been robust”, but that “major challenges remained” to be resolved for the economy to deliver the dividend of democracy to the Nigerian people. He named such challenges as “generation of employment opportunities, the weak link between the major growth drivers, particularly agriculture and the manufacturing sector, hence, the manufacturing sector remains an insignificant contributor to growth”.
He said that there was the urgent need to address what he termed the “FIVE binding constraints”
which are “physical infrastructure constraints namely electricity and transport for which he said there the need to deepen the deregulation process to attract private investors”. He also stressed the need to “review allocation of responsibility for infrastructure development among different levels of government and that “regulatory interventions was required to develop all sectors of credit market, from micro-finance to larger corporations”.
Continuing Sanusi said that it has become expedient for monetary authorities in the country to ensure the “acceleration of credit market reform such as dispute resolution mechanism, credit bureau regulation and leasing laws” to foster credit delivery in the economy. Other challenges he said should be addressed to unleash the economic drivers in the country include; “development of the public-private partnership framework, legal framework for rental markets; reducing the high lending interest rate stating that efforts in all these areas are being fast tracked”.
The CBN governor also spoke of the need to have an investment friendly environment in place through the simplification of the “approval process for new business development, capacity building in various areas of the economy; provision of adequate security for lives and property and tackling the issue of corruption”.
Continuing he said in order to bridge the “existence of skill gap” in the country there is the need for the government to begin the process of “prioritizing technical and vocation education training; equipping enterprise and industrial clusters to develop capacities, replacement of import bans with tariffs deepening the ports reforms; growing banking system liquidity is still desirable”.
According to Sanusi “Fiscal stimulus remains critical to support CBN actions to fast-tracking recovery process and there is urgent need to inject fresh funds into the banks affected by regulatory actions, Ring-fencing/removal of ‘toxic assets’ and the establishing of asset management company (“AMC”) stressing that the CBN realizing the limitation of monetary policy has said that there is need to strike an appropriate balance between monetary and other policies as there is a limit to what monetary policy can do to deliver economic growth He stated that there is need for complementary reforms in other areas of the economy as other complimentary policies must be in place.
He said “It must be stressed that in as much as the CBN is committed to rapid economic development of the country by ensuring the existence of a sound financial it is obvious that no much can be achieved without a conducive business environment. To this end provision of adequate infrastructure remains key”.
Sanusi, in response to questions said the apex bank will defend itself on allegations against the rescued banks, as the issues about their failure are facts.
He said that the problems of the eight banks, whose management teams were sacked in 2009 for unethical practices were grave. He indicted the Central Bank of Nigeria (CBN) and Nigerian Stock Exchange (NSE) for failing in their regulatory roles. He said that the present CBN management was prepared to testify in the cases against the banks in any court, adding, “we have enough facts on their activities”.
Recalling the banks‚Äô irregular activities, Sanusi said that Afribank, in its last public offer to re-capitalise, “actually genuinely raised only 12 per cent of the funds while 88 per cent represented its re-circled funds”.
“It is in this country that Intercontinental Bank gave out N40 billion as loan to somebody from Delta, who used the state government‚Äôs shares in a company as collateral.” he said.
The apex bank‚Äôs boss said that he foresaw the rot in the banking sector but was dubbed “John the Baptist, who was crying in the wilderness‚Äù.
His said, “As a manager in a bank, I raised alarm over the rot in the system and imminent collapse of the banking sector, but I was called John the Baptist, who was crying in the wilderness for nothing.
“They called me a prophet of doom and even doubted my mental stability as I was the only person, who was seeing something wrong in the system whereas the banks were doing well.”
He said events in the sector had vindicated his prompting and called on all Nigerians, especially investors, to keep faith with the financial industry and support the revamping of the economy.
Finance
Afreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
African Export-Import Bank said it has successfully closed its second Samurai bond transaction, securing a total of JPY 81.8 billion (approx. USD 527 million) through Regular and Retail Samurai Bonds offerings.
The execution surpasses the Bank’s 2024 debut issuance size, attracting orders from more than 100 institutional and retail investors, marking a renewed demonstration of strong Japanese investor confidence in the Bank’s credit and its growing presence in the yen capital markets.
On 18 November, Afreximbank priced a JPY 45.8 billion 3-year tranche in the Regular Samurai market following a comprehensive sequence of investor engagement activities leveraging Tokyo International Conference on African Development (TICAD9), including Non-Deal Roadshows (NDRs) in Tokyo, Kanazawa, Kyoto, Shiga and Osaka, a Global Investor Call, and a two-day soft-sounding process which tested investor appetite across 2.5-, 3-, 5-, 7-, and 10-year maturities.
With market expectations of a Bank of Japan interest rate increase, investor demand concentrated in shorter tenors, resulting in a focused 3-year tranche during official marketing.
The tranche attracted strong participation from asset managers (22.3%), life insurers (15.3%), regional corporates, and high-net-worth investors (39.7%).
Concurrently, Afreximbank priced its second Retail Samurai bond on 18 November, a JPY 36.0 billion 3-year tranche, more than double the inaugural JPY 14.1 billion Retail Samurai issuance completed in November 2024.
The 2025 Retail Samurai bond also marks the first Retail Samurai bond issued in Japan in 2025.
Following the amendment to Afreximbank’s shelf registration on 7 November 2025, SMBC Nikko conducted an extensive seven-business-day demand survey through its nationwide branch network, followed by a six-business-day bond offering period.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the Bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce Multinational Development Bank’s mandate in Africa and its credit profile to key Japanese institutional investors.
MBC Nikko Securities Inc. acted as Sole Lead Manager and Bookrunner for both the Regular and Retail Samurai transactions. Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury & Markets and Group Treasurer, commented:
“We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors.
The strong demand, both in the Regular and Retail offerings, demonstrates sustained confidence in Afreximbank’s credit and mandate.
We remain committed to deepening our engagement in the Samurai market through regular investor activities and continued collaboration with our Japanese partners.”
Ecobank Nigeria, a member of Africa’s leading pan-African banking group, has announced the launch of the Ecobank SME Bazaar—a two-weekend festive marketplace designed to celebrate local creativity, empower entrepreneurs, and give Lagos residents a premium shopping experience this Detty December. The Bazaar will hold on 29–30 November and 6–7 December at the Ecobank Pan African Centre (EPAC), Ozumba Mbadiwe Road, Victoria Island, Lagos. Speaking ahead of the event, Omoboye Odu, Head of SMEs, Ecobank Nigeria, reaffirmed the bank’s commitment to supporting small and medium-sized businesses, describing them as the heartbeat of Nigeria’s economy. She explained that the Ecobank SME Bazaar was created to enhance visibility for entrepreneurs, expand market access, and support sustainable business growth.
According to her, “This isn’t just a market—it’s a vibrant hub of culture, commerce, and connection. From fresh farm produce to trendy fashion, handcrafted pieces, lifestyle products, and delicious food and drinks, the Ecobank SME Bazaar promises an unforgettable experience for both shoppers and participating SMEs. Whether you’re shopping for festive gifts, hunting for unique finds, or soaking in the Detty December energy, this is the place to be.” Ms. Odu added that participating businesses will enjoy increased brand exposure, deeper customer engagement, and meaningful networking opportunities—making the Bazaar a strong platform for both festive-season sales and long-term business growth. The event is powered by Ecobank in partnership with TKD Farms, Eko Marche, Leyyow, and other SME-focused organisations committed to building sustainable enterprises.
The Central Bank of Nigeria (CBN) has said that16 banks have so far met the new capital requirements for their various licences, some four months before the March 31, 2026 deadline. The apex bank also indicated that 27 other banks have raised capital through various methods in one of the most extensive financial sector reforms since 2004. Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Mr Olayemi Cardoso said the banking recapitalisation was going on orderly, consistent with the regulator’s expectations. He said, “We are monitoring developments, and indications show the process is moving in the right direction.” Nigeria has 44 deposit-taking banks, including seven commercial banks with international authorisation, 15 with national authorisation, four with regional authorisation, four non-interest banks, six merchant banks, seven financial holding companies and one representative office.
Cardoso explained that eight commercial banks had met the N500 billion capital requirement as of July 22, 2024, rising to 14 by September of the same year. The number has now increased to 16 as the industry continues to race toward full compliance. He said that the reforms would reinforce the resilience of Nigerian banks both within the country and across the continent. “We are building a financial system that will be fit for purpose for the years ahead. Many Nigerian banks now operate across Africa and have been innovative across different markets. These new buffers will better equip them to manage risks in the multiple jurisdictions where they operate,” Cardoso said. According to him, the reforms would strengthen the financial sector’s capability to support households and businesses. He said, “Ultimately, this benefits Nigerians—our traders, our businesses and our citizens—who operate across those regions. “It should give everyone comfort to know that Nigerian banks with deep local understanding are present to support them. Commercial banks are also creating their own buffers through the ongoing recapitalisation.”
He added that the apex bank considered several factors in determining the new capital thresholds, including prevailing macroeconomic conditions, stress test results and the need for stronger risk buffers. He reassured on the regulator’s commitment to strict oversight as the consolidation progresses. “We will rigorously enforce our ‘fit and proper’ criteria for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso said. He said the CBN remained confident that the banking system would emerge stronger at the conclusion of the recapitalization exercise, with institutions better prepared to support Nigeria’s economic transformation Banks have up till March 31, 2026 to beef up their minimum capital base to the new standard set by the apex bank. Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.
While most banks have shareholders’ funds in excess of the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition. The CBN had in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion. Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. Under the guidelines for the recapitalisation exercise, banks are expected to subject their new equity funds to capital verification before the clearance of the allotment proposal and release of the funds to the bank for onwards completion of the offer process and addition of the new capital to its capital base. The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC). The committee is saddled with scrutinising new funds being raised by banks under the ongoing banking sector recapitalisation exercise.
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