A Constrained Budget Compels a More Ingenious Financing Option for Nigeria’s Infrastructure Development Securitization
Introduction Nigeria’s infrastructure, currently valued at about 35% of the nation’s Gross Domestic Product (GDP) is widely regarded as dilapidated and inadequate. By comparison, larger and more developed economies typically have an infrastructure base sitting closer to about 70% of their GDP. This represents a huge funding deficit for Africa’s largest country in capital projects […]
From Culture to Crisis: Documentation Gaps and Financial Stability
In today’s fast-evolving financial ecosystem, credit risk remains one of the most significant concerns for banks and financial institutions globally. In Nigeria, the issue is particularly critical given the high levels of Non-Performing Loans (NPLs) and the regulatory push towards recapitalisation. Credit risk, simply put, refers to the potential that a borrower may fail to […]
Does The CBN Override the FCCPC In Protecting Consumers of Financial Products and Services?
INTRODUCTION Nigeria’s National Assembly has been busy. In the last 3 years, it has mustered the collective will to update crucial legislation, aligning it with international best practice. The Companies and Allied Matters Act (CAMA), 2020, Federal Competition and Consumer Protection Act (FCCPA), 2018; and the Banks and Other Financial Institutions (BOFIA) Act, 2020 are […]
Digital Lending and Abuse of Borrower’s Rights: Multifarious and Chaotic Regulations
INTRODUCTION Nigeria’s FinTech industry has grown phenomenally over the last decade. Financial products formerly thought to be the preserve of the few, are now accessible by many with relative ease. Personal loans, asset finance, and more have become attainable with a few well considered digital clicks. These financial products boast attractive features like short disbursement […]
Debt Service Crises: Sukuk Bond, A Potential Panacea
Debt ServiceDebt servicing means making payments to satisfy a debt obligation, including principal, interest, and applicable late payment fees. Countries with solid financial positions will want a low ratio of debt service payments, relative to revenue. The ideal debt service ratio is somewhere between 0 and 20%. This typically indicates available cash flow to pay […]
Credit Risk Mitigation: The Capital Game Nigerian Banks Must Master
Banking, at its core, is a business of trust. A bank opens its doors each morning with one simple promise: to lend money and get it back. That promise, however, is anything but simple. Every loan issued is a bet on the future, a wager that the borrower will repay, the economy will hold steady, […]
The Post-Compliance Playbook: Strategy, Scrutiny, And Survival For Nigerian Banks
Introduction As Nigerian banks approach the March 2026 deadline for meeting the Central Bank of Nigeria’s (CBN) new minimum capital requirements, recapitalization has become both urgent and strategic. With higher thresholds and limited recognition of traditional reserves as eligible capital, banks must adopt forward-looking strategies to meet these standards while safeguarding market confidence and operational […]
Reverse Factoring: A Lifeline for Liquidity in Emerging Markets
Introduction In many emerging markets, businesses face a familiar struggle: cash is always tight. Small and medium-sized enterprises (SMEs), which form the backbone of these economies, often find themselves caught between customers who delay payments and banks that offer only expensive credit lines. For a distributor in Nigeria, for example, this might mean waiting sixty […]
Understanding The Recent Monetary Policy Committee (MPC) Decision
Introduction On July 21 & 22, 2025, the Central Bank of Nigeria (CBN), through its Monetary Policy Committee (MPC), held its 301st meeting to deliberate on Nigeria’s macroeconomic conditions and financial stability. After a thorough review of domestic and global economic indicators, the Committee resolved to maintain the status quo on all key monetary policy […]
Navigating the Capital Ladder: Choosing the Right Investment Partner from Idea to IPO
Introduction Raising capital is often perceived as one of the most daunting yet pivotal aspects of building and scaling a startup. From the earliest spark of an idea to the resounding ring of the bell at a stock exchange, each stage of growth brings unique funding requirements and, more importantly, distinct types of investors. The […]