Broadcasting
How Policy Missteps Weigh Down Nigeria’s Fragile Banking Giants

By Blaise Udunze
Nigeria’s banking sector has always stood at the center of the nation’s economic hopes. Yet, instead of fueling growth and wealth creation, the sector finds itself trapped in a cycle of fragility, weighed down by policies that appear more punitive than progressive. At the heart of this malaise is the Central Bank of Nigeria’s (CBN) reliance on blunt instruments such as the Cash Reserve Requirement (CRR), a policy tool that has tied down bank capital in idle vaults rather than channeling it into the real sector economy.

The logic of the CBN is clear enough, which is to mop up liquidity to curb inflation. But the consequences are undeniable. When banks are compelled to warehouse huge reserves that could otherwise be deployed into productive ventures, the real sector, especially small and medium-scale enterprises (SMEs), suffers. These are the very businesses that create jobs, drive innovation, and power inclusive growth. Instead, they are starved of credit because funds remain sterilized at the apex bank in the name of macroeconomic stability.
In times of economic turbulence, inflation control is often the rallying cry of central bankers. In Nigeria, that battle has become an almost singular obsession of the CBN. The preferred weapon? The blunt tightening of monetary policy, raising interest rates and locking away massive portions of banks’ deposits under the CRR. While this might look decisive on paper, in practice it creates collateral damage, leaving banks unable to finance the very sectors that drive jobs, innovation, and long-term growth, most critically, SMEs and entrepreneurs.
The reality is simple, all in the name of fighting inflation, it should not mean strangling credit creation. There are smarter, targeted tools available, and many countries have deployed them with success. Around the world, regulators employ a mix of interest rate adjustments, open market operations, and forward guidance to curb inflation without choking off credit to the real economy. Nigeria must learn from these models and adapt them to its peculiar circumstances.
To tame inflation without choking growth, the CBN could pivot to more sophisticated instruments. Selective credit windows can guarantee lending to SMEs, agriculture, and manufacturing, even under tighter conditions. Differentiated reserve requirements can reward banks’ lending to productive sectors while penalizing speculative lending. Granular open market operations can absorb excess liquidity without suffocating the economy. Macroprudential tools can target bubbles in consumer lending or real estate speculation instead of blanket credit strangulation. And crucially, there must be fiscal-monetary coordination, because inflation driven by food insecurity, energy costs, and government overspending cannot be solved by monetary tightening alone.
Yet Nigeria’s banking fragility cannot be laid at the feet of monetary policy alone. The system’s weaknesses are also rooted in weak governance structures, insider abuses, poor risk management, and an idle treasury management culture. Corporate governance in many banks is treated as a box-ticking exercise rather than a framework for accountability. Boards often lack independence, while regulatory oversight is reactive instead of preventive. This creates fertile ground for insider abuse as directors and their cronies secure loans and contracts without due process or repayment discipline.
The evidence is stark. For eight of the country’s largest Deposit Money Banks (DMBs), total non-performing loans (NPLs) doubled in just one year from about N1.29 trillion in 2023 to N2.59 trillion in 2024. Their average NPL ratio climbed from 3.82 percent in 2023 to 4.99 percent in 2024. Across the industry, the CBN reported an NPL ratio of around 4.5 percent by the end of 2024, only for it to spike to 5.62 percent by April 2025, above the regulatory ceiling of 5 percent. Much of this surge reflects reclassified loans after stricter risk assessments, but it underlines a disturbing trend, showing that fragility is deepening, not abating.
For instance, a customer of the defunct Heritage Bank that was recently liquidated by President Bola Tinubu’s administration, who happened to be the publisher of one of the daily newspapers, was heavily indebted to the bank to the tune of several billions. Following his death during the COVID era, the newspaper outfit struggled to meet its obligations until the eventual shutdown of the bank. Among many cases, this episode shows how a single borrower’s collapse can trigger wider institutional vulnerabilities, worsening the sector’s fragility.
If just one of these economic heavyweights were to collapse, the domino effect could topple multiple banks at once. This is not the hallmark of a robust financial system; it is the mark of fragility. Equally troubling is the poor risk management culture. Credit assessments are often weak, operational risks underestimated, and stress testing neglected until crisis hits. To this is added an idle treasury management culture where banks prefer to park funds in low-yield assets or leave them sterilized under regulatory compulsion instead of channeling them into productive ventures. In a country battling unemployment, weak industrial growth, and inflation, idle treasuries are nothing short of economic sabotage.
One of the starkest contradictions in Nigeria’s economic management lies in the government’s heavy borrowing from the very banking system that the CBN seeks to discipline in the name of fighting inflation. On the one hand, the CBN raises CRR levels and applies other restrictive measures, effectively locking away banking capital to limit credit expansion. On the other, the federal government consistently turns to the same banks to finance its deficit through bonds, Treasury bills, and the now-controversial Ways & Means facility.
The scale of this borrowing is staggering. A Premium Times investigation revealed that CBN advances to the federal government surged by about 2,900 percent in just seven years, peaking at N23.8 trillion, spanning Ways & Means and other credit lines. In one stretch, the government borrowed an additional N3.8 trillion in only six months through the Ways & Means window. Although the CBN has recently reduced such lending by 59 percent in a bid to enforce monetary discipline, the damage to credibility is already done.
Legal borrowing caps, which tie government advances to revenue, have been repeatedly breached with little consequence. To ease pressure, the government has resorted to securitizing parts of this debt, most notably converting the N23.7 trillion Ways & Means facility into longer-term instruments. While this may buy time, it does not erase the contradiction that the CBN sterilizes liquidity with one hand, only for the federal government to pump it back into circulation with the other.
This practice has two damaging consequences. First, it inflates the money supply by redirecting liquidity back into circulation through government borrowing, negating the CBN’s inflation-control measures. Second, it crowds out private sector borrowers, especially SMEs, who are already starved of affordable credit. The result is a distorted system where banks prefer risk-free lending to the government over financing the real economy.
Such policy misalignment undermines trust in the financial system. Stakeholders see a regulator trying to sterilize liquidity while the government injects it back, a tug-of-war that signals confusion rather than coherence. The broader implication is that Nigeria’s inflationary pressures are not merely monetary but structural, requiring coordination between fiscal and monetary authorities. Without such alignment, the fight against inflation becomes self-defeating, eroding confidence in the apex bank’s credibility and deepening economic fragility.
The way forward is not to keep banks in chains but to align policy with growth. Free up productive capital. Enforce strict sanctions on insider abusers and delinquent big borrowers. Strengthen governance and risk management frameworks. And above all, embrace smarter, more dynamic monetary tools that fight inflation without suffocating the economy. Nigeria cannot grow if its banking system remains fragile. And the banking system cannot thrive if the very policies meant to strengthen it are the ones cutting off its oxygen supply.
Blaise, a journalist and PR professional writes from Lagos, can be reached via: [email protected]
Broadcasting
Dr. Cairo Ojougboh Foundation Bolsters Nigeria’s Education Drive with ₦2.7m Student Support

Dr. Cairo Ojougboh Foundation has reinforced government’s educational development efforts in Nigeria through a targeted initiative honouring the late medical doctor and House of Representatives member, Dr. Cairo Ojougboh.

L-R: Son of the late Dr, Cairo Ojougboh, Mr. Nkem Ojougboh; Chairperson, Dr. Cairo Ojougboh Foundation, Mrs. Bose Ojougboh and another son, Mr. Orieka Ojougboh, during the event in Agbor, Delta State recently.
The foundation recently hosted a programme themed “Your Future, Your Choice” at St. Columba’s Grammar School in Agbor, headquarters of Ika South Local Government Area, Delta State.
It presented a cheque of ₦2,700,000 to cover examination fees for students preparing for West African Examinations Council (WAEC), National Examinations Council (NECO), and Junior Secondary School (JSS) 3 exams.
Academic excellence received further boosts with cash rewards for top students across the school’s nine academic arms, alongside distributions of notebooks and writing materials to enhance learning.
Chairperson Mrs. Bose Ojougboh, joined by her sons Mr. Nkem and Mr. Orieka Ojougboh, urged students to view challenges as stepping stones, embrace discipline, consistency, and focus, and make intentional choices shaping their futures.
“The school that moulded Dr. Cairo’s values deserves our support,” she said, highlighting the foundation’s commitment to inspiring hard work and personal growth.
Old Boys of St. Columba’s Grammar School, led by Elder Ndudi Agholor, attended in force, sharing nostalgic reflections and praising the school’s sustained high standards under current leadership.
School Principal Rev. Fr. Joseph Ugboh and Ika South LGA Chairman Engr. Jerry Ehiwarior lauded the initiative as “commendable and impactful,” calling for its continuation to preserve Dr. Ojougboh’s legacy of discipline, excellence, and service.
They noted the support had motivated students to pursue their goals with renewed determination, ending the event on a hopeful note.
Broadcasting
New Horizons Nigeria Breaks Ground: First to Fuse Mandarin into ICT Curriculum

In a landmark educational innovation, New Horizons Nigeria has become the first institution to integrate the Chinese (Mandarin) language into its ICT curricular as an elective, thereby positioning Nigerian students for relevance in the rapidly changing world order.

Mr. Tim Akano, Managing Director and CEO of New Horizons Systems Solutions Limited
New Horizons Nigeria is a leading ICT training and solutions provider committed to provide individuals and institutions with future-ready skills. Through innovative program, global partnerships, and strategic foresight, the organization continues to redefine education, workforce development, and global competitiveness.
With over 80% of global consumer products manufactured in China and China’s growing dominance in global supply chains and labour markets, New Horizons Nigeria recognizes the urgent need for the current generation to understand, speak, and engage with the Chinese language and culture. As global economic power dynamics evolve, the labour market is increasingly tilting towards China, making Mandarin proficiency a critical competitive advantage.
According to Mr. Tim Akano, Managing Director and CEO of New Horizons Systems Solutions Limited, Nigeria, the program represents far more than a language course.
He asserted that very soon, the global labour market is likely to increasingly reflect China’s influence rather than the predominantly western orientation it currently exhibits. Language will be a major differentiator and the first Chinese-speaking technology experts in Nigeria will have a significant advantage, especially in integration into Chinese companies operating locally and globally.
Therefore, New Horizons Nigeria has officially launched a Mandarin Scholarship Program with China Advancement Opportunity, selecting 100 outstanding students from five prominent Nigerian secondary schools. This initiative marks a major milestone in Nigeria–China educational cooperation and reflects a forward-thinking response to shifting global economic realities.
Furthermore, the scholarship program has commenced with an intensive three-month online Mandarin training and at the end of the program, the top-performing students will be selected strictly on merit. 20 outstanding students will receive an additional scholarship valued at $2,500 per students to participate in a one-year pre-degree Mandarin and cultural immersion program in China. From this group, the best candidates will progress to fully funded admission scholarships into top universities in China. This initiative is designed not only to build language proficiency but also to enhance global competence, international exposure, and cultural intelligence among Nigerian students.
Also, to maintain international academic standards, participating schools are required to comply with strict guidelines. They will be obligated to join the online classes ten minutes earlier, they must have a minimum of 85% attendance throughout the program, and must ensure they have a stable internet connectivity, reliable power supply and a conducive learning environment.
Therefore, School owners and administrators have been formally congratulated and strongly encouraged to nominate their most disciplined, and committed students, as advancement to the China program will be strictly merit-based.
However, apart from students, internation business men are equally encouraged to attend New Horizon’s Mandarin executive lessons which will equip them with basic Chinese language to enhance their business communications.
Additionally, while the pilot phase begins with selected secondary schools which includes Startrite School, Lightway School, British Nigerian Academy School, Honeyland Schools and Great Heights School, the Mandarin program will be available as an elective ICT course at all New Horizons retail centers.
This is done to extend access to students and learners beyond its partner schools and within one year, committed learners will be able to communicate effectively in Mandarin, which will open doors to global employment, trade, and cultural exchange.
In conclusion, a Mandarin Cultural Fiesta will be hosted, bringing together educators, students, institutional partners, and distinguished guests from China and Nigeria. The event will celebrate outstanding performance, cross-cultural exchange, and the strengthening of bilateral educational ties.
For enquiries and participation details, interested individuals are encouraged to contact New Horizons Nigeria via 08125541750
Broadcasting
Why the Future of PR Depends on Healthier Client–Agency Partnerships

By Moliehi Molekoa, Managing Director of Magna Carta Reputation Management Consultants and PRISA Board Member
The start of a new year often brings optimism, new strategies, and renewed ambition. However, for the public relations and reputation management industry, the past year ended not only with optimism but also with hard-earned clarity.

Moliehi Molekoa
2025 was more than a challenging year. It was a reckoning and a stress test for operating models, procurement practices, and, most importantly, the foundation of client–agency partnerships. For the C-suite, this is not solely an agency issue.
The year revealed a more fundamental challenge: a partnership problem that, if left unaddressed, can easily erode the very reputations, trust, and resilience agencies are hired to protect. What has emerged is not disillusionment, but the need for a clearer understanding of where established ways of working no longer reflect the reality they are meant to support.
The uncomfortable truth we keep avoiding
Public relations agencies are businesses, not cost centres or expandable resources. They are not informal extensions of internal teams, lacking the protection, stability, or benefits those teams receive. They are businesses.
Yet, across markets, agencies are often expected to operate under conditions that would raise immediate concerns in any boardroom:
Unclear and constantly shifting scope
Short-term contracts paired with long-term expectations
Sixty-, ninety-, even 120-day payment terms
Procurement-led pricing pressure divorced from delivery realities
Pitch processes that consume months of senior talent time, often with no feedback, timelines, or accountability
If these conditions would concern you within your own organisation, they should also concern you regarding the partner responsible for your reputation.
Growth on paper, pressure in practice
On the surface, the industry appears healthy. Global market valuations continue to rise. Demand for reputation management, stakeholder engagement, crisis preparedness, and strategic counsel has never been higher.
However, beneath this top-line growth lies the uncomfortable reality: fewer than half of agencies expect meaningful profit growth, even as workloads increase and expectations rise.
This disconnect is significant. It indicates an industry being asked to deliver more across additional platforms, at greater speed, with deeper insight, and with higher risk exposure, all while absorbing increased commercial uncertainty.
For African agencies in particular, this pressure is intensified by factors such as volatile currencies, rising talent costs, fragile data infrastructure, and procurement models adopted from economies with fundamentally different conditions. This is not a complaint. It is reality.
This pressure is not one-sided. Many clients face constraints ranging from procurement mandates and short-term cost controls to internal capacity gaps, which increasingly shift responsibility outward. But pressure transfer is not the same as partnership, and left unmanaged, it creates long-term risk for both parties.
The pitching problem no one wants to own
Agencies are not anti-competition. Pitches sharpen thinking and drive excellence. What agencies increasingly challenge is how pitching is done.
Across markets, agencies participate in dozens of pitches each year, with success rates well below 20%. Senior leaders frequently invest unpaid hours, often with limited information, tight timelines, and evaluation criteria that prioritise cost over value.
And then, too often, dead silence, no feedback, no communication about delays, and a lack of decency in providing detailed feedback on the decision drivers.
In any other supplier relationship, this would not meet basic governance standards. In a profession built on intellectual capital, it suggests that expertise is undervalued.
This is also where independent pitch consultants become increasingly important and valuable if clients choose this route to help facilitate their pitch process. Their role in the process is not to advocate for agencies but to act as neutral custodians of fairness, realism, and governance. When used well, they help clients align ambition with timelines, scope, and budget, and ensure transparency and feedback that ultimately lead to better decision-making.
“More for less” is not a strategy
A particularly damaging expectation is the belief that agencies can sustainably deliver enterprise-level outcomes on limited budgets, often while dedicating nearly full-time senior resources. This is not efficiency. It is misalignment.
No executive would expect a business unit to thrive while under-resourced, overexposed, and cash-constrained. Yet agencies are often required to operate under these conditions while remaining accountable for outcomes that affect market confidence, stakeholder trust, and brand equity.
Here is a friendly reminder: reputation management is not a commodity. It is risk management.
It is value creation. It also requires investment that matches its significance.
A necessary reset
As leadership teams plan for growth, resilience, and relevance, there is both an opportunity and a responsibility to reset how agency partnerships are structured.
That reset looks like:
Contracts that balance flexibility and sustainability
Payment terms that reflect mutual dependency
Pitch processes that respect time, talent, and transparency for all parties
Scopes that align ambition with available budgets
Relationships based on professional parity rather than power imbalance
This reset also requires discipline on the agency side – clearer articulation of value, sharper scoping, and greater transparency about how senior expertise is deployed. Partnership is not protectionism; it is mutual accountability.
The Leadership Question That Matters
The question for the C-suite is quite simple:
If your agency mirrored your internal standards of governance, fairness, and accountability, would you still be comfortable with how the relationship is structured?
If the answer is no, then change is not only necessary but also strategic. Because strong brands are built on strong partnerships. Strong partnerships endure only when both sides are recognised, respected, and resourced as businesses in their own right.
The agencies that succeed and the brands that truly thrive will be those that recognise this early and act deliberately.
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