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
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.
Broadcasting
NITDA, NBC Explore Strategic Collaboration on Digital Transformation, Media Regulation

The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE, has reaffirmed the agency’s commitment to deepening inter-agency collaboration as he received the Director General of the National Broadcasting Commission (NBC), Mr Charles Ebuebu, on a courtesy visit aimed at exploring strategic partnerships in digital transformation and regulatory frameworks across Nigeria’s media and technology sectors.

Speaking during the meeting, Inuwa stated that digital transformation and regulation are inseparable in Nigeria’s rapidly evolving digital ecosystem. He also emphasised that digital transformation is not a one-off project but a continuous journey that requires constant improvement, periodic target-setting, and organisational adaptability to emerging realities.
According to the NITDA boss, the agency deliberately embarked on a transformational journey to reposition itself from a traditional civil service structure to a high-velocity, smart public sector organisation. He noted that when the agency began its transformation drive, a significant percentage of its workforce came from the mainstream civil service, bringing with it entrenched bureaucratic mindsets and rigid operational practices. This, he said, necessitated a conscious decision to change the narrative.
“More than 70 or 80% of our staff came from the mainstream public service, and we know the mindset of public servants, so we started changing that narrative by focusing on people, resetting mindsets, building capacity, and fostering a culture that supports innovation and accountability,” he noted.
Inuwa explained that NITDA’s approach to digital transformation was anchored on three core pillars: people, processes, and technology. He stressed that no matter how advanced technology may be, it cannot deliver value without the right people and efficient processes in place.
He further disclosed that the agency undertook a comprehensive cultural reorientation programme, supported by cultural audits and initiatives aimed at creating psychological safety within the organisation.
“This was critical to enabling staff at all levels to freely contribute ideas, challenge existing processes constructively, and engage in horizontal and vertical collaboration without fear of reprisal,” he stated.
He noted that culture remains the foundation upon which any successful strategy must stand, adding that “no matter how good a strategy is, without the right culture, execution will fail.”
Providing further insight into the transformation journey, he explained that NITDA adopted an integrated framework encompassing people, process, culture, content, and technology. Through this framework, the agency identified and addressed deeply rooted bureaucratic tendencies such as command-and-control structures, risk aversion, and excessive dependence on directives from senior leadership.
According to the DG, “these reforms paved the way for trust-based delegation, inter-departmental collaboration, and process optimisation”.
He further revealed that NITDA documented over 396 internal processes and subsequently streamlined them to eliminate inefficiencies and repetitive executive approvals. He cited examples where routine operational tasks that previously required multiple approvals at the Director General’s level were redesigned to empower departments as gatekeepers, allowing leadership to focus on strategic priorities.
This process optimisation, he said, also created the foundation for automation and the integration of digital tools.
On capacity building, the DG disclosed that all NITDA staff underwent mandatory artificial intelligence (AI) training, reinforcing the agency’s position that AI is a tool for enhancing productivity rather than replacing human capital.
He noted that staff across departments are now leveraging AI to improve workflows, generate ideas, and transition from manual administrative roles to AI-enabled system administration.
Inuwa added that technology deployment at NITDA is deliberately driven by business value rather than trend adoption, stressing that technology must support clearly defined processes and organisational objectives.
He announced that the agency has developed a comprehensive digital transformation playbook, capturing lessons learned from its journey, which it is willing to share with NBC and other government institutions.
To advance collaboration with NBC, Inuwa proposed concrete areas of partnership, including sharing the agency’s digital transformation playbook, delivering tailored training and capacity-building programmes, enrolling NBC staff in digital literacy initiatives developed with global technology partners such as Cisco, and providing technical support for modernising regulatory frameworks to align with the evolving digital and media ecosystem.
Earlier in this remark, Mr Ebuebu called for deeper collaboration between the NBC and NITDA, describing the partnership as long overdue in the face of rapid media and technology convergence.
He noted that although he has had several insightful interactions with the DG NITDA in the past, it was important to institutionalise cooperation between both agencies to address emerging developments in media, technology, data governance, and Nigeria’s digital future.
While calling for closer ties between the two agencies, he emphasised that a strategic partnership between NBC and NITDA is critical to effectively regulate the evolving media ecosystem, harness technology for content creation and distribution, promote the growth of local media, facilitate knowledge transfer, and protect Nigeria’s cultural and national interests.
Broadcasting
DG NCC Tasks University Dons on Research Commercialization, IP Management to Build Global Competitive Ecosystems

Dr. John Asein, director-general, Nigerian Copyright Commission (NCC), has charged universities to leverage Intellectual Property (IP), innovation management and research commercialisation to build vibrant, sustainable and globally competitive ecosystems.

The DG stated this while delivering a paper on: ‘’Research Commercialisation, IP Policy and Innovation Management’’ at the Committee of Vice-Chancellors of Nigerian Universities (CVCNU) organised Business Clinic themed: Unlocking University-Driven Business Ecosystems: Innovation, Partnerships and Sustainable Enterprise Models in Abuja.
The programme was targeted at engaging Vice-Chancellors, principal officers and other key officers in Nigerian Universities in a practical dialogue on how to transit their institutions into thriving business ecosystems through innovation, enterprise development and strategic partnerships.
In his presentation, Dr. Asein, disclosed that Universities are now recognised as engines of national development and innovation hubs that must connect scholarship to business.
He noted that with over 300 Universities in Nigeria, there is need for structured pathways to turn ideas into commercial outcomes while attention should be focused on IP assets in our universities in order to harness them in a safe, sustainable and satisfactory manner.
The DG NCC speaking further on leveraging resources from the creativity locked up within the university system, harped on the need to harness the soft power of our youth as Nigeria’s most valuable natural resources are its people.
Drawing demography from Nigeria youthful population, he observed that over 70 percent of Nigerians who are under the age of 30 are mostly in the university system studying. These youths, he noted, shape cultures, technology and innovation through creativity and digital skills.
He tasked universities to become innovation factories where young people can explore ideas, protect their IP and grow startups by integrating innovation culture, entrepreneurship training and IP awareness into its learning environment.
He equally urged Universities to look beyond the sciences to commercialize traditional knowledge-based innovations and harness the potentials in the creative arts disciplines like music, visual arts, theatre arts and others for commercial outcomes.
Dr. Asein, recommended that universities as centres of learning, should take the lead in using the IP system for promoting education and learning, wealth creation, revenue generation and institutional development.
Underscoring the need for all universities to have an IP Policy, he noted that the Model developed by the Nigerian Copyright Commission in partnership with the CVCNU is a good starting point.
The Secretary-General, CVCNU, Prof. Andrew Haruna, presented the welcome address at the event while the Director, Technology Innovation and Commercialisation, NOTAP, Mrs. Adah H.N. Mokolo-Oladunke represented the Director-General, NOTAP at the event.
The 2025 CVCNU Business Clinic witnessed attendance from representatives of Public and Private Universities across the 36 States in Nigeria.
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