Business News
Clamp Down on Portfolio Investment Firms: Failure of Regulation?
By Mike Uzor
Financial markets thrive on public confidence and that is why regulatory actions need to be weighed and counter checked and consequences of actions clearly understood and communicated before decisions that affect operators are taken and enforced.
The reported clampdown on portfolio investment firms appears to negate this regulatory decorum.
The operators and their customers in that arm of the financial markets are taping a window of a opportunity, as others are doing in the sector. Such new opportunities are welcome, as governments and regulators are unable to create sufficient opportunities to accommodate a large segment of population within the domestic economy.
Financial markets everywhere the world over are an evolution and they are yet evolving. The evolution is normally driven by the needs of the market participants – good returns to owners of financial capital and supply of capital to businesses. Ensuring an orderly functioning of the market – in which no group of participants is mistreated, is a solemn duty of financial system regulators.
In Nigeria, portfolio investment firms sprang forth from a void in the market created by poor returns on conventional financial assets in a runaway inflationary environment. Interest rates are skewed in such a manner that depositors get peanuts on their money while borrowers pay cut throat rates on loans and advances.
Head or tail the intermediaries, reminiscent of the marketing boards of old, win to the detriment of both owners and users of money and society at large. It is apparent that the unsustainable role of the intermediaries will be challenged at some point. This is clearly the opportunity that ushered in the portfolio investment firms into the financial markets.
They are a response to the yearning of the owners of financial capital to optimise the returns on their money and this is a natural tendency in the world of finance and investment. Investment capital has to find its way to the best possible combinations of risk and return.
It is the duty of regulators to ensure that this happens in a fair and firmly regulated operating environment that creates and spreads opportunities to everyone willing to play within the rules of the game in any segment of the markets whether existing or evolving.
The portfolio investment companies represent a group of outside the box thinkers as to how to create opportunities for a more productive use of capital than conventional financial services organisations are able or willing to offer. They therefore present a new competitive force in the investment market, which is needed to jolt the apparent return to armchair banking in Nigeria.
Their entry is apparently the same course that the new generation banks followed to bring innovation in customer services delivery that has worked to the benefit of the entire system. Banks have generally retreaded from customer oriented service culture and are on their ways back to the armchair banking era. And the new state is turning out worse than before.
Banks have unilaterally slashed interest rates on customer deposits on a matter of take it or leave. Even the piddling interest rate they agree to pay is usually subjected to all manner of terms and conditions that savings account holders hardly get anything at all any more on their money.
Hiding under the coronavirus environment, banks generally have moved back into shells of conservatism and complacency. They need to be jolted once again to pay depositors decent interest earnings on their funds. Not even in the era of armchair banking did banks keep customers in the heat of the sun for hours for even less than 5-minute services such as printing account statements that is happening now.
This is the entry niche for portfolio investment companies and presently the crocks of the matter that has been visited with a clampdown by security officials. How an operational issue in the marketplace would be allowed to become a criminal matter places a big question mark on the efficacy of regulatory conduct.
In the evolutionary process of Nigerian banking, a time came when non-bank financial institutions sprang forth and dominated the financial services landscape. It was a market induced development, which attracted a regulatory-based response.
The Central Bank responded by bringing them under its regulatory framework. When competition in the banking industry intensified in the late 1990s, merchant banks opted to become commercial banks. This again was a market originated pressure – which the Central Bank allowed to proceed and later on culminated in the issuance of universal banking licences.
A market originated pressure is like a surging stream that is unstoppable. The job of regulators is simply to give it an orderly course to flow. Regulators didn’t have to clamp down on the promoters of non-bank financial institutions in the 1990s because there was a sizeable demand for their services.
In the same manner, they couldn’t suppress the influx of community and later microfinance banks. They are all part of the variety of financial institutions that drive the unending sophistication and complexity of the financial system.
What a clampdown does usually is to drive the business offshore. In the case on hand, it is a market driven by innovation to meet market needs. You lock the window, you divert the flow of investment capital offshore.
Financial system regulators should be alive to their responsibility to discover current trends in the demand and supply functions of financial services and move proactively to put the rules to guide the operations ahead of time. It is rather a matter of serious concern that it is the portfolio investment firms themselves that are, on their own, calling for regulatory guidelines for their business.
It is quite disappointing that there are no regulatory procedures for handling issues concerning a group of financial sector operators as significant as portfolio investment firms with assets in the region of N1 trillion. The use of security officials with some regulatory shadows at the background to crush them as claimed, presents a big show of crude control measures in modern day financial markets.
Disorderly conduct of a few of the operators may not be ruled out in terms of honouring their obligations to investors. That is the very reason why they should be recognised and admitted into the financial system regulatory framework as quickly as possible.
Yet, the few that fail to honour their obligations cannot justify a total clampdown any more than we can reasonably shut down the highways or the airports because of reckless drivers and pilots.
The operators don’t have to show that they are significant labour employers in order to be allowed to continue to operate; that should be taken for granted. They don’t have to plead to show they contribute to GDP or consumer spending capacity; they even needed to be applauded for the courage to set up in a significantly disabling business climate that constitutes the Nigerian economy.
They are part of the engine of the new economy – the small-scale enterprises that need to be courted and not stifled. They are the economic growth drivers that future oriented economies spend a lot on financing and training to promote and to groom. They are the mustard seeds that hold the promise of great oaks of the future.
Let regulators give them the same chance they gave new generation banks to transform banking services in Nigeria. Let them have the same chance given to non-bank financial institutions, microfinance banks and other non-conventional financial institutions that are now in operation. Mike Uzor is chief financial analyst, Datatrust
Business News
Budget Office Defends Tax Reform Acts, Seeks Due Process
By Tony Obiechina, Abuja
The Budget Office of the Federation has reaffirmed the integrity of Nigeria’s newly enacted Tax Reform Acts, cautioning against what it described as governance by speculation and unverified claims following allegations of post-passage alterations.
In a statement on Wednesday, the Budget Office said it had taken note of concerns raised by the Minority Caucus of the House of Representatives, stressing that the sanctity of the law is central to constitutional democracy and not a mere procedural formality.
According to the Office, any suggestion that a law could be altered after debate, passage, authentication, and presidential assent without due process would strike at the core of the Republic and undermine citizens’ right to be governed by transparent and stable laws.
However, it warned that democratic integrity is also endangered by the careless amplification of unverified claims. “A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,” the statement noted, adding that public confidence, once shaken by speculation, is often difficult to restore.
The Budget Office emphasized that both government and citizens share a common interest in truth, clarity, and due process, noting that public finance depends heavily on trust in the legality and clarity of fiscal laws. It welcomed the decision of the National Assembly to investigate the allegations, describing institutional inquiry, not conjecture as the appropriate response to claims of illegality.
On public access to the law, the Office agreed that Nigerians and the business community are entitled to clear and authoritative texts of all laws they are required to obey. It clarified, however, that the authenticity of legislation is determined by certified legislative records and official publication processes, not by informal or viral reproductions.
The statement also underscored the importance of separation of powers, warning that claims suggesting Nigeria is being governed by “fake laws,” if not backed by established facts, risk eroding confidence in democratic institutions.
At the same time, it stressed that legislative scrutiny should not be dismissed by the executive, noting that oversight is a constitutional duty, not an act of hostility.
From a fiscal perspective, the Budget Office said legal certainty is essential for revenue projections, macroeconomic stability, budget credibility, and investor confidence. While it is not the custodian of legislative records, it maintained that uncertainty around operative tax provisions directly affects economic planning.
To restore confidence, the Office proposed a set of measures, including the publication of verified reference texts in a single public repository, orderly access to Certified True Copies for stakeholders, clear public explanations where discrepancies are alleged, and strict alignment of all implementing regulations with authenticated legal texts.
Addressing calls for suspension of the tax reforms, the Budget Office cautioned against allowing prudence to slide into paralysis. It argued that properly implemented tax reform is necessary to reduce dependence on borrowing and inflationary financing, while easing indirect burdens on vulnerable citizens.
“Where clarification is required, it must be provided; where correction is required, it must be effected; where investigation is required, it must proceed,” the statement said, adding that governance and reform should not be stalled by unresolved conjecture.
The Office concluded by describing taxation as a democratic covenant that binds citizens and the state, insisting that compliance depends on transparency and trust. It called on political actors to protect institutions as much as positions, urging citizens and businesses to rely on verified sources and resist the spread of unauthenticated information.
The statement was signed by Tanimu Yakubu, Director-General of the Budget Office of the Federation, who reaffirmed the agency’s commitment to fiscal transparency, institutional integrity, and reforms that advance national prosperity while safeguarding citizens’ rights.
Business News
Tinubu Congratulates Dangote on World Bank Appointment
By Jennifer Enuma, Abuja
President Bola Tinubu has congratulated Alhaji Aliko Dangote, the President of Dangote Group, on his appointment to the World Bank’s Private Sector Investment Lab, a body tasked with promoting investment and job creation in emerging economies.
In a statement by Special Adviser on Media and Publicity, Bayo Onanauga, the President described the appointment as apt, given Dangote’s rich private sector experience, strategic investments, and many employment opportunities created through his Dangote Group.
The Dangote Group became one of Africa’s leading conglomerates through innovation and continuous investment.
Dangote Group’s business interests span cement, fertiliser, salt, sugar, oil, and gas. However, the $20 billion Dangote Petroleum Refinery and Petrochemicals remains Africa’s most daring project and most significant single private investment.
“President Tinubu urges Dangote to bring to bear on the World Bank appointment his transformative ideas and initiatives to impact the emerging markets across the world fully” the statement said.

The World Bank announced Dangote’s appointment on Wednesday, as part of a broader expansion of its Private Sector Investment Lab. The lab now enters a new phase aimed at scaling up solutions to attract private capital and create jobs in the developing world.
The CEO of Bayer AG, Bill Anderson, the Chair of Bharti Enterprises, Sunil Bharti Mittal, and the President and CEO of Hyatt Hotels Corporation, Mark Hoplamazian, are on the Private Sector Investment Lab with Dangote.
The World Bank said the expanded membership brings together business leaders with proven track records in generating employment in developing economies, supporting the Bank’s focus on job creation as a central pillar of global development.
Business Analysis
Nigeria Customs Generates over N1.75trn Revenue in 2025
By Joel Oladele, Abuja
The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.
The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.
According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.
“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.
I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.
The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.
Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.
“I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.
“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase compared to the same period in 2024, where we collected N1,347,705,251,658.31.
“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.
In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.
He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.
“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.
Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.
Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.
Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.
“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.

