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Banks Maintain Adequate Ratio Above 30% Despite Liquidity Challenges.

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Deposit Money Banks (DMBs) in Nigeria reported varied Liquidity Ratios (LR) above the regulatory requirement in the 2022 financial year, despite the Central Bank of Nigeria (CBN) implementing a tighter monetary policy. The banking sector’s Capital Adequacy Ratio (CAR) also remained strong, reflecting the resilience of DMBs in the face of macroeconomic challenges.

Liquidity ratio measures a company’s ability to meet short-term financial obligations with current assets, while CAR assesses a bank’s available capital as a percentage of its risk-weighted credit exposures.

The banking sector’s liquidity ratio surpassed the prudential limit, reaching 44.1%, while the CAR remained at 13.8% in 2022, staying within the prudential range of 10-15%, as per the CBN.

Under the current guidelines, the CBN requires banks to maintain minimum liquidity ratios as follows: Deposit Money Banks (DMBs): 30%, merchant banks: 20%, and non-interest banks: 10%.

The 2022 liquidity ratio and CAR outcomes come at a time when the global economy faces various challenges, such as the ongoing global banking crisis, tensions from the Ukraine/Russian war, and supply chain constraints from China’s lockdowns, which could potentially impact emerging economies like Nigeria.

In 2022, the CBN increased the Cash Reserve Ratio (CRR) from 27.5% to 32.5%. CRR represents the portion of a bank’s total customer deposits that must be held as liquid cash with the central bank.

Domestically, Nigeria’s economy encountered challenges such as double-digit inflation due to higher food and energy prices, tension surrounding the 2023 general elections, and foreign exchange scarcity leading to a depreciation in the exchange rate in 2022.

An analysis of banks’ 2022 financial results showed that Stanbic IBTC Holdings, followed by Zenith Bank Plc and United Bank for Africa Plc, had the highest liquidity ratios in the banking sector. UBA and Guaranty Trust Holding Company (GTCO) Plc led in CAR.

Stanbic IBTC Holdings reported a liquidity ratio of 85.04% in 2022, a decline from 105.40% in 2021, still exceeding the CBN’s 30% requirement. Zenith Bank (Group) closed 2022 with a liquidity ratio of 75%, an increase from 71.5% in 2021, while its banking subsidiary reported a liquidity ratio of 67% compared to 61.9% in 2021. Zenith Bank also experienced a decline in CAR, reaching 19.8% in 2022 from 21% in 2021.

UBA recorded a significant increase in its liquidity ratio to 68.3% in 2022 from 47.6% in 2021, while GTCO declared a liquidity ratio of 49.93% in 2022 compared to 38.26% in 2021, both comfortably surpassing the regulatory minimum requirement of 30%.

According to GTCO, the group maintained a strong capital position with a Full IFRS 9 impact CAR of 24.1%, which is 910 basis points above the regulatory minimum of 15%. The group emphasized that Tier 1 capital remained a significant component of its CAR at 23.8%, representing 98.8% of the group’s CAR.

Other Tier-1 DMBs with liquidity ratios above the CBN’s requirement include Access Holdings at 39.5% (down from 50.7% in 2022), while Firstbank’s liquidity ratio dropped to 31.7% in 2022 from 33%

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Dangote Refinery Boosts Fuel Exports as Gulf Refineries Shut Down

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By: Fabian Apechihin

The Dangote Petroleum Refinery has ramped up fuel exports to international markets amid widespread refinery shutdowns in the Middle East, industry sources confirmed.

A senior official at the $20bn Lagos-based plant told The PUNCH that the facility exported significant volumes of petrol (PMS), diesel (AGO), and aviation fuel (Jet A1) to foreign buyers in August, following earlier shipments in June and July.

The surge comes as Saudi Aramco and other regional producers face heavy maintenance schedules, tightening fuel supply. Aramco has already shut down two plants and plans further closures, including its 460,000 b/d Satorp refinery in Jubail for a 60-day turnaround in November–December. Kuwait and India are also scaling back capacity for maintenance and seasonal demand.

According to Argus Media, these shutdowns are pushing Gulf nations to import record volumes of gasoline, with Saudi Arabia and the UAE sharply increasing purchases from Europe and other markets in recent months.

While some reports pointed to operational constraints at Dangote’s 650,000 b/d facility, the company dismissed such claims, insisting production is on track to reach 700,000 b/d by December. Earlier this year, Aliko Dangote announced the refinery had sold two cargoes of jet fuel to Saudi Aramco and recently achieved exports of about 1 million tonnes of petrol between June and July.

“With Gulf refiners offline, Nigeria has now emerged as a net exporter of refined products,” Dangote said.

Analysts suggest the extended refinery outages in the Middle East will further strengthen demand for Dangote’s output, positioning the Nigerian plant as a key supplier in regional fuel markets.


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US Oil Exports to Nigeria, Others Fall to 3.3m bpd as Local Output Rises

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By: Fabian Apechihin

The United States’ crude oil exports to Nigeria and other African countries fell for the fifth consecutive month in July 2025, averaging 3.3 million barrels per day (bpd), the lowest level since March 2022.

The Organisation of Petroleum Exporting Countries (OPEC) disclosed this in its August 2025 Monthly Oil Market Report (MOMR), attributing the decline to weaker flows to Europe and Africa, particularly Nigeria, but without giving further details.

Industry analysts link the slowdown to the ramp-up of local refining capacity, especially the 650,000 bpd Dangote Refinery, which has reduced Nigeria’s reliance on imported crude, including from the US. Vanguard checks also show that crude importation has slowed further in recent months due to improved domestic production.

According to OPEC data, Nigeria’s crude oil output—excluding condensates—rose by 11 per cent year-on-year to 1.559 million bpd in July 2025, up from 1.386 million bpd in the same period of 2024. This marks the country’s highest monthly production level so far this year.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) corroborated the figures, stating that overall output, including condensates, exceeded 1.8 million bpd in July.

Gbenga Komolafe, Chief Executive of the NUPRC, said the milestone was achieved through the agency’s “Project 1 MMBOPD Incremental” initiative, supported by a multi-stakeholder collaborative framework.

“We are glad to report that we crossed the 1.8 million bpd mark on peak production last month, with average production hovering at 1.78 million bpd,” Komolafe stated.

He added that the Commission is working to sustain production growth by optimising the Maximum Efficient Rate (MER) framework, improving produced water management, and aligning operational shutdowns and maintenance schedules to minimise disruptions.

“With these measures and continued collaboration, the presidential mandate on production increase is well within reach,” he said.


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NDYPC Hails Otuaro’s Reforms in Presidential Amnesty Programme

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• Lauds transparency, fairness in beneficiary selection and grassroots empowerment

• Says reforms align with Tinubu’s Renewed Hope Agenda, restore trust in Niger Delta

The Niger Delta Youths for Positive Change (NDYPC) has commended the Administrator of the Presidential Amnesty Programme (PAP), Dr. Dennis Otuaro, for what it described as bold, people-focused reforms that are restoring trust and delivering tangible benefits to the Niger Delta.

In a statement signed and issued by Comrade Elliott Yibakeni, after the conclusion of leadership training sessions with ex-agitator leaders in Abuja, the group said the PAP, once in urgent need of renewal, is now undergoing a transformation that reflects transparency, fairness, and accountability.

“At a time when public trust in institutions was waning, Dr. Otuaro has emerged as a symbol of credibility and transformation,” the statement read. “His visionary leadership is restoring integrity, empowering communities, and driving a sustainable development agenda that resonates with the aspirations of the Niger Delta.”

According to NDYPC, under Otuaro’s leadership, beneficiary selection has become fair and merit-based, ending years of favoritism and political interference. The group added that access to education, skills training, and empowerment opportunities, both locally and abroad, is now guided by equity and open competition.

The group highlighted several internal reforms, including improved staff welfare, strengthened professional capacity, and strict adherence to best practices in public procurement. These, it said, have made the PAP more efficient, responsive, and transparent.

NDYPC also praised Otuaro’s inclusive governance style, noting his sustained engagement with traditional rulers, women leaders, civil society organizations, and local communities. This approach, the group said, has strengthened peace-building efforts and deepened trust between the PAP and the people it serves.

In line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the PAP has maintained consistent payment of stipends to ex-agitators and extended direct support to vulnerable populations. NDYPC also applauded new healthcare interventions for ex-agitators facing health challenges.

The statement further commended the programme’s investments in scholarships, vocational training, and economic empowerment initiatives aimed at preparing Niger Delta youths for leadership, innovation, and sustainable livelihoods.

“Every decision reflects a deep commitment to public trust, responsible stewardship, and long-term development,” NDYPC stated. “Under Dr. Otuaro’s watch, the Niger Delta is rising stronger, united, and filled with renewed hope.”

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