The Federal Ministry of Finance has allocated N75 million in its proposed 2025 budget to monitor the activities of banks and other financial institutions under its Home Finance Division.
This provision aims to strengthen oversight and ensure compliance with regulations in the financial sector.
According to the proposed budget, the allocation will be used for “monitoring and evaluation of activities of banks and other financial institutions (Home Finance).”
The initiative reflects the ministry’s commitment to maintaining a robust financial system by scrutinizing the operations of banks and financial institutions.
Also, the ministry has allocated another N25 million for the “annual assessment of the activities of agencies under the purview of the Division of Banks and Other Financial Institutions (Home Finance).” This allocation highlights the ministry’s emphasis on regular evaluation of financial sector performance.
Beyond oversight activities, the proposed 2025 budget highlights significant investments aimed at strengthening Nigeria’s financial infrastructure.
Under the Service-Wide Vote for 2025, N20 billion has been allocated for the recapitalization of the Ministry of Finance Incorporated (MOFI). MOFI serves as the custodian of Nigeria’s government-owned investments, and the funds will enhance its capacity to manage these assets effectively.
Also, N10 billion has been set aside for the recapitalization of Development Finance Institutions (DFIs). DFIs play a critical role in funding projects that drive economic growth and development, especially in sectors such as agriculture, infrastructure, and small and medium enterprises (SMEs).
The allocation for monitoring banks and financial institutions suggests a proactive approach by the Federal Ministry of Finance to ensure the stability of the financial system. Regular oversight can help identify and address issues such as non-compliance, financial mismanagement, or potential systemic risks.
The recapitalization efforts for MOFI and DFIs indicate a broader strategy to bolster financial institutions that underpin Nigeria’s economic growth. Strengthened DFIs, for instance, can enhance access to affordable credit for businesses and individuals, furthering the government’s development goals.
President Bola Tinubu on Wednesday presented the 2025 budget proposal to a joint session of the National Assembly, outlining an ambitious N49.70 trillion spending plan titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”