The Federal Ministry of Finance has proposed a N75 million allocation in its 2025 budget to monitor the activities of banks and financial institutions through its Home Finance Division.
This funding is aimed at strengthening oversight and ensuring regulatory compliance within the financial sector.
The proposed budget indicates that the N75 million allocation will be used for the “monitoring and evaluation of activities of banks and other financial institutions (Home Finance).”
The ministry has also allocated 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 highlights the ministry’s focus on the regular evaluation of financial sector performance.
The allocation for monitoring banks and financial institutions reflects the Federal Ministry of Finance’s proactive approach to maintaining financial system stability. Regular oversight helps identify and address issues like non-compliance, financial mismanagement, or potential systemic risks.
The recapitalization efforts for MOFI and DFIs are part of a broader strategy to strengthen financial institutions that support Nigeria’s economic growth.
Empowered DFIs, for example, can improve access to affordable credit for businesses and individuals, advancing the government’s development goals.
On Wednesday, President Bola Tinubu presented the 2025 budget proposal to a joint session of the National Assembly, unveiling an ambitious N49.70 trillion spending plan titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”
The budget emphasizes defence, infrastructure, and human capital development, with a projected deficit of N13.39 trillion, primarily to be financed through borrowing.
Additionally, the Federal Ministry of Finance headquarters has been allocated N271.39 billion in the proposed budget.
A further breakdown of the budget reveals that N3.41 billion has been allocated for personnel expenses, covering salaries, wages, and other employee-related costs for staff at the Federal Ministry of Finance headquarters.
