The Central Bank of Nigeria (CBN) has said the completion of the banking sector recapitalisation exercise marks the beginning of a broader reform phase, with banks now expected to strengthen governance, risk management and productive lending.
The apex bank said stronger capital buffers alone would not guarantee a resilient banking system unless banks are able to deploy the additional capacity effectively while maintaining sound risk controls.
The CBN made this position known at its 38th Seminar for Finance Correspondents and Business Editors in Abuja, themed “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era.”
Speaking at the event, Dr Muhammad Sani Abdullahi, CBN Deputy Governor, Corporate Services, said 33 banks had met the revised minimum capital requirements by the end of the two-year recapitalisation programme announced in March 2024.
The banks collectively raised N4.65 trillion during the exercise.
“Capital, however, is a starting point. Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” Abdullahi said.
He added that banks with risky capital exposure could still be required to raise additional capital where necessary to strengthen their balance sheets.
The apex bank said the success of the recapitalisation exercise should not be measured solely by the amount of capital raised, but also by the economic activity and quality of banking services supported by the stronger capital base.
Abdullahi said Nigeria’s ambition to build a $1 trillion economy by 2030 would require banks capable of mobilising and allocating capital on a much larger scale.
“We should assess recapitalisation by the quality of banking services and productive lending it supports, as well as by the amount of capital raised,” he said.
According to him, stronger capital buffers should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.
He added that stronger bank balance sheets should translate into wider access to financial services for rural communities, women and young entrepreneurs, while supporting agriculture, manufacturing, services and infrastructure.
