The Central Bank of Nigeria (CBN) has said stronger capital buffers are only the starting point of banking sector recapitalisation, with the next phase requiring stronger governance, risk management and productive lending.
The apex bank made this 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, CBN Deputy Governor, Corporate Services, Dr. Muhammad Sani Abdullahi, said 33 banks had met the revised minimum capital requirements by the end of the two-year programme announced in March 2024, collectively raising N4.65 trillion.
He added that banks with risky capital exposure could be required to raise more capital out of necessity to strengthen their balance sheets.
The CBN said the success of the recapitalisation programme should not be judged solely by the amount of capital raised. Instead, attention should shift to the quality of banking services and economic activity supported by the stronger capital base.
Abdullahi said Nigeria’s ambition to build a $1 trillion economy by 2030 requires banks capable of mobilising and allocating capital on a much larger scale.
He said stronger bank balance sheets should also translate into wider access and better services for rural communities, women and young entrepreneurs, while supporting agriculture, manufacturing, services and infrastructure.
The apex bank said stronger balance sheets could still be undermined by poor governance and excessive risk-taking. Abdullahi said boards and management teams must therefore strengthen internal controls, improve accountability, and recognise emerging risks early.
The CBN also indicated that its supervisory focus would extend beyond traditional credit exposures to risks arising from the increasingly digital and interconnected financial system.
The CBN said it would continue to monitor governance, asset quality, liquidity and large exposures, while emphasising risk-based supervision, macroprudential surveillance and enhanced stress testing.
The recapitalisation programme comes alongside broader reforms in Nigeria’s monetary and foreign exchange markets. Abdullahi said the FX market had become more stable three years into the reform programme, while external buffers had strengthened.
Headline inflation moderated to 15.43% in July 2026, while real GDP expanded by 4.43% in the second quarter.
Abdullahi, however, acknowledged that the improved indicators did not mean the pressure facing households and businesses had ended, stressing the need to make the gains more durable.
The end of the two-year recapitalisation programme marks a shift in what the CBN expects from banks that have met the revised requirements. The focus is increasingly on how stronger balance sheets are managed and deployed rather than solely on the amount of capital raised.
Consumer protection, financial inclusion, fintech regulation, crisis preparedness and resolution planning will remain part of the CBN’s supervisory priorities.
The post-recapitalisation phase will therefore centre on whether the stronger capital positions translate into productive lending, improved banking services and greater resilience across Nigeria’s financial system.
