CBN Focuses on Economic Impact of Banking Recapitalisation

The Central Bank of Nigeria (CBN) has redefined its banking sector recapitalisation programme, emphasizing the need for stronger bank balance sheets to enhance economic productivity rather than merely focusing on the amount of capital raised. Muhammad Sani Abdullahi, Deputy Governor of Corporate Services, announced that by the end of the two-year recapitalisation programme, 33 banks had met the revised minimum capital requirements and raised N4.65 trillion.

Speaking at the 38th Seminar for Finance Correspondents and Business Editors in Abuja, Abdullahi highlighted that the CBN's recapitalisation initiative, announced in March 2024, aims to empower banks to support long-term financing in infrastructure, industrial expansion, and international trade. He stressed that the success of the programme should be assessed by the quality of banking services and productive lending it enables, rather than just the capital raised.

Abdullahi also noted that achieving Nigeria's goal of a $1 trillion economy by 2030 will require banks to mobilize capital effectively across various sectors.