CBN Urges Banks to Utilize N4.65tn for Economic Growth

The Central Bank of Nigeria (CBN) has called on banks to transform the N4.65tn raised through the recapitalisation programme into productive loans that foster business growth, infrastructure development, and overall economic advancement. Dr Muhammad Abdullahi, the Deputy Governor for Corporate Services at CBN, made this statement on Tuesday in Abuja during the 38th Seminar for Finance Correspondents and Business Editors.

He stressed that the success of the recapitalisation should be evaluated not just by the capital raised but also by the quality of banking services and productive lending it enables. Abdullahi noted that 33 banks met the revised minimum capital requirements by the end of the two-year recapitalisation programme announced in March 2024.

He linked the strengthened capital base of banks to Nigeria's goal of achieving a $1tn economy by 2030, emphasizing the need for banks to mobilize capital effectively. He also highlighted the importance of governance and risk management in lending practices and the necessity for banks to extend benefits to rural communities and smaller businesses.