CBN Initiates Banking Sector Recapitalisation Reforms

The Central Bank of Nigeria (CBN) announced that stronger capital buffers represent the starting point of banking sector recapitalisation, with further emphasis on governance, risk management, and productive lending. At the 38th Seminar for Finance Correspondents and Business Editors in Abuja, CBN Deputy Governor, Corporate Services, Dr. Muhammad Sani Abdullahi, reported that 33 banks met the revised minimum capital requirements by the end of the two-year programme initiated in March 2024, collectively raising N4.65 trillion.

He noted that banks with risky capital exposure may need to raise additional capital to fortify their balance sheets. The CBN stressed that the success of the recapitalisation should focus on the quality of banking services and economic activities supported by the enhanced capital base.

Abdullahi highlighted Nigeria's goal of achieving a $1 trillion economy by 2030, necessitating banks capable of mobilising and allocating capital effectively. He also pointed out that improved bank balance sheets must be complemented by strong governance to mitigate risks.