CBN Recapitalization Boosts Funding for SMEs in Nigeria

The Central Bank of Nigeria (CBN) announced that 33 banks have successfully met the revised minimum capital requirements as part of a 24-month bank sector recapitalization program. This initiative has raised a total of ₦4.65 trillion, marking a significant milestone in strengthening Nigeria's financial system amid ongoing macroeconomic reforms.

The capital adequacy ratio across the sector now exceeds Basel benchmarks, reinforcing banks' ability to absorb shocks and support economic growth. Dr.

Jerri Igwilo, former banker and CEO of Wynk Limited, emphasized the importance of customer protection in banking operations, criticizing Nigeria's underdeveloped complaint management framework. Olubunmi Ayokunl, head of financial institutions at Augusto & Co, noted that the increased capital will facilitate broader lending and innovation in deposit products, particularly targeting SMEs, which represent 70% of registered businesses in Nigeria.

The CBN's efforts are expected to enhance local participation and confidence in the banking sector.