The Central Bank of Nigeria (CBN) says the ₦4.65 trillion raised by 33 banks under its recapitalisation programme will strengthen the financial sector’s capacity to finance productive investments and support Nigeria’s ambition of building a one-trillion-dollar economy by 2030.
The Deputy Governor, Corporate Services, Dr Muhammad Sani Abdullahi, stated this at the 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.”
He emphasised that the success of recapitalisation would ultimately be measured by its impact on businesses, households and the wider economy.
“Nigeria’s aspiration to build a one-trillion-dollar economy by 2030 requires banks capable of mobilising and allocating capital on a much larger scale,” he said.
Dr Abdullahi explained that stronger capital buffers would enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.
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He stressed that recapitalisation should not be viewed merely as a regulatory exercise but as a foundation for strengthening the economy’s productive capacity.
“Capital, however, is a starting point. Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” he stated.
He attributed the progress recorded in the financial sector to several factors, including monetary policy, foreign exchange reforms and improved sources of foreign exchange supply.
The Deputy Governor, however, acknowledged that despite the improvements, pressure on households and businesses remained, stressing the need to make economic gains more durable and deepen investment.
On financial stability, Dr Abdullahi reiterated the CBN’s commitment to risk-based supervision, macroprudential surveillance and enhanced stress testing to ensure that stronger bank balance sheets do not compromise the resilience of the financial system.
He further urged businesses to improve corporate transparency, governance and sustainability to strengthen their creditworthiness and attract financing for productive investments.
According to him, “A stronger balance sheet must be matched by stronger management of risk.”
Dr Abdullahi also emphasised the importance of extending the benefits of recapitalisation to small businesses, rural communities, women and young entrepreneurs, noting that financial inclusion and consumer protection were integral to a resilient financial system.
He called on financial journalists to sustain accurate and objective reporting, noting that informed public debate and effective communication were vital to market transparency and confidence.
