The Central Bank of Nigeria (CBN) says the completion of the banking sector recapitalisation programme marks the beginning of a broader reform phase, rather than the end of the process.
The apex bank said stronger capital buffers must now be matched by sound corporate governance, effective risk management and increased lending to productive sectors of the economy.
CBN Deputy Governor, Corporate Services, Dr Muhammad Sani Abdullahi, stated this at the bank’s 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.”
Abdullahi said 33 banks met the revised minimum capital requirements by the end of the two-year recapitalisation programme announced in March 2024, collectively raising ₦4.65 trillion.
He stressed that the amount raised should not be the sole measure of the programme’s success, saying the stronger capital base must translate into better banking services and productive lending.
CBN targets stronger lending capacity
According to the Deputy Governor, Nigeria’s ambition of building a $1 trillion economy by 2030 requires banks with sufficient capacity to mobilise and deploy capital at a much larger scale.
He said stronger capital buffers should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.
The CBN also expects banks to improve access to finance and banking services for rural communities, women and young entrepreneurs, while directing more funding towards agriculture, manufacturing, services and infrastructure.
Governance, risk management take centre stage
The apex bank said increased capital alone would not guarantee banking-sector stability if institutions fail to strengthen governance and risk controls.
Abdullahi said bank boards and management teams must improve internal controls, accountability and transparency, while identifying emerging risks early and avoiding excessive risk-taking.
The CBN is also broadening its supervisory focus beyond conventional credit risks to include market, liquidity and operational risks, cybersecurity, third-party dependencies and climate-related financial risks.
The regulator said it would continue monitoring governance, asset quality, liquidity and large exposures, alongside risk-based supervision, macroprudential surveillance and enhanced stress testing.
FX market records narrower rate gap
Abdullahi also highlighted improvements in the foreign exchange market following the broader monetary and financial reforms.
He said the average gap between official and parallel-market exchange rates had fallen from 68.2% between January and May 2023 to less than 2%.
He added that total FX inflows reached $10.82 billion in July 2026, with autonomous sources accounting for $7.33 billion, or nearly 68%.
Net foreign portfolio inflows stood at $6.31 billion between January and August 2026, while gross external reserves reached $55.60 billion as of September 11.
Headline inflation also moderated to 15.43% in July 2026, while real GDP expanded by 4.43% in the second quarter, according to figures cited by the CBN.
The Deputy Governor, however, noted that improving macroeconomic indicators did not mean pressures on households and businesses had disappeared, stressing the need to make the gains sustainable.
Post-recapitalisation test
With the recapitalisation exercise completed, the CBN’s attention is now shifting from how much banks have raised to how effectively they deploy and manage the additional capital.
The apex bank expects stronger balance sheets to improve banks’ capacity to absorb shocks, finance productive activities and provide more resilient services.
Consumer protection, financial inclusion, fintech regulation, crisis preparedness and resolution planning will also remain part of the regulator’s supervisory priorities.
The next phase of banking-sector reform will therefore test whether the stronger capital positions translate into productive lending, improved financial services and greater resilience across the Nigerian banking system.
