CBN urges banks to turn N4.65tn recapitalisation into productive lending
ABUJA — The Central Bank of Nigeria (CBN) has urged commercial banks to convert the N4.65tn raised under the sector’s recapitalisation programme into productive loans that support businesses, infrastructure and broader economic growth.
Dr Muhammad Abdullahi, the CBN’s Deputy Governor for Corporate Services, made the appeal on Tuesday at the 38th Seminar for Finance Correspondents and Business Editors in Abuja. The seminar was held under the theme “Towards a Robust and Resilient Financial System in the Post‑Banking Sector Recapitalisation Era”.
“Recapitalisation must be assessed not only by the amount of capital raised but by the quality of banking services and productive lending it supports,” Dr Abdullahi said. He urged lenders to tailor finance for agriculture, manufacturing, services and infrastructure to suit their cash flows and investment horizons, and to extend better services to smaller firms and households.
By the end of the two‑year recapitalisation exercise announced in March 2024, 33 banks had met the revised minimum capital requirements, raising a combined N4.65tn, the CBN said. The apex bank argues that stronger capital buffers should allow banks to finance long‑term infrastructure, industrial expansion and international trade as Nigeria pursues its ambition to build a $1tn economy by 2030.
But Dr Abdullahi warned that capital is only the first step. “Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” he said, stressing the need for improved governance, risk management and scrutiny of asset quality, liquidity and large exposures.
He also called on banks to strengthen cybersecurity, data protection and business continuity arrangements, and said the benefits of recapitalisation must reach rural communities, women, young entrepreneurs and smaller businesses.
Providing a broader update on financial sector indicators, the CBN said the average gap between official and parallel foreign exchange rates had narrowed from 68.2% between January and May 2023 to under 2%. Total foreign exchange inflows stood at $10.82bn in July 2026, with gross external reserves at $55.60bn as of 11 September. Net foreign portfolio inflows reached $6.31bn between January and August.
Michael Akuka, Director of Corporate Communications and Investor Relations at the CBN, urged journalists to scrutinise how the stronger balance sheets are used. “It is no longer whether the banking sector can raise capital, but what a better capitalised banking sector does with the additional capital,” he said.
Hakama Sidi‑Ali, Director of Stakeholder Engagement and Institutional Relations, said improved engagement between the CBN and the media had shaped the bank’s communication approach and encouraged continued dialogue with financial journalists.
