The Central Bank of Nigeria’s latest push for bank recapitalisation is more than just a financial adjustment — it’s a bold attempt to reset Nigeria’s economic foundation for long-term growth.
During a three-day retreat of the Association of Corporate Affairs Managers of Banks (ACAMB) in Abeokuta, Ogun State, the CBN’s Deputy Governor for Financial System Stability, Mr Philip Ikeazor, made it clear that the policy is not about size but strength.
Represented by Mr Ibrahim Hassan, he said, “The true goal of the exercise is not merely to create bigger banks but better banks — banks that are safe, sound, innovative, and inclusive.”
He explained that a stronger capital base will not only stabilise Nigeria’s financial sector but also improve the country’s competitiveness and ability to withstand domestic and global economic shocks.
According to Ikeazor, the recapitalisation policy is “a journey, not a destination,” aimed at empowering banks to fund large-scale projects, expand credit to productive sectors, and support the Federal Government’s goal of building a $1 trillion economy by 2030.
Reflecting on history, he recalled how the 2005 banking reform reduced the number of banks from 89 to 25 and strengthened the system. He expressed confidence that the current reforms under CBN Governor, Mr Olayemi Cardoso, will yield similar or even greater impact.
“I am confident that before the deadline in the first quarter of 2026, most banks will have met the new requirements either individually or through mergers,” he said. “This exercise will position Nigerian banks to better support economic growth and compete globally.”
At the same event, marketing expert and professor at the Lagos Business School, Prof. Tayo Otubanjo, urged banks not to treat recapitalisation as a mere compliance exercise but as an opportunity to reconnect with the real economy.
“After recapitalisation, banks will have more liquidity,” he said. “This is the time to push funds into productive sectors and empower those who genuinely drive the economy — small businesses, traders, and artisans.”
The ACAMB President, Mr Bolarinwa Babalola, described the retreat — which returned after a 15-year break — as a platform for collaboration among financial communication experts, regulators, and industry leaders.
Babalola said the recapitalisation initiative should be viewed as “a catalyst for re-imagining Nigerian banks as stronger, more inclusive institutions that can power the $1 trillion economy vision.”
He stressed that beyond growing balance sheets, “the real value lies in brand resilience — in deepening trust among customers and investors, and expanding financial inclusion for MSMEs, women-led enterprises, and the unbanked.”
The CBN had in March 2024 set new minimum capital requirements for banks: ₦500 billion for international banks, ₦200 billion for national banks, and ₦50 billion for regional banks. The apex bank said the measure is designed to strengthen the financial system, improve credit access, and position banks to play a key role in achieving Nigeria’s trillion-dollar ambition.
The policy has since stirred mergers, acquisitions, and new capital-raising efforts across the banking industry a sign that Nigerian banks are gearing up for a new era of resilience and global relevance.
