The Central Bank of Nigeria (CBN) has reaffirmed that the ongoing recapitalisation of commercial banks remains pivotal to the Federal Government’s ambition of building a $1 trillion economy by 2030.
The CBN Deputy Governor for Financial System Stability, Mr. Philip Ikeazor, stated this on Friday during a three-day retreat of the Association of Corporate Affairs Managers of Banks (ACAMB) held in Abeokuta, Ogun State.
Describing the recapitalisation policy as “a journey, not a destination,” Ikeazor said the initiative aims to create banks that are not only bigger but stronger, well-governed, and inclusive.
Represented by Mr. Ibrahim Hassan, the deputy governor 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 adequately capitalised banks would strengthen national development, improve competitiveness, and enhance the financial system’s resilience against both domestic and global economic shocks.
Citing the 2005 recapitalisation exercise that reduced the number of Nigerian banks from 89 to 25, Ikeazor noted that the current reforms are part of broader efforts by CBN Governor Mr. Olayemi Cardoso to reposition the banking sector for sustainable growth.
“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.”
He added that the recapitalisation drive seeks to strengthen financial institutions to fund large-scale infrastructure projects, expand credit to the real sector, and drive Nigeria’s broader economic transformation agenda.
Also speaking at the retreat, Professor Tayo Otubanjo of the Lagos Business School urged banks to take advantage of the recapitalisation to engage in “real banking” by extending credit to small businesses, traders, and artisans.
“After recapitalisation, banks will have more liquidity,” Otubanjo said. “This is the time to push funds into productive sectors and empower those who genuinely drive the economy.”
In his remarks, ACAMB President Rasheed Bolarinwa described the retreat — returning after a 15-year hiatus — as a vital platform for collaboration among financial communicators, regulators, and industry leaders.
He noted that the recapitalisation effort should be viewed not merely as a regulatory requirement but as “a catalyst for reimagining Nigerian banks as stronger, more inclusive institutions capable of powering the $1 trillion economy vision.”
“Beyond balance-sheet growth, the real value lies in brand resilience — the ability to deepen trust among customers and investors — and in expanding financial inclusion for MSMEs, women-led enterprises, and the unbanked,” Bolarinwa added.
Recall that in March 2024, the CBN announced new minimum capital thresholds for commercial banks — ₦500 billion for international banks, ₦200 billion for national banks, and ₦50 billion for regional banks.
The apex bank explained that the policy aims to strengthen the financial system, improve access to credit for the real sector, and empower banks to play a catalytic role in achieving Nigeria’s $1 trillion economic target by 2030.
