CBN says banking recapitalisation complete; now focuses on governance and productive lending
The CBN confirmed 33 banks met revised capital requirements by raising N4.65 trillion, marking the end of its two-year recapitalisation programme. However, Deputy Governor Muhammad Sani Abdullahi stressed that stronger capital is merely the starting point—the real test lies in banks' governance, risk management, and deployment of capital into productive lending that supports Nigeria's $1 trillion economy goal by 2030.
Abdullahi spoke at the CBN's 38th Seminar for Finance Correspondents in Abuja, noting banks must now use their stronger balance sheets to finance long-term infrastructure, industrial expansion, and international trade while improving services for rural communities, women, and young entrepreneurs. The apex bank will intensify supervision on governance, asset quality, liquidity, cybersecurity, and operational resilience, moving beyond traditional credit risks to include market, liquidity, operational, cybersecurity, third-party, and climate-related financial risks.
Meanwhile, Nigeria's FX market shows significant improvement: the official-parallel rate gap fell from 68.2% (Jan-May 2023) to under 2%, with autonomous FX inflows hitting $7.33 billion of $10.82 billion total in July 2026. Headline inflation moderated to 15.43% in July 2026, real GDP grew 4.43% in Q2, and gross external reserves reached $55.60 billion as of September 11. Abdullahi acknowledged household and business pressures persist but urged making these gains durable through better capital deployment.
Will banks actually lend to power Nigeria's industrial and agricultural growth, or will stronger capital sheets sit idle while businesses struggle to access finance?