The Central Bank of Nigeria (CBN) has charged banks to translate the N4.65tn fresh capital raised under the banking sector recapitalisation programme into increased lending to the productive sectors of the economy.
The CBN Deputy Governor, Corporate Services, Dr. Muhammad Sani Abdullahi, gave the charge on Tueday at the 38th Seminar for Finance Correspondents and Business Editors organised by the Finance Correspondents Association of Nigeria (FICAN).
Speaking on the theme, “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era,” Abdullahi said the completion of the recapitalisation programme had strengthened the capacity of the banking system to support Nigeria’s growing financing needs.
He said 33 banks had met the revised minimum capital requirements by the end of the two-year programme announced in March 2024, raising a total of N4.65tn.
According to him, the additional capital should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.
“Capital, however, is a starting point. Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” he said.
The deputy governor said the impact of recapitalisation should not be assessed only by the amount of capital raised, but also by the quality of banking services and productive lending it supports.
He urged banks to provide financing suited to the cash flows and investment horizons of businesses across agriculture, manufacturing, services and infrastructure.
Abdullahi also called for greater access to finance for smaller businesses and households, stressing that stronger bank balance sheets should translate into wider financial inclusion and better services.
He said the recapitalised banking sector would be critical to Nigeria’s ambition of building a $1tn economy by 2030.
“Nigeria’s aspiration to build a one-trillion-dollar economy by 2030 requires banks capable of mobilising and allocating capital on a much larger scale,” he said.
He added that stronger capital buffers would give banks greater capacity to absorb losses during periods of economic stress while sustaining investment in innovation and digital transformation.
The CBN official, however, cautioned that stronger capital must be accompanied by sound corporate governance and effective risk management.
He said boards and management teams must demonstrate integrity, accountability and transparency while strengthening internal controls and guarding against excessive risk-taking.
He said the CBN would continue to pay close attention to governance, asset quality, liquidity and large exposures within the banking sector.
Abdullahi also identified cybersecurity, third-party dependencies, climate-related financial risks and rapid technological change as emerging threats requiring greater attention from financial institutions.
“As more financial services move to digital channels, banks must invest continuously in cybersecurity, data protection, disaster recovery and business continuity,” he said.
On the broader economic reforms, Abdullahi said the foreign exchange market had become more stable since the reforms introduced by the CBN in 2023.
He said the average gap between the official and parallel exchange rates had fallen from 68.2 percent between January and May 2023 to less than two percent.
He also disclosed that Nigeria’s gross external reserves stood at $55.60bn as of September 11, 2026, while the end-August reserves provided 11.3 months of import cover.
According to him, total foreign exchange inflows stood at $10.82bn in July 2026, with autonomous sources accounting for $7.33bn, or nearly 68 percent.
He said headline inflation, which reached 34.8 percent in December 2024, had moderated to 15.43 percent in July 2026, while real GDP grew by 4.43 percent in the second quarter of 2026.
Abdullahi said the developments reflected several factors, including monetary policy, oil receipts, remittances and global financial conditions, adding that the gains must be made more durable.
He urged banks, businesses, investors, regulators and other stakeholders to work together to build a financial system capable of withstanding shocks, supporting innovation and broadening economic opportunities.
The deputy governor also tasked the financial press with maintaining accurate and objective reporting of developments in the financial sector.
He said financial correspondents and business editors remained important intermediaries between policymakers, financial institutions, investors and the public, adding that fact-based reporting and analytical depth were essential to sustaining confidence in the financial system.
