ABUJA, Nigeria (VOICE OF NAIJA)-The Central Bank of Nigeria has reaffirmed that the ongoing recapitalisation of commercial banks is critical to realising the Federal Government’s goal of creating a $1 trillion economy by 2030.
The CBN Deputy Governor for Financial System Stability, Mr. Philip Ikeazor, made this known on Friday during the three-day retreat of the Association of Corporate Affairs Managers of Banks in Abeokuta, Ogun State.
He emphasised that the recapitalisation initiative is a journey, not a destination, noting that the aim is to establish banks that are not just bigger in size but also stronger, better governed, and more inclusive.
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Represented by Mr. Ibrahim Hassan, Ikeazor stated: “The true goal of the exercise is not merely to create bigger banks but better bank that are safe, sound, innovative and inclusive.”
He explained that adequately capitalised banks will stimulate national development, boost competitiveness, and enhance the industry’s capacity to withstand both local and international economic pressures.
Referencing the 2005 recapitalisation exercise which saw Nigerian banks drop from 89 to 25 and strengthened the sector he pointed out that the current reforms fall within broader initiatives to reposition the financial system under the supervision of the CBN Governor, Mr. Olayemi Cardoso.
He remarked, “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. This exercise will position Nigerian banks to better support economic growth and compete globally.”
He further highlighted that the recapitalisation effort aims to establish financial institutions capable of funding major projects, increasing real sector lending, and driving Nigeria’s economic transformation.
Also speaking at the programme, Lagos Business School marketing professor, Prof. Tayo Otubanjo, urged banks to leverage the recapitalisation window to return to genuine banking by extending credit to small business owners, traders, and artisans.
He said, “After recapitalisation, banks will have more liquidity. This is the time to push funds into productive sectors and empower those who genuinely drive the economy.”
In his address, the President of ACAMB, Mr. Bolarinwa Babalola, described the retreat returning after a 15-year hiatus as a strategic platform for industry leaders, regulators, and financial communication experts to share knowledge.
Babalola stressed that the recapitalisation initiative is “not merely a regulatory hurdle” but a driver for reimagining Nigerian banks into stronger, more inclusive institutions capable of powering the $1 trillion economy vision.
He added, “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.”
Recall that in March 2024, the CBN introduced new minimum capital thresholds for commercial banks N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks.
According to the apex bank, the recapitalisation framework was developed to fortify the financial system, boost access to credit for the real sector, and enable banks to help achieve the $1 trillion economic goal by 2030.