CBN says Bank recapitalisation is strategic move to strengthen financial system
The Central Bank of Nigeria (CBN) has reiterated that the ongoing recapitalisation of banks is not merely a regulatory compliance exercise, but a strategic initiative aimed at strengthening the resilience, inclusiveness, and credibility of the nation’s financial system.
The apex bank views the exercise as a key enabler for positioning Nigeria to achieve its $1 trillion economic ambition by 2030.
Speaking at the three-day retreat of the Association of Corporate Affairs Managers of Banks (ACAMB) in Abeokuta, Ogun State, CBN Deputy Governor in charge of Financial System Stability, Mr. Philip Ikeazor, described the recapitalisation as “a statement of resilience and ambition” designed to equip Nigerian banks to withstand shocks, expand credit to the real sector, and drive inclusive economic growth.
He said the retreat’s theme, “Banks’ Recapitalisation and Beyond,” aligns directly with the apex bank’s priority of enhancing the soundness and competitiveness of the financial system.
“This recapitalisation follows a period of global financial volatility, inflationary pressures, and exchange-rate realignment.
“The primary objective of the CBN for the exercise is to ensure that Nigerian banks maintain sufficient buffers to absorb shocks, sustain credit flows, and remain competitive in an increasingly interconnected but more unpredictable global environment, ” he said.
Ikeazor urged industry stakeholders to be bold and deliberate, stressing that the 2030 economic goal is only five years away and requires collective resolve and ingenuity.
Drawing parallels with the landmark 2005 bank consolidation that created stronger financial institutions, he said the current exercise seeks to build banks capable of financing ambitious infrastructure projects, supporting innovation, and promoting inclusive and sustainable growth.
“The Central Bank views the ongoing recapitalisation exercise not as an end, but as a means to an end, an enabler for deeper financial intermediation, expanding access to credit, and supporting digital banking ecosystems,” he added.
In his remarks, ACAMB President Mr. Bolarinwa Babalola highlighted that the recapitalisation provides an opportunity to reimagine the future of Nigerian banking, emphasizing trust, inclusion, and collective growth.
He said, “the recent recapitalisation exercise is not merely a regulatory hurdle; it is a catalyst for reimagining Nigerian banks as stronger, more trusted, and more inclusive institutions that can support Nigeria’s ambition of a $1 trillion economy.”
Babalola stressed that beyond balance sheet growth, the real value lies in brand resilience, which includes retaining and deepening trust among customers, investors, and communities, as well as expanding financial inclusion for MSMEs, women-led enterprises, and the unbanked in rural areas.
He encouraged participants to use the retreat as a platform to form a community of practice that shares insights, pilots joint initiatives, and demonstrates how well-capitalised banks can catalyse inclusive growth.
He said, “When the tree is strong, the birds that rest on it are many,” urging all stakeholders to work together to build stronger institutions.
