By Abubakar Yunusa
The Central Bank of Nigeria (CBN) said banks are now better positioned to finance small and medium enterprises (SMEs), large-scale infrastructure and industrial projects following the completion of its recapitalisation exercise.
In a fact sheet released on Saturday, the apex bank said the programme has strengthened the capital base of lenders, enhancing their capacity to support long-term, high-value investments across sectors such as energy, manufacturing, and technology.
According to the regulator, banks collectively mobilised N4.65 trillion in new capital, with 33 institutions meeting the revised minimum requirements.
The CBN said the recapitalised banking sector would play a critical role in advancing Nigeria’s industrialisation and export diversification agenda.
“Increased capital enables banks to finance infrastructure, energy, manufacturing, and technology projects that require long-term, high-value funding,” the regulator said.
“The recapitalised sector will better support the renewed industrialisation and export diversification agendas.”
The apex bank added that stronger balance sheets would enable banks to take on bigger financing commitments while improving overall financial system stability.
Further highlighting the benefits of the recapitalisation exercise, the CBN said larger capital buffers would allow banks to absorb shocks, align with global regulatory standards, and improve risk management and governance practices across the sector.
“By building banks ‘fit for purpose’ in a trillion-dollar economy, the sector can sustainably finance SMEs, export-oriented firms, and major infrastructure projects,” CBN said.
“The recapitalisation is expected to anchor financial inclusion and broaden access to credit nationwide.”
According to the apex bank, the exercise aligns with broader fiscal and monetary policy objectives, supporting liquidity management, policy transmission, and inflation control.
The regulator described the programme as the most significant banking reform since the 2005 Nigerian banking consolidation, adding that it marks a major step towards building a more stable, competitive, and growth-oriented financial system.
The CBN also said that banks yet to fully meet the new capital thresholds remain operational and are in the process of recapitalisation.
Speaking on the milestone, Olayemi Cardoso, governor of CBN, said sustainable economic growth is unattainable without a resilient financial system.
“This recapitalisation ensures Nigerian banks can fund the scale of transactions needed to drive a $1 trillion economy,” Cardoso said.
The CBN governor also said the recapitalisation programme has reinforced the “resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks”.
