After ₦4.65 Trillion Recapitalisation, CBN Tightens Watch On Banks
By OBI DAVIES
THE Central Bank of Nigeria (CBN) is moving into a tougher phase of banking-sector supervision after the completion of the latest recapitalisation programme.
The apex bank says stronger capital alone cannot guarantee a resilient financial system. Instead, banks must combine bigger balance sheets with sound governance, effective risk management and productive lending.
Deputy Governor, Corporate Services, Muhammad Sani Abdullahi, stated this at the 38th Seminar for Finance Correspondents and Business Editors in Abuja.
The seminar focused on building a stronger and more resilient financial system after the recapitalisation exercise.
According to Abdullahi, the CBN will pay closer attention to governance, asset quality, liquidity and large exposures. It will also deepen risk-based supervision, macroprudential surveillance and stress testing.
Meanwhile, 33 banks met the revised minimum capital requirements at the end of the two-year programme. Collectively, they raised ₦4.65 trillion.
The CBN introduced the recapitalisation requirements in March 2024. The policy sought to strengthen banks’ capacity to finance a larger economy and support the country’s ambition of building a $1 trillion economy by 2030.
However, the regulator now wants to see what that additional capital can deliver.
Banks, Abdullahi said, must identify risks early and ensure that lending decisions depend on viable projects rather than capital size alone.
That shift could make productive lending a major measure of the post-recapitalisation era.
Rather than simply holding larger capital buffers, banks are expected to support infrastructure, manufacturing, trade and other productive activities while maintaining adequate protection against financial shocks.
At the same time, the CBN is widening its focus beyond traditional banking risks.
Cybersecurity, customer data protection, payment-system reliability and operational resilience are becoming increasingly important as financial services move further into digital channels.
The regulator also wants banks to strengthen their ability to recover from operational disruptions.
Furthermore, the CBN linked the banking reforms to wider changes in the economy.
Abdullahi said the gap between official and parallel foreign-exchange rates had fallen from an average of 68.2 per cent between January and May 2023 to below two per cent.
He also reported that gross external reserves stood at $55.60 billion as of September 11, while end-August reserves provided 11.3 months of import cover.
Inflation has also moderated from the 34.8 per cent recorded in December 2024 to 15.43 per cent in July 2026, according to figures presented at the seminar. Real GDP, meanwhile, grew by 4.43 per cent in the second quarter of 2026.
Still, the CBN acknowledged that lower inflation and stronger economic indicators have not eliminated pressure on households and businesses.
That caveat is important.
Ultimately, recapitalisation will be judged not only by the amount of money banks have raised but also by the quality of services customers receive and the financing available to productive sectors.
For smaller businesses, women, young entrepreneurs and underserved communities, that could become the more visible test of the banking reforms.
Consequently, the post-recapitalisation era is shaping up as a test of both bank strength and regulatory discipline.
The CBN has supplied the capital framework. Now, it wants banks to demonstrate that stronger balance sheets can translate into safer institutions, better services and broader economic financing.
