Stronger bank capital must translate lnto more productive lending – CBN
CBN Building
Nike Popoola
The Central Bank of Nigeria (CBN) has said the success of the banking sector recapitalisation should ultimately be measured by the quality of banking services and productive lending it supports, rather than only by the amount of capital raised.
The Deputy Governor, Corporate Services, CBN, Dr. Muhammad Sani Abdullahi, stated this in his keynote address at the 38th Seminar for Finance Correspondents and Business Editors, held on September 29, 2026.
The seminar had the theme, “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era.”
According to Abdullahi, 33 banks had met the revised minimum capital requirements and raised ₦4.65tn by the end of the two-year recapitalisation programme announced in March 2024.
He said the stronger capital base would give banks greater capacity to support larger financing needs as the Nigerian economy grows, including financing for infrastructure, industrial expansion and international trade.
“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.
The CBN deputy governor, however, stressed that capital was only a starting point, noting that boards and management of banks must maintain sound controls, recognise risks early and lend based on viable projects.
He said sound corporate governance, integrity, accountability and transparency must underpin the operations of recapitalised banks, while institutions must strengthen internal controls and guard against excessive risk-taking.
Abdullahi also identified cybersecurity, data protection, disaster recovery and business continuity as important areas requiring continuous investment as financial services increasingly move to digital channels.
He said the CBN would continue to focus on governance, asset quality, liquidity and large exposures, alongside risk-based supervision, macroprudential surveillance and enhanced stress testing.
On the broader economy, he said agriculture, manufacturing, services and infrastructure needed financing suited to their cash flows and investment horizons, while smaller businesses and households required dependable payments, appropriate products and fair treatment.
He added that the benefits of stronger banks should extend to rural communities, women and young entrepreneurs, stressing that consumer protection and financial inclusion were integral to financial system resilience.
Abdullahi also said the foreign exchange market had shown greater stability following reforms introduced by the CBN, with the average gap between official and parallel market rates falling from 68.2 per cent between January and May 2023 to less than two per cent.
He said gross external reserves stood at $55.60bn as of September 11, 2026, while headline inflation had moderated to 15.43 per cent in July 2026 from 34.8 per cent in December 2024.
He noted that these developments represented progress but said pressure on households and businesses had not ended, adding that the CBN’s task was to make the improvements more durable.
Abdullahi urged financial correspondents and business editors to continue providing accurate and objective reporting, saying fact-based reporting and analytical depth were essential to sustaining confidence in the financial system.
