By 
Central Bank of Nigeria Governor Olayemi Cardoso has said Nigeria’s newly recapitalised banking sector is set to play a central role in the country’s ambition to build a $1 trillion economy, following sweeping reforms that have strengthened financial system resilience.
Speaking at the Africa Capital Forum in London, Cardoso noted that the recapitalisation exercise has significantly enhanced banks’ capacity to mobilise capital, improve liquidity, and support large-scale economic activities.
He described the transformation as a defining moment for the sector, revealing that 32 banks have successfully met the new capital thresholds, marking a shift toward a more robust and transparent financial system.
According to him, Nigerian banks have evolved into strong players not only domestically but also across Africa and in global markets, positioning themselves as key enablers of investment and growth.
Industry leaders at the forum echoed this sentiment, highlighting the depth of domestic participation in the recapitalisation process. Akin Ogunranti of Zenith Bank noted that over 70 percent of the capital raised came from local sources, underscoring growing confidence in Nigeria’s financial markets.
Executives also pointed to the impact of the exercise on lending capacity and deal size. Yemisi Edun of First City Monument Bank said the increased capital base is already translating into expanded credit availability, while Segun Alebiosu of First Bank of Nigeria noted that banks are now better equipped to finance larger transactions and attract international investors.
Similarly, Oliver Alawuba of United Bank for Africa (UBA) Plc highlighted the growing global footprint of Nigerian banks, revealing that a significant share of the bank’s revenue is now generated from operations outside Nigeria.
At Guaranty Trust Bank, Managing Director Miriam Olusanya pointed to renewed confidence in Nigeria’s banking system, noting improvements in correspondent banking relationships and international partnerships.
Government officials at the event also stressed the importance of private sector participation in achieving long-term economic growth. Sanyade Okoli reiterated that public funding alone would not be sufficient, calling for sustained inflows of long-term “patient capital” from both domestic and international investors.
Cardoso added that broader macroeconomic reforms have created a more stable environment for investment, with improved liquidity, reduced volatility, and stronger financial system fundamentals.
The recapitalisation programme, introduced in 2024, required banks to meet higher minimum capital requirements through equity injections, mergers, acquisitions, or licence restructuring. The initiative forms part of a wider strategy to strengthen Nigeria’s financial sector and support its long-term economic ambitions.
As Nigeria intensifies efforts to attract global capital and drive sustainable growth, the strengthened banking sector is expected to serve as a critical engine for financing infrastructure, supporting businesses, and unlocking new investment opportunities across the economy.
Comments