Nigeria: FG backs Cardoso’s reforms, bank recapitalisation drive

President Bola Ahmed Tinubu has expressed strong support for the ongoing reform agenda of the Central Bank of Nigeria (CBN) under Governor Olayemi Cardoso, commending efforts to stabilise the economy and strengthen the banking sector.

Speaking at the inauguration of the Gateway International Airport in Ogun State, the President linked the current bank recapitalisation programme to wider macroeconomic reforms, describing the approach as deliberate and results-driven.

“I must commend Olayemi Cardoso for his efforts. His policies are helping to deliver progress for our economy,” Tinubu said, signalling confidence in the CBN’s direction.

The endorsement highlights the administration’s backing of reforms aimed at restoring investor confidence, improving financial system resilience, and positioning the economy for sustainable growth.

Central to the reform agenda is the recapitalisation of banks, including intervention institutions such as Union Bank of Nigeria, Polaris Bank, and Keystone Bank, which are at varying stages of meeting new capital requirements.

The CBN has maintained that all affected banks remain operational and stable, with the capacity to meet customer obligations as regulatory processes continue.

As part of its supervisory role, the apex bank conducted an audit of Union Bank that uncovered significant governance concerns, leading to the removal of its board and senior management in early 2024. The decision is currently subject to legal proceedings, with the regulator pursuing an appeal.

Meanwhile, efforts to consolidate parts of the banking sector, including a proposed merger involving Providus Bank and Unity Bank, are progressing despite initial legal challenges, which are nearing resolution.

Recapitalisation processes for Polaris Bank and Keystone Bank are also ongoing under close regulatory oversight, following earlier interventions by the CBN to stabilise both institutions.

Tinubu’s remarks underscore the government’s confidence in the sequencing and execution of financial sector reforms, which are seen as critical to strengthening the banking system and supporting broader economic recovery.