By Seun Ibiyemi
The Central Bank of Nigeria (CBN) has emphasised that strong corporate governance and rigorous risk discipline are essential to the success of the country’s ongoing bank recapitalisation programme.
This position was reiterated by the apex bank during a virtual risk management roundtable organised by the Association of Enterprise Risk Management Professionals in Lagos.
Speaking at the event, Director of Risk Management Department and Chief Risk Officer at the CBN, Blaise Ijebor, said the recapitalisation exercise is a strategic intervention aimed at strengthening the resilience of financial institutions and positioning the sector for sustainable growth.
Represented by Olabanji Samuel, Ijebor noted that past banking reforms, particularly those of 2004–2005 and the aftermath of the 2009 financial crisis, demonstrated that capital alone cannot guarantee stability.
“Capital builds strength, but governance sustains it,” he said, warning that weak governance, poor credit practices and incentive-driven lending had previously undermined well-capitalised banks.
According to him, the current recapitalisation programme is aligned with global best practices and incorporates measures such as stress testing, capital adequacy requirements and recovery planning to ensure banks can withstand economic shocks without public intervention.
Ijebor identified critical risk areas requiring attention, including balance sheet vulnerabilities, operational and integration risks, systemic threats, as well as governance and compliance issues.
He stressed the need for strong board oversight, accurate asset valuation and robust anti-money laundering and counter-terrorism financing frameworks.
He also urged risk and compliance professionals to play a more strategic role by providing forward-looking assessments of how recapitalisation, mergers and acquisitions could reshape institutional risk profiles.
The CBN official noted that the exercise presents opportunities for banks to strengthen enterprise risk management systems, improve data quality and integrate risk considerations into strategic decision-making.
He cautioned, however, that increased capital should not lead to excessive risk-taking, urging boards to align capital allocation with long-term value creation.
“Opportunities will not realise themselves; they depend on the choices we make today,” he said, adding that transparency, accountability and strong governance structures would determine the success of the exercise.
Panelists at the event, including Olufemi Awoyemi, Bunmi Lawson and Ehi Esoimeme, noted that while recapitalisation is strengthening financial institutions, it also poses systemic risks that require improved coordination among regulators.
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They highlighted concerns such as market strain from simultaneous capital raising, financial crime risks and the need for stronger regulatory frameworks.
The panelists agreed that although recapitalisation offers significant growth opportunities, effective governance and risk management remain critical to sustaining long-term value in Nigeria’s financial system
