The Central Bank of Nigeria (CBN) has challenged commercial banks to translate the N4.65 trillion raised through the banking sector recapitalisation programme into increased lending to productive sectors of the economy.
The CBN Deputy Governor, Corporate Services, Dr Muhammad Abdullahi, gave the charge on Tuesday at the 38th Seminar for Finance Correspondents and Business Editors Association of Nigeria (FICAN) in Abuja.
Abdullahi said 33 banks had met the revised minimum capital requirements by the end of the two-year recapitalisation programme, strengthening the capacity of the banking sector to support economic expansion.
According to him, the recapitalisation was designed not merely to produce stronger bank balance sheets but to create institutions capable of financing infrastructure, industrial expansion and international trade.
Abdullahi said the benefits of recapitalisation should extend beyond improved capital ratios to better financial services and increased productive lending.
He urged banks to provide appropriate financing for agriculture, manufacturing, services and infrastructure, while expanding access to financial services for rural communities, women and young entrepreneurs.
The deputy governor said stronger capital buffers would enable banks to absorb losses during periods of economic stress and invest in innovation and digital transformation.
He also stressed that consumer protection and financial inclusion remained essential to building a resilient financial system.
While urging banks to deploy their new capital effectively, Abdullahi said recapitalisation must be accompanied by stronger corporate governance, internal controls and risk management.
He called on bank boards and management teams to demonstrate integrity, accountability and transparency in protecting depositors, investors and other stakeholders.
According to him, risk management must cover credit, market, liquidity and operational risks, as well as cybersecurity and third-party dependencies.
The CBN, he said, would continue monitoring governance, asset quality, liquidity and large exposures across the banking industry.
Abdullahi also warned that the expansion of digital financial services was creating new risks that banks must address.
He said financial institutions needed to increase investments in cybersecurity, data protection, disaster recovery and business continuity.
Banks, he added, must protect customer data, maintain reliable payment services and have adequate systems to recover quickly from disruptions.
Abdullahi also highlighted the impact of the CBN’s foreign exchange reforms, saying they had contributed to greater stability in the FX market.
He said the average gap between official and parallel-market exchange rates fell from 68.2 per cent between January and May 2023 to less than two per cent currently.
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He recalled that Nigeria’s FX market had been heavily administered and fragmented in 2023, with multiple windows operating alongside the parallel market.
The CBN subsequently consolidated the existing FX windows, removed restrictions affecting 43 categories of imports, reviewed outstanding FX claims and settled valid claims worth more than $5 billion.
The apex bank also introduced an electronic FX matching system for interbank transactions and established the Nigeria FX Code to strengthen market conduct and transparency.
The deputy governor said foreign exchange inflows had also become more diversified, with autonomous sources accounting for $7.3 billion of the $10.8 billion recorded in July.
Remittances through international money transfer operators reached $950 million in July, while gross external reserves rose to $55.6 billion as of September 11.
Abdullahi said the CBN’s priority was to consolidate the gains while deepening investment and broadening the sources of foreign exchange.
The deputy governor said inflation had moderated from a peak of 34.8 per cent in December 2024 to 15.43 per cent in July 2026, while real GDP grew by 4.43 per cent in the second quarter of 2026, driven largely by non-oil activities.
He, however, acknowledged that the improvement in macroeconomic indicators had not eliminated pressures facing households and businesses.
Abdullahi said sustaining the progress would require disciplined supervision, responsible banking and continued attention to the needs of businesses and households.
The new Director of Corporate Communications, Michael Akuka, urged financial journalists to focus on the practical impact of monetary and banking-sector reforms.
He said the banking industry had entered a new phase following recapitalisation, with the key question now being what banks would do with the additional capital.
“The concern is how stronger balance sheets can translate into a financial system that can block shops, finance real economic activities, and maintain the confidence of the Nigerian people,” Akuka said.
He urged finance correspondents and business editors to go beyond headlines and seek greater context in reporting financial-sector developments.
“Go past the headline, ask follow-up questions. You can ask the second question, the third, the fourth and as many as you need to ask,” he said.
