CBN SAYS BANK RECAPITALIZATION WILL STRENGTHEN ECONOMY
The Central Bank of Nigeria says the banking sector recapitalization will build a robust and resilient financial system.
Deputy Governor for Corporate Services, Dr. Muhammad Sani Abdullahi, said this at the 38th Seminar for Finance Correspondents and Business Editors in Abuja.
The theme of the seminar is “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalization Era.”
Dr. Abdullahi said the CBN started major reforms three years ago when Governor Olayemi Cardoso took office. He said the goal was to restore stability and rebuild confidence.
He said by 2023, Nigeria’s foreign exchange market was fragmented. He said the gap between official and parallel rates was over 60 percent in 2022. He said net usable reserves dropped to 859 million dollars in mid-2023, while outstanding forward claims exceeded 7 billion dollars.
He said the bank consolidated exchange windows in June 2023 and moved to a willing-buyer, willing-seller model. He said the bank also settled valid forward claims and introduced new trading rules to improve transparency.
He said the recapitalization program announced in March 2024 required banks to raise capital within two years. He said 33 banks have met the new requirements and raised 4.65 trillion naira.
He said the foreign exchange gap has narrowed from 68 percent in early 2023 to less than 2 percent. He said gross reserves rose to 55.6 billion dollars as of September 11, 2026, providing 11 months of import cover.
He said inflation rose to 34.8 percent in December 2024 but has moderated to 15.43 percent in July 2026. He said the economy grew by 4.43 percent in the second quarter of 2026.
He said stronger capital will help banks finance infrastructure, industry and trade as Nigeria targets a 1 trillion dollar economy by 2030.
He urged banks to strengthen corporate governance, risk management and cybersecurity. He said the CBN will continue risk-based supervision and stress testing.
He thanked finance correspondents for their reporting and scrutiny over the past three years.
