The Central Bank of Nigeria (CBN) has charged the banking sector to reflect success of the recapitalisation exercise with a booming economy where access to finance by deserving business entities is guaranteed.
The apex bank’s Deputy Governor, Corporate Services, Muhammad Sani Abdullahi, gave the charge on Tuesday at the eighth seminar for financial correspondents and business editors in Abuja.
Abdullahi said the banking sector needed to channel its increased financial capacity into productive sectors including agriculture, manufacturing, services and infrastructure.
“The wider economy should see the benefit over time. Agriculture, manufacturing, services, and infrastructure need finance suited to their cash flow and investment varieties,” he said.
The deputy governor said smaller businesses and households also needed dependable payment services and appropriate financial products.
According to Abdullahi, stronger bank balance sheets should translate into wider access to finance and better services for customers, including those in rural communities, women and young entrepreneurs.
He also urged businesses to improve corporate transparency, governance and sustainability to enable banks to assess credit risks more effectively.
Abdullahi said the apex bank would continue to focus on governance, consumer protection, cybersecurity, data protection, reliable payment services and business continuity.
He said the CBN’s supervisory approach would also emphasise risk-based supervision, market surveillance and enhanced stress testing.
“Consumer protection and financial inclusion are integral to resilience. A system that people can access, understand, and trust is better able to support inclusive growth,” Abdullahi said.
The deputy governor also called on financial correspondents and business editors to continue providing accurate and objective reporting on developments in the financial system.
He said the media remained an important link between policymakers, financial institutions, investors and the public.
Michael Akuka, director of corporate communications and investor relations at the CBN, said the focus had shifted from whether banks could raise capital to how the additional capital would be deployed.
“The question has changed. It is no longer whether the banking sector can raise capital, but what a better supervised banking sector does with the additional capital,” Akuka said.
He added that stronger balance sheets should enable banks to absorb shocks, support real economic activity and maintain public confidence.
The CBN launched the bank recapitalisation exercise in March 2024, directing commercial, merchant and non-interest banks to raise their minimum capital levels by March 31, 2026.
At the end of the exercise, 33 banks met the minimum capital requirements and raised N4.65 trillion.
