The Central Bank of Nigeria has announced that approximately 20 deposit money banks have met the new capital requirements under the ongoing banking recapitalisation programme. This development comes as the apex bank shifts its focus towards ensuring that stronger balance sheets translate into real sector credit growth.
According to Dr Muhammad Abdullahi, Deputy Governor, Economic Policy, Central Bank of Nigeria, the recapitalisation programme is designed to build stronger banks capable of supporting Nigeria’s ambition of becoming a trillion-dollar economy. Abdullahi disclosed this while speaking on a panel at the launch of the 2026 Macroeconomic Outlook of the Nigerian Economic Summit Group in Lagos. He noted that the focus is now on ensuring that the benefits of recapitalisation are transmitted to priority sectors of the economy, particularly small and medium-sized enterprises (SMEs) and businesses that require funding at good rates.
The Central Bank has spent the past year strengthening its regulatory capacity through technology to monitor the effects of recapitalisation and ensure that banks channel increased capital into productive lending. Abdullahi warned that recapitalisation alone is not sufficient and that the focus must now shift from bigger balance sheets to productive and sustainable lending. He added that the apex bank would intervene where banks fail to meet these expectations.
Beyond banking, Nigeria faces a significant development finance challenge, with an estimated funding need of about N230 trillion across critical sectors. The capitalisation of development finance institutions combined is not up to N9 trillion, leaving a huge gap. The focus has shifted towards mobilising private sector capital, both domestic and international, to close the funding shortfall. The Central Bank has held discussions with the Ministry of Finance, which has taken the lead on development finance strategy, while the CBN supports the framework through financial system stability and regulation.
In a related development, the Minister of State for Industry, Senator John Enoh, unveiled the National Industrial Policy, aimed at driving job creation, boosting manufacturing capacity, and reducing the country’s dependence on imports. The policy is built on execution-led design, clear sequencing, institutional ownership, performance benchmarks, timelines, and alignment across trade, investment, finance, energy, skills, infrastructure, and regulation. The policy targets sectors such as agro-processing, solid minerals, petrochemicals, automotive, and pharmaceuticals, with defined local value-addition thresholds.
The successful implementation of these policies and programmes will be crucial in driving economic growth and development in Nigeria. As the country moves forward, it is essential to ensure that the benefits of recapitalisation and development finance are felt across all sectors, creating jobs and prosperity for its citizens.
