The Central Bank of Nigeria (CBN) has confirmed that Nigerian banks are well on course for the ongoing recapitalisation exercise, a move that is gaining both local and international attention.
Dr. Olubukola Akinwumi, Director of the Banking Supervision Department at the CBN, shared this update during the 36th Finance Correspondents and Business Editors Association of Nigeria (FICAN) Seminar, held in Abuja.
The seminar, hosted by the CBN, carried the theme “Playing the Global Game: Banking Recapitalisation Towards a One-Trillion Dollar Economy.” The event gathered key players from the financial sector to discuss how Nigeria’s banking system can align with the federal government’s long-term economic vision.
While answering questions from journalists, Akinwumi noted that Nigerian banks are showing strength and stability, despite ongoing challenges such as fluctuating exchange rates.
According to him, these institutions are actively making efforts to meet the recapitalisation deadline set by the CBN. However, he did not disclose specific figures regarding how much each bank has raised so far.
He also said that the government is currently supporting growth in sectors like agriculture, education, infrastructure, and healthcare. These are areas believed to have long-term economic benefits, and the banking sector is expected to play a crucial role in financing these initiatives.
“The banking sector is ready and open for new investments,” Akinwumi said. He added that the CBN has developed various flexible options for banks to raise the needed capital. These include initial public offerings, rights issues, private placements, and even mergers and acquisitions, depending on what works best for each bank.
The CBN, he noted, is also taking serious steps to block any unverified or illicit funds from entering the banking system. Every incoming fund will undergo strict checks to ensure its source is clean and transparent.
Speaking at the seminar as well, Mr. Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), shared his views on the recapitalisation process.
He called for unity and support from Nigerians in order to boost the sector’s success. “We need to encourage the use of Nigerian-made goods and services,” he said, noting that this shift in mindset could greatly help the economy and the banks.
Alawuba also stated that Nigerian banks are working more closely with international partners and expanding their reach across the African continent. According to him, banks from Nigeria and other African nations are now becoming major players in the regional market.
He expressed confidence that local banks will meet the CBN’s recapitalisation target. However, he appealed to the CBN to consider offering extra time to banks that might need minor extensions to comply with all requirements.
