Recapitalisation: 20 Banks Meet Capital Requirements Ahead of Deadline

The Central Bank of Nigeria has disclosed that about 20 deposit money banks have already met the new capital requirements under the ongoing banking recapitalisation programme, as the apex bank shifts attention to ensuring that stronger balance sheets translate into increased credit to the real sector.

This was revealed by the Deputy Governor, Economic Policy, Central Bank of Nigeria, Dr Muhammad Abdullahi, while speaking on a panel at the launch of the Nigerian Economic Summit Group’s 2026 Macroeconomic Outlook in Lagos.

Abdullahi explained that the recapitalisation exercise was designed to create stronger banks capable of supporting Nigeria’s ambition of becoming a trillion-dollar economy. According to him, the goal is to ensure that well-capitalised banks can extend affordable credit to small and medium-scale enterprises and businesses that drive economic growth.

As the deadline approaches, he noted that progress has been significant, with about 20 banks already meeting the requirements and more achieving compliance daily. He added that activity within the Central Bank remains intense as institutions work toward full compliance by March.

However, Abdullahi emphasised that recapitalisation alone is not enough, stressing that the priority must now be on productive, targeted, and sustainable lending. He said the Central Bank is focused on ensuring that increased capital bases are effectively channelled into sectors that support economic development.

He further stated that over the past year, the apex bank has strengthened its regulatory capacity through the use of technology to closely monitor how recapitalisation impacts credit flow to the real sector, particularly to SMEs. He added that the Central Bank would intervene where banks fail to deploy increased capital into productive lending.

Beyond the banking sector, Abdullahi highlighted Nigeria’s significant development finance challenge, estimating the country’s funding needs at about N230tn across key sectors. He noted that the combined capitalisation of development finance institutions is far below this level, creating a substantial financing gap.

According to him, efforts are now focused on mobilising private sector capital, both locally and internationally, to bridge this gap. He said the Ministry of Finance has taken the lead on development finance strategy, with the Central Bank providing support through regulation and financial system stability. He also noted ongoing efforts to reform incentives within development finance institutions to ensure funds are deployed efficiently and responsibly.

Abdullahi expressed optimism that closer coordination between fiscal and monetary authorities would yield visible results in the coming months as capital mobilisation improves.

Also speaking at the event, the World Bank Group’s Senior Economist for Nigeria, Dr Samer Matta, said monetary authorities had largely exhausted the tools available to them in managing current economic challenges.

Meanwhile, the Minister of State for Industry, Senator John Enoh, unveiled the National Industrial Policy, aimed at driving job creation, expanding manufacturing capacity, and reducing Nigeria’s dependence on imports. He explained that the policy is built on clear execution strategies, performance benchmarks, timelines, and alignment across trade, investment, finance, energy, skills, infrastructure, and regulation.

The policy is structured around six pillars, including competitive industrial production, value-chain development and import substitution, MSME-to-industry transition, trade competitiveness and AfCFTA readiness, and strong institutional governance under a Nigeria-First framework.

Enoh said the policy targets sectors such as agro-processing, solid minerals, petrochemicals, automotive, and pharmaceuticals, with defined local value-addition thresholds. He described the goal of increasing manufacturing’s contribution to GDP to 20–25 per cent by 2030 as ambitious but achievable.

On MSMEs, he noted that while Nigeria has over 40 million small businesses, the key challenge is integrating them into industrial value chains through access to long-term finance, supply development, and relevant skills. He stressed that implementation would determine the policy’s success, adding that a detailed implementation framework would be unveiled alongside the policy.

According to him, stability has been achieved and consolidation is ongoing, but the ultimate objective remains job creation and shared prosperity driven by disciplined execution and collective commitment.