The Central Bank of Nigeria (CBN) has explained that the ongoing reforms in the banking sector, particularly the recapitalization exercise, are aimed at repositioning Nigerian banks to contribute to national development and growth.
Speaking at a three-day retreat organized by the Association of Corporate Affairs Managers of Banks (ACAMB) held in Abeokuta at the weekend, the CBN Deputy Governor on Financial System Stability, Mr. Philip Ikeazor stated that the reforms would enable Nigerian banks to participate in the global economy, be more competitive, and resilient to external and internal shocks.
Ikeazor, represented by Mr. Ibrahim Umar Hassan drew parallels with the 2005 recapitalization exercise, which consolidated Nigerian banks and made them stronger, allowing them to contribute to the economy and expand regionally.
Delivering a lecture on the theme of the retreat tagged: Olumo 2025 "Banks Recapitalisation and Beyond: Amplifying Brand Resilience & Stakeholders' Financial Inclusivity, the CBN Deputy Governor noted that the current exercise is aimed at achieving Nigeria's vision of becoming a $1 trillion economy by 2030.
The CBN Governor emphasized that the reforms are for the betterment of the banks, the industry, and ultimately, Nigerians and the Nigerian economy.
He expressed optimism that a large number of banks would meet up the requirements before the expiration of the deadline in the first quarter of 2026 and be recapitalized individually or through mergers.
He commended ACAMB for being a strategic partner in projecting the right message to Nigerians on how it contributes positively to the improvement in the standard of lives and living of Nigerians.
"I am confident quite a large number of banks have already met the requirement, and before the expiration of the deadline in 2026 I can assure you that all banks will be recapitalized in the sense of either individually or through mergers and whatever strategic alignments that may take place.
I promise you that without any fear of contradiction, the objectives of the exercise will be achieved.
"A lot of reforms are taking place at the Central Bank of Nigeria, under the leadership of the governor, Mr. Olayemi Cardoso, and these reforms, especially in the banking sector, where we're talking about recapitalization, is aimed primarily to reposition Nigerian banks to make them bigger, but more importantly, better parts.
"What that means is it gives them the capacity to actually contribute to national development and growth, ability to participate in the global economy, be more competitive and also be resilient to external, internal shocks that inevitably every economy faces from time to time.
So the recapitalization, as if you may recall, in 2005 a similar exercise took place, which positioned many Nigerian banks at that time, but we recapitalized them, consolidated them to only 25 banks that became stronger, better banks more resilient to shocks, which made it possible for Nigerian banks to contribute to the Nigerian economy.
And also participate in the regional economy of West Africa, East Africa, and even globally.
As a result of that exercise, we now have Nigerian banks that are bankrolling big ticket items all over the world, have presence in West African countries, East African countries, major financial centers like London, Paris.
So it is in the same vein, this recapitalization exercise is equally taking place for us to achieve the lofty vision of Nigeria becoming a $1 trillion economy by year 2030."
In his welcome address, the ACAMB President, Mr. Rasheed Bolarinwa noted there is need to create confidence in the banking sector through the reputation and perception managers.
He added the Corporate Communications Managers build trust among the Nigerian public of the critical roles banking system plays in their lives and economy.
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