The Central Bank of Nigeria (CBN) has said the completion of the banking sector recapitalisation programme has strengthened the capacity of Nigerian banks to finance the country’s ambition of building a $1 trillion economy by 2030.
CBN Deputy Governor, Corporate Services, Dr Muhammad Sani Abdullahi, disclosed this on Tuesday while delivering the keynote address at the 38th Seminar for Finance Correspondents and Business Editors in Abuja.
Speaking on the theme, “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era,” Abdullahi said 33 banks had met the revised minimum capital requirements and collectively raised ₦4.65 trillion by the end of the two-year recapitalisation programme announced in March 2024.
He said the stronger capital base would enable banks to finance long-term infrastructure, industrial expansion and international trade while improving their ability to absorb economic shocks and invest in innovation and digital transformation.
According to him, Nigeria’s $1 trillion economic ambition requires financial institutions capable of mobilising and allocating capital on a much larger scale.
Abdullahi, however, stressed that stronger capital alone would not guarantee a resilient banking system, insisting that sound corporate governance, effective risk management and responsible lending must accompany recapitalisation.
“Capital, however, is a starting point. Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” he said.
He said the CBN would continue to focus on governance, asset quality, liquidity and large exposures, while requiring banks to strengthen cybersecurity, protect customer data and maintain reliable payment systems.
The Deputy Governor also disclosed that significant progress had been recorded in the foreign exchange market since the reforms began in 2023.
He said the average gap between official and parallel-market exchange rates had narrowed from 68.2 per cent between January and May 2023 to less than two per cent.
“This narrower gap gives businesses a more reliable basis for pricing and planning,” he said.
According to him, foreign exchange inflows have also become more diversified, with autonomous sources accounting for $7.33 billion, or nearly 68 per cent, of the $10.82 billion total inflows recorded in July 2026.
He added that remittances through International Money Transfer Operators reached $950 million in July, while net foreign portfolio inflows stood at $6.31 billion between January and August 2026.
Abdullahi said the country’s external buffers had also strengthened, with gross foreign exchange reserves reaching $55.60 billion as of September 11, 2026, while the end-August reserve position provided 11.3 months of import cover.
On inflation, he said headline inflation, which peaked at 34.8 per cent in December 2024, had moderated to 15.43 per cent in July 2026, while real GDP expanded by 4.43 per cent in the second quarter of 2026.
He cautioned, however, that the improvement did not mean pressure on households and businesses had ended, saying the CBN’s priority was to make the gains more durable while deepening investment and foreign exchange sources.
The Deputy Governor traced the reforms to the difficult economic conditions inherited in 2023, including a fragmented foreign exchange market, weak external buffers, high liquidity and substantial Ways and Means financing.
He said net usable reserves stood at only $859 million in the second quarter of 2023 after identified short-term obligations were taken into account, while outstanding foreign exchange forward claims exceeded $7 billion.
Ways and Means financing, he added, had reached about ₦26.6 trillion, while legacy development finance exposures exceeded ₦10 trillion.
Abdullahi said the CBN subsequently consolidated the existing foreign exchange windows, adopted a willing-buyer, willing-seller framework, removed restrictions affecting 43 categories of imports and settled valid outstanding forward claims.
He said the Bank also introduced the Electronic Foreign Exchange Matching System and the Nigerian FX Code to improve transparency, trading and market conduct.
Looking ahead, he said banks must prepare for increasingly complex risks arising from geopolitical uncertainty, climate change, cyber threats and rapid technological developments.
He said the CBN would continue to employ risk-based supervision, macroprudential surveillance and enhanced stress testing, alongside stronger consumer protection, fintech regulation, financial-sector coordination and crisis-resolution planning.
Abdullahi further urged banks to ensure that the benefits of recapitalisation extend beyond stronger balance sheets to productive lending, financial inclusion and improved services.
He said agriculture, manufacturing, services and infrastructure required financing suited to their cash flows and investment horizons, while smaller businesses and households needed dependable payments and appropriate financial products.
He also called on businesses to improve transparency, governance and sustainability, saying these factors increasingly influence credit assessment.
The Deputy Governor commended financial correspondents and business editors for their role in explaining monetary and financial reforms to the public, saying objective reporting was critical to market transparency, investor education and confidence in the financial system.
He said three years into the reform programme, the foundations of monetary and financial stability were stronger, but sustaining the progress would require disciplined supervision, responsible banking and continued attention to the needs of businesses and households.
