CBN urges Nigerian banks to prove recapitalisation with real lending‎

The apex bank lists governance, asset quality and cyber resilience as its next supervisory priorities
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‎• 33 banks raised ₦4.65trn, but the CBN says capital alone is not enough
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‎• Regulators will watch governance, asset quality, liquidity and large exposures
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‎• Banks are expected to fund real projects that support the $1trn economy target
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‎The recapitalisation deadline has passed, and the CBN has moved quickly to reset expectations. In a speech sighted by Confiance News, the bank said the raising of capital is where the real work starts.
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‎Dr. Muhammad Sani Abdullahi told finance journalists in Lagos that 33 banks met the revised minimum requirements and raised ₦4.65trn by the end of the two-year programme announced in March 2024.
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‎What the CBN wants for the money
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‎According to the address obtained by Confiance News, stronger buffers should let banks finance long-term infrastructure, industrial expansion and trade. They should also help Nigeria pursue its one-trillion-dollar economy aspiration by 2030.
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‎”Capital, however, is a starting point,” Abdullahi said. Boards and management, he added, must recognise risks early and lend on the strength of viable projects.
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‎Where regulators will look hardest
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‎Confiance News gathered that the CBN will keep close watch on governance, asset quality, liquidity and large exposures. Banks are also expected to protect customer data, keep payment services reliable and recover quickly from disruptions.
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‎In addition, risk management must go beyond credit risk. The address named market, liquidity and operational risks, cybersecurity, third-party dependencies and climate-related financial risks.
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‎Supervision will lean on risk-based methods, macroprudential surveillance and enhanced stress testing. Crisis preparedness and resolution planning will also stay on the agenda.
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‎Who should feel the benefit
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‎The bank said recapitalisation should be judged by the productive lending it supports, not only by the amount raised. Agriculture, manufacturing, small firms, rural communities, women and young entrepreneurs were all named as groups that should see wider access and better service.
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‎Business owners were not left out. The CBN urged them to improve transparency, governance and sustainability, which increasingly shape credit decisions.
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