Lagos State Governor, Babajide Sanwo-Olu, has urged Nigerian banks to channel the extra capital raised by way of the not too long ago concluded recapitalisation train in the direction of financing industries, increasing companies and creating employment alternatives.
Sanwo-Olu made the decision on Saturday, October 31, 2026, whereas delivering his particular remarks as host governor on the 2026 Fellowship Investiture Ceremony of the Chartered Institute of Bankers of Nigeria (CIBN), held at Harbour Point Events Centre, Victoria Island, Lagos.
The ceremony celebrated 755 distinguished recipients, comprising 18 Honorary Fellows, 460 Elected Fellows and 277 Honorary Senior Members, in accordance to CIBN President and Chairman of Council, Dele Alabi, who disclosed the figures in his opening remarks.
Sanwo-Olu, CIBN search productive use of banks’ recent capital
Sanwo-Olu mentioned the profitable recapitalisation of Nigerian banks had strengthened the monetary system, however confused that the following precedence must be making certain the extra capital interprets into productive investments, industrial enlargement and employment.
- “Recapitalisation has strengthened the capacity of our banks to withstand economic pressures and undertake larger transactions. But raising capital is only the beginning,” Sanwo-Olu mentioned on the occasion.
- “The true measure of success will be how effectively that capital supports productive enterprises, industrial expansion and economic opportunities for Nigerians,” he added.
He famous that Nigerian producers require inexpensive, long-term financing to buy equipment, develop manufacturing and compete in worldwide markets. Similarly, agricultural processors want funding for storage, processing and distribution, whereas rising companies require credit score services that replicate the realities of their operations.
Also talking, CIBN President and Chairman of Council, Dele Alabi, mentioned the profitable completion of the recapitalisation train had shifted consideration in the direction of how successfully banks would deploy their elevated capital to help Nigeria’s productive sectors.
He mentioned the extra capital offers a possibility to finance industrial improvement, infrastructure, small companies and different actions able to producing sustainable financial development.
- “Nigeria now has a historic opportunity to deploy this enhanced capital towards manufacturing, agriculture, infrastructure, energy, technology, and other productive sectors. The true measure of recapitalisation will not be the size of balance sheets, but the scale of economic transformation it enables,” Alabi mentioned.
The CIBN president additionally disclosed that the institute would maintain its MSME Forum on December 1, 2026, to develop sensible approaches to enhancing entry to finance and supporting enterprise development. He added that the institute was advocating the institution of SME Hubs throughout the nation to present companies with financing, capability improvement, digital instruments and entry to markets.
Why CBN launched the financial institution recapitalisation train
The Central Bank of Nigeria (CBN) launched its banking sector recapitalisation programme as a part of efforts to strengthen the monetary system, enhance banks’ capability to soak up financial shocks and place lenders to finance bigger transactions.
- The initiative adopted the appointment of Olayemi Cardoso as CBN Governor in September 2023, with the apex financial institution subsequently unveiling the revised minimal capital necessities on March 28, 2024.
- Under the coverage, industrial banks with worldwide authorisation had been required to enhance their minimal capital base to N500 billion, whereas these with nationwide authorisation got a N200 billion threshold. Banks working with regional licences had been required to preserve a minimal capital base of N50 billion.
- The CBN offered a 24-month compliance window, starting April 1, 2024, and ending March 31, 2026, for affected monetary establishments to meet the brand new necessities.
On April 1, 2026, the apex bank announced that 33 banks had met the revised minimum capital requirements following the conclusion of the exercise.
The regulator disclosed that banks raised a mixed N4.65 trillion in recent capital over the 24-month interval, with 72.55% sourced from home buyers and the remaining 27.45% from worldwide markets.
High borrowing prices, credit score constraints nonetheless weigh on Nigerian companies
Despite the stronger capital place of Nigerian banks, entry to inexpensive financing stays a significant problem for companies, notably micro, small and medium-sized enterprises (MSMEs).
- In September 2026, the CIBN raised concerns about the difficulties confronting MSMEs, noting that prime working bills and different structural constraints continued to have an effect on their skill to develop, regardless of enhancements recorded in some areas of the Nigerian economic system.
- The problem additionally extends to accessing formal credit score. Data cited by the National Credit Guarantee Company (NCGC) in July 2025 indicated that roughly 80% of Nigerian MSMEs remained outdoors formal credit score channels, largely due to stringent collateral necessities and lenders’ reluctance to tackle the perceived dangers related to smaller companies.
- The value of borrowing additionally stays an essential consideration for companies looking for financing to develop their operations.
In September 2026, the CBN reset the Monetary Policy Rate (MPR) by 350 foundation factors to 23%, following the 307th assembly of its Monetary Policy Committee in Abuja. The adjustment brought the benchmark down from 26.5%, though the 23% price stays comparatively excessive for companies looking for inexpensive credit score.
