The Central Bank of Nigeria has warned banks that stronger capital positions must be accompanied by improved corporate governance, responsible lending and tighter risk management as the financial sector enters the post recapitalization era.
The apex bank said increased capital alone would not guarantee the resilience of financial institutions if banks failed to strengthen internal controls and properly manage emerging risks.
CBN Deputy Governor for Corporate Services, Dr Muhammad Sani Abdullahi, delivered the message at the bank’s 38th Annual Seminar for Finance Correspondents and Business Editors in Abuja.
According to Abdullahi, the CBN will continue strengthening risk based supervision, macro prudential surveillance and stress testing to safeguard financial stability.
He disclosed that 33 banks had met the revised minimum capital requirements by the end of the recapitalization programme announced in March 2024, collectively raising N4.65 trillion.
The Deputy Governor said stronger capital should give banks greater capacity to finance infrastructure, industrial expansion and international trade while absorbing losses during periods of economic stress.
But he stressed that capital must be supported by responsible management.
The CBN expects bank boards and executives to strengthen internal controls, identify risks early and ensure lending decisions are based on viable projects.
Abdullahi said banks must increasingly manage risks beyond conventional credit exposure, including liquidity, market and operational risks, cybersecurity threats, third party dependencies and climate related financial risks.
He also stressed the importance of cybersecurity, data protection, disaster recovery and business continuity as financial services become increasingly digital.
The ultimate success of recapitalization, according to the CBN, should be measured not simply by how much money banks raised but by improvements in productive lending, financial inclusion and customer service.
The bank wants increased lending to agriculture, manufacturing, infrastructure and services, while rural communities, women, young entrepreneurs and smaller businesses should also benefit from the stronger banking system.
CBN Director of Banking Supervision, Dr Olubukola Akinwunmi, separately warned that banks would not be allowed to disregard regulations in pursuit of profits.
He said enforcement had intensified in areas including insider credit, corporate governance and offshore investments.
Akinwunmi also pointed to the introduction of risk based capital requirements in March 2026, under which individual banks are expected to maintain capital appropriate to their specific risk profiles and business models.
The regulator said its objective in the post recapitalization period is to ensure that stronger banks can withstand future economic and financial shocks while continuing to support Nigeria’s broader development ambitions.
