President Bola Tinubu has reaffirmed his administration’s commitment to achieving a $1 trillion economy by 2026, leveraging a combination of fiscal and monetary policies. The Central Bank of Nigeria (CBN) and Deposit Money Banks (DMBs) are playing a key role in this effort by providing funding for productive sectors. As part of these measures, the government has introduced initiatives such as a N75 billion single-digit interest-rate fund to support manufacturing enterprises and other key industries.
A major driver of this economic push is the recapitalization of Nigerian banks, which aims to strengthen their resilience and ability to finance development projects. The last major banking recapitalization, conducted between 2004 and 2005, significantly improved financial stability. Building on that success, the CBN has introduced new capital requirements for banks, requiring commercial banks with international operations to raise at least N500 billion. Many banks have already completed their first phase of fundraising, securing over N1.185 trillion from the equities market.
Despite challenges such as a difficult business environment and low foreign investment appetite, Nigerian banks continue to demonstrate financial strength and investor confidence. With 36 commercial, merchant, and non-interest banks actively participating in this economic transformation, the financial sector remains a cornerstone of the country’s ambitious growth agenda. As banks ramp up their recapitalization efforts ahead of the April 2026 deadline, they are expected to drive further investments and economic expansion, positioning Nigeria for sustained economic growth.
Source: THIS DAY