The Central Bank of Nigeria (CBN) has disclosed that approximately 20 deposit money banks have already met the new capital requirements under the ongoing banking recapitalisation programme, shifting focus toward ensuring stronger balance sheets translate into real sector credit growth.
Deputy Governor, Economic Policy, Dr Muhammad Abdullahi, made the disclosure on January 16, 2026, during a panel at the launch of the 2026 Macroeconomic Outlook of the Nigerian Economic Summit Group in Lagos.
At the last Monetary Policy Committee meeting of 2025, CBN Governor Olayemi Cardoso had reported that 16 banks achieved full compliance ahead of the deadline.
Abdullahi explained that the recapitalisation programme was designed to build stronger banks capable of supporting Nigeria’s ambition of becoming a trillion-dollar economy through increased credit to SMEs and businesses at competitive rates.
He noted that efforts have been impressive, with about 20 banks already compliant and more meeting the threshold daily, describing the period leading to March as very busy within the CBN.
Abdullahi stressed that recapitalisation alone is insufficient, warning that the focus must shift from bigger balance sheets to productive, well-targeted, and sustainable lending.
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The CBN has strengthened its regulatory capacity through technology to monitor and ensure the benefits of recapitalisation reach priority sectors, particularly SMEs.
He affirmed that the apex bank would intervene where banks fail to channel increased capital into productive lending.
Abdullahi highlighted Nigeria’s significant development finance challenge, estimating the country’s funding needs at about N230 trillion across critical sectors.
He pointed out that the combined capital of all development finance institutions is less than N9 trillion, leaving a huge gap.
The CBN is mobilising private sector capital, both domestic and international, to close the shortfall, while the Ministry of Finance now leads the development finance strategy with CBN support through regulation and stability measures.
Efforts are underway to correct incentives within development finance institutions to ensure funds are deployed efficiently and not treated as expendable public resources.
Abdullahi expressed optimism that progress would become evident in the coming months as fiscal and monetary authorities align to mobilise capital for growth and development.
