Banks’ N4.6trn New Capital Must Find Way to Create Jobs, Cardoso

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has charged banks to ensure that the over N4.6 trillion raised through the banking sector recapitalisation exercise is channelled into productive sectors of the economy to create jobs, support businesses and boost foreign exchange earnings.

Cardoso said the recapitalisation exercise, which ended on March 31, 2026, was never designed to merely strengthen banks’ balance sheets but to expand their capacity to finance economic growth and absorb greater risks in support of the real sector.

Noting that the recapitalisation exercise mobilised N4.65 trillion in fresh capital, with 33 banks meeting the minimum capital requirements applicable to their licences, Cardoso said nearly 73 per cent of the capital came from domestic investors, while the balance was raised from international markets, showing a strong vote of confidence in Nigeria’s banking sector.

Cardoso, however, said the focus must now shift from raising capital to deploying it where it will have the greatest impact on the economy. “Recapitalisation was never an end in itself. We did not ask the industry to raise capital merely so that balance sheets would appear more impressive.

“We did so because a bank’s capital ultimately determines the level of risk it can responsibly absorb on behalf of the real economy, the scale of transactions it can underwrite, the shocks it can withstand, and the confidence with which it can finance investment and consumption,” he said.

According to him, the banking industry would only realise the objectives of the recapitalisation programme if the additional capital translates into increased lending to productive sectors. “Given where we are today, the question is no longer whether the envisaged capital was raised. Rather, it is: what will we now do with the capital raised?

“A stronger banking system that lends timidly has missed the point.

The capital that has been raised must find its way into the productive economy, into small and medium sized enterprises, agriculture, infrastructure and businesses that create jobs and earn foreign exchange,” Cardoso stressed.

He added that the challenge of deploying the new capital effectively rests on both the banking industry and the apex bank.

Cardoso also reaffirmed the CBN’s commitment to building a more efficient and inclusive digital payment ecosystem through the implementation of the Payment System Vision (PSV) 2028, noting that the new vision is anchored on interoperability, security, financial inclusion, innovation, transparency and collaboration, has a target of achieving 95 per cent financial inclusion by 2028.

According to him, the framework would encourage the adoption of technologies such as open banking, artificial intelligence, ISO 20022 messaging standards and other digital payment innovations capable of improving efficiency across the financial system.

The CBN governor stressed that the success of both the banking recapitalisation exercise and the Payment System Vision 2028 would ultimately depend on effective implementation. “Nigeria has never lacked bold ideas. What has too often been missing is consistent implementation,” he said.

According to him, banks, fintech firms, regulators, telecommunications companies and other stakeholders must work together to build a financial system that supports economic growth and delivers lasting benefits to Nigerians.