The Centre for the Promotion of Private Enterprise has commended the Central Bank of Nigeria for the successful implementation of its bank recapitalisation programme, noting that 32 banks have met the new minimum capital requirements.
In a statement over the weekend, CPPE Executive Director Muda Yusuf described the recapitalisation exercise as orderly, non-disruptive, and confidence-boosting. He noted that the process represents a significant milestone in enhancing the resilience and stability of Nigeria’s banking system.
According to Yusuf, the exercise was conducted without any depositor losses, forced mergers, job cuts, or erosion of shareholder value, reflecting improved regulatory oversight and stronger market discipline. “This marks a significant improvement over past consolidation episodes and underscores the growing resilience within the banking system,” he said.
Despite these achievements, the CPPE highlighted concerns regarding the weak linkage between the banking sector and the real economy. The group urged the CBN to prioritise policies that enhance financial intermediation and support productive sectors. It noted that private sector credit in Nigeria remains relatively low at around 17 per cent of Gross Domestic Product (GDP) as of 2025, compared to higher averages in sub-Saharan Africa and other emerging economies.
The organisation also drew attention to challenges in access to credit, particularly for small and medium enterprises (SMEs) and consumers. SME credit accounts for only about one per cent of total credit, despite the sector’s substantial contribution to employment and economic output, highlighting a major constraint on economic growth and domestic demand.
To address these gaps, CPPE called for targeted reforms, including increasing private sector lending, improving credit infrastructure, and incentivising long-term financing for critical sectors of the economy. The group also urged policymakers to promote a more balanced allocation of credit and tackle structural issues limiting access to finance for businesses and households.
CPPE emphasised that while recapitalisation has strengthened the capacity of banks, the next phase of reform must ensure that this strength translates into tangible economic growth and development.
