Lagos State Governor, Babajide Sanwo-Olu, has urged Nigerian banks to channel the additional capital raised through the recently concluded recapitalisation exercise towards financing industries, expanding businesses and creating employment opportunities.

Sanwo-Olu made the call on Saturday, October 31, 2026, while delivering his special remarks as host governor at the 2026 Fellowship Investiture Ceremony of the Chartered Institute of Bankers of Nigeria (CIBN), held at Harbour Point Events Centre, Victoria Island, Lagos.

The ceremony celebrated 755 distinguished recipients, comprising 18 Honorary Fellows, 460 Elected Fellows and 277 Honorary Senior Members, according to CIBN President and Chairman of Council, Dele Alabi, who disclosed the figures in his opening remarks.

Sanwo-Olu, CIBN seek productive use of banks’ fresh capital

Sanwo-Olu said the successful recapitalisation of Nigerian banks had strengthened the financial system, but stressed that the next priority should be ensuring the additional capital translates into productive investments, industrial expansion and employment.

• “Recapitalisation has strengthened the capacity of our banks to withstand economic pressures and undertake larger transactions. But raising capital is only the beginning,” Sanwo-Olu said at the event.
• “The true measure of success will be how effectively that capital supports productive enterprises, industrial expansion and economic opportunities for Nigerians,” he added.

He noted that Nigerian manufacturers require affordable, long-term financing to purchase machinery, expand production and compete in international markets. Similarly, agricultural processors need funding for storage, processing and distribution, while growing businesses require credit facilities that reflect the realities of their operations.

Also speaking, CIBN President and Chairman of Council, Dele Alabi, said the successful completion of the recapitalisation exercise had shifted attention towards how effectively banks would deploy their increased capital to support Nigeria’s productive sectors.

He said the additional capital provides an opportunity to finance industrial development, infrastructure, small businesses and other activities capable of generating sustainable economic growth.

• “Nigeria now has a historic opportunity to deploy this enhanced capital towards manufacturing, agriculture, infrastructure, energy, technology, and other productive sectors. The true measure of recapitalisation will not be the size of balance sheets, but the scale of economic transformation it enables,” Alabi said.

The CIBN president also disclosed that the institute would hold its MSME Forum on December 1, 2026, to develop practical approaches to improving access to finance and supporting enterprise growth. He added that the institute was advocating the establishment of SME Hubs across the country to provide businesses with financing, capacity development, digital tools and access to markets.

Why CBN introduced the bank recapitalisation exercise

The Central Bank of Nigeria (CBN) introduced its banking sector recapitalisation programme as part of efforts to strengthen the financial system, improve banks’ capacity to absorb economic shocks and position lenders to finance larger transactions.

• The initiative followed the appointment of Olayemi Cardoso as CBN Governor in September 2023, with the apex bank subsequently unveiling the revised minimum capital requirements on March 28, 2024.
• Under the policy, commercial banks with international authorisation were required to increase their minimum capital base to N500 billion, while those with national authorisation were given a N200 billion threshold. Banks operating with regional licences were required to maintain a minimum capital base of N50 billion.
• The CBN provided a 24-month compliance window, beginning April 1, 2024, and ending March 31, 2026, for affected financial institutions to meet the new requirements.

On April 1, 2026, the apex bank announced that 33 banks had met the revised minimum capital requirements following the conclusion of the exercise.

The regulator disclosed that banks raised a combined N4.65 trillion in fresh capital over the 24-month period, with 72.55% sourced from domestic investors and the remaining 27.45% from international markets.

High borrowing costs, credit constraints still weigh on Nigerian businesses

Despite the stronger capital position of Nigerian banks, access to affordable financing remains a major challenge for businesses, particularly micro, small and medium-sized enterprises (MSMEs).

• In September 2026, the CIBN raised concerns about the difficulties confronting MSMEs, noting that high operating expenses and other structural constraints continued to affect their ability to grow, despite improvements recorded in some areas of the Nigerian economy.
• The challenge also extends to accessing formal credit. Data cited by the National Credit Guarantee Company (NCGC) in July 2025 indicated that approximately 80% of Nigerian MSMEs remained outside formal credit channels, largely because of stringent collateral requirements and lenders’ reluctance to take on the perceived risks associated with smaller businesses.
• The cost of borrowing also remains an important consideration for businesses seeking financing to expand their operations.

In September 2026, the CBN reset the Monetary Policy Rate (MPR) by 350 basis points to 23%, following the 307th meeting of its Monetary Policy Committee in Abuja. The adjustment brought the benchmark down from 26.5%, although the 23% rate remains relatively high for businesses seeking affordable credit.