Femi Ashekun/
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said Nigerian banks are now better equipped to finance businesses and support economic growth following the successful completion of the banking sector recapitalisation programme, which he described as a major milestone in strengthening the country’s financial system.
Cardoso made the assertion on Wednesday while presenting the CBN’s statutory first-half 2026 briefing to the Senate Committee on Banking, Insurance and Other Financial Institutions in Abuja, where he outlined the Bank’s assessment of the economy and its priorities for the second half of the year.
“The successful conclusion of the Banking Sector Recapitalisation Programme is a major milestone that has strengthened the resilience, capacity and competitiveness of Nigeria’s banking industry,” the CBN Governor told lawmakers.
He said the stronger capital base of banks would enable the financial sector to play a bigger role in financing productive sectors of the economy, while complementing the Bank’s efforts to maintain financial stability.
For businesses struggling to access affordable credit, the recapitalisation programme is expected to increase banks’ capacity to finance manufacturing, agriculture, infrastructure and other productive sectors.
Economists have long argued that stronger banks are better positioned to support large-scale investments that can stimulate economic growth and create jobs, although the extent of those benefits will depend on lending decisions, borrowing costs and the broader business environment.
Cardoso said the CBN also recorded significant progress during the first half of 2026 in moderating inflation, stabilising the foreign exchange market, building external reserves, strengthening the resilience of the banking sector and reforming financial market infrastructure.
Looking ahead, he said the apex bank would concentrate on post-recapitalisation supervision of banks, deeper foreign exchange market reforms, inflation targeting, implementation of the Payments System Vision 2028, cybersecurity and safeguarding financial system stability.
Reaffirming the apex bank’s commitment to restoring macroeconomic stability, Cardoso said the CBN would continue to pursue evidence-based monetary policies aimed at bringing inflation down to single digits over the medium term.
“Our unwavering commitment is to restore price stability and achieve single-digit inflation over the medium term through evidence-based monetary policy and improved policy transmission,” he said.
He added that the CBN would continue to make decisions guided by its statutory mandate and focused on the long-term interests of Nigerians.
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, commended the apex bank for what he described as its efforts to stabilise the foreign exchange market, improve liquidity and reduce market distortions.
“I commend the CBN for its efforts in ensuring stability in the foreign exchange market, improving liquidity and reducing market distortions,” Abiru said.
The banking sector recapitalisation programme required commercial banks to significantly increase their minimum capital base in line with the CBN’s plan to build larger and more resilient financial institutions capable of supporting a $1 trillion economy.
Since assuming office, Cardoso has also implemented wide-ranging monetary and foreign exchange reforms aimed at restoring investor confidence, improving market transparency and strengthening the resilience of Nigeria’s financial system.
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