The official and parallel market exchange rate gap in Nigeria fell from 68.2 per cent recorded between January and May 2023 to under 2 per cent, as the Central Bank of Nigeria (CBN) directed commercial lenders to channel their newly raised capital into productive economic sectors.
CBN Deputy Governor of Corporate Services, Dr. Muhammad Sani Abdullahi, revealed the financial data in Abuja during the 38th Seminar for Finance Correspondents and Business Editors.
The event featured the theme “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era.”
Abdullahi confirmed that 33 commercial banks successfully satisfied the recapitalisation baseline established in March 2024, accumulating a combined total of N4.65 trillion over the two-year timeline.
The central bank supervisor declared that meeting capitalization benchmarks represents only an initial operational stage. Lenders must now deploy their funds toward key sectors to support Nigeria’s target of building a $1 trillion economy by 2030.
Supervisory priority redirects to corporate governance
The central bank announced that supervisory oversight will concentrate on internal corporate controls, executive accountability, and asset quality rather than capital accumulation.
“Capital, however, is a starting point. Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” Abdullahi said.
He stated that financial institutions exposing their capital to heightened risk could be required to raise additional capital reserves to protect balance sheets.
The central bank confirmed that its risk-based supervision framework will monitor market, liquidity, and operational exposures. The regulator will also oversee cybersecurity vulnerabilities, third-party service dependencies, and climate-related financial threats across the digital banking system.
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“Sound corporate governance must underpin that work. Boards and management teams must demonstrate integrity, accountability and transparency, strengthen internal controls and guard against excessive risk-taking,” Abdullahi said. “Risk management must extend beyond credit risk to market, liquidity and operational risks, as well as cybersecurity, third-party dependencies and climate-related financial risks.”
Credit allocation targeted at real sector growth
The central bank emphasised that evaluating the recapitalisation exercise requires assessing the quality of credit distributed across the economy.
The regulator stated that expanded capital bases must fund long-term infrastructure construction, industrial production growth, international trade transactions, and regional market competition.
“We should assess recapitalisation by the quality of banking services and productive lending it supports, as well as by the amount of capital raised,” Abdullahi said.
“Stronger capital buffers should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets.”
The regulator noted that stronger balance sheets must translate into improved banking access for rural areas, female entrepreneurs, and youth-led enterprises. Lenders are expected to extend credit lines to agriculture, manufacturing, services, and physical infrastructure.
Foreign reserves reach $55.60 billion amid improving indicators
The post-recapitalisation phase coincides with measurable adjustments across domestic foreign exchange and macro-economic figures.
Gross external reserves rose to $55.60 billion as of September 11, while headline inflation fell to 15.43 per cent in July 2026. Real gross domestic product (GDP) expanded by 4.43 per cent during the second quarter.
Total foreign exchange inflows reached $10.82 billion in July 2026 alone. Autonomous funding channels generated $7.33 billion of this total, representing nearly 68 per cent of total monthly volume.
Net foreign portfolio inflows amounted to $6.31 billion between January and August 2026.
Abdullahi noted that while macroeconomic figures show improvement, economic pressures on households and businesses persist, requiring long-term structural execution.
What readers should understand about post-recapitalisation rules
The central bank’s post-recapitalisation supervision plan involves several operational elements that directly impact banking operations and credit delivery:
Lenders that completed the capital exercise hold expanded capital cushions designed to absorb potential financial shocks during economic downturns.
Supervisory examinations will run continuously using stress testing, macroprudential surveillance, and risk-based audits. Regulators will focus on consumer protection rules, financial inclusion expansion, fintech sector integration, and bank resolution contingency planning.
Banking institutions that engage in high-risk asset creation face mandatory orders to raise supplementary capital cushions beyond the baseline requirements.
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