Central Bank of Nigeria urges banks to use ₦4.65tn capital for productive lending

The Central Bank of Nigeria (CBN) has directed commercial banks to utilize the ₦4.65 trillion raised during the recent banking sector recapitalisation programme to support productive lending. Speaking at a seminar in Abuja, CBN Deputy Governor Dr. Muhammad Sani Abdullahi emphasized that the completion of the recapitalisation process should serve as a catalyst for economic activity rather than an end in itself.

The central bank aims for these strengthened balance sheets to provide financing for critical sectors, including agriculture, manufacturing, services, and infrastructure, as well as improving access to financial products for households and small businesses.

In addition to increasing capital, the CBN warned that banks must implement tighter risk management and sound governance. Dr. Olubukola Akinwunmi, Director of the Banking Supervision Department, stated that profit-seeking must not lead to regulatory breaches or excessive risk-taking. The regulator intends to maintain stability through enhanced risk-based supervision, macroprudential surveillance, and rigorous stress testing to ensure that larger capital buffers translate into genuine financial resilience.