CIBN President Expresses Optimism on Nigeria Banks Meeting Recapitalisation Deadline

NumeEkeghe and Oluchi Chibuzor

The President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju has expressed optimism that the banks in the country will achieve the recapitalisation deadline target set by the Central Bank of Nigeria.

He equally noted that where individual banks cannot raise the set capital, the exercise provides opportunities for mergers that would allow them to keep operating in the financial ecosystem.

Speaking at the annual general meeting of the body held over the weekend, Olarenwaju acknowledged that the nation’s financial sector and the economy would benefit when Nigerian banks are able to finance large transactions.

He said following the CBN recapitalisation announcement in November 2023, many banks raised substantial capital in 2024, through rights issues and public offerings, well ahead of the 2026 deadline.

According to him, “The one thing I know is that even where they cannot raise that money on their own, it gives room for merger. When you work alone, you won’t be able to work very far. But when you work with others, you will be able to achieve further results. I believe that some of them have demonstrated the fact that they can raise the money. About three banks have already done that, through the right issue. And I believe others too can do the same thing.

“And where they cannot do the same thing, there are options. And one of the options is that they can do work. They can join, merge with other ones, and continue to be in business. All that the government is trying to do, which we are in support of, is the fact that when those banks are financially stable, they will be able to finance large transactions. When you look at our ecosystem and our economy, we have a lot of things that need money. Our roads need money.”