‘Banking Sector Recapitalisation Will Strengthen Nigeria’s Financial Ecosystem’

Managing Director, FairMoney Microfinance Bank, Henry Obiekea, has stressed the need for the implementation of the ongoing recapitalisation programme of the Central Bank of Nigeria (CBN), describing it as a strategic investment that will strengthen Nigeria’s financial ecosystem.  

According to him, if implemented successfully, it has the potential to strengthen financial stability, deepen credit access, improve investor confidence, and support a more inclusive and resilient economy.

Speaking from a Fintech perspective, Obiekea said: “For Nigeria’s rapidly growing Fintech ecosystem, although they are subject to different licensing frameworks depending on their operations, the broader regulatory direction is equally clear. Institutions that facilitate payments, tech-enabled banking, lending and savings are expected to maintain governance, capital and consumer protection standards appropriate to their respective licensing frameworks. The evolution is essential as Fintechs continue to account for a growing share of financial transactions and provide services to millions of previously underserved Nigerians. Collectively, the reforms present a unique opportunity to reshape Nigeria’s financial ecosystem.”

For small and medium-sized enterprises, which contribute significantly to Nigeria’s GDP and employment, Obiekea said improved access to financing remained one of the greatest growth enablers, adding that recapitalisation should not be assessed solely by stronger balance sheets, but also by the extent to which additional capital supports productive economic activity.