The International Monetary Fund has recognised the strategic importance of Nigeria’s recently concluded bank recapitalisation exercise, stating that the programme is already yielding positive results. The Fund noted that the initiative, implemented by the Central Bank of Nigeria under the leadership of Olayemi Cardoso, was a timely and appropriate policy decision, particularly against the backdrop of persistent volatility in global oil supply. According to the IMF, such uncertainties in the global economy make it essential for financial institutions to maintain strong capital buffers capable of absorbing shocks during periods of stress. It explained that a well-capitalised banking system enhances the capacity of banks to support monetary policy objectives, including inflation control, while also sustaining economic growth projections over the medium term. The Fund further indicated that Nigeria’s strengthened banking sector is now better positioned to support its two-year growth outlook, with the IMF projecting steady expansion and improved macroeconomic stability. It added that the recapitalisation has reinforced confidence in the country’s financial system and created a stronger foundation for economic resilience.

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