The Chartered Institute of Bankers of Nigeria (CIBN) has urged banks to deploy the N4.65 trillion raised through the recently concluded recapitalisation exercise to Micro, Small and Medium-sized Enterprises (MSMEs) to stimulate economic growth. The banking sector recapitalisation exercise ended on March 31, 2026, after a 24-month implementation period. The Central Bank of Nigeria (CBN) said 33 lenders successfully met the new capital requirements, raising a combined N4.65 trillion. Speaking at a press briefing in Lagos ahead of the CIBN 19th Annual Banking and Finance Conference, the President of the institute, Dele Alabi, said the banking sector had a critical role to play in strengthening the economy. Alabi explained that while recapitalisation provides banks with a stronger buffer against economic shocks and protects their balance sheets, lenders must also deploy the additional capital strategically. “Capitalisation provides a buffer for shocks. It sort of insulates banks’ balance sheets. But it does not stop there. Therefore, smart bankers, smart bank CEOs have to think of a more ingenious way of utilising this capital,” he said. He noted that equity capital was expensive and should therefore be deployed efficiently to generate economic value.

Punch