•Predicts swift economic recovery
By Chinwendu Obienyi
Governor, the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said Nigeria’s banking sector recapitalisation exercise is progressing with strong momentum and wide stakeholder support, signaling growing confidence in the country’s economic reforms.
Speaking at a press briefing at the end of the 2025 IMF/World Bank Spring Meetings in Washington D.C., at the weekend, Cardoso noted that recapitalizing Nigerian banks is critical to strengthening the financial system and ensuring banks are better positioned to support the real economy with greater scale, stability, and resilience.
“The banking sector recapitalization is well underway, with strong momentum and stakeholder alignment,” Cardoso said. “It will equip Nigerian banks to finance larger projects and drive inclusive growth across key sectors of the economy.”
The apex bank had earlier announced the recapitalization program as part of broader structural reforms aimed at boosting Nigeria’s economic stability.
The initiative follows growing calls for Nigerian banks to raise new capital in order to meet the demands of a larger economy, technological innovation, and expanding regional trade under the African Continental Free Trade Area (AfCFTA).
Beyond the banking sector, Cardoso highlighted broader improvements in Nigeria’s macroeconomic fundamentals. He disclosed that Nigeria’s foreign reserves have risen above $38 billion, providing nearly ten months of import cover, while the country recorded a balance of payments surplus of $6.83 billion in 2024 — the strongest in recent years.
According to Cardoso, these reforms are beginning to yield positive results, with investor sentiment turning increasingly favorable. He said, “Investor sentiment is positive. Feedback from global investors and the Nigerian diaspora has likewise been overwhelmingly positive, reflecting growing alignment with our economic direction. Nigeria is increasingly recognized as a rising economic force, admired for the resolve shown in implementing difficult but necessary reforms”.
He cited Fitch Ratings’ recent upgrade of Nigeria’s credit outlook as evidence of international recognition of Nigeria’s disciplined policy actions.
The CBN governor acknowledged that inflation remains a pressing challenge but reassured Nigerians that the Central Bank remains committed to reducing inflation to single digits over the medium term.
“We have moved from a position of vulnerability toward one of growing strength. Our economic trajectory will soon be reversed positively as we stay the course and build on the gains achieved so far.
“We return home mindful of global challenges yet filled with renewed commitment to stay the course and build on our gains in stability and resilience”, Cardoso said.