The Central Bank of Nigeria (CBN) has shifted focus from capital accumulation to credit discipline following the successful conclusion of the banking sector's recapitalisation exercise, in which 33 banks raised a combined N4.65tn. The apex bank is implementing a redesigned credit-risk framework to ensure the newly injected capital is safeguarded through stronger governance, transparency, and accountability. CBN Governor Olayemi Cardoso stated the banking system remains fundamentally sound and resilient, reinforcing its ability to support economic growth and withstand shocks. The regulator emphasized that capital resilience now depends not just on size, but on how prudently it is managed and deployed. A key lesson from the 2005 recapitalisation, which led to risky lending and eventual distress, is driving the current push for stricter oversight. The CBN's new framework aims to anchor lending decisions in robust risk assessment rather than short-term profit motives, aligning local practices with global standards. As part of broader risk containment, the CBN has also required banks, fintechs, and financial institutions to complete a cybersecurity self-assessment tool (CSAT) to evaluate their readiness against digital threats. The joint statement by CBN's Olubukola Akinwunmi and Hakama Sidi Ali confirmed 72.55% of the capital came from domestic investors.
Olayemi Cardoso's push for credit discipline reveals that the real challenge isn't raising capital—it's stopping banks from repeating past lending mistakes. With N4.65tn now in the system, unchecked risk appetite could undo the entire recapitalisation effort. Nigerian depositors and borrowers will feel the impact if governance remains weak, regardless of balance sheet size. This phase isn't about money; it's about behaviour.
