**The Recapitalisation Conundrum: Why Nigerian Banks Need a Boost** Imagine a country where businesses can't access loans, where entrepreneurs are forced to rely on informal lenders at exorbitant rates, and where economic growth is stifled by a lack of liquidity. This is the harsh reality in Nigeria, where the banking sector plays a critical role in facilitating economic growth. However, the sector has faced significant challenges in recent years, including a lack of capital, high non-performing loans, and a highly competitive market. In this context, the recapitalisation policy of Nigerian banks has become a hot topic of discussion. **The State of Nigerian Banks** Nigerian banks are the backbone of the country's financial system, providing short-term funds to businesses and households. These funds, known as short-term credit, are typically used for working capital, inventory financing, and other liquidity needs. However, the banks' ability to provide these funds has been hampered by a lack of capital, leading to a situation where many businesses are unable to access the credit they need to grow. This has significant implications for the Nigerian economy, including reduced economic growth, lower employment rates, and a decline in the standard of living. **The Recapitalisation Policy: A Solution to the Crisis?** In response to these challenges, the Central Bank of Nigeria (CBN) has introduced a recapitalisation policy aimed at strengthening the banking sector. The policy requires banks to increase their minimum capital requirements from N25 billion to N100 billion, with a deadline of 2023 for compliance. While the policy has received praise from some quarters, others have expressed concern about its potential impact on the banking sector, including the risk of bank failures and a decline in lending to small and medium-sized enterprises (SMEs). **A New Era for Nigerian Banks?** The recapitalisation policy has the potential to transform the Nigerian banking sector, but it also poses significant challenges. If implemented effectively, the policy could lead to a more stable and resilient banking sector, with banks better equipped to provide credit to businesses and households. However, if not managed carefully, the policy could exacerbate the current crisis, leading to a decline in lending and a further contraction in the economy. As Nigeria navigates this complex issue, one thing is clear: the future of the banking sector hangs in the balance. **Conclusion** The recapitalisation policy of Nigerian banks is a critical issue that requires careful consideration. While the policy has the