Banks Dismiss Shutdown Fears, Reassure Nigerians on Recapitalisation
Atume Terfa
Nigerian banks have moved to calm public concerns, insisting that no bank is shutting down amid the ongoing recapitalisation exercise introduced by the Central Bank of Nigeria (CBN). Industry leaders and regulators say the process is designed to strengthen the financial system, not trigger closures.
The reassurance follows rising speculation that some lenders could be forced out of business after the CBN announced new minimum capital requirements for banks, part of reforms aimed at improving resilience, boosting lending capacity and aligning the sector with Nigeria’s growing economy. Under the new framework, banks are expected to raise fresh capital through options such as rights issues, public offers, private placements, mergers or strategic investments.
Bank executives and the Bankers’ Committee have consistently maintained that Nigerian banks remain stable and well-capitalised, stressing that recapitalisation is a proactive measure rather than a response to distress. According to industry insiders, most tier-one and mid-tier banks have already begun discussions with investors or unveiled plans to meet the new capital thresholds well ahead of the regulatory deadline.
The Central Bank of Nigeria has also reiterated that the reform is aimed at safeguarding depositors, enhancing confidence in the banking system and positioning Nigerian banks to better support large-scale projects, trade financing and economic growth. Regulators have emphasised that there is no plan to revoke licences or force banks to close, noting that consolidation options remain available for institutions that may prefer partnerships or mergers.
Market analysts say similar recapitalisation exercises in the past led to a stronger and more competitive banking sector, with improved governance and higher capacity to absorb economic shocks. They add that the current process is expected to deepen the capital market as banks return to investors for funding.
With assurances from regulators and bank executives, customers have been advised to remain calm, as deposits remain secure and banking operations continue uninterrupted. As the recapitalisation programme unfolds, stakeholders believe it will ultimately leave Nigeria’s financial system more robust, better regulated and positioned for long-term growth.
