 has issued a stern warning to deposit money banks, urging them not to seek capital through illegal means as part of the ongoing recapitalisation drive, emphasizing that such practices could undermine the stability of the financial system.){kind=link}
The Central Bank of Nigeria (CBN) has issued a stern warning to deposit money banks, urging them not to seek capital through illegal means as part of the ongoing recapitalisation drive, emphasizing that such practices could undermine the stability of the financial system.
During the 36th Finance Correspondents Association of Nigeria and Business Editors seminar held in Abuja on Monday, Dr. Olubukola Akinwunmi, Director of Banking Supervision at the CBN, stressed that the apex bank will implement strict measures to verify the sources of funds.
“We ensure there is proper verification. And the verification is to ensure that we do not encourage illicit funds into our banking system. Illicit funds can only destabilise the banking system,” Akinwunmi said.
Launched on April 1, 2024, the recapitalisation programme is scheduled to span 24 months and is designed to enhance the banking sector’s capacity to help Nigeria reach its $1 trillion economic goal.
According to the updated guidelines, international commercial banks are now expected to raise their minimum capital base to N500 billion, while national and regional banks must meet thresholds of N200 billion and N50 billion, respectively.
Akinwunmi pointed out that the effort isn’t merely about meeting compliance standards, but about preparing Nigeria’s banking industry for future domestic and international challenges.
“The recapitalisation is also about strengthening the financial system for the future. Larger capital bases translate to greater capacity to fund high-impact sectors such as infrastructure, manufacturing, and agriculture,” he noted.
Also present at the event, CBN Deputy Governor Ms. Emem Usoro highlighted the crucial role a well-capitalised banking sector plays in national development.
“We must consider the recapitalisation of our banks to be able to fund, finance and power the economy and favourably compete globally with its peers in other climes,” Usoro stated.
She added that the recapitalisation move is a forward-looking strategy designed to address the fast-evolving global financial landscape and help build a stronger, more competitive financial system.
The CBN reiterated that banks have several paths to meet the new capital benchmarks, including mergers, public offerings, and foreign investments—provided all actions are in line with regulatory expectations and transparency standards.