The Nigerian banking sector has mobilised N4.65 trillion during the recently concluded recapitalisation exercise, a significant step towards boosting banks' asset quality. This development was highlighted by Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA Plc), at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja. The capital injection is expected to strengthen capital adequacy, asset quality, balance-sheet transparency, and investor confidence in the sector.
According to Alawuba, the banking sector's resilience is being reinforced by accelerated investment in digital infrastructure, cybersecurity, and operational resilience. He cited technology investments of over N119 billion by four leading banks in the first quarter of 2026, representing a 43.2 per cent year-on-year increase. As Chairman of the Body of Bank CEOs in Nigeria, Alawuba outlined a blueprint for building a resilient Nigerian economy, calling for deliberate policies and stronger collaboration across the public and private sectors.
Alawuba emphasised that resilience must be deliberately designed into Nigeria's policies, institutions, infrastructure, supply chains, energy systems, financial architecture, and human capital. A resilient economy, he noted, is not one that never encounters shocks, but one that can absorb, adapt, and advance without transferring the full cost of every disruption to its most vulnerable citizens. This is particularly important given the current global economic challenges, including geopolitical conflicts, volatility in energy and shipping markets, and inflationary pressures.
President Bola Ahmed Tinubu, represented by Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, challenged the banking industry to move beyond balance-sheet expansion and profitability to financing productive businesses that can drive investment, job creation, and economic growth. The President noted that the next phase of Nigeria's reform journey must focus on moving from financial intermediation to economic transformation, with affordable credit, financial inclusion, technology, and long-term capital identified as key drivers.
Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, represented by Deputy Governor Philip Ikeazor, reaffirmed the importance of a strong banking sector to sustaining Nigeria's economic recovery. World Bank Country Director for Nigeria, Mathew Verghis, called on banks to redirect more capital towards businesses capable of creating jobs. President/Chairman of Council of CIBN, Dr. Dele Alabi, stressed that the ultimate test of Nigeria's economic reforms would be whether improved macroeconomic indicators translate into lower living costs, more jobs, higher incomes, and affordable credit for citizens and businesses.
Alawuba commended the Federal Government and the CBN for the increasingly effective coordination between fiscal and monetary policy, noting that recent improvements in key economic indicators provide important milestones in Nigeria's stabilisation journey. He also highlighted the critical role of the banking industry in Nigeria's resilience agenda, describing banks as the country's "financial shock absorbers and growth partners." The banking industry, he reaffirmed, is ready to work with the Federal Government to ensure that the resilience being built within the financial sector translates into tangible economic opportunities.
The conference provided a platform for stakeholders to discuss the imperatives for the banking and financial services industry in building a resilient economy in an era of disruptions. With the banking sector's recapitalisation and investments in digital infrastructure, cybersecurity, and operational resilience, the industry is poised to play a critical role in driving Nigeria's economic growth and stability. The key points from the conference include the need for a strong banking sector, effective coordination between fiscal and monetary policy, and the importance of redirecting capital towards job-creating businesses.
Key points
- The Nigerian banking sector has mobilised N4.65 trillion during the recently concluded recapitalisation exercise.
- The capital injection is expected to strengthen capital adequacy, asset quality, balance-sheet transparency, and investor confidence in the sector.
- The banking industry is poised to play a critical role in driving Nigeria's economic growth and stability.
