Nigeria's Banking Recapitalisation: What Lies Ahead

The ongoing bank recapitalisation exercise and strategies to meet the required capital is anticipated to drive activities in Nigeria’s capital market for the next coming months. As banks seek to meet the deadline, against the backdrop of macroeconomic headwinds, this sector update articulates the options available for banks and explores key considerations as they weigh their options.

With far-reaching implications beyond the banking sector, the recapitalisation programme necessitates coordinated efforts across the entire financial services spectrum, including non-bank financial service providers, regulators, and the government. To maximise the impact of a more highly capitalised environment, key structural issues must be addressed concurrently. These issues include poor market information, weak frameworks for loan recovery, and limited access to credit for SMEs.

The report also discusses key imperatives for stakeholders beyond the banking industry.

Click here to read the full publication.