CBN’s Recapitalisation Drive to Strengthen Banks, Attract Investment — Cardoso

By Oluwakemi Kindness

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured that the ongoing banking sector recapitalisation exercise will deliver stronger, shock-resistant institutions capable of financing growth and restoring investor confidence in Nigeria’s economy.

Speaking at the European Business Chamber (Eurocham Nigeria) C-Level Forum in Lagos on Saturday, Cardoso said the recapitalisation programme is “making good progress” and remains central to the Bank’s commitment to macroeconomic stability and a resilient financial system.

“Our primary objective is to maintain stability while addressing inflation and ensuring that the financial system is sufficiently robust to facilitate corporate lending and investment,” he stated. “We will protect the stability that has been re-established in the financial system with the utmost zeal.”

According to a statement on Sunday night by the Bank, he explained that by requiring banks to raise their minimum capital, the CBN is deliberately fortifying the sector to withstand shocks and expand its capacity to support a wider range of economic activities.

Cardoso added that recent reforms, alongside a more stable naira, are already boosting investor confidence.

While acknowledging that inflation remains high, he noted it is on a downward trend, with expectations that the benefits of the Bank’s tightening posture will persist.

Addressing concerns over high lending rates, the Governor linked current levels to inflationary pressures but expressed optimism that rates will moderate as inflation eases and capital allocation becomes more efficient. “That is the environment in which stronger corporate lending and higher levels of investment will naturally follow,” he said.

Beyond monetary policy, Cardoso emphasised the importance of collaboration with fiscal authorities — including the Ministry of Finance, Ministry of Trade and Industry, and the Budget Office — to sustain reforms and entrench long-term stability.

 He also pointed to technology-driven solutions and financial inclusion as key drivers for reducing poverty and deepening access to finance.

On Nigeria’s global standing, the CBN Governor described the country as a “large and appealing market at the gateway to West Africa,” stressing the urgency of stability amid changing geopolitical dynamics.

In his remarks, Eurocham Nigeria President,  Yann Gilbert, praised the chamber’s role as a bridge between European businesses and Nigerian policymakers, noting that its members remain committed to building enduring partnerships, creating jobs, and investing in Nigeria’s economy.