Financial analyst Muktar Mohammed says the Central Bank of Nigeria’s (CBN) latest banking recapitalization focuses on fresh capital injection, rather than relying solely on shareholder funds like previous exercises.
Speaking Monday on The Broad Street Drive with Nigeria Info's Hillary Nnoruka, Mohammed explained that the recapitalization affects banks nationwide, with some now qualifying to operate internationally while others hold national or regional licenses.
He noted that larger banks are using the capital boost to expand services both at home and abroad.
Smaller banks, on the other hand, may merge in the coming weeks to strengthen their operations.
Mohammed reassured the public that no major bank is expected to lose its license under the new rules.
He said the CBN designed the exercise to ensure adequate capitalization and liquidity, helping banks handle high-value transactions, attract foreign investment, and support Nigeria’s $1 trillion economic growth target.
