Nigeria’s banking sector has raised nearly ₦2.5 trillion as part of the ongoing recapitalisation exercise, with 25 of 38 commercial, merchant, and non-interest banks meeting the new capital requirements ahead of the March 2026 deadline.

The development was disclosed at the 2026 Economic Roundtable organised by Agusto & Co, where regulators, financial executives, and policymakers assessed the implications of the reform for the economy.

Participants at the forum said the focus is now shifting from capital raising to effective deployment, stressing that the success of the exercise will depend on how well the funds are channelled into productive sectors.

The recapitalisation drive, one of the most significant reforms in nearly two decades, is aimed at strengthening banks’ balance sheets amid inflationary pressures and exchange rate volatility, which have eroded capital buffers in recent years. It is also expected to position the sector to support Nigeria’s long-term growth ambitions, including its aspiration of building a $1 trillion economy.

Despite the progress, stakeholders noted that Nigeria continues to face a major financial intermediation gap, with domestic credit to the private sector remaining low relative to peer economies. Loans currently account for about one-third of total banking assets.

They warned that banks would face increasing pressure to improve lending to the real sector, as reliance on government securities may no longer sustain profitability under expanded capital bases.

Discussions at the Roundtable identified Micro, Small, and Medium Enterprises (MSMEs) and infrastructure financing as key areas for capital deployment. MSMEs, which account for about 97 per cent of businesses and nearly half of Nigeria’s Gross Domestic Product, continue to face limited access to credit, with an estimated financing gap of ₦13 trillion.

Stakeholders emphasised the need for targeted interventions, including credit guarantees, de-risking instruments, fintech partnerships, and innovative financing models to improve access to funding, particularly for women-led businesses and agribusinesses.

They also highlighted Nigeria’s infrastructure deficit as a major constraint on economic growth, noting that while recapitalisation increases banks’ capacity for large-ticket transactions, long-term infrastructure financing remains exposed to macroeconomic risks and structural challenges.

Proposals such as infrastructure credit guarantee platforms were identified as potential solutions to improve risk-sharing and attract investment into the sector.

In his keynote address, Matthew Verghis, Country Director of the World Bank in Nigeria, said the effectiveness of the recapitalisation would ultimately be measured by how well financial resources are channelled into productive investments.

He noted that as Nigeria transitions from economic stabilisation to growth, stronger financial intermediation will be critical to translating policy reforms into tangible development outcomes.

Stakeholders at the forum concluded that while the recapitalisation exercise is nearing completion, its long-term impact will depend on whether it delivers broader, more inclusive economic growth through improved access to finance and increased investment in key sectors.