Get Guardian on GoogleLagos State Governor, Babajide Sanwo-Olu, has challenged banks to translate the N4.65 trillion raised through recapitalisation into increased financing for manufacturing, agriculture, energy, infrastructure and small businesses, warning that stronger balance sheets would mean little without a corresponding expansion of productive sectors.
Speaking at the 2026 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, Sanwo-Olu said the next phase of banking sector reforms must focus on financing industrial growth, creating jobs and improving Nigeria’s economic competitiveness.
He said while recapitalisation had strengthened the banking industry’s capacity to support the economy and withstand financial shocks, the ultimate test would be its ability to channel additional capital into productive investments.
“Nigeria has recapitalised its banks. The next task is to help recapitalise Nigerian industry,” he said.
His remarks come as the banking industry enters a new phase following the recapitalisation exercise, which mobilised N4.65 trillion in fresh capital, with 33 banks meeting the new capital requirements.
Sanwo-Olu argued that the success of the exercise should not be measured by the size of banks’ balance sheets alone but by the extent to which the additional capital supports new factories, expands existing businesses, creates sustainable employment and strengthens the country’s industrial base.
He identified access to affordable, long-term financing as one of the major constraints facing Nigerian businesses, noting that manufacturers require substantial capital to acquire machinery, expand production and compete in international markets.
Agricultural processors, he added, need financing for storage, processing and distribution, while growing enterprises require credit facilities structured around the realities of their operations.
According to him, such investments often take time to generate returns, making it necessary for recapitalised banks to develop financing models that accommodate long-term industrial projects without compromising prudent risk management.
The governor said Lagos offered significant opportunities for financial institutions to support industrial expansion, citing the Lekki Deep Sea Port, growing industrial activities along the Lekki corridor, investments in rail and road infrastructure, and opportunities created by the state’s electricity law.
He said these developments were opening up investment opportunities in manufacturing, logistics, energy and trade, where stronger participation by financial institutions could unlock private capital, improve productivity and create jobs.
Sanwo-Olu urged banks to look beyond conventional lending and become more active partners in financing these opportunities.
Similarly, CIBN President, Dele Alabi, urged banks to ensure that the additional capital raised through recapitalisation translates into industrial development, stronger businesses, improved infrastructure and sustainable employment.
He said the N4.65 trillion mobilised through the Nigerian capital market and the compliance of 33 banks with the new capital requirements demonstrated the resilience of the banking industry and the growing depth of the country’s financial markets.
However, he said the real test was whether the strengthened capital base would support manufacturing, agriculture, infrastructure, energy, technology and other productive sectors.
Alabi said Nigeria had an opportunity to deploy the enhanced banking capital to accelerate industrialisation, adding that the success of recapitalisation should not be judged by the size of banks’ balance sheets alone.
Quoting development economist, Prof. Justin Yifu Lin, he said that, except for a few oil-exporting countries, no nation had become wealthy without first achieving industrialisation.
