From Survival to Scale: Nigerian Banks Power Fresh Push Toward $1 Trillion Economy

Nigeria’s banking sector has shifted from a race for compliance to a platform for economic expansion, as industry leaders and policymakers declared a new phase of growth following the country’s recapitalisation exercise. At the inaugural Africa Capital Forum held in London on Tuesday alongside President Bola Ahmed Tinubu’s UK visit, top banking executives and regulators […]

Nigeria’s banking sector has shifted from a race for compliance to a platform for economic expansion, as industry leaders and policymakers declared a new phase of growth following the country’s recapitalisation exercise.

At the inaugural Africa Capital Forum held in London on Tuesday alongside President Bola Ahmed Tinubu’s UK visit, top banking executives and regulators said the focus has moved beyond meeting capital thresholds to leveraging a stronger financial system to drive a $1 trillion economy.

Speaking at the event, Akin Ogunranti of Zenith Bank highlighted the significance of local investor participation in the recapitalisation process.

“We need to give ourselves credit. The fact that over 72 per cent of the capital was raised locally is a major milestone,” he said, noting that the trend reflects growing confidence in Nigeria’s capital markets.

Governor of the Central Bank of Nigeria, Olayemi Cardoso, described the transformation as fundamental, declaring that the previous financial system has effectively been replaced.

“The financial system we had is dead and buried. What we have now is a new system that has brought liquidity and transparency,” Cardoso said, adding that 32 banks have met the new capital requirements.

Industry leaders say the strengthened capital base is already translating into increased lending and credibility. Yemisi Edun of First City Monument Bank said recapitalisation has expanded credit to businesses and improved the sector’s standing.

“The raised capital has created expansion of credits. The new recapitalisation has given more credibility to what we can do as industries,” she said.

On the international front, Segun Alebiosu of First Bank of Nigeria said Nigerian banks are now positioned to handle larger cross-border transactions, supported by ongoing currency reforms.

“We can do more, and crowd new investments,” he said, noting that Nigerian banks maintain multiple operations in the United Kingdom.

The sector’s growing global footprint was further underscored by Oliver Alawuba of United Bank for Africa, who revealed that more than 65 per cent of the bank’s revenue is generated outside Nigeria.

“That means that we can do more in Africa,” he said.

Meanwhile, Miriam Olusanya of Guaranty Trust Bank pointed to renewed correspondent banking relationships as a key structural gain, enabling stronger participation in global trade and capital markets.

“The confidence has been restored and correspondent banking relationships will continue to grow,” she said.

From the government’s perspective, Sanyade Okoli stressed that public funding alone will not deliver the country’s ambitious growth targets.

“The government alone cannot fund this growth. We need to work with partners who will bring the sticky, equity capital,” she said.

Cardoso concluded that the sector’s transformation is underpinned by a period of sustained stability.

“This is perhaps the first time in many years that we’ve had this level of consistent stability, and it is likely to stay on course,” he said.

The Africa Capital Forum was convened by the Central Bank of Nigeria in partnership with the UK’s Foreign, Commonwealth and Development Office, bringing together global investors and financial leaders to explore Nigeria’s economic prospects.