The Chief Finance Officer (CFO) of Parthian Partners, Mr. Olayinka Arewa, expressed optimism about the success of the ongoing banking recapitalisation exercise. Speaking at the Finance Correspondents Association of Nigeria (FICAN) annual workshop in Lagos, themed ‘Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Recapitalisation, Opportunities for Fintechs, and the Real Sector’, Arewa drew parallels between the current recapitalisation and the successful exercise of 2004.

Under the new Central Bank of Nigeria (CBN) requirements, international banks must raise their capital base to ₦500 billion, national banks to ₦200 billion, and regional banks to ₦50 billion. The goal is to build stronger, more resilient banks that will play a key role in driving development across all sectors and support the vision of a $1 trillion economy by 2030.

Reflecting on the 2004 recapitalisation, Arewa noted that Nigeria had 89 banks with a fragmented structure and a minimum capital base of ₦2 billion, roughly $250 million at the time. Despite uncertainties, the industry successfully navigated the changes, resulting in stronger institutions capable of surviving economic shocks.

“Today’s recapitalisation exercise is similarly poised for success,” Arewa said. “With advancements in technology and changing consumer demands, banks are now operating in spaces unimaginable in 2004. Back then, the recapitalisation led to a boom in retail banking. Today, we have a more sophisticated and tiered banking system, along with fintechs and microfinance institutions, ready to absorb this shift.”