Introduction to the Banking System in Nigeria
The Association of Corporate Affairs Managers of Banks (ACAMB) has assured that Nigerian banks are safe and healthy, with none shutting down due to recapitalization as being speculated on social media. This assurance was given in a joint statement by the President, Rasheed Bolarinwa, and the General Secretary, ‘Jide Sipe, in response to an Instagram video claiming that 12 banks would be shut down by the Central Bank of Nigeria (CBN) by March 2026.
The Recapitalization Exercise
The association explained that the recapitalization exercise is a forward-looking, proactive policy designed to strengthen the banking system and position it to support the Federal Government’s aspiration of a $1 trillion economy by 2030. It is not a crisis response, nor is it an indication of distress, but rather a patriotic call for banks to scale up their capacity to drive economic growth and development.
Safety and Soundness of Nigerian Banks
The association noted that contrary to the false claims, the nation’s banks are currently safe, sound, and adequately capitalized, with strong capital adequacy buffers sufficient to meet both customer obligations and regulatory requirements. The recapitalization initiative focuses specifically on strengthening core ownership capital—namely share capital and share premium—rather than total shareholders’ funds or other capital instruments such as bonds and preference shares.
Progress of Recapitalization
The CBN has consistently emphasized that the exercise is aimed at growth and stability, not forced consolidation. All banks have a fair and realistic chance of meeting their recapitalization targets, with more than one-third already having met theirs and most others at advanced stages of implementation. All banks submitted recapitalization plans to the CBN in 2024, which were vetted and approved for feasibility before execution commenced.
Misinformation and its Consequences
The association insisted that the misinformation is baseless and appears driven by mischief, ignorance, and a reckless disregard for the economic consequences of false narratives. The statement said that ACAMB will draw the attention of relevant law enforcement agencies to the video and similar content, particularly where it borders on false representation, economic sabotage, and violations of the Cybercrime Act.
Performance of Individual Banks
FirstBank, United Bank for Africa, Fidelity Bank, and FCMB are international banks that have made significant progress in their recapitalization programs and are well-positioned to complete them ahead of schedule. They have exceeded the capital thresholds for national banks and face no risk of undercapitalization. Citibank Nigeria and Standard Chartered Bank Nigeria remain strong subsidiaries of their respective global parents, while Sterling Bank has completed key phases of its recapitalization, including private placement and rights issues.
Regulatory Oversight
The nation currently has 44 deposit-taking banks across various license categories, all operating under strict regulatory oversight. The CBN Governor, Olayemi Cardoso, stated at his November briefing that the recapitalization exercise “is progressing in an orderly manner and in line with regulatory expectations.
Conclusion
In conclusion, the Association of Corporate Affairs Managers of Banks has assured Nigerians that the banking system is safe and healthy, with no banks shutting down due to recapitalization. The recapitalization exercise is a proactive policy aimed at strengthening the banking system, and all banks are making progress in meeting their targets. The public is urged to continue their banking activities with confidence and without fear, and content creators and media organizations are cautioned against spreading misinformation that could harm the economy.
