IMF Endorses Nigeria's N4.65 Trillion Bank Recapitalization Program

The International Monetary Fund (IMF) has endorsed Nigeria's bank recapitalization program, describing it as a timely policy decision that enhances the nation's financial resilience against global shocks. The initiative, led by the Central Bank of Nigeria, concluded on March 31, 2026, with 33 banks raising a total of N4.65 trillion in new capital. Of this amount, 72.55% was sourced locally, while 27.45% came from international markets.

During the 2026 Spring Meetings of the World Bank and the IMF, officials noted that these stronger capital buffers support macroeconomic stability despite volatility caused by oil price fluctuations and conflicts in the Middle East. The IMF projects Nigeria's economy will expand by 4.1% in 2026 and 4.3% in 2027.

Governor Olayemi Cardoso stated that the program ensures Nigerian banks can fund the transactions necessary to achieve a $1 trillion economy. To manage this growth, the Central Bank of Nigeria is implementing a credit-risk framework designed to ensure the new capital is prudently deployed into technology, manufacturing, energy, and infrastructure.