…Nigerian banks rising globally, ready for recapitalisation – CBN
The World Bank has thrown its weight behind the Federal Government’s economic transformation agenda, with renewed commitment to support key development priorities that directly impact millions of Nigerians.
The World Bank’s endorsement of Tinubunomics came just as the National Bureau of Statistics, announced yesterday that Nigeria’s inflation rate increased to 24.23 percent in March after months of respite.
World Bank Vice President for Western and Central Africa, Ousmane Diagana, in a high level meeting with Nigeria’s Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, applauded Nigeria’s economic resilience, noting that the country’s GDP growth of 3.4% is its strongest since 2014 — a clear signal of recovery. He stressed the importance of keeping the reform momentum alive to fuel job creation and inclusive growth.
“Nigeria remains our largest portfolio in Africa, with over $17 billion in commitments. The world is watching, and we believe this country can lead the way in development,” Diagana said.
Director of Information and Public Relations of the Finance Ministry, Mohammed Manga, in a statement, quoted the Minister Edun as reaffirming the Tinubu administration’s determination to drive real results through a sharp focus on three key goals — faster project execution, biometric enrolment for 15 million citizens on the national social register, and a Mission 300 initiative to expand energy access across Africa.
“We’re not just talking reforms, we’re delivering them. And with the World Bank’s support, we are setting up a Delivery and Monitoring Unit to make sure no project gets stuck in the pipeline,” Edun said.
Meanwhile, the NBS yesterday announced an increase in its Consumer Price Index (CPI) for March. The new rate indicates an upward movement from the 23.18 percent reported in February. The report added that food inflation rate stood at 21.79 percent in March on a year-on-year basis.
“In March 2025, the headline inflation rate rose to 24.23 percent relative to the February 2025 headline inflation rate of 23.18 percent. On a month-on-month basis, the headline inflation rate in March 2025 was 3.90 percent.
“The food inflation rate was 21.79 percent year on year in March 2025,” NBS stated in a statement published on X yesterday.
This is the first time Nigeria’s CPI increased after its rebase in January 2025.
In another development, the Central Bank of Nigeria (CBN) has affirmed the preparedness of Nigerians banks for recapitalisation.
Director of Banking Supervision at the apex bank, Dr Olubukola Akinwumi, at the ongoing 36th Edition of Finance Correspondents and Business Editors Association of Nigeria Seminar said the credibility of local banks is rising due to their ability to address various challenges, including exchange rates, thereby boosting investor confidence.
Akinwumi explained that CBN is making progress toward meeting the banks’ recapitalisation deadline but declined to comment on how much the banks have been able to raise individually.
He said that the Federal Government is pursuing policies that prioritise agriculture, infrastructure, education and health, noting that Nigerian banks are now better positioned for investments in these and other sectors.
Akinwumi disclosed that the apex bank is implementing policies to enhance investments in the economy, particularly within the banking sector.
He stated that the recapitalisation drive aims to promote consolidation and innovation in the sector, adding that the CBN is committed to combating illicit financial flows and would not admit unverified funds into the banking system.
He revealed that the CBN has outlined flexible avenues for banks to raise capital, including initial public offers, rights issues, private placements, as well as mergers and acquisitions.
Also speaking on banks’ recapitalisation, Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), said the sector needs the collaboration of all Nigerians.
He expressed hope that all local banks would be able to meet the CBN’s recapitalisation deadline.
He, however, called for some measure of flexibility from the apex bank for those that may require slight time extensions to comply with the deadline.