The newly announced recapitalisation of Nigeria’s banking sector could boost lending in the country’s economy and strengthen lenders’ regional and international competitiveness in the medium term, even as the new requirements may put pressure on smaller lenders to seek mergers, according to experts.
Under plans announced in late March, Nigeria’s banks have two years to significantly raise their capital base to meet new minimum capital requirements from the Central Bank of Nigeria. Lenders must submit their implementation plan to the CBN by April 30.
