RECAPITALISATION TO DRIVE H2 2026 LENDING, TECH EXPANSION

Nigeria’s banking recapitalisation exercise is expected to support stronger lending and increased investment in technology during the second half of 2026, as banks strengthen their balance sheets and prepare for greater competition.

The additional capital is expected to improve banks’ capacity to provide credit to businesses and individuals, particularly in sectors such as manufacturing, agriculture, infrastructure, and small and medium-sized enterprises.

Industry stakeholders said stronger capital positions would also give banks greater room to invest in digital platforms, cybersecurity, artificial intelligence, and other technologies needed to improve efficiency and customer experience.

The recapitalisation exercise is part of the Central Bank of Nigeria’s efforts to strengthen the banking sector and ensure that financial institutions have sufficient capacity to support a growing economy.

Analysts said well-capitalised banks would be better positioned to absorb economic shocks, finance larger projects, and compete more effectively within Nigeria and across the African financial market.

They also noted that increased lending could support economic activity if banks maintain strong credit risk management and direct funds towards productive sectors.

Technology investment is expected to remain a major priority as customers increasingly shift towards mobile and digital banking services.

Experts, however, warned that banks must balance expansion with effective risk management, cybersecurity, regulatory compliance, and responsible lending practices.

Stakeholders said the success of the recapitalisation exercise would ultimately depend on how effectively banks deploy the additional capital to support businesses, innovation, and sustainable economic growth.