CPPE hails Central Bank of Nigeria over orderly and successful implementation of the country’s bank recapitalisation

 

By allcitynews.blog

Following the Central Bank of Nigeria (CBN) recapitalisation drive, the leadership of Centre for the Promotion of Private Enterprise (CPPE) has commended the Central Bank of Nigeria (CBN) for the orderly and successful implementation of the country’s bank recapitalisation programme.

Just aa he described the operation a major milestone in strengthening the nation’s financial system.

In a recent statement, CPPE noted that the recapitalisation exercise, now nearing completion, has been conducted smoothly, boosting investor confidence without any reported cases of depositor losses, forced mergers, job cuts, or erosion of shareholder value.

The group confirmed that at least 32 banks had met the new minimum capital requirements as of March 27, 2026, reflecting enhanced regulatory capacity, stronger market discipline, and improved resilience in the Nigerian banking sector—an achievement CPPE describes as a significant improvement over previous consolidation efforts.

Despite these gains, CPPE raised concerns about the limited impact of the strengthened banking system on the real economy, highlighting a persistent disconnect between financial institutions and productive sectors.

The organisation also drew attention to severe credit constraints affecting key segments, noting that small and medium-sized enterprises (SMEs)—which account for roughly 50 per cent of GDP and over 80 per cent of employment—face an estimated financing gap of about ₦48 trillion.

Meanwhile, the Manufacturers Association of Nigeria (MAN) has sounded the alarm over potential disruptions to the nation’s manufacturing recovery amid escalating geopolitical tensions involving the United States, Israel, and Iran.

According to MAN, the conflict is sending shockwaves through global energy markets and supply chains, threatening domestic production at a time when Nigeria had begun to see a gradual recovery.

MAN’s statement highlights that Nigeria’s inflation rate had eased to 15.10 per cent, while manufacturing capacity utilisation surpassed 60 per cent, signalling positive momentum.

However, the association warns that disruptions in strategic shipping routes such as the Strait of Hormuz and the Red Sea corridor are driving crude oil prices higher, with Brent crude surpassing $84 per barrel, alongside rising freight and insurance costs.

These factors, MAN stresses, could undermine Nigeria’s fragile industrial gains.

In currency markets, exchange rates at Central Bank rates stand at ₦1,381.94 per US dollar, ₦1,823.62 per British pound, and ₦1,589.60 per Euro, reflecting the ongoing global economic pressures.

CPPE and MAN’s observations underscore a dual challenge for Nigeria: while the financial sector shows resilience and stability, the real economy and manufacturing sector remain vulnerable to credit constraints and international shocks, requiring coordinated policy interventions to sustain growth and protect domestic industries.

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