CBN-led bank recapitalisation prepares Nigeria’s economy for growth, stability – IMF acknowledges
The International Monetary Fund (IMF) has acknowledged the positive impact of Nigeria's recent bank recapitalisation exercise, citing its role in preparing the economy for growth and stability. The IMF projects Nigeria's economy to grow at 4.1% and 4.3% in 2026 and 2027, respectively.
The International Monetary Fund (IMF) has recognised the strategic impact of Nigeria's recent bank recapitalisation exercise, led by the Central Bank of Nigeria (CBN). The exercise has strengthened the banking sector, enabling it to withstand external shocks and support economic growth. The IMF projects Nigeria's economy to grow at 4.1% and 4.3% in 2026 and 2027. The bank recapitalisation has resulted in higher reserves, estimated at $51 billion by year-end, and a determination to achieve a single-digit inflation rate. The IMF emphasised the importance of a well-capitalised banking system in maintaining global financial stability, particularly during periods of stress. Nigeria's economic policies need to be agile to manage the trade-offs involved in ramping up defense spending and lay the foundation for a sustained recovery.
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