CBN Don Warn Say Banking Recapitalisation Fit Shake Market

My people, see ehn, Central Bank of Naija don blow whistle about wetin dey happen for banking sector.

Dey don talk say di ongoing recapitalisation fit increase concentration risk for our capital market—no be small tin o! E fit make non-bank issuers waka comot, despite di bullish vibes wey dey flow everywhere.

The CBN gist about this matter for dia Macroeconomic Outlook for Nigeria 2026 report. Dem talk say this whole recapitalisation wahala fit make investors dey focus more on banks, instead of spreading di koko across di market. Na dem banks wey dey raise capital wey go fit dey eat all di attention, while other sectors dey wait for wetin go happen next.

According to di CBN, di current bullish momentum no mean say e go last forever. Wen plenty banks dey try raise money, e fit lead to wetin dem dey call ‘investor fatigue’—dis one mean say people go tire for bank shares, and dem fit no won buy wetin dey come from other sectors again.

Dem don also raise alert about di non-performing loans wey dey climb reach 7%, Weh dey higher than di 5% regulatory limit. Na wetin dey happen when COVID era forbearance don finish, and di true state of banks’ loan books don show. E mean say banks still dey struggle even as dem dey try raise di largest capital in history!

And wetin make matter even worse be di high level of interconnectedness wey dey happen for our financial system. If cyber attack reach, na so data fit scatter, confidence go crash, and investor go dey run away. Na wetin CBN talk o!

Also, dem don drop tori about Nigeria 2026 budget outlook wey dey heavily dependent on oil revenue. E go fit make di budget shaky if oil price wan fall or production wan low. Dem don dey work to improve di Nigerian Tax Act, but weak compliance fit still spoil show.

All these things go require proper coordination from government and policy makers to make sure sey di market no dey tilt too much towards banks’ side. If dis one happen, di non-banking sectors go dey suffer, and e go affect overall economic growth.

So, my people, make we dey watch as di story dey unfold. E go sweet to see how dis recapitalisation go shape our financial landscape.