Stronger capital buffers following Nigeria’s banking sector recapitalisation exercise will not by themselves guarantee the stability of financial institutions without effective risk management, regulatory compliance and sound corporate governance, the Nigeria Deposit Insurance Corporation (NDIC) has said.
Thompson Oludare Sunday, managing director and chief executive officer of the NDIC, said the recapitalisation exercise, which concluded on March 31, 2026, was a positive development for the financial sector, but stressed that raising capital was only the first step towards ensuring the safety and soundness of banks.
He spoke at the capacity development programme for Management and Senior Staff in partnership with the Bureau of Public Procurement (BPP), held in Lagos, where he stressed the need for banks to complement stronger capital buffers with effective risk management, regulatory compliance and sound corporate governance.
According to Sunday, regulators must ensure that the additional capital raised by banks is deployed safely and prudently, with strong attention to risk management, compliance and corporate governance.
“The recapitalisation exercise, which concluded on March 31, 2026, is a positive development for the financial sector. Strong capital buffers are essential, but raising capital is only the first step,” he said.
