My first question will be on banking recapitalisation. What are your thoughts on the recent mergers, also, do you foresee any more mergers before the end of the year, and if so, can you at least tell us the ones you think would happen?

First of all, we need to realise that the recapitalisation of the banking industry is a long road, and it is not over until it is over. As of today, 24 March 2025, I would say that almost all banks seem to be in line with their recapitalisation plans. The Central Bank of Nigeria (CBN) required every bank to submit their recapitalisation plan outlining how they intend to raise the necessary funds at the outset of the recapitalisation exercise in April 2024. Many of the banks are significantly in line with the submitted plan.
The mergers we are seeing in the industry, as you mentioned, were not entirely driven by recapitalisation. Some of these mergers involved banks that were already struggling, and the CBN sought out institutions that could help stabilise them. Additionally, we have seen divestment from a merchant bank. However, for now, most banks are focused on raising capital independently. That being said, a lot can still happen.

In terms of recapitalisation, some banks are targeting foreign inflows. Can you speak on the FX inflow so far, the improvements it has had, and do you think it will be sustained?

When this exercise started last year, many people underestimated the volume of domestic funds available in Nigeria’s financial system and capital markets. Initially, the expectation was that foreign capital would play a major role in the recapitalisation process. However, out of the N4 trillion required for the industry’s recapitalisation, about N2 trillion has already been raised, largely from domestic investors.
https://www.thisdaylive.com/index.php/2025/03/26/olubunmi-bank-recapitalisation-will-spur-new-economic-sectors-strengthen-growth/