The Managing Director and Chief Executive Officer of Sterling Bank, Abubakar Suleiman, has said recent foreign exchange reforms and the ongoing banking sector recapitalisation programme have strengthened Nigeria’s financial system and improved investor confidence.
Speaking through a senior bank executive at the 38th CBN Seminar for Finance Correspondents and Business Editors in Abuja improved price discovery mechanisms, have enhanced transparency and reduced uncertainty for businesses and financial institutions.
He acknowledged that exchange rate adjustments initially resulted in losses for some banks and customers but noted that improved corporate performance has demonstrated the long-term benefits of the reforms.
Suleiman disclosed that banks raised ₦4.6 trillion in fresh capital over the past 24 months, with 72.5 per cent sourced from the domestic market, reflecting growing depth in Nigeria’s capital market.
However, he stressed that the success of the recapitalisation exercise should not be measured solely by the amount of capital raised but by the quality and volume of credit extended to productive sectors of the economy.
“The success of recapitalisation will be measured by the quality and additionality of credit that the new capital supports, not by the amount raised alone,” he said.
He also cited the banking industry’s exit from COVID-19 regulatory forbearance measures as a development that has improved asset quality, strengthened performance indicators and boosted investor confidence.
According to Suleiman, reforms in the foreign exchange market, recapitalisation efforts and improvements in regulatory frameworks have renewed international investor interest in Nigeria.
He pointed to the operationalisation of the Dangote Refinery and recent commitments by international energy companies as indications of growing investor confidence and expanding opportunities for long-term infrastructure financing and productive investments.
Suleiman further called for increased collaboration among banks, payment service providers, regulators and law enforcement agencies to combat financial fraud, saying trust and resilience remain critical to safeguarding financial stability.
He also endorsed ongoing efforts to strengthen data sovereignty and compliance frameworks, describing them as vital to the future growth and security of Nigeria’s financial system.
