The Executive Council of Financial Institutions Associations (EFInA) has stated that Nigeria’s ongoing banking sector recapitalisation will only be successful if it results in cheaper and safer financial services for consumers.
The group argues that the primary objective of the regulatory push to increase bank capital must be visible improvements in the daily financial experiences of the public, rather than merely strengthening balance sheets.
This intervention comes as the Central Bank of Nigeria (CBN) continues to enforce stricter capital requirements on commercial banks.
The recapitalisation drive is designed to enhance the stability of the financial system and support broader economic growth.
However, EFInA cautions that without a corresponding reduction in lending rates, the benefits of a more robust banking sector may not reach the real economy.
The call for lower borrowing costs aligns with recent pressure from within the CBN itself.