Feature/OPED

State of the World: Business, War, Economics, Civilization, Trade & Politics

Published

4 years ago

22/08/2021

By Nneka Okumazie

It is likely that a key reason for Asia’s powerful rise in recent decades is that white people fell into a deep perilous sleep – with no wakefulness in sight.

There is something significant to free enterprise – cold hard cash. And Asia continues to beat them at their own game.

Capitalism, predicated on competitive productivity, found fertility in Asia, as the whites optimized for profit, which goes to some, and waned in – a – collective progress.

Budget cuts, deficits, dismaying healthcare situations, austerity, unemployment, recession, etc. are bells of a decline, though strengths abound in other areas.

There is wealth in the dirt and for centuries, the whites were able to pass around aspects of the unpleasant – in important but profitable work – to others.

But this, for Asia, unlike others in the past for situation, prescience, etc. was willing to seem dumb and get roughened, learn, position, get better and become the engine of global supply.

Though many posit paths for Asia’s not so simple rise, one thing is clear, they took advantage.

The rise of Asia does not mean they would overpower the world, or lead it – unlikely, at least through this century, but they have taken hold of something that in possession of the whites may have been – some – more equitable for the world.

The rise of the dominant civilization through centuries came with trenchant imagination, invention, overwhelming courage, in-group fairness, trust, some integrity, rarefied observation, impermeable loyalty, push-pull drive or attempt propensity, spot-opportunity-alertness, etc.

But these, for more whites, continue to recede.

It is true that after near matchless excellence through history, to relish and chill, because with what should be part decline – remains far ahead of most of the world.

Though emerging differently – Asia was able to soup together their ways and other aspects of growth determinism.

There is no way it should not have been obvious that in a capitalist society, the most important sector is the economy and the most important field is economics.

Another dance is of the drifter’s drum.

Once the economy falters – others follow.

Most of the things that grow – commercially – are for perceived value, graded by price.

Big stuff like the defence that grows across nations – seeming to defy local economics, is not by itself growth but a governance tumour.

There is the security hallucination of weapons first, forgetting the economy is the greatest weapon.

Aside from growing wastes with rusty weapons across zones, there are categories that will almost never be used, not because there won’t be conflicts but because there is less incentive for self-destruction, for those that have things going – somewhat – well for them.

Also, those in power, who initiate wars, often believe that they can win and retain power, not because they see it as a path to ruin.

So, battles are often circumspectly selected, and the mad person is not that crazy – at least initially.

There is a point of enough for direct weapons of war – in proportion to priority objectives.

But there may never be enough for indirect weapons of war – economy, food, development, etc.

The groupies for direct weapons forget that some of the leading nations of present-day productivity are not the most abundant with weapons. Those, for years, on weapons speedway focused on it, to lead, losing out on other areas, as others rose.

Some countries almost seem to have outsourced their defence. Also, there is a high attraction for others to have an alliance with those who make stuff, or maybe prioritize them.

More weapons may mean an appetite for conflict or hyper-belligerence.

Conflicts remain uncertain with the use of fair weapons, as well unclear benefits amid so much noise.

The economic decline may – maybe – be turned around with invasion centuries ago – and then occupation, but with horror weapons now and continuous options for resources and production elsewhere, weapons winders bear economic senescence.

Some may argue the need for new frontiers of defence, yes, maybe, but the economy, economy mostly.

There should be at least hundreds of new economic ideas tested on small scale across locations – to find new options with demand, supply and more.

Economics should be the most with the number of tryouts seeking how to make progress in a changing world, but painfully, most in the field are showroom economists, displaying data prowess, bickering over trends and terms but deficient in applicable economic ideas for continuous progress.

They have become watchers of the gauge, rather than seek hundreds of mobility alternatives to keep the economic cargo moving; that if some parts go to others, there should be tens of options to redirect the loss in gainful ways.

There are some big ideas on what to do in some cases and sometimes just one. If the best to come up with is just one, not at least twenty, it has already failed. Who cares about prestigious titles, degrees, places or roles if they have little ideas in their field on how to move all forward as they watch their civilization asphyxiate?

Most economists in recent decades had no major paths for the future. They sheltered in the lack-of-better-ideas prison, similar now by most economists, towards the future, with resignation. Such a shame that they know how many economic troubles had been responsible for problems across the world throughout history, but refuse to drive economics reproductively with great ideas for new options regardless of what emerges and how tough it gets, uncertainties or catastrophes.

Most economists are an embarrassment, with nothing to contribute to progress than – to be dated analysis, debates over who crashes first, sham indicators and void revisions.

They forget how responsible they are not just for their own civilization, but also for the developing world since the majority of the developing world will never do anything new for themselves except copy from elsewhere, or adopt something really insignificant to their collective progress and yell.

Many years ago, the rigid capitalism models, caused lots of union troubles that may be led, in part, to horror stance that maybe also led, in part, to trouble ideologies years on. Economy first, but most economists show no leadership, so the advantage is taken of their turf for all kinds of illegal stuff.

If for example, in many developing countries, someone asks some people, why are you involved in organized crime? They may give common ludicrous answers, but one thing they don’t often say:

They want to be regarded.

In many developing countries, money – per capitalism copy – rules, so not having means being nothing, and many don’t want this.

So, for them, it is a status game, show-off and classifying display to appear better than others.

Status is worthless.

It is not often obvious because most people want to be admired, but status by itself – as a destination, not a tool – is worthless.

The world is a collection of segmented countries. If developed countries are trains on their tracks, and some emerging nations too are, some developing nations have no trains, no tracks and their people are standing by.

In that no progress situation, some are better off, so instead of most seeking ways to found a new track, or repurpose an old track, get some locomotor and get started, their people on that ground, table on status, use possessions or exposure to class, so as to distinguish selves from others.

Some get aboard other trains, do OK, but mostly get sucked in becoming little to progress.

They may not see it but are insignificant in how most act or appear, to many on trains of progress.

Who cares that someone in some null developing country somewhere drives a cool vehicle?

What does it solve? What does that do for the world or their people per progress?

There is some developing country somewhere, with their reputable companies, neighbourhoods, schools, positions, tribalism, with people there thinking they have it all, who cannot look at themselves at how backwards they are, and find ways to collectively go forward.

Most often forget that individual success is mostly an opportunity to take the collective risk so that if it works, it benefits them and their people. But unfortunately, these places lack much, while getting consumed by petty heavy nonsense, repeating the same with many of their progenitors.

There is often an insistence on education, democracy, freedom, transparency, etc. Those are cool indexes but are like the tenth need for most developing countries.

Since their schools mostly don’t have advanced facilities or much, rather than focus on studying what others are studying, yet not great at it, they should instead have institutes of imagination, colleges of observation, labs of integrity, departments of courage, groups of fairness, schools of trust and integrity.

Most of the countries lack these. There is hardly a way for most new leaders or many of the sham revolutions to do much.

Why won’t many be corrupt?

On the ground, the goal is to make it comfortable or maybe find ways to feel better than others, etc.

What a joke for all the symbolism from most of these places that they just cannot have basic fairness.

Conferences, summits or gatherings to discuss their nothing subjects all lack emotional observation, no exception.

The same way status is worthless in those countries is the same way status is worthless anywhere in the world.

The moving train has several mechanical parts, it is possible to be on an amazing train and have others work on the ugly parts, but after a while, those tending and supplying the ugly parts hold some power. Status may still seem valid, but others handle something important.

Status, Rolodex or connections, as the way things should happen, is part of the model of economic decline.

It was cool monarchy powered stuff, but with similar, now, in parallel to Asia’s fierce economic procession, doom, doom.

There are many of the bygone eras who hardly saw the future. Then in their status, feeling like the centre of all, are gone, faded, irrelevant, not remembered. This is often forgotten by many in the present.

There are people who for whatever reason believe that being born white or in some associated country means being special, or better than others, NO it does not.

Those in the tug for this or against can’t see their loss in economic substitution.

For some, they claim they are protecting civilization, or others from taking over, but this will not happen.

Mostly, in these major countries, they have so many programs, to assist the sick, the troubled, those in need, including interventions, tips against addiction, harm, etc. The summary of the message is don’t waste your life, even if it achieves nothing grand per se, just do OK, and who knows, it might.

Now, in some places, certain tiny groups say they have to do ruinous martyrdom to conquer others. So an ideology that tells people to waste their life will conquer a place already evolved to cherish life?

It won’t happen.

Most of the fears are diversions from an economy that has cratered and no answer, so find something to grab minds and leave out answers.

Whatever the future may hold, hate is not the future.

Deception is not the future.

It is possible to predict their directions, but both will not win.

In hindsight deceit revealed is sometimes more than disappointing, just like hate, greed, lust, evil, wickedness, etc.

It is easier to predict the future, with themes than with events.

The future is extremism, though could be in useful stuff.

Extremism, not moderation will be the future, from different directions.

Though Asia made it, they don’t have big ideas that would move them or the world far super forward.

The world too is short on answers.

The fields that produce studies and should quadruple outputs, to close in on pervasive progress face funding cuts and diversions.

Progress stalls because of economics and swing set, post-ideas economists.

Technology is far subject to economics than many believe it is an advance driven progress.

There is a big country whose meaning will – maybe – depend on sabotage and antagonism because they have lost out on the future, so they have to posture with both.

There is also another big country, with super-smart people doing amazingly and leading across fields nationally and internationally, but that country is unlikely to succeed, even if some of their known cognitive snipers elsewhere – come to power.

This is due to religious aggression, certain culture and the funnel of their people to get out to enthusiastically build the civilization of others.

Religion is mostly about association and possession – what the people believe they have. It is not often the most important to decisions as many prioritize whatever according to desires, needs or status, not adherence or pure heart.

The future is religion as well, though may not be just organized.

Some people remain consumed by what skills people would need in future?

Economics is before all, few see it or that it is diseased and needs massive multiple ideas, instead most people run amok seeking scraps of economic servants.

[Matthew 6:21, For where your treasure is, there will your heart be also.]

Feature/OPED

From Convenience to Culture: How Streaming Will Shape Entertainment in Nigeria in 2026

Published

1 hour ago

16/01/2026

Business Post Contributor

Not too long ago, streaming in Nigeria was seen as a convenience, an alternative to traditional television, used mostly to catch up on missed shows or explore international content. Today, it has evolved into something far more ingrained. Streaming is now a culture: a daily habit that shapes conversations, influences pop culture, drives fandoms and even dictates how stories are told.

From late-night binge sessions and group watch parties to live-tweeting reality shows and football matches, streaming has become woven into how Nigerians experience entertainment. As mobile devices, smart TVs and affordable data options continue to expand access, the platform has moved from the fringes to the centre of everyday life. In 2026, this cultural shift will become even more pronounced.

Here’s what to expect as streaming continues to evolve in Nigeria and across Africa.

Value Will Define Loyalty in an Overcrowded Streaming Market: As streaming becomes mainstream, Nigerian audiences are becoming more discerning. Subscription fatigue is real, and users are no longer impressed by platforms with limited libraries or infrequent updates.

In 2026, loyalty will belong to platforms that offer sustained value, not just headline titles. This means:

Deep content libraries that go beyond a handful of popular shows
A healthy mix of live TV, sports and on-demand entertainment
Regular content refreshes that keep audiences engaged month after month
Viewers now understand value, and they will gravitate towards platforms that consistently deliver variety and relevance.

Local Stories Will Drive Cultural Relevance: Streaming has amplified the power of Nigerian storytelling, giving local productions the scale and visibility once reserved for traditional TV. Viewers are showing a clear preference for stories that feel familiar, authentic and culturally grounded.

In Nigeria, titles like Omera, Glass House, Italo, The Real Housewives of Lagos, Nigerian Idol and Big Brother Naija have become shared cultural moments, driving online conversations and real-world buzz. These shows are not just being watched; they are being experienced.

Across the continent, similar patterns are emerging, reinforcing the role of hyperlocal content in building loyalty and identity. In 2026, investment in African creators will remain central to streaming growth.

Streaming Becomes Personal and Predictive: As streaming matures, platforms will increasingly rely on AI to understand viewers on a deeper level. In 2026, Nigerian users can expect:

More intuitive recommendations tailored to individual tastes
Smarter content discovery that reduces the time spent searching
Interactive experiences that respond to viewer behaviour

Beyond content, AI will also enhance advertising relevance and customer support, creating a smoother, more personalised user journey.

Live Sports Will Continue to Anchor Streaming Culture: While binge-worthy series drive daily engagement, live sports remain one of streaming’s biggest cultural anchors. Football, in particular, continues to command passionate followership in Nigeria.

With the 2026 FIFA World Cup scheduled for June–July, live streaming will dominate viewing behaviour once domestic leagues conclude. Nigerian football fans demand quality, reliability and immediacy, making official platforms with full broadcast rights, such as SuperSport, essential destinations during major tournaments.

In 2026, sports will further reinforce the value of legitimate, high-quality streaming experiences.

Security Becomes Non-Negotiable: As streaming cements its cultural relevance, content protection will take on greater importance. Premium sports and entertainment remain prime targets for piracy, but the response is becoming more sophisticated.

Technologies from cybersecurity firms like Irdeto now enable real-time monitoring, rapid takedowns and legal action against illicit streaming networks. These measures protect not just platforms, but creators and the broader creative ecosystem, a critical consideration as local production continues to grow.

Innovation Makes Streaming More Inclusive: One of the most significant shifts in Nigeria’s streaming landscape is how inclusive it has become. Platforms are innovating around:

Flexible pricing
Bundled services that combine TV and streaming
Multi-device access, including mobile-first options

Whether premium or entry-level, users can now find options that suit their lifestyle and budget, reinforcing streaming’s position as an everyday entertainment staple.

A More Conscious Streaming Audience Emerges: As streaming culture matures, so does audience awareness. Nigerian viewers are increasingly able to identify illegal streaming platforms and understand the long-term damage piracy causes to the industry.

In 2026, conscious viewing will continue to gain ground, with users learning to avoid red flags such as “free” premium streams, unofficial apps, VPN-only access and excessive pop-up advertising.

Streaming is no longer simply about watching content, it is about belonging to moments, communities and conversations. In Nigeria, it has evolved into a cultural force that shapes how stories are told, shared and celebrated.

As 2026 unfolds, streaming will continue to thrive at the intersection of technology, culture and creativity, offering entertainment that is accessible, relevant and deeply local.

Feature/OPED

How Compliance through Technology among Banks can Promote Intra-Africa Trade

Published

4 hours ago

16/01/2026

Business Post Contributor

By Anne Mureithi

Provision of banking services in Africa continues to undergo profound digital transformation where most transactions are conducted virtually via digital devices and cash moved electronically. Mobile banking, fintech innovation, and cross-border digital payments have reshaped how individuals and businesses consume financial services.

In Nigeria and across the continent face, banks face sharp scrutiny from expanding regulatory landscape, including Anti-Money Laundering (AML), combating the financing of terrorism (CFT) and combating the financing of proliferation (CPF) that involves disrupting funds for weapons of mass destruction (WMD) through targeted financial sanctions.

With increased cross border trade, everyone including governments look upon banks to provide Know Your Customer (KYC) services, fraud risk management, and increasingly adhere to stringent data protection and privacy regulations as well as Environmental, Social, and Governance (ESG) reporting standards.

Compliance is no longer a back-office obligation, and this calls for increased investments in technology, particularly Artificial Intelligence (AI) and Machine Learning (ML) to enable banks to meet compliance requirements.

This is important as local traders want a banking partner who offers one-stop shop services on compliance matters. For banks, this is a competitive advantage, a core capability, and a source of differentiation. By embedding compliance into product and process design, banks can meet regulatory obligations efficiently while fostering innovation through a compliance-by-design approach.

In March 2025, the Central Bank of Kenya published the results of a survey on AI adoption in the banking sector, revealing moderate uptake, with 50% of respondents indicating some level of implementation. The survey found that among institutions that had adopted AI and machine learning, the leading applications were credit risk assessment (65%), cybersecurity (54%) and customer service (43%), followed by e-KYC (41%) and fraud risk management (40%).

These findings underscore significant untapped potential for AI to transform customer experience and strengthen risk management, particularly in AML and compliance monitoring. As intra-Africa trade continues to increase, compliance teams within banks must play a leading role in establishing strong governance, ensuring transparency, and preparing institutions for emerging regulatory expectations.

The Central Bank of Kenya has confirmed that it is in the final stages of developing a Guidance Note on Artificial Intelligence, with 95% of surveyed institutions having requested formal regulatory direction. The anticipated principles-based framework will focus on governance, risk management, transparency, and the ethical use of AI, laying the foundation for responsible innovation in the financial sector.

AI and ML models offer practical solutions to compliance challenges by learning and tracking typical behavioural patterns by customer, product, and corridor, flagging anomalies such as unusual counterparties, transaction values, or routing patterns in cross-border flows. These tools can also generate more accurate and complete assessments of ongoing customer due diligence and customer risk, which can be updated to account for new and emerging threats in real time.

By detecting potential violations of normal customer profiles in data or groups of customers with higher-risk characteristics, AI has streamlined priorities towards high-risk cases and reduced the time spent on false positives. This capability is increasingly critical as transaction volumes and complexity grow. Such technological advances transform compliance from a costly obligation into a strategic advantage.

Customers do not need to know one another to execute a transaction since AI-powered identity authenticates customer identity through document scanning, biometric verification and mobile-based identity solutions. These solutions have also enabled banks to onboard new customers remotely without the need to visit a physical bank to fill in registration details.

Accounts are fully secure and only users who pass the mobile-based identity verification are allowed access thereby preventing fraud. This also supports financial inclusion by enabling access to financial services for individuals who struggle to provide adequate identification documents for opening bank accounts.

In addition, Regulatory Technology (RegTech) solutions enable financial institutions to monitor regulatory developments, map obligations across their operations, conduct initial gap assessments, ensure that policies and procedures are always up to date and streamline regulatory reporting.

This capability is particularly valuable for pan-African institutions in ensuring agility while responding to regulatory changes across multiple jurisdictions. With its presence in 34 African countries, Ecobank advocates for harmonised payment systems and regulatory frameworks as a catalyst for accelerating intra-African trade.

Regional regulatory alignment further amplifies these gains. As African regulators work towards greater harmonisation of standards, banks with pan-African footprints are uniquely positioned to bridge local realities with global expectations, enabling smoother cross-border transactions and reducing friction for businesses operating across multiple markets.

The convergence of digital innovation and regulation presents an opportunity to support regional integration and strengthen public confidence. Banks that integrate compliance into their digital strategies, invest in ethical AI, enforce strong governance, and actively engage regulators will be best positioned to compete, facilitate trade, and protect financial integrity.

On an Africa-wide platform, traders from Nigeria want a synchronised platform that provides them with end-to-end solutions. Say Ecobank Group’s AML monitoring and sanctions screening capabilities within its SWIFT payment infrastructure ensure that all cross-border payment messages undergo real-time compliance checks prior to fund settlement.

With increased intra-Africa trade that rides on online platforms, accelerated digitalisation of cross-border transactions, timely, efficient, and secure payment processing is paramount. Real-time compliance monitoring is a non-negotiable cornerstone of safeguarding the integrity of international payment flows.

Ultimately, the future of banking in Africa will be defined by how institutions harness technology to meet regulatory obligations, deter financial crime, and foster trust among businesses, consumers, and public institutions alike. Compliance is no longer a constraint on growth; it is a foundation for sustainable innovation, regional integration, and long-term confidence in Africa’s financial system.

Ms Mureithi is a director in charge of compliance at Ecobank, Central, Eastern and Southern Africa (CESA)

Feature/OPED

The Missing Pieces in Nigeria’s Banking Recapitalisation

Published

2 days ago

14/01/2026

Business Post Contributor

By Blaise Udunze

Nigeria’s economy will be experiencing yet another round of reform; after the new tax implementation, the banking sector recapitalisation exercise will begin within less than three months until the March 31, 2026, deadline. The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, disclosed that 27 banks have tapped the capital market via public offers and rights issues.

The figures show that of 21 the 37 commercial, merchant, and non-interest banks in the country have met or exceeded the revised minimum capital thresholds of N500 billion for internationally authorised banks, N200 billion for national banks, N50 billion for regional banks, and N10-20 billion for non-interest banks. With the developments above, policymakers are betting that stronger balance sheets will help banks withstand macroeconomic shocks, finance growth, and restore confidence in the financial system. On the surface, the logic is sound, capital matters. But history warns us that capital alone is not a cure-all.

Nigeria has been here before, going by the 2004-2005 era of the then-governor of CBN, Charles Soludo, whose banking consolidation dramatically reduced the number of banks from 89 to 25 and created national champions. Yet barely five years later, the system was back in crisis, requiring regulatory intervention, bailouts, and the creation of the Asset Management Corporation of Nigeria (AMCON) to absorb toxic assets. The lesson here is clear, which revealed that recapitalisation that ignores structural weaknesses merely postpones failure.

If the current exercise is to succeed, the CBN must use it not only to raise capital but to repair the deeper fault lines that have long undermined the stability, credibility, and effectiveness of Nigeria’s banking sector.

More Capital isn’t Always Better Capital

The first and most critical issue is the quality of capital being raised. Disclosures made by the banks have shown that the combined capital base of about N5.142 trillion is already locked in by lenders across the different licence categories. Bigger numbers on paper mean little if the capital is not genuinely loss-absorbing. In past recapitalisation cycles, concerns emerged about funds being raised through related parties, short-term borrowings disguised as equity, or complex arrangements that ultimately recycled the same risks back into the system.

This time, the CBN must insist on transparent, verifiable sources of capital. Every naira raised should be traceable, free from conflicts of interest, and capable of absorbing real losses in a downturn. Otherwise, recapitalisation becomes an accounting exercise rather than a resilience-building one.

Why Corporate Governance Remains the Achilles’ Heel

Perhaps the most persistent weakness in Nigeria’s banking sector is corporate governance failure. Many bank crises have not been caused by macroeconomic shocks alone, but by poor board oversight, insider abuse, weak risk culture, and excessive executive power.

Recapitalisation provides a rare regulatory leverage point. The CBN should use it to reset governance standards, not just capital thresholds. Boards must be independent in substance, not just in form. Being one of the critical aspects of the banking challenge, insider lending rules should be enforced without exception. Risk committees in every financial institution must be empowered, not sidelined by dominant executives.

Without the apex bank fixing governance, new capital risks become fresh fuel for old excesses.

The Unresolved Burden of Non-Performing Loans (NPLs)

Data from the CBN’s latest macroeconomic outlook showed that the banking industry’s Non-Performing Loans ratio climbed to an estimated 7 percent, pushing the sector above the prudential ceiling of 5 percent. Nigeria’s banking sector continues to be drowned with high volumes and recurring non-performing loans (NPLs), and this is often concentrated in sectors such as oil and gas, power, and government-linked projects. Though with the trend of events, one may say that regulatory forbearance has helped maintain surface stability in the sector, no doubt it has also masked underlying vulnerabilities.

The truth is that a credible recapitalisation exercise must confront this reality head-on. Loan classification and provisioning standards should reflect economic truth, not regulatory convenience. Banks should not be allowed to carry impaired assets indefinitely while presenting healthy balance sheets to investors and the public.

Transparency around asset quality is not a threat to stability; it is a foundation for it.

How Foreign Exchange Risk Quietly Amplifies Financial Shocks

Few risks have damaged bank balance sheets in recent years as severely as foreign exchange volatility. Many banks continue to carry significant FX mismatches, borrowing short-term in foreign currency while lending long-term to clients with naira revenues.

During periods of FX adjustment, these mismatches can rapidly erode capital, no matter how well-capitalised a bank appears on paper. Recapitalisation must therefore be accompanied by tighter supervision of FX exposure, stronger disclosure requirements, and realistic stress testing that assumes adverse currency scenarios, not best-case outcomes.

Ignoring FX risk is no longer an option in a structurally import-dependent economy.

Concentration Risk and the Narrow Credit Base

Another long-standing weakness is excessive concentration risk. A disproportionate share of bank lending is often tied to a small number of large corporates or government-related exposures. While this may appear safe in the short term, it creates systemic vulnerability when those sectors face stress.

At the same time, the real economy, particularly SMEs and productive sectors, remains underfinanced because, over the years, Nigeria’s banks faced significant concentration risk, particularly in the oil and gas sector and in foreign currency exposure, while grappling with a narrow credit base characterised by limited lending to the private sector. This is due to high credit risk and tight monetary policy. Owing to this trend, recapitalisation should therefore be in alignment with policies that encourage credit diversification, improved credit underwriting, and smarter risk-sharing mechanisms, and not the other way round.

Therefore, it will be right to say that banks that grow larger but remain narrowly exposed do not strengthen the economy; they amplify its fragilities.

Risk Management in a Volatile Economy

The recurring inflation shocks, interest-rate swings, fiscal pressures, and external shocks are frequent features, not rare events, which show that Nigeria is not a low-volatility environment.

Currently, the Nigerian banking sector’s financial performance and investment returns are equally affected by various risks, including credit, liquidity, market, and operational risks.

Today, many banks still operate risk models that assume stability rather than disruption. Time has proven that risk management is essential for mitigating these risks and ensuring stability and profitability.

The apex bank must ensure that the recapitalisation process mandates robust, Nigeria-specific stress testing, and banks must demonstrate resilience under severe but plausible scenarios. This includes sharp currency depreciation, interest-rate spikes and sovereign stress. It must evolve from a compliance function to a strategic discipline.

Transparency and Financial Reporting

Investors, depositors, and analysts must be able to understand banks’ true financial positions without navigating a lack of transparent disclosures or creative accounting. Hence, public trust in the banking sector depends heavily on credible financial reporting.

The CBN should use recapitalisation to strengthen the International Financial Reporting Standard enforcement, disclosure standards, and audit quality. In championing this course, banks’ financial statements should clearly reflect capital adequacy, asset quality, related-party transactions, and off-balance-sheet exposures. Transparency is to enable confidence, not about exposing weakness.

Regulatory Consistency and Credibility

Policy credibility has been one of the greatest challenges for Nigeria’s financial regulators.

Abrupt changes, unclear timelines, and inconsistent enforcement undermine investor confidence and weaken reform outcomes.

Recapitalisation must be governed by clear rules, predictable timelines, and consistent enforcement. Both domestic and foreign investors need assurance that the rules of the game will not change midstream. Regulatory credibility is itself a form of capital.

Consumer Protection and Banking Ethics

While recapitalisation focuses on banks’ balance sheets, the public experiences banking through fees, service quality, dispute resolution, and ethical conduct. Persistent complaints about hidden charges and poor customer treatment erode trust in the system and a stronger banking sector must also be a fairer and more accountable one. It must be noted that strengthening consumer protection frameworks alongside recapitalisation will help rebuild public confidence and reinforce financial inclusion goals.

Too Big to Fail and How to Resolve Failure

Looking at what is obtainable in the system, larger, better-capitalised banks can also become systemically dangerous if failure resolution frameworks are weak. This requires that recapitalisation should therefore be accompanied by credible plans for resolving distressed banks without destabilising the entire system or resorting to taxpayer-funded bailouts, which has been the norm in the Nigerian banking sector today. The cynic might say that recapitalisation simply made big banks bigger and empowered dominant shareholders. However, a more prospective approach invites all stakeholders, including regulators, customers, civil society and bankers themselves, to co-design the next chapter of Nigerian banking; one that balances scale with inclusion, profitability with impact, and stability with innovation.

Clear resolution mechanisms reduce moral hazard and reinforce market discipline.

A Moment That Must Not Be Wasted

Recapitalisation is not merely a financial exercise; it is a governance and trust reset opportunity. If the CBN focuses solely on capital numbers, Nigeria risks repeating a familiar cycle of apparent stability followed by crisis.

The banking sector can lay a solid foundation that truly supports economic transformation if recapitalization is used to address governance failures, asset quality, FX risk, transparency, and regulatory credibility.

Nigeria does not just need bigger banks. It needs better banks, institutions that are resilient, transparent, well-governed, and trusted by the public they serve. Hence, it must be a system that creates a more robust buffer against shocks and positions Nigerian banking as a global competitor capable of funding a $1 trillion economy, as the case may be.

This recapitalisation moment must be about building durability, not just size. The cost of missing that opportunity would be far greater than the cost of getting it right.

Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]