Nigeria’s banking sector has undergone several recapitalization exercises introduced by the Central Bank of Nigeria to strengthen financial stability, improve public confidence, and enhance the ability of banks to support economic growth.
From the early banking reforms to the major consolidation exercise of 2004–2005 and the ongoing 2024–2026 recapitalization programme, these reforms have addressed challenges such as weak capitalization, poor corporate governance, systemic instability, and rising non-performing loans within the banking industry.
This article examines the legal and regulatory framework governing bank recapitalization in Nigeria under the Central Bank of Nigeria Act 2007 and the Banks and Other Financial Institutions Act 2020.
It also analyses key compliance issues such as capital adequacy, disclosure obligations, mergers and acquisitions, and regulatory oversight, while emphasizing the importance of recapitalization to financial stability and the growth of Nigeria’s banking sector.
Oyetola Muyiwa Atoyebi SAN, FCIArb (U.K) (Notary Public)
Read the Article here:
https://omaplex.com.ng/recapitalization-of-banks-in-f-legal-and-regulatory-compliance-issues/
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