By Grace Alegba
The experts made this known on Thursday at a virtual Risk Roundtable organised by the Association of Enterprise Risk Management Professionals (AERMP).
The event, held in Lagos, had the theme: “Recapitalisation, Mergers and Acquisition in the Nigerian Financial System: Minimising Risks and Maximising Opportunities for Greater Post-Recapitalisation Value”.
Prof. Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria (CIBN), said the recapitulation exercise had strengthened the resilience and capacity of financial institutions.
He said that as of March 31, 2026, 23 banks had met the new capital requirements, raising about N4.65 trillion collectively.
According to him, 72.55 per cent of the funds were sourced domestically, while 27.45 per cent came from international investors, reflecting strong local confidence and global interest.
Olanrewaju noted that recapitalisation was achieved without disrupting banking operations, with capital adequacy ratios improving beyond global benchmarks.
He, however, said recapitalisation was only a foundation, adding that its true value lies in driving credit expansion, innovation, job creation and broader economic growth.
He stressed that enterprise risk management should be treated as a strategic enabler rather than a compliance obligation.
Also speaking, the Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said recapitalisation and mergers were vital to building resilient institutions and protecting investors.
Agama, represented by Mr Tarfa Makyur, said revised capital requirements for market operators were designed to strengthen the financial system and support economic growth.
He warned that increased capital alone would not reduce risk without effective governance, oversight and disciplined execution.
According to him, mergers and acquisitions can drive efficiency and growth but may also pose risks such as weak integration, poor governance and overvaluation.
He added that operators have until June 30, 2027, to meet the new capital thresholds under SEC guidelines.
Agama urged firms to embed risk management in decision-making processes and avoid transactions that do not create real value.
In his presentation, Alhaji Umaru Ibrahim, Global Board Chairman, Emeritus, Risk and Compliance Professionals, described recapitalisation as central to financial system stability and economic transformation.
Ibrahim, a former Managing Director of the Nigeria Deposit Insurance Corporation (NDIC), said the reform aligned with Nigeria’s ambition of building a one trillion-dollar economy by 2030 through stronger financial institutions.
He warned that recapitalisation and mergers could introduce complex risks, including integration challenges, cultural misalignment and potential value erosion.
He said effective risk management must be embedded across all stages, from due diligence to post-merger integration and performance monitoring.
He identified risk governance, integration management and value optimisation as critical priorities for post-recapitalisation success.
Also, Mr Oluropo Dada, President of the Chartered Institute of Stockbrokers (CIS), emphasised that ethical governance remained key to corporate sustainability.
Dada said transparency, accountability and fairness in capital raising and mergers were essential for building investor confidence and long-term value.
He warned that weak governance could undermine recapitalisation gains, resulting in short-term strength but long-term value erosion.
According to him, ongoing reforms across banking, insurance, capital markets and pensions will deepen liquidity, strengthen risk practices and boost investor confidence.
Dada stressed that collaboration among regulators, financial institutions and risk professionals was crucial to achieving sustainable outcomes.(NAN)(www.nannews.ng)
Edited by Olawunmi Ashafa
