Analysts have predicted a boost in credit and economic activities in 2025, driven by the ongoing successes in Nigeria’s banking sector recapitalisation.
The analysts, speaking on Sunday, expressed optimism that the capital mobilisation in the banking sector would lead to increased credit availability and economic growth next year.
Their positive outlook stems from recent progress in the banking sector’s recapitalisation efforts. They also called for measures to address the widening profitability gap between financial services and the real sectors of the economy, which has been a growing concern.
Furthermore, the analysts recommended that the Central Bank of Nigeria (CBN) soften its current monetary tightening stance to encourage investment growth and support job creation in the broader economy.
Access Bank Plc recently became the first Deposit Money Bank (DMB) to meet the Central Bank’s new minimum capital requirement of N500 billion for commercial banks with international authorisation. This achievement followed the successful completion of a N351.01 billion Right Issue, which had received full regulatory approval from both the CBN and the Securities and Exchange Commission (SEC). In a statement, Access Bank confirmed that it had met the capital threshold well ahead of the March 31, 2026, regulatory deadline.
Other financial institutions are also making steady progress toward meeting the required capital in their respective categories. Analysts believe this progress underscores the resilience of Nigeria’s economy and the continued confidence of investors.
Prof. Uche Uwaleke, Nigeria’s first Professor of Capital Market and pioneer President of the Capital Market Academics of Nigeria, noted that the success of Access Bank’s recapitalisation is a testament to both the capital market’s resilience and the optimism investors continue to have in Nigeria’s economic potential.
Dr. Muda Yusuf, Founder and Chief Executive of the Centre for the Promotion of Private Enterprise (CPPE), also highlighted the need for policies that address the growing disparity in profitability between the financial and real sectors. He warned that the current situation, where investment in financial instruments is more profitable than investment in the real economy, is a significant disincentive for real sector investment, exacerbating high unemployment and poverty.
Dr. Chijioke Ekechukwu, Managing Director of Dignity Finance and Investment Limited, expressed confidence that 2025 would see a positive impact as more Deposit Money Banks meet their recapitalisation targets, thereby increasing the flow of loanable funds into the economy.
Similarly, Mr. Idakolo Gbolade, Managing Director of SD&D Capital Management Limited, stated that the recapitalisation of banks is critical to Nigeria’s goal of achieving a trillion-dollar economy and remaining competitive both regionally and globally. He emphasized that despite global economic challenges, Nigeria’s economy has shown resilience, and with continued policy support, it can overcome present difficulties.
While the service sector has been a key driver of economic growth in 2024, with financial services seeing a 32% growth in the third quarter, the real sector, including agriculture and manufacturing, has struggled. Agriculture grew by just 1.14%, and manufacturing by 0.92%, highlighting the challenges facing key sectors that contribute to job creation and economic inclusion.
Yusuf also pointed out the structural issues affecting the non-oil sector, which contributes 94.43% of Nigeria’s GDP but accounts for less than 10% of foreign exchange earnings. He called for urgent measures to enhance the productivity and competitiveness of the non-oil sector, including addressing challenges related to infrastructure, funding, and regulation.
Looking ahead to 2025, analysts anticipate a slight moderation in inflation, supported by a more stable exchange rate and potential rebound of the Naira. However, they warned that tight monetary conditions could persist, and challenges in the electricity sector—particularly with the transition to deregulated markets—remain a significant risk.
Overall, while 2025 holds promising prospects for economic growth, addressing structural defects in the economy and fostering a more balanced approach between the financial and real sectors will be crucial for sustained progress.
