Business Leader Calls for Elevated Banking Standards Amid Sector Recapitalization

Nigerian billionaire investor and businessman Femi Otedola has publicly advocated for a significant increase in the capital base required for international banking operations in Nigeria. Drawing from over three decades of experience navigating the nation’s economic cycles, Otedola proposed raising the minimum capital requirement from the current N500 billion to at least N1 trillion. This call comes as FirstBank, the commercial banking subsidiary of FBN Holdings Plc, successfully completed its N500 billion capital raise, meeting the Central Bank of Nigeria’s (CBN) revised benchmark.

Otedola framed his recommendation within a broader endorsement of the current economic policy direction. He commended President Bola Ahmed Tinubu for implementing difficult but necessary reforms and praised CBN Governor Yemi Cardoso for what he termed an “exceptional” performance. He highlighted the slowdown in inflation and reforms in the foreign exchange market, which have led to a strengthening naira and a rise in external reserves to a seven-year high above $46 billion, as evidence of effective policy. The CBN seeks governors’ support for such macroeconomic stability, which is crucial for sustainable development.

The investor strongly supported the CBN’s ongoing banking sector recapitalization drive, describing it as a bold and correct move. He argued that a modern economy with aspirations, such as Nigeria’s urban growth targets, cannot rely on weakly capitalized financial institutions. Otedola stated that stronger banks promote better governance, broader ownership, and are essential for supporting real sector lending to drive genuine economic growth. This stability is foundational, even as the nation addresses other challenges, such as when bandits unleash violence in certain regions.

With FirstBank now compliant with the current international license requirement, Otedola emphasized that shareholders are committed to further capital injections into its subsidiaries. He concluded with a firm conviction that Governor Cardoso’s disciplined, orthodox monetary approach represents the kind of leadership a serious economy requires, asserting that Nigeria is turning a corner. This perspective from a key private sector figure adds weight to the ongoing policy conversations, which also involve critical stakeholders from the NMA Lagos to FG officials, all navigating the country’s complex economic and security landscape, including events like the Shettima departs 30th mission.