Bank recapitalization refers to the process of increasing a bank's capital base to improve its financial stability and resilience. This can be achieved through various means, such as issuing new shares, retaining earnings, or attracting new investors.
This article examines the evolution of bank recapitalization in Nigeria and the legal and regulatory compliance issues arising from it. It analyses the statutory powers of the Central Bank of Nigeria, the applicable legal framework, and the recurring compliance challenges faced by banks, while highlighting how recapitalization serves as both a regulatory tool for financial stability and a catalyst for sectoral reform and economic growth.
