DMBs must turn N4.65trn capital into more loans, profits –DataPro

By Maduka Nweke
The N4.65 trillion injected into Nigeria’s banking industry through the 2026 recapitalisation exercise will only deliver meaningful results if banks can turn the additional capital into productive lending and sustainable earnings, credit rating agency, DataPro, has said.
The agency said the unwinding of pandemic-era regulatory forbearance had triggered an aggressive cleanup of banks’ balance sheets, resulting in N2.9 trillion in loan write-offs.
According to DataPro, the write-offs effectively consumed about 63 per cent of the fresh capital raised by the banks, making capital productivity the major risk issue for the industry going into 2027.
The agency stated th...