Post-recapitalisation, Nigerian banks to pursue efficiency, shareholder value-proshare report

FOLLOWING the ongoing recapitalisation drive by the Central Bank of Nigeria (CBN), Nigerian banks are expected to intensify efforts to optimize capital use, enhance operational efficiency, and deliver greater value to shareholders, according to the latest industry analysis by Proshare.

Presenting the findings during the launch of the Tier 1 Banks Report 2025, themed “Getting Bigger, Braver, and Dominant – The Class of 2025,” Proshare’s Director of Research, Teslim Shittabey, emphasized that post-recapitalization, banks would likely shift focus from size to strategy—prioritizing smarter capital allocation, digital transformation, and cross-border expansion.

“After recapitalisation, banks will look beyond the numbers,” Shittabey said. “They will seek efficiency, better asset utilization, and increased shareholder returns, all while navigating a more complex financial ecosystem driven by regulation, innovation, and competition.”

In his welcome remarks at the event held at Bankers House, Victoria Island, Lagos, Proshare’s Founder and Chairman, Olufemi Modupe Awoyemi, underscored the evolving nature of the banking landscape. He noted that banks are transitioning into hybrid institutions, balancing traditional financial services with the agility of fintech, amid growing regulatory complexity and investor expectations.

“This report highlights the tension between institutional ambition and regulatory clarity,” Awoyemi stated. “Banks are no longer just competing for deposits; they’re competing for data, partnerships, and the right to serve in a digital-first economy.”

Awoyemi added that the rise of open banking, artificial intelligence, and blockchain is reshaping the competitive terrain. As banks seek dominance, technology and strategic consolidation will drive the next phase of industry evolution, with potential mergers, acquisitions, and international expansion on the horizon.

The launch event also featured a goodwill message from the President/Chairman of Council at the Chartered Institute of Bankers of Nigeria (CIBN), Professor Pius Deji Olanrewaju, FCIB, delivered on his behalf by CIBN Registrar/CEO, Mr. Akin Morakinyo, HCIB.

Olanrewaju praised Proshare for its “timely and strategic intervention” through the report, which he described as a valuable contribution to the ongoing recapitalisation discourse. “This is a critical moment in Nigeria’s financial services evolution—one that requires bold thinking, resilient capital structures, and visionary leadership,” he said.

He reaffirmed the CIBN’s commitment to supporting an innovative, ethical, and professional banking ecosystem, aligned with his LEGACY agenda, which includes leading innovation and accelerating a globally respected financial system.

“The theme of this report rightly captures the transformation we need: getting bigger through consolidation, braver with bold reforms, and dominant through operational excellence and strategic growth,” Olanrewaju noted.

The report also signals a new era of competitive pressure, as banks respond to rising investor demands in fintech ventures and increasingly assertive regulatory expectations. According to Proshare, the next wave of transformation will center on balance sheet optimization, digital leverage, and customer-centric business models.

As Nigeria’s banking sector moves beyond recapitalization targets, the conversation is shifting to long-term value creation, regional relevance, and global competitiveness—a vision the Class of 2025 aims to realize.

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