The International Monetary Fund (IMF) has commended Nigeria’s recent bank recapitalisation exercise, describing it as a strategic move that strengthens the banking sector against global economic shocks.
The IMF’s Financial Counsellor and Director of the Monetary and Capital Markets Department, Tobias Adrian, gave the commendation while presenting the Global Financial Stability Report at the ongoing IMF/World Bank Spring Meetings in Washington, D.C.
The endorsement came shortly after the Central Bank of Nigeria (CBN) concluded the recapitalisation exercise.
Adrian said the additional capital raised by Nigerian banks would serve as a buffer during periods of financial stress and enhance their resilience to external shocks.
“Bank recapitalisations are very welcome and are paying off, particularly in times of stress,” he said, noting that stronger capital positions help safeguard global financial stability.
Also speaking, the IMF’s Economic Counsellor and Director of Research, Pierre-Olivier Gourinchas, projected Nigeria’s economic growth at 4.1 per cent in 2026 and 4.3 per cent in 2027.
He, however, warned that global economic conditions remain uncertain due to factors such as geopolitical tensions, rising commodity prices, inflationary pressures and tighter financial conditions.
According to him, the global economy is expected to grow at 3.1 per cent in 2026 and 3.2 per cent in 2027, assuming that ongoing conflicts, particularly in the Middle East, remain contained.
Gourinchas noted that risks such as prolonged conflicts, increased geopolitical fragmentation, renewed trade tensions and slower-than-expected gains from artificial intelligence could weaken global growth and destabilise financial markets.
For Nigeria, he highlighted the impact of rising oil prices on the cost of living and inflation expectations, stressing the need for flexible and responsive economic policies.
He advised policymakers to carefully manage trade-offs, particularly in areas such as defence spending, while laying the foundation for sustained economic recovery.
Gourinchas also urged central banks to remain vigilant, noting that while they may adopt a wait-and-see approach, they must be ready to act decisively to maintain price stability.
He added that monetary and fiscal policies should be adaptable to support economic stability, while exchange rates should be allowed to adjust in line with market conditions.
According to him, fostering adaptability, maintaining credible policy frameworks and strengthening international cooperation will be critical for navigating current global uncertainties and preparing for future economic disruptions.
