Economic Policy Expert Professor Ken Ife has commended the Central Bank of Nigeria in its drive to recapitalize Banks in the Country stating that it is not just a policy imperative, but a national survival strategy—especially as the country eyes its $1 trillion GDP target.
“This is not just about financial engineering. We are staring at a global financial tsunami. Nigeria must not be caught unprepared.”
He said Nigeria is at a critical crossroads as the country has in the past weathered storms in the financial sector, including the liberalization of the banking sector in 1993 and recapitalization efforts in 2005. But today’s challenges, he warns, are on a much larger scale.
“The global financial ecosystem is shifting. Tariff wars, monetary shocks, and the unraveling of dollar dominance are not distant risks—they’re already in motion,” he added.
Professor Ike who was speaking at a seminar for finance correspondents and business editors, tagged ‘Banking Recapitalization Towards a 1Trn dollar Economy, Playing the Global Game’, cited potential trade disruptions stemming from Donald Trump’s likely return to the global stage, noting parallels to the Great Depression-era protectionist policies that devastated global trade.
“Trump is dreaming of the 1930s when 80% of U.S. revenue came from tariffs. But today’s world is different—and more dangerous. America’s grip on the global financial system has loosened. We must prepare.” Professor Ike noted
Bank Recapitalization Now a National Security Issue
Tying the country’s economic future to the resilience of its banking institutions, Professor Ike emphasized the need for immediate action. He also flagged rising external debt pressures, noting that Europe itself is now borrowing at 10% to pay off older debts contracted at 3%—a clear sign that global debt markets are tightening.
“The government’s $1 trillion economy vision cannot be achieved on the back of fragile banks,” he stated. “With crude prices falling and dollar reserves under siege, Nigeria needs strong, liquid banks to power industrial growth, defend the naira, and support trade.”
“Everywhere you turn, its dollar scarcity, subsidy distortions, or reserve depletion. It will get more intense,” he said. “We must recapitalize, and we must do it fast.”
He called on the Central Bank of Nigeria (CBN) to brace for escalating pressure, while also urging Nigerians and the media to show understanding and alignment with economic policymakers.
“Please, bear with the Central Bank. They’ve been through storms before, but this one could shake the foundations. Let’s all be on the same page—because this isn’t just policy. It’s survival.” He urged.
