In his article entitled “Bank Recapitalization and Macroeconomics in Nigeria” presented at the Association of Capital Market Academics of Nigeria (ACMAN) symposium in the second quarter of 2024, organized via Zoom, Professor Adeola Adenikinju, pre President of the Nigerian Economic Society highlights the recapitalization

Professor Adenikinju mentioned that the recapitalization of banks increases the banks' capital base, which in turn improves their liquidity, and that higher liquidity increases the money supply in the economy. He reiterated that the recapitalization of the bank would lead to an increase in bank liquidity, leading to a decrease in real interest rates, an increase in overall investment and an increase in overall production. For the latter, “improving capital adequacy, liquidity, bank valuation, lending and investments can strengthen production growth in Nigeria.”