The drive by the Central Bank of Nigeria (CBN) to solidify the banking industry through recapitalisation is indeed commendable especially at a time the economy is in a very bad state.

The move will boost depositors’ confidence as well. The new guideline, which was announced by the CBN on March 28, 2024, stipulates that commercial banks with international spread must have at least N500 billion as Total Eligible Capital (TEC). Those with national licences need N200 billion while regional operators will do with N50 billion.

At the time of the announcement, no Nigerian bank could boast of N500 billion TEC. The import is that there is a target of N5 trillion, for the banks, to meet the recapitalisation benchmark.

Those who fail to fulfil this requirement between April 1, 2024 and March 31, 2026 will be out of business. Ordinarily, there should be no cause for alarm.

Banking is serious business and after the pains experienced by depositors in the past, the CBN has done well to save a clutch of heart attack cases. Expectations are that once you put your money in the bank, it will be safely guarded. The removal of subsidy on petroleum products by President Bola Tinubu deflated the economy.

The bid to shore up the naira produced exactly the opposite. The financial climate has remained red ever since. These signs are enough to erode confidence all over the sector. Safeguarding banks, therefore, is a bold step in the right direction. This development will keep them strong in the face of future downturns. And the economy stands to gain.

Businesses, large or medium scale, rely on banks to operate. A weak banking industry cannot fulfil important obligations. When interest rates are high, industries are affected and entrepreneurship suffers, leading to job losses. Recapitalisation means that banks will look for more money. They know what to do using what is available to them.

Customers will also be affected through various charges. There will definitely be more strain on individuals, families and corporate organisations. In 2023, the top banks made over N735 billion from customers’ accounts. This was a notch higher than the nearly N580 billion they made in 2022. While the banks smiled, many customers groaned unhappy with indiscriminate charges.

In May, news emerged that one Adeniyi Talabi, of an old generation bank in Osogbo, Osun State, stole N650 million, belonging to 35 customers.

The CBN as regulator Is not unaware of the difficulties encountered by customers through charges on almost every action they take on their accounts.

Fees on Electronic Fund Transfer, Card Maintenance, Automated Teller Machines (ATMs), Non Sufficient Fund and SMS Alerts have been approved. While the search for money to recapitalise is on, one area that deserves maximum attention is workers’ welfare and recruitment.

There is the general belief that with all the money accruing to the banks, their workers swim in affluence. This may not be exactly so. There are cases where frustration supersedes satisfaction. In one instance, a worker, on exiting after 10 years was not paid her gratuity for those years spent.

It became worse when the same worker was told that she could not access her pension until she turned 60. Some banks have also found a way to cut costs. They rely on extraneous contacts to source for manpower. Once engaged, contract workers are paid less and can be dumped at will after being used for years.

With the digitalisation of operations, Information and Communication Technology (ICT) has become a key factor in banking transactions. Every innovation, of course, comes with high risks. The character of workers that operate this department does matter.

There is proof that some of the dirty deals that take place in the banks are either perpetrated or enabled by insiders. These include fraudulent ATM withdrawals, illegal funds transfer, armed robbery, pilfering of cash, suppression and conversion of customers’ deposits and outright stealing.

In 2024, there have been more of such allegations. In May, news emerged that one Adeniyi Talabi, of an old generation bank in Osogbo, Osun State, stole N650 million, belonging to 35 customers. In June, it was about Tijani Adeyinka, of the same bank, in Iganmu, Lagos, diverting N40 billion into private accounts. The criminality is all over the country.

In 2019, there was the story of Larry Ehizo, colluding with armed robbers to storm his office in Mpape, Abuja to steal N7 million. Two years earlier, Samuel Ndudiri, of a new generation bank, made it easy for robbers to raid a branch in Port Harcourt where he worked. More money means more attraction. It also requires extra vigilance and due diligence. All this should be factored in by the CBN and bank owners.