The International Monetary Fund (IMF) has endorsed Nigeria’s ongoing bank recapitalisation programme, describing it as a key step toward strengthening the resilience of the country’s financial system against external shocks.

The endorsement was made by IMF Financial Counsellor and Director of the Monetary and Capital Markets Department, Tobias Adrian, during the presentation of the Global Financial Stability Report at the IMF/World Bank Spring Meetings in Washington, D.C.

Adrian said stronger capital buffers are essential for economies facing global uncertainty, noting that well-capitalised banks are better positioned to absorb shocks and sustain lending during periods of financial stress.

He added that recapitalisation efforts are particularly important for emerging markets, where economies are more vulnerable to sudden capital reversals and external shocks.

According to him, maintaining robust fiscal positions is central to financial resilience, especially in Sub-Saharan Africa, where countries face varying levels of economic pressure.

Adrian also highlighted the impact of geopolitical tensions on global capital flows, noting that while recent conflicts have triggered market reactions, investor confidence has helped maintain relative price stability.

He urged continued fiscal discipline to reduce exposure to volatile capital movements and strengthen long-term economic stability.

Also speaking, IMF Assistant Director Jason Wu said capital flows to emerging markets are increasingly debt-driven rather than equity or foreign direct investment, raising concerns about long-term sustainability.

Wu noted that countries with stronger fiscal positions tend to enjoy better access to global capital markets and lower borrowing costs, stressing the need for sustained reforms to prevent sudden outflows.

The IMF’s position comes as Nigeria continues its banking sector recapitalisation drive aimed at improving resilience, stability, and competitiveness within the financial system.