By 2026, the Central Bank of Nigeria (CBN) has mandated a new recapitalisation requirement for Deposit Money Banks (DMB) marking a pivotal point in the annal of the nation’s financial trajectory. The directive is aimed at strengthening the capital base of Nigerian banks, ensuring their stability, resilience, and capacity to navigate global and domestic financial headwinds. It may be recalled that the prevailing macroeconomic headwinds of elevated prices, currency volatility, and escalated debt crises posed major risks not only to the global economic landscape, but also the financial sector health of specific economies. In response to these headwinds, global systemic central banks have activated a higher-for-longer interest rate stance to steer global inflationary trends towards targeted levels.