Post-recapitalization in Nigeria: how adequate is capital?

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Bank capital is one of the protective and necessary parameters for better performance in any banking system. This may explain why the industry in Nigeria has been constantly recapitalized for sectorial enhancement. Given the various bank capital reforms the sectors have undergone and a number of interventions, the question arose: How adequate is capital? The study used descriptive statistics and Levene’s test for equality of variance, as well as an independent sample t-test to look at the (10) ten various performance parameters for both pre- and post- recapitalization periods. From the results of the analysis, most of the performance parameters did not improve after post-recapitalization. This answers the question posed by the study that capital is not adequate in the Nigerian banking sector. Therefore, there is a need to inject more bank capital into the Nigerian banking sector if this sector must have a greater impact and respond to the challenges of the Nigerian economy for sustainable growth and development.

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    • Table 1. Descriptive statistics analysis (pre-recapitalization)
    • Table 2. Descriptive statistics analysis (post-recapitalization)
    • Table 3. Levene’s test for equality of variances and independent sample t-test for equality of means
    • Conceptualization
      Amenawo I. Offiong
    • Funding acquisition
      Amenawo I. Offiong, Hodo B. Riman, Godwin B. James, Emmanuel E. Okon, Anthony Ogar
    • Investigation
      Amenawo I. Offiong, Emmanuel E. Okon
    • Methodology
      Amenawo I. Offiong, Hodo B. Riman, Godwin B. James, Emmanuel E. Okon, Anthony Ogar
    • Project administration
      Amenawo I. Offiong
    • Resources
      Amenawo I. Offiong, Anthony Ogar
    • Software
      Amenawo I. Offiong, Hodo B. Riman, Godwin B. James
    • Writing – review & editing
      Amenawo I. Offiong, Anthony Ogar
    • Data curation
      Hodo B. Riman
    • Supervision
      Hodo B. Riman
    • Formal Analysis
      Godwin B. James
    • Validation
      Emmanuel E. Okon
    • Writing – original draft
      Emmanuel E. Okon