Five months after Nigeria’s banking recapitalisation exercise raised N4.65 trillion, concerns are mounting over whether the bolstered capital is truly stimulating the real economy or merely funding government debt. While banks have reported record profits and increased loan books, a significant portion of sector credit continues to flow into government securities, which offer safer, predictable returns compared to productive sector lending. Critics argue that despite the capital injection, high interest rates and the preference for government paper are crowding out private sector growth. Experts suggest that the next phase of reform must prioritize accountability, requiring banks to demonstrate how increased capital is specifically driving manufacturing, agriculture, and SME expansion rather than just balance-sheet growth.