The Group Managing Director of Afrinvest West Africa, Dr. Ike Chioke, has asked the Central Bank of Nigeria (CBN) to closely monitor banks following their recent recapitalisation exercise, warning against a potential repeat of the 2008 market crash.

In this wide-ranging interview, Chioke addressed bank recapitalisation risks, Nigeria’s $1 trillion economy target, capital gains tax concerns, and Afrinvest’s regional expansion strategy.

On banks’ recapitalisation, he warned that CBN must prevent a market bubble.

Chioke estimates that capital adequacy ratios could rise to 30–35%, significantly above peer African markets.

He therefore cautioned that banks must not invest fresh recapitalisation funds in the stock market, citing lessons from the 2004 banking consolidation under Prof. Charles Soludo.

Explaining, he said during that period, banks raised new capital, diversified into capital market activities, fueled a stock market boom (2006–2007), the 2008 global financial crisis exposed leverage risks, the market crashed as liquidity dried up.

He warned that allowing recapitalisation funds into equities now could create another financial bubble, especially as The Nigerian Exchange All Share Index rose 50% in 2025, base case for 2026 projects 40% growth, and bullish case suggests 80% growth.

He said that recapitalised banks should deploy capital into productive lending and economic expansion — not speculative stock investments.