The Central Bank of Nigeria (CBN) has announced the successful completion of its ambitious two-year banking recapitalisation programme, with 33 banks meeting the revised minimum capital requirements after collectively raising ₦4.65 trillion in fresh capital.
The announcement, contained in a statement issued on Wednesday and jointly signed by Dr. Olubukola Akinwunmi, Director of Banking Supervision, and Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, marks the end of an exercise that began in March 2024 and ran until March 31, 2026.
The programme was designed to strengthen the capital base of Nigerian banks, enabling them to better withstand domestic and external shocks while positioning the sector to play a more robust role in supporting the country’s economic growth ambitions, including aspirations toward a $1 trillion economy.
CBN Governor Olayemi Cardoso hailed the outcome, stating: “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
According to the apex bank, the exercise attracted strong participation from both local and foreign investors, underscoring sustained confidence in Nigeria’s banking industry despite prevailing macroeconomic headwinds such as inflation, exchange rate volatility, and global uncertainties.
Notably, 72.55% of the ₦4.65 trillion (approximately ₦3.37 trillion) was sourced domestically, while 27.45% (around ₦1.28 trillion) came from international markets. This heavy reliance on local capital reflects the commitment of Nigerian investors even as foreign inflows provided a vote of confidence from overseas players.
The recapitalisation has led to marked improvements in the sector’s **capital adequacy ratios (CAR)**, which now comfortably exceed international Basel benchmarks. Under the new framework, regional and national banks must maintain a minimum CAR of 10%, while institutions with international licences are required to hold 15%.
While 33 banks have fully complied, the CBN noted that a limited number of institutions are still navigating regulatory and judicial processes. Crucially, the regulator assured the public that **all banks remain fully operational**, with no disruption to customer services. Depositors, businesses, and the general public can continue to access banking facilities without interruption.
Beyond capital raising, the programme—implemented alongside a gradual exit from previous regulatory forbearance—has enhanced asset quality and improved balance sheet transparency across the industry. Banks raised the funds through a mix of rights issues, initial public offerings (IPOs), private placements, and other equity instruments.
To lock in these gains, the CBN said it has reinforced its risk-based supervision framework. Banks will now be required to conduct regular stress tests and maintain adequate capital buffers under various economic scenarios. Prudential guidelines and supervisory measures will also undergo periodic reviews to promote stronger governance, risk management, and overall sector stability.
“The successful conclusion of the programme marks a major milestone in building a more resilient banking system capable of supporting lending, mobilising savings, and withstanding both domestic and global shocks,” the CBN statement added.
The regulator reiterated its commitment: “The Central Bank of Nigeria remains committed to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the broader public.”
This recapitalisation represents one of the most substantial capital-raising efforts in Nigerian banking history. It comes against the backdrop of earlier reforms under Governor Cardoso, who has consistently emphasised the need for a stronger, more resilient sector to drive sustainable economic development.
Analysts view the exercise as timely. With improved capital positions, banks are expected to expand lending to key sectors of the economy, including manufacturing, agriculture, and small and medium enterprises (SMEs), while maintaining sound risk practices.
The orderly nature of the process—no reported depositor losses, forced mergers, or widespread job cuts—has been highlighted as a key achievement, distinguishing it from previous recapitalisation rounds that sometimes involved more turbulence.
As the focus now shifts from capital raising to capital deployment and enhanced supervision, stakeholders will be watching closely to see how the strengthened banks translate these gains into broader economic impact.
For now, the message from the CBN is clear: Nigeria’s banking sector has emerged more robust, better capitalised, and ready to support the nation’s growth trajectory in an increasingly complex global environment.
WHAT YOU SHOULD KNOW
The Central Bank of Nigeria has successfully completed its banking sector recapitalisation programme, with 33 banks raising a combined ₦4.65 trillion to meet the new minimum capital requirements.
Nigeria’s banking system is now significantly stronger and more resilient, backed by improved capital adequacy ratios well above international standards.
This positions the banks to better withstand economic shocks while supporting sustainable growth and lending, all without any disruption to customer services.
The CBN’s commitment to stability and transparency remains firm, marking a major milestone for the nation’s financial sector.
