CBN Wraps Up Bank Recapitalisation As Sector Raises ₦4.65 Trillion
A Major Shift in Nigeria’s Banking Landscape
THE Central Bank of Nigeria (CBN) has formally concluded its sweeping banking sector recapitalisation programme, marking a significant milestone in efforts to strengthen financial system stability and position banks for long-term economic support.
The programme, launched in March 2024, required banks to meet new minimum capital thresholds within a 24-month window ending 31 March 2026. Under the revised framework, international banks were mandated to hold at least ₦500 billion, national banks ₦200 billion, and regional banks ₦50 billion.
₦4.65 Trillion Capital Injection Signals Investor Confidence
According to the apex bank, Nigerian lenders collectively raised ₦4.65 trillion in fresh capital, with 33 banks meeting the new requirements. The funding mix reflects strong investor confidence, with 72.55 per cent sourced domestically and 27.45 per cent from international markets.
CBN Governor Olayemi Cardoso described the outcome as a reinforcement of the sector’s resilience, noting that the strengthened capital base positions banks to better absorb economic shocks and support national growth.
While most institutions complied fully, a small number remain under regulatory and judicial review. However, the regulator assured that all banks remain operational, ensuring uninterrupted access to financial services.
Stronger Balance Sheets and Improved Asset Quality
Beyond capital accumulation, the recapitalisation exercise has led to broader structural improvements across the banking sector. The CBN confirmed that capital adequacy ratios (CAR) now exceed global Basel benchmarks, with minimum thresholds maintained at 10 per cent for national and regional banks and 15 per cent for international banks.
The programme also coincided with a phased withdrawal from regulatory forbearance, which has enhanced transparency in banks’ balance sheets and improved asset quality across the system.
These reforms are expected to reduce systemic vulnerabilities while boosting confidence among depositors and investors.
Tightened Oversight and Risk Management Frameworks
As part of the recapitalisation process, the apex bank introduced stricter prudential guidelines and strengthened supervisory mechanisms. Banks are now required to conduct regular stress testing under various economic scenarios and maintain adequate capital buffers to mitigate risks.
The regulator emphasised that these frameworks will undergo periodic review to ensure alignment with evolving global standards and domestic financial realities.
Implications for Economic Growth
Analysts say the recapitalisation could have far-reaching implications for Nigeria’s economy, particularly in expanding credit to critical sectors. A stronger banking system is expected to enhance lending capacity, support infrastructure financing, and deepen financial intermediation.
The successful completion of the programme without disruption to banking services also underscores improved regulatory coordination and sector stability.
Ultimately, the CBN maintains that the reform lays the foundation for a more resilient financial architecture capable of withstanding both domestic and global economic pressures.
