CBN wraps up bank recapitalisation, says ₦4.65trn raised to boost sector stability
The Central Bank of Nigeria (CBN) has announced the successful completion of its 24-month banking sector recapitalisation programme, revealing that Nigerian banks collectively raised ₦4.65 trillion in fresh capital to strengthen the country’s financial system.
The exercise, which commenced in March 2024, drew significant participation from both domestic and international investors, underscoring renewed confidence in the banking industry. According to the apex bank, 72.55 per cent of the funds were sourced locally, while 27.45 per cent came from foreign markets.
CBN Governor Olayemi Cardoso said the programme has significantly improved the strength and shock-absorption capacity of Nigerian banks.
“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,” Cardoso stated.
33 Banks Meet New Capital Threshold
The CBN confirmed that 33 banks have successfully met the revised minimum capital requirements introduced under the programme. However, a few institutions are still undergoing regulatory and judicial processes, which the bank said are being handled within established supervisory and legal frameworks.
Despite these developments, the regulator assured that all banks remain fully operational, with no disruption to customer access or banking services throughout the recapitalisation period.
Stronger Buffers, Improved Asset Quality
The apex bank noted that the programme has led to improved capital adequacy ratios (CAR) across the sector, with banks maintaining levels above global Basel benchmarks. Minimum CAR thresholds remain at 10 per cent for regional and national banks, and 15 per cent for internationally licensed banks.
In addition, the recapitalisation—alongside a gradual exit from regulatory forbearance—has enhanced asset quality, boosted transparency in bank balance sheets, and strengthened overall financial system stability.
Tighter Oversight, Risk-Based Supervision
To sustain the gains, the CBN said it has reinforced its risk-based supervisory framework, mandating banks to carry out routine stress testing and maintain sufficient capital buffers under varying economic scenarios.
The regulator added that prudential guidelines and supervisory mechanisms will continue to be reviewed periodically to improve governance standards, risk management practices, and sector resilience.
No Disruption to Banking Services
The recapitalisation programme was executed without interrupting banking operations, ensuring uninterrupted services for individuals and businesses nationwide.
The CBN emphasised that the successful completion of the exercise positions the banking sector to expand lending, deepen financial intermediation, and better withstand both domestic and global economic shocks.
The apex bank reaffirmed its commitment to maintaining a stable, transparent, and resilient financial system capable of inspiring confidence among depositors and investors.
