By Abiodun Folarin
The Central Bank of Nigeria (CBN) has concluded its banking sector recapitalisation programme, with Nigerian banks raising ₦4.65 trillion over 24 months to strengthen financial system resilience and enhance the industry’s capacity to support economic growth.
Launched in March 2024, the programme attracted robust participation from both domestic and foreign investors, with 72.55 per cent of the capital sourced locally and 27.45 per cent from international markets—an indication of sustained investor confidence in the country’s banking industry.
A statement jointly signed by Olubukola Akinwunmi, Director, Banking Supervision and Hakama Sidi Ali (Mrs.) Ag. Director, Corporate Communications said over the 24 month period, Nigerian banks raised a total of ₦4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.
Governor of the apex bank, Olayemi Cardoso, said the exercise has significantly strengthened the capital base of Nigerian banks, positioning the financial system to better absorb shocks and drive economic growth.
According to the CBN, 33 banks have met the revised minimum capital requirements, while a few others remain under regulatory and judicial review, being addressed within existing supervisory and legal frameworks. The bank assured that all financial institutions remain fully operational, with no disruption to services.
The recapitalisation has also improved key prudential indicators, with capital adequacy ratios (CAR) across the sector remaining above global Basel benchmarks. Current minimum thresholds are pegged at 10 per cent for regional and national banks, and 15 per cent for institutions with international licences.
The apex bank noted that the exercise, alongside a phased exit from regulatory forbearance, has enhanced asset quality, strengthened balance sheet transparency, and reinforced overall financial stability.
To sustain these gains, the CBN said it has intensified risk-based supervision, mandating banks to undertake routine stress testing and maintain adequate capital buffers under varying economic scenarios. Regulatory guidelines and supervisory frameworks, it added, will continue to undergo periodic reviews to deepen governance standards and risk management practices.
The recapitalisation programme was executed without disruptions to banking operations, ensuring seamless access to financial services for individuals and businesses throughout the transition.
With the conclusion of the exercise, the CBN reaffirmed its commitment to a stable, transparent, and resilient financial system capable of mobilising savings, supporting lending, and withstanding both domestic and global shocks.
