The Central Bank of Nigeria (CBN) has officially announced the successful conclusion of its banking sector recapitalisation programme, which was initiated in March 2024. The programme, completed over a 24-month period, resulted in Nigerian banks raising a total of ₦4.65 trillion in new capital.
This milestone marks a significant step toward strengthening the resilience of Nigeria’s financial system and enhancing its ability to support economic growth.
Strong Investor Confidence Drives Capital Inflows
The recapitalisation exercise attracted substantial participation from both domestic and international investors, reflecting sustained confidence in Nigeria’s banking sector.
- 72.55% of the capital was sourced locally
- 27.45% came from international markets
This balanced mix highlights growing global interest in Nigeria’s financial ecosystem while reinforcing strong domestic investor support.
Governor Cardoso Speaks on Financial Stability
CBN Governor, Olayemi Cardoso, emphasized the importance of the programme, 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.”
Capital Strengthening and System Resilience
According to the CBN:
- 33 banks have successfully met the revised minimum capital requirements
- A small number of institutions are still undergoing regulatory and judicial processes
- All banks remain fully operational, ensuring uninterrupted customer access
The programme has also improved Capital Adequacy Ratios (CAR) across the sector, keeping them above international Basel standards:
- 10% minimum CAR for regional and national banks
- 15% minimum CAR for banks with international authorization
Additionally, the recapitalisation was implemented alongside a gradual exit from regulatory forbearance, leading to improved asset quality and greater transparency in bank balance sheets.
Enhanced Risk Management and Supervision
To sustain these gains, the CBN has strengthened its regulatory oversight framework by:
- Introducing stricter risk-based capital adequacy measures
- Requiring banks to conduct regular stress testing
- Enforcing capital buffer maintenance
Regulatory tools such as prudential guidelines and supervisory frameworks will continue to be reviewed periodically to ensure strong governance, risk management, and financial system resilience.
Seamless Banking Operations Maintained
One of the key highlights of the recapitalisation programme was its smooth execution:
- No disruption to banking services
- Continuous access for individuals and businesses
- Stable financial system throughout the transition
A Stronger Financial Future for Nigeria
The successful completion of the recapitalisation programme positions Nigeria’s banking sector for:
- Increased lending capacity
- Improved savings mobilization
- Greater resilience against global and domestic economic shocks
The Central Bank of Nigeria reaffirmed its commitment to maintaining a stable, transparent, and resilient financial system that builds confidence among depositors, investors, and the broader public.
Signed:
Olubukola A. Akinwunmi, PhD
Director, Banking Supervision
Hakama Sidi Ali (Mrs.)
Ag. Director, Corporate Communications