CBN concludes recapitalization of banking sector as operators raise N4.65 trillion

The Central Bank of Nigeria (CBN) has announced the successful conclusion of the banking sector recapitalization program launched in March 2024.

This is made known in a statement released on Wednesday in Abuja, jointly signed by Dr. Olubukola Akinwunmi, Director of Banking Supervision and Mrs. Hakama Sidi-Ali, Acting Director, Corporate Communications Department of the CBN.

In the statement, the apex bank said that over a 24-month period, Nigerian banks raised a total of $4.65 trillion in new capital, strengthening the resilience of the financial system and improving its ability to support the economy.

The bank said the program saw strong participation from both domestic and international investors, with 72.55% of the capital coming from local sources and 27.45% from international markets, reflecting
sustained confidence in the Nigerian banking sector.

The CBN confirmed that 33 banks had met the revised minimum capital requirements set under the programme.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are addressed through established legal and supervisory frameworks.

“All banks remain fully operational, ensuring customers have continued access to banking services,” it said.

The apex bank said the program has strengthened capital adequacy ratios (CARs), with the sector maintaining levels above international Basel benchmarks.

The minimum CAR threshold remains at 10% for regional and national banks and 15% for internationally licensed banks.

“The recapitalization implemented alongside an orderly exit from regulatory forbearance has improved asset quality, strengthening balance sheet transparency and overall stability of the financial system,” the CBN said.

To safeguard these gains, the bank said it has strengthened its risk-based capital adequacy framework, requiring banks to conduct regular stress tests under defined scenarios and maintain adequate capital buffers.

It said key regulatory measures, including prudential guidelines and the supervisory framework, are subject to periodic review to support the continued strengthening of governance, risk management and resilience of the sector.

The bank said the recapitalization program was carried out without interruption to banking services, ensuring continued access to individuals and businesses throughout the process.

“The successful completion of the program creates a stronger and more resilient banking system, better positioned to support lending, mobilize savings and withstand national and global shocks.

“The CBN remains committed to maintaining a stable, transparent and resilient financial system that inspires confidence among depositors, investors and the general public, and to promoting the sustainability of the nation’s financial architecture,” he said.

CBN Governor, Olayemi Cardoso, confirmed the gains, saying the recapitalization program has strengthened the capital base of Nigerian banks, strengthening the resilience of the financial system.

Cardoso said this also ensures that the financial system is well positioned to support economic growth and withstand internal and external shocks.