CBN concludes recapitalization with ₦4.65 trillion raised

The Central Bank of Nigeria on Wednesday announced the successful conclusion of its 24-month banking sector recapitalization programme, confirming that Nigerian investors have provided 72.55% of the ₦4.65 trillion raised since the exercise launched in March 2024, a majority commitment that preceded and anchored participation from international markets.

The programme, the most significant capital increase in Nigerian banking history, saw 33 banks meet the revised minimum capital requirements set by the CBN. Four other institutions are addressing regulatory and judicial issues through established supervisory frameworks. All 37 licensed banks will remain fully operational, with no interruption to customer access at any time during the two years.

“The recapitalization program has strengthened the capital base of Nigerian banks, strengthening the resilience of the financial system and ensuring that it is well positioned to support economic growth and withstand internal and external shocks,” said Olayemi Cardoso, governor of the Central Bank of Nigeria.

Of the ₦4.65 trillion raised, 72.55% came from domestic investors and 27.45% from international markets. The domestic majority is significant in context: the capital was raised during a period of high global interest rates and competing investment opportunities in emerging markets.

Nigerian institutional and retail investors committed the majority of capital before international participation was secured.

The sector’s capital adequacy ratios now exceed international Basel benchmarks. The minimum CAR thresholds remain at 10% for regional and national banks and 15% for internationally licensed banks. The CBN said the exercise was implemented alongside an orderly exit from regulatory forbearance, improving asset quality and strengthening balance sheet transparency across the sector.

The apex bank also confirmed that its risk-based capital adequacy framework has been strengthened, requiring banks to conduct regular stress tests on defined scenarios and maintain adequate capital buffers on an ongoing basis.

The four ongoing banks are working on legal and regulatory issues described by the CBN as being addressed through established legal and supervisory frameworks. All four institutions continue to serve customers without restrictions. The central bank said a full breakdown of banks by license category will be published on its website.

The CBN said the strengthened sector is now better positioned to support lending, mobilize savings and withstand domestic and global economic shocks. A full list of compliant institutions and program details are available at www.cbn.gov.ng. [The Guardian]

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