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The Central Bank of Nigeria (CBN) has announced the success of its landmark banking sector recapitalization program, which began in March 2024.
According to the apex bank, 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 increasing its capacity to support the economy.
According to statements by Olubukola A. Akinwunmi, PhD, Director of Banking Supervision and Hakama Sidi Ali, Acting Director of Corporate Communications, this achievement is a turning point for the nation’s financial system.
“The recapitalization program has strengthened the capital base of Nigerian banks, strengthened the resilience of the financial system and ensured that the financial system is well positioned to support economic growth and withstand domestic and external shocks,” Cardoso said.
According to the apex bank, the recapitalization drive attracted strong investor confidence, with 72.55% of funds sourced locally and 27.45% from international markets.
“This level of participation underscores the confidence that investors continue to have in the Nigerian banking sector,” said Hakama Sidi Ali, Acting Director of Corporate Communications.
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The CBN confirmed that 33 banks have successfully met the revised minimum capital requirements, while several banks are still under regulatory and judicial review. Olubukola A. Akinwunmi, PhD, Director of Banking Supervision, assured stakeholders that “all banks remain fully operational, ensuring uninterrupted access to services for customers during the recapitalization process.”
This program has increased the capital adequacy ratio above the Basel international standard, with the threshold set at 10% for regional and national banks and 15% for banks with international authorization. Officials stressed that the recapitalization, coupled with the orderly release of regulations, had improved asset quality and balance sheet transparency.
To safeguard these benefits, the CBN has tightened its risk-based capital adequacy framework, requiring regular stress tests and stronger capital buffers.
“We are committed to maintaining a stable, transparent and resilient financial system that inspires confidence among depositors, investors and society at large,” Cardoso reiterated.
With the completion of recapitalization, Nigeria’s banking sector is now on a stronger foundation—better prepared to mobilize savings, expand lending, and weather domestic and global economic shocks.
By: Babajide Okeowo
