CBN Concludes Recapitalisation As Banks Raise ₦4.65tn

CBN, Corporate Headquarters

CBN Concludes Recapitalisation As Banks Raise ₦4.65tn

The Central Bank of Nigeria (CBN) has officially concluded its banking sector recapitalisation programme, a landmark exercise that saw Nigerian banks collectively raise ₦4.65 trillion.

This initiative, which spanned 24 months beginning in March 2024, was designed to strengthen the resilience of the financial system and ensure banks are better positioned to support economic growth while withstanding both domestic and external shocks.

At the heart of the recapitalisation effort was broad participation from both local and international investors. According to the CBN, 72.55 percent of the capital was sourced domestically, while 27.45 percent came from foreign markets.

This balance reflects confidence in Nigeria’s banking sector both at home and abroad. CBN Governor Olayemi Cardoso highlighted that the programme has reinforced the capital base of banks, thereby enhancing their ability to mobilise savings, extend credit, and maintain stability in the face of economic uncertainties.

A total of 33 banks successfully met the revised minimum capital requirements set under the programme. While a few institutions remain subject to regulatory and judicial processes, the CBN assured that all financial institutions have remained fully operational throughout the exercise, with no disruption to banking services.

The recapitalisation also improved capital adequacy ratios across the sector, keeping them above international Basel benchmarks. Minimum thresholds were retained at 10 percent for regional and national banks, and 15 percent for banks with international authorisation.

Beyond capital strengthening, the programme facilitated an orderly exit from regulatory forbearance, improved asset quality, and enhanced balance sheet transparency.

To sustain these gains, the CBN has reinforced its risk-based supervisory framework. Banks are now required to conduct routine stress testing and maintain adequate capital buffers. This proactive approach is intended to ensure that the Nigerian financial system remains stable, resilient, and capable of supporting long-term economic development.

The successful conclusion of the recapitalisation programme marks a significant milestone in Nigeria’s financial sector reform. By raising ₦4.65 trillion, banks have not only met regulatory requirements but also strengthened their foundations to drive growth, safeguard stability, and withstand future shocks.