Dr. Uju Ogunbunka, President of the Bank Customers’ Association of Nigeria (BCAN), has assured depositors that their funds remain secure despite the Central Bank of Nigeria’s (CBN) strict recapitalization deadline of March 31, 2025. Speaking on Monday, Ogunbunka clarified that any banks failing to meet the new minimum capital requirements will not collapse abruptly; instead, their customers will be transferred to healthier institutions.
The CBN significantly raised minimum capital requirements for commercial banks in March 2024, a move aimed at strengthening the financial sector, enhancing resilience, and aligning with global best practices. The March 31 deadline requires banks to either recapitalize independently, merge, or face orderly liquidation. Ogunbunka emphasized that the primary outcome for customers of non-compliant banks is a transfer to other licensed banks, not a loss of deposits.
“I don’t think there is risk here other than the bank’s customers moving to other banks in the case of inability to get a merger or liquidation,” Ogunbunka stated. He further advised against alarm, noting, “I can’t tell the exact number of banks that have met up with CBN’s recapitalization requirement because the data is updated daily, but I think there is no cause for alarm among bank customers.”
Last month, the CBN confirmed that at least 20 banks have already satisfied the new capital thresholds. This regulatory exercise is part of a broader effort to consolidate the banking industry, improve service delivery, and protect the deposit base. For customers, the process underscores the importance of ensuring their accounts are with a compliant bank, though the official transfer mechanism is designed to prevent disruption.
The recapitalization drive represents a critical phase in Nigeria’s financial sector reforms. By enforcing higher capital buffers, the CBN aims to mitigate systemic risk and foster a more robust banking environment. Customers are encouraged to stay informed through official channels but can take confidence from the BCAN’s stance that deposit protection remains paramount under the transition framework.
