The Central Bank of Nigeria (CBN) announced that 20 Nigerian lenders have collectively raised N4.05 trillion in capital, successfully meeting new minimum requirements ahead of the March 31, 2026 deadline. Governor Olayemi Cardoso provided the update following the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, underscoring significant progress in the bank recapitalization program initiated in March 2024.
The capital raise, which stands at 71.67 percent sourced domestically and 28.33 percent from foreign investors, reflects broad market participation. Specifically, N2.90 trillion was mobilized within Nigeria, while $706.84 million (equivalent to N1.15 trillion) came from international sources. Cardoso stated that this mix “represents sustained confidence in the banking sector.”
Thirteen additional banks remain in the process of meeting the revised capital thresholds, indicating the exercise is nearing full completion. The recapitalization drive is designed to bolster the resilience of the financial system and enhance banks’ capacity to finance economic growth and development.
In a separate decision at the same MPC meeting, the committee reduced Nigeria’s benchmark interest rate by 50 basis points to 26.5 percent. This monetary policy adjustment aims to balance inflation control with supporting economic activity amid ongoing macroeconomic stabilization efforts.
The successful capital raising by the initial cohort of banks marks a critical milestone for Nigeria’s financial sector. Achieving higher capital buffers is intended to improve risk absorption, foster greater credit flow to the real economy, and align Nigerian banks with international best practices. The remaining institutions are expected to finalize their compliance plans within the stipulated timeframe, ensuring uniformity in sectoral strength.
The concurrent move to lower interest rates suggests the CBN’s assessment that inflationary pressures are moderating sufficiently to permit monetary easing. Together, these policy actions signal a phased approach to reinforcing financial stability while stimulating growth. The CBN will likely continue monitoring implementation closely, with full sector recapitalization expected to be completed before the 2026 deadline. This dual-track strategy of capital enhancement and calibrated monetary policy is central to Nigeria’s broader economic recovery agenda.
