The Central Bank of Nigeria has confirmed the successful conclusion of its banking sector recapitalisation programme, with financial institutions raising ₦4.65 trillion in fresh capital over the designated 24-month implementation period. Launched in March 2024, the exercise aimed to fortify lender balance sheets and strengthen the broader financial system against economic volatility.
In a statement issued Wednesday in Abuja by Dr Olubukola Akinwunmi, Director of Banking Supervision, and Hakama Sidi-Ali, Acting Director of Corporate Communications, the apex bank reported robust investor engagement during the exercise. Approximately 72.55 per cent of the funds originated from domestic markets, while 27.45 per cent was secured internationally, underscoring sustained investor confidence in Nigerian financial institutions. The CBN verified that 33 banks have fully satisfied the revised minimum capital thresholds. Although a small number of lenders remain under regulatory and judicial review, all institutions continue to operate normally, with no disruption to customer services.
Regulatory indicators reflect measurable improvements in sector stability. Capital Adequacy Ratios remain consistently above international Basel III standards, with minimum thresholds maintained at 10 per cent for domestic and regional banks, and 15 per cent for lenders authorised for international operations. The recapitalisation framework was executed alongside a structured exit from previous regulatory forbearance, a shift that has improved asset classification, enhanced balance sheet transparency, and reinforced overall systemic stability.
To preserve these gains, the CBN has tightened its risk-based supervisory framework. Banks are now mandated to conduct periodic stress tests under defined economic scenarios and maintain appropriate capital buffers. Prudential guidelines and oversight mechanisms will be reviewed regularly to support stronger corporate governance and sector resilience.
CBN Governor Olayemi Cardoso affirmed that the completed initiative has expanded the capital base of Nigerian lenders, positioning the financial architecture to drive credit growth and absorb external or domestic economic shocks. The central bank reiterated its commitment to maintaining a transparent, stable operating environment that protects depositors and supports sustainable financial infrastructure. With the recapitalisation mandate fulfilled, Nigerian banks are expected to scale lending activities and improve savings mobilisation in support of long-term economic development.
