The Central Bank of Nigeria (CBN) has concluded its nationwide bank recapitalization program, with 33 financial institutions successfully meeting revised minimum capital requirements. The sector raised a total of N4.65 trillion to strengthen institutional balance sheets and reinforce financial system stability ahead of the March 31, 2026 deadline.
Olubukola Akinwunmi, Director of the Banking Supervision Department, confirmed the completion in a statement issued Wednesday. According to central bank data, 72.55 percent of the newly acquired capital originated from domestic sources, while the remainder was secured through international markets. The Nigerian bank recapitalization initiative commenced in March 2024 with the objective of expanding lending capacity and improving institutional resilience against macroeconomic fluctuations.
The capital-raising exercise was implemented alongside an orderly exit from regulatory forbearance, a prior framework that provided banks extended timelines to address asset quality challenges. The CBN reported that this coordinated transition has enhanced balance sheet transparency and overall asset quality across the industry. Capital Adequacy Ratios (CAR) now consistently exceed regulatory thresholds, which are maintained at 10 percent for regional and national banks and 15 percent for institutions holding international operating licenses. All sector metrics remain at or above international Basel standards.
While the majority of licensed institutions have fully complied with the updated benchmarks, a limited number remain subject to ongoing regulatory and judicial proceedings. The central bank confirmed these cases are being resolved through established supervisory and legal procedures. All 33 recognized banks continue standard operations without interruption, ensuring consistent access to retail and corporate banking services.
CBN Governor Olayemi Cardoso noted that the completed framework has fortified the capital foundation of the banking sector and enhanced its capacity to withstand domestic and external economic pressures. The regulator stated that the strengthened financial baseline positions the industry to support sustainable credit growth and long-term macroeconomic development. With the recapitalization phase formally closed, the central bank will shift focus to routine monitoring of capital adequacy, liquidity conditions, and risk management practices to sustain stability in Nigeriaā€™s evolving financial landscape.
