Nigeria’s banking sector has successfully completed a ₦4.65 trillion capital-raising exercise, meeting revised regulatory thresholds established by the Central Bank of Nigeria (CBN). The recapitalisation programme, which spanned more than two years, strengthens financial institutions against economic volatility and positions lenders to expand credit facilities nationwide.
The funding initiative drew 72.55 percent of its total from domestic investors, equivalent to ₦3.37 trillion, while foreign participants contributed ₦1.28 trillion, or 27.45 percent. The CBN stated the investment distribution reflects sustained confidence in the Nigerian financial market despite persistent macroeconomic pressures. Launched in March 2024, the exercise was designed to reinforce bank balance sheets amid rising inflation, exchange rate fluctuations, and elevated credit risks.
Under the updated licensing framework, minimum paid-up capital requirements are tiered by operational authorisation. International banks must maintain ₦500 billion. National lenders are set at ₦200 billion, while regional and merchant banks face ₦50 billion thresholds. National non-interest entities are required to hold ₦20 billion, with regional non-interest banks at ₦10 billion. The graduated structure aligns with broader economic objectives, including facilitating long-term financing for national infrastructure and industrial growth.
According to the regulator, 33 financial institutions have fully satisfied the revised capital guidelines. A limited number of lenders remain engaged in ongoing regulatory or judicial proceedings, with matters progressing through established supervisory channels. The central bank confirmed that all licensed banks maintained uninterrupted operations throughout the raise, preserving financial service access for retail and corporate customers.
With the funding phase closed, the CBN will transition to heightened prudential supervision. Financial institutions are now required to conduct routine stress testing, maintain higher capital buffers, and operate within a strengthened risk-based monitoring framework. The regulator indicated that supervisory guidelines will be adjusted periodically to address emerging market vulnerabilities. The completed exercise establishes a more resilient banking foundation, improving the sector’s capacity to cushion against domestic and international financial shocks while sustaining credit mobilisation and economic development.
