Nigeria’s banking sector has recorded a major milestone following the successful conclusion of a 24-month recapitalisation programme that saw lenders raise a combined ₦4.65 trillion in fresh capital, significantly strengthening the country’s financial system.
Announcing the development, the Central Bank of Nigeria said the exercise, which commenced in March 2024, has enhanced the resilience of banks and positioned them to better support economic growth while withstanding both domestic and global shocks.
The apex bank disclosed that the recapitalisation drive attracted strong investor confidence, with 72.55 per cent of the funds sourced locally and 27.45 per cent coming from international markets. The participation mix, according to the regulator, reflects sustained confidence in Nigeria’s banking industry despite prevailing economic headwinds.
Governor Olayemi Cardoso described the programme as a critical step in fortifying the sector’s stability and long-term viability. “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks,” he said.
As part of the outcome, the CBN confirmed that 33 banks have successfully met the revised minimum capital requirements set under the programme. A small number of institutions, however, remain under ongoing regulatory and judicial processes, which the bank said are being addressed within established supervisory and legal frameworks. It added that all banks continue to operate normally, with no disruption to customer access or services throughout the exercise.
The regulator noted that the programme has led to improved capital adequacy ratios across the sector, with banks maintaining levels above international Basel benchmarks. Under current requirements, minimum capital adequacy ratios remain at 10 per cent for regional and national banks, and 15 per cent for banks with international authorisation.
Beyond capital injection, the recapitalisation was implemented alongside a phased exit from regulatory forbearance, a move that has improved asset quality and enhanced balance sheet transparency across the industry. The CBN said these measures have collectively strengthened overall financial system stability.
To consolidate the gains, the apex bank has intensified its prudential oversight framework, introducing stricter risk-based supervision. Banks are now required to conduct regular stress testing under defined scenarios and maintain adequate capital buffers to absorb potential shocks. The CBN added that its regulatory guidelines and supervisory mechanisms will continue to undergo periodic reviews to ensure alignment with global best practices.
Despite the scale of the reforms, the recapitalisation programme was executed without disrupting banking operations, ensuring uninterrupted access to financial services for individuals and businesses nationwide.
