33 Banks meet targets as CBN concludes ₦4.65trn Recapitalisation Drive

By Kazeem Ugbodaga

The Central Bank of Nigeria (CBN) has concluded its sweeping banking sector recapitalisation programme, with lenders raising ₦4.65 trillion in fresh capital to bolster financial system stability and support economic growth.

The exercise, initiated in March 2024, marks one of the most significant capital strengthening efforts in Nigeria’s banking history, aimed at reinforcing banks’ capacity to withstand economic shocks and expand lending to the real sector.

In a statement, the apex bank said the programme attracted strong investor confidence, with 72.55 per cent of the funds sourced domestically and 27.45 per cent from international markets.

CBN Governor, Olayemi Cardoso, said the recapitalisation had significantly strengthened the capital base of Nigerian banks and positioned the financial system to better support economic growth.

“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.

The CBN disclosed that 33 banks have met the revised minimum capital requirements under the programme, while a few institutions remain under regulatory and judicial review.

Despite the ongoing processes, the apex bank assured that all banks remain fully operational, with no disruption to banking services throughout the exercise.

The regulator noted that the recapitalisation has improved capital adequacy ratios across the sector, keeping banks above global Basel benchmarks, with minimum thresholds retained at 10 per cent for regional and national banks and 15 per cent for those with international licences.

The move signals a renewed push by regulators to deepen financial stability, improve asset quality, and enhance transparency in bank balance sheets, particularly as Nigeria navigates economic uncertainties.

The CBN also tightened its risk-based supervisory framework, mandating stress testing and stronger capital buffers to safeguard gains from the recapitalisation programme.

The central bank added that the successful completion of the exercise positions the banking sector to better mobilise savings, support credit growth, and absorb both domestic and global financial shocks.

The programme was implemented without disruption to banking operations, underscoring what the regulator described as a stable and orderly transition.

The CBN reiterated its commitment to maintaining a transparent and resilient financial system capable of inspiring confidence among depositors and investors while sustaining long-term economic growth.