Nigerian Banks raise N4.65trn new capital as CBN concludes recapitalisation programme

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN) said on Wednesday that Nigerian banks raised a total of N4.65 trillion in new capital over the 24-month period thus strengthening the resilience of the financial system and enhancing its capacity to support the economy.

CBN said this while announcing the successful conclusion of the banking sector recapitalisation programme initiated in March 2024 in a statement issued on Wednesday in Abuja.

In the statement jointly signed by Dr Olubukola Akinwunmi, its Director, Banking Supervision and Mrs Hakama Sidi-Ali, Acting Director, Corporate Communications Department, CBN said the recapitalisation programme recorded strong participation from both domestic and international investors.

The apex bank said 72.55 per cent of capital was sourced locally and 27.45 per cent from international markets, a development it said reflected sustained confidence in the Nigerian banking sector.

The CBN confirmed that 33 banks had met the revised minimum capital requirements established under the programme.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers,’’ it said.

The apex bank said that the programme had strengthened Capital Adequacy Ratios (CAR), with the sector maintaining levels above international Basel benchmarks.

It said that minimum CAR thresholds remained at 10 per cent for regional and national banks and 15 per cent for banks with international authorisation.

“The recapitalisation implemented alongside an orderly exit from regulatory forbearance has improved asset quality, reinforcing balance sheet transparency and overall financial system stability,’’ CBN stated.

The apex bank said, to safeguard these gains, it had strengthened its risk-based capital adequacy framework requiring banks to conduct regular stress testing across defined scenarios and maintain appropriate capital buffers.

It said that key regulatory measures, including prudential guidelines and the supervisory framework, were subject to periodic review to support ongoing strengthening of governance, risk management, and sector resilience.

The bank said that the recapitalisation programme was carried out without disruption to banking services, ensuring continuous access for individuals and businesses throughout the process.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks.

“The CBN remains committed to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the broader public, and to advancing the sustainability of the nation’s financial architecture,’’ it stated.

The CBN Governor, Mr Olayemi Cardoso, corroborated the gains, stating that the recapitalisation programme had strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system.

Cardoso said that it also ensured that the financial system was well-positioned to support economic growth and withstand domestic and external shocks.

(NAN)