Banks mobilise N4.05trn in recapitalisation, 20 meet minimum requirement

Ahead of the March 31, 2026 deadline, banks have raised a total of N4.05 trillion under the Central Bank of Nigeria’s ongoing recapitalisation exercise, with 20 of the 33 participating institutions meeting the new minimum capital requirement, Governor Olayemi Cardoso said on Tuesday.

The move signals broad investor confidence and marks a major milestone in efforts to strengthen the country’s banking sector.

Cardoso, speaking after the conclusion of a two-day Monetary Policy Committee (MPC) meeting in Abuja, said the committee acknowledged the continued resilience of the banking sector, noting that most key financial soundness indicators remain within regulatory thresholds. “The MPC reiterated the strategic importance of the recapitalisation exercise and urged the Bank to ensure its successful completion. This would reinforce financial system resilience and enhance the sector’s capacity to support sustainable economic growth,” he said.

Of the 13 banks still finalising their recapitalisation plans, several are exploring a mix of strategic options, including consolidation where appropriate. Cardoso emphasised that institutions currently under regulatory intervention face legal and structural considerations that affect the timing of their recapitalisation, making it unrealistic to expect the same sequencing as banks that had over two years to prepare.

He reassured the public that depositors’ funds in these institutions remain secure and that operations continue under close supervisory and regulatory oversight.

As of February 19, 2026, the total verified and approved capital raise stands at N4.05 trillion, with N2.90 trillion, or 71.67 percent, mobilised domestically. Foreign participation accounted for $706.84 million, equivalent to N1.15 trillion, or 28.33 per cent of the total.

Cardoso said this mix of domestic and foreign investment demonstrates strong engagement from both local and international investors. “Several MPCs ago, I mentioned that when I met with members of the investor community abroad, they had a very strong interest in investing in the banks. I’m glad that this has come out in a positive way,” he said.

The recapitalisation program, which began early 2024 as part of broader reforms to strengthen Nigeria’s financial system, is designed to ensure that banks are well-capitalised, able to withstand shocks, and capable of supporting sustainable economic growth, particularly President Tinubu’s $1trillion economy quest.

The CBN’s approach includes careful oversight of banks undergoing regulatory intervention, while encouraging institutions to complete their capital-raising exercises within the stipulated timelines.

Analysts say the pace of recapitalisation is likely to improve market confidence, reduce systemic risk, and expand banks’ capacity to lend to the real economy. Domestic participation remains dominant, reflecting strong confidence in Nigeria’s financial system, while international interest underscores the sector’s growing appeal to foreign investors.

Cardoso, who has consistently stressed that the March deadline is non‑negotiable, emphasised that the central bank remains actively engaged with all stakeholders to ensure the exercise concludes in an orderly and credible manner.

“The CBN will continue monitoring progress and enforcing regulatory standards to maintain the stability and integrity of the banking system.”