CBN says banks stronger after N4.65trn recapitalisation drive

…Flags ongoing cases for some lenders, as 33 meet capital requirements

The Central Bank of Nigeria (CBN) on Wednesday said the country’s banking sector has emerged stronger following the conclusion of a 24-month recapitalisation programme that saw lenders raise a combined N4.65 trillion in new capital.

The exercise, which began in March 2024, drew participation from both domestic and international investors, with 72.55 percent of the capital sourced locally and 27.45 percent from foreign markets, underscoring sustained confidence in Nigeria’s banking system.

Olayemi Cardoso, governor of the CBN, said the programme has significantly strengthened the capital base of Nigerian banks, positioning them to better support economic growth and withstand both domestic and external shocks.

The apex bank confirmed that 33 banks have met the revised minimum capital requirements set under the programme, while a limited number of institutions remain subject to ongoing regulatory and judicial processes being handled within existing supervisory and legal frameworks.

Despite the ongoing processes affecting a few lenders, all banks remain fully operational, ensuring uninterrupted access to banking services for individuals and businesses.

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The CBN said the recapitalisation has improved capital adequacy ratios across the sector, with banks maintaining levels above international Basel benchmarks. Minimum capital adequacy thresholds remain at 10 percent for regional and national banks and 15 percent for banks with international licences.

The programme was implemented alongside an orderly exit from regulatory forbearance, a move the Central Bank said has enhanced asset quality, strengthened balance sheet transparency, and reinforced overall financial system stability.

To sustain these gains, the CBN said it has strengthened its risk-based capital adequacy framework, requiring banks to conduct regular stress testing under defined scenarios and maintain adequate capital buffers.

Key prudential guidelines and supervisory frameworks will also be subject to periodic reviews to support improvements in governance, risk management, and sector resilience.

The central bank said the recapitalisation was executed without disruption to banking operations, ensuring continuous access to financial services throughout the period.

With the programme now concluded, the CBN said the banking sector is better positioned to support lending, mobilise savings, and withstand future domestic and global shocks, while maintaining confidence among depositors, investors, and the broader public.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.