The Central Bank of Nigeria (CBN) has revealed that only eight commercial banks have fully met the new recapitalisation requirements, as part of ongoing efforts to strengthen the country’s financial system.
This disclosure was made by the CBN Governor, Olayemi Cardoso, during a press briefing following the 301st Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday. While commending the progress so far, Cardoso confirmed that other banks are taking concrete steps to meet the regulatory deadline.
“The committee noted the continued stability in the banking system, evidenced by the stable financial soundness indicators (FSIs), which will be further reinforced by the ongoing recapitalisation exercise,” Cardoso said.
Strong Interest from International Investors
In a notable development, Cardoso highlighted that one Nigerian bank has successfully raised capital by listing on the London Stock Exchange (LSE), signalling growing investor confidence in the country’s financial institutions.
“We have one bank that has raised a significant amount of money on the London Stock [Exchange],” Cardoso noted. “That clearly reflects the way international investors are viewing the Nigerian banking system.”
The governor further explained that he had engaged with several international stakeholders in the weeks leading up to the listing, and observed “a lot of interest internationally in putting money into the Nigerian financial system.”
Regulatory Oversight and Investor Confidence
Cardoso reaffirmed the CBN’s commitment to safeguarding financial system stability through strong regulatory oversight and enforcement. He stressed the need for banks to build resilience, maintain adequate capital buffers, and comply fully with regulatory expectations.
“As a regulator, we will continue to ensure that the system remains resilient and that players operate responsibly. This is vital for sustaining both domestic and international investor confidence,” he said.
Background: The Recapitalisation Drive
In March 2024, the CBN introduced new minimum capital thresholds for banks, raising the requirement for commercial banks with international licences to N500 billion. The move is aimed at enhancing the capacity of Nigerian banks to support large-scale economic growth, finance infrastructure, and withstand external shocks.
Since then, several banks have announced capital-raising initiatives. For instance:
- Zenith Bank disclosed in January that it had successfully raised N350.46 billion through a combination of rights issues and public offerings.
- Guaranty Trust Holding Company Plc (GTCO) also confirmed on July 4 that it had priced a fully marketed offering on the LSE.
The Road Ahead
While eight banks have already complied, the rest of the sector is racing against time to meet the recapitalisation deadline. The CBN, through its supervisory framework, is expected to closely monitor progress, ensuring that the recapitalisation process does not compromise financial stability or public trust.
The recapitalisation exercise marks one of the most ambitious reform initiatives under Governor Cardoso’s tenure, and its successful execution will likely shape the resilience and competitiveness of Nigeria’s banking sector for years to come.