Nigeria’s ongoing banking sector recapitalisation exercise has recorded a milestone, with 14 banks now meeting the new regulatory capital thresholds set by the Central Bank of Nigeria (CBN).
CBN Governor, Olayemi Cardoso, disclosed this on Tuesday in Abuja while addressing journalists at the end of the Monetary Policy Committee (MPC) meeting. He said the financial system has continued to demonstrate resilience, with most soundness indicators holding within safe benchmarks despite macroeconomic headwinds.
“Members also acknowledge the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement,” Cardoso announced.
The governor urged lenders to sustain efforts at raising fresh capital and consolidating their balance sheets, noting that the exercise remains crucial to ensuring long-term stability in Nigeria’s financial sector.
Cardoso further revealed that the apex bank had successfully terminated forbearance measures and waivers earlier granted to civil obligors. According to him, the move has improved transparency, strengthened risk management, and reinforced confidence in the financial system. He stressed that the withdrawal of such temporary relief measures posed no threat to the health of the industry.
The recapitalisation policy was introduced on March 28, 2024, when the CBN raised the minimum capital requirement for commercial banks with international authorisation to ₦500 billion. Since then, several banks have launched share offers, bond issuances, and strategic partnerships in a bid to meet the deadline.
As of July 22, only eight banks had complied fully with the new rules. The latest update shows that the pace of compliance is accelerating, reflecting increased investor response and internal adjustments within the banking industry.
Analysts say the recapitalisation effort, last undertaken on a large scale in 2004, is aimed at strengthening the resilience of Nigerian banks to shocks, positioning them to finance larger transactions, and supporting the broader economic reform agenda.