Nigerian Banking Sector Bolstered as CBN Confirms Successful Completion of Capital Drive
Nigeria’s banking sector has emerged more resilient following the completion of the Central Bank of Nigeria’s (CBN) recapitalisation programme, with 33 of the country’s 38 banks meeting revised minimum capital requirements, the apex bank announced on Wednesday.
The initiative, which began in March 2024, was designed to strengthen the financial system’s capacity to support economic growth and withstand both domestic and international shocks. After a 24-month implementation period, the programme has concluded, according to a joint statement by Hakama Sidi-Ali, acting director of corporate communications, and Olubukola Akinwunmi, director of banking supervision at the CBN.
Banks collectively raised N4.65 trillion during the recapitalisation drive, with strong participation from both domestic and international investors. The apex bank noted that 72.55% of capital was sourced locally, while 27.45% came from international markets, signaling sustained confidence in the Nigerian banking sector.
CBN Governor Olayemi Cardoso emphasized that the recapitalisation has reinforced the capital base of Nigerian banks. “The programme has strengthened the resilience of the financial system, positioning it to support economic growth and withstand shocks,” she said.
While 33 banks have fully met the revised capital thresholds, a small number of institutions remain subject to ongoing regulatory and judicial processes. The CBN assured that all banks continue to operate normally, with no disruption to banking services.
The apex bank highlighted that the recapitalisation has improved capital adequacy ratios (CAR) across the sector, keeping them above international benchmarks set by the Bank for International Settlements under Basel standards. Regional and national banks are required to maintain a minimum CAR of 10%, while banks with international authorisation must maintain at least 15%.
In addition to boosting capital, the programme, which included an orderly exit from regulatory forbearance, has enhanced asset quality, transparency, and overall financial system stability. To preserve these gains, the CBN has strengthened its risk-based supervisory framework, mandating regular stress testing and adequate capital buffers. Prudential guidelines and supervisory processes will continue to be reviewed to ensure improved governance, risk management, and sector stability.
“The successful conclusion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilize savings, and withstand domestic and global shocks,” the CBN stated, reaffirming its commitment to maintaining a stable and transparent financial system that inspires confidence among depositors, investors, and the public.