Recapitalisation: Banks Raise ₦4.65tr to Fortify Nigeria’s Resilient Banking Sector
By Patience Ikpeme
The Central Bank of Nigeria (CBN) officially closed its 24-month banking sector recapitalisation exercise today, announcing that financial institutions successfully raised a staggering ₦4.65 trillion in new capital to fortify the nation’s financial architecture.
The conclusion of the programme, which began in March 2024, marks a significant turning point for the Nigerian economy. Data released by the apex bank indicates a robust appetite for Nigerian banking assets, with domestic investors providing 72.55% of the new funding, while international markets contributed the remaining 27.45%.
CBN Governor Olayemi Cardoso noted that the initiative has fundamentally altered the strength of the industry. “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks,” Cardoso said.
A statement from the apex bank signed by the Director of Banking Supervision, Dr. Olubukola A. Akinwunmi, and the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, revealed that 33 banks successfully met the revised minimum capital requirements.
However, a small number of institutions are still navigating ongoing regulatory and judicial processes through established legal frameworks, the CBN made it clear that all banks remain fully operational, ensuring that daily banking activities for customers across the country proceed without interruption.
The influx of capital has pushed the sector’s capital adequacy ratios (CAR) beyond international Basel benchmarks. Currently, the CBN maintains a minimum CAR threshold of 10% for regional and national banks, while banks holding international authorization must maintain a 15% buffer. This structural shift, paired with an orderly exit from regulatory forbearance, has led to visible improvements in asset quality and balance sheet transparency.
To maintain these stability gains, the apex bank has implemented a more rigorous risk-based capital adequacy framework. This new regime mandates that banks conduct regular stress testing across various economic scenarios to ensure they hold sufficient capital buffers against future volatility.
The Director of Banking Supervision, Olubukola A. Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi Ali, noted in the joint statement that the successful completion of the programme establishes a more resilient system better positioned to support lending and mobilise savings.
The bank stated its commitment to maintaining a stable and transparent financial system that inspires confidence among depositors and the broader public.
