CBN Confirms 8 Banks Meet N500bn Recapitalisation Target
…Holds MPR Steady at 27.50%
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has announced that eight commercial banks have successfully met the N500 billion recapitalisation requirements well ahead of the March 2026 deadline.
This disclosure was made by the CBN Governor during a press briefing held in Abuja following the conclusion of the Monetary Policy Committee (MPC) meeting on Tuesday.
The CBN Governor told journalists that the MPC observed the progress of the recapitalisation exercise, noting that “eight (8) banks have fully met the recapitalisation requirements, while others are making progress towards meeting the deadline.”
Members of the MPC also acknowledged the continued stability within the banking system, evidenced by stable Financial Soundness Indicators (FSIs), a condition they anticipate will be further supported by the ongoing recapitalisation initiative.
The Committee subsequently advised the CBN management to maintain its rigorous oversight of the banking system to ensure the sustained resilience, safety, and overall soundness of the financial system.
Regarding the nation’s economic policy, the MPC opted to maintain its current monetary policy stance, leaving all key parameters unchanged. The Monetary Policy Rate (MPR) remains at 27.50 per cent, with the asymmetric corridor around the MPR sustained at +500/-100 basis points. The Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) stays at 50.00 per cent, while that for Merchant Banks is retained at 16.00 per cent. The Liquidity Ratio is also kept constant at 30.00 per cent.
This decision, the Committee stated, is driven by the need to continue the momentum of disinflation and effectively manage price pressures. Maintaining the current policy approach is expected to address both existing and emerging inflationary trends. The MPC indicated its commitment to a thorough assessment of economic conditions, price developments, and outlook to guide future policy decisions.
On the subject of inflation, the CBN Governor affirmed the apex bank’s determination to utilize all available instruments. “We will continue to use every of our tools, the MPR, the CRR, ensuring that the foreign exchange market works efficiently. We are going to continue to do that and again rely on us for that,” he stated.
He added that “the inflation expectations, we will manage them in such a way that we are as transparent and open as possible. So that people understand, the various publics understand where we are heading to. But in summary, we are determined to ensure that we use all the different tools at our disposal to bring down inflation to significant levels.”
The Committee also acknowledged the Federal Government’s initiatives aimed at enhancing security and its positive impact on food production. Members urged the government to persist in providing timely access to high-yield seedlings, fertilizers, and other crucial inputs for the current farming season.
Furthermore, the MPC observed sustained stability in the foreign exchange market. This stability is attributed to improved capital flows, increased earnings from crude oil production, a rise in non-oil exports, and a considerable reduction in aggregate imports.
The Governor confirmed that real Gross Domestic Product (GDP) in the first quarter of 2025 expanded by 3.13 per cent, a notable increase compared to 2.27 per cent in the corresponding quarter of 2024 and 3.38 per cent in the preceding quarter of 2024.
Additionally, recent data from the Purchasing Managers Index suggests that the Nigerian economy remains on an expansionary path. The external sector continues to exhibit stability and resilience despite ongoing global macroeconomic uncertainties, with gross external reserves increasing to US$40.11 billion as of July 18, 2025, providing approximately 9.5 months of import cover for goods.
Commenting on the outcomes of the reforms and the path ahead, the CBN Governor declared that “A lot of what you see going on now is transformational, and they are here to stay.”
He cited tangible improvements, such as the narrowing gap between the market and official exchange rates and the increasing acceptance of Naira cards for international transactions. “Those things are here to stay. They are not a short-term measure. They are here to stay,” he asserted.
The Governor expressed confidence that “as more and more of vigilance, transparency, rebuilding trust, I’m very, very confident that we can only but have an improvement in the positive signals that we have seen coming out, and that the IMF and others are also noting.”
He concluded by stressing the importance of collaborative efforts to reduce uncertainty, ensuring an attractive environment for both domestic and international investors through consistent policy and trust-building measures.
