The Central Bank of Nigeria has officially announced the successful conclusion of its 24-month banking sector recapitalisation programme, revealing that Nigerian banks successfully raised a staggering ₦4.65 trillion in new capital.
The initiative, which was launched in March 2024, was designed to fortify the nation’s financial architecture against economic volatility and enhance the capacity of local banks to support a trillion-dollar economy.
Investor Confidence Hits New Highs
In a statement released by the apex bank, the CBN highlighted a robust appetite for Nigerian banking assets.
The capital raise saw a healthy mix of funding sources:
- 55% sourced from domestic investors.
- 45% sourced from international markets.
Governor Olayemi Cardoso noted that the successful exercise reflects “sustained confidence” in the Nigerian banking sector, ensuring that institutions are now better positioned to withstand both domestic and external shocks.
33 Banks Clear the Hurdle
The CBN confirmed that 33 banks have fully met the revised minimum capital requirements.
While a small number of institutions remain subject to ongoing regulatory and judicial processes, the apex bank assured the public that all banks remain fully operational, with no disruption to customer services.
To ensure the long-term stability of these gains, the CBN has maintained strict Capital Adequacy Ratio (CAR) thresholds:
- 10% for regional and national banks.
- 15% for banks with international authorization.
The regulator noted that the sector is currently maintaining levels well above international Basel benchmarks.
Enhanced Oversight and Future Outlook
Moving forward, the CBN is shifting its focus toward “Enhanced Prudential Oversight.” Banks will now be required to undergo regular stress testing and maintain rigorous capital buffers under a strengthened risk-based supervision framework.
The conclusion of the programme marks a significant shift in the Nigerian financial landscape.
With improved asset quality and reinforced balance sheets, the banking sector is now expected to accelerate lending to critical sectors, mobilise national savings more effectively, and provide a stable foundation for the Federal Government’s broader economic growth agenda.
“The 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,” says Olayemi Cardoso, governor of the Central Bank of Nigeria.
