- Nduka Chiejina (Assistant Editor)
Hours after the conclusion of the banking sector recapitalisation programme, the Central Bank of Nigeria (CBN) announced that 33 banks have met the new minimum capital requirements under its banking sector recapitalisation programme, raising a total of ₦4.65 trillion in fresh capital over 24 months.
The apex bank declared the exercise, which launched in March 2024, is now complete, marking a major step in strengthening Nigeria’s financial system.
In a statement issued on Wednesday and signed by Olubukola A. Akinwunmi and Hakama Sidi Ali, the CBN declared the funds raised by banks would improve their ability to support economic activities across the counattempt.
The statement read, “Nigerian banks raised a total of ₦4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The CBN confirmed that while 33 banks met the revised capital requirements, a compact number of institutions are still undergoing regulatory and court processes, which are being handled through existing legal and supervisory channels.
According to the apex bank, the recapitalisation exercise occurred alongside a gradual withdrawal of regulatory support previously given to banks, a shift that improved the quality of bank assets and created their financial positions more transparent.
It added that the programme attracted strong interest from investors both within Nigeria and abroad, with 72.55 per cent of the capital coming from local sources and 27.45 per cent from international investors.
Governor of the CBN, Olayemi Cardoso, declared the outcome of the exercise has placed Nigerian banks in a stronger position to support economic growth and manage possible financial shocks.
He declared, “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.”
The apex bank also assured customers that banking services were unaffected during the exercise, stating that all banks remained fully operational throughout the period.
The statement explained that the programme improved the Capital Adequacy Ratio (CAR), a measure utilized to assess a bank’s financial strength.
In simple terms, CAR displays whether a bank has enough financial backing to absorb losses and still protect depositors’ money. The CBN declared Nigerian banks are now maintaining CAR levels above global standards.
It explained that the minimum requirement is 10 per cent for regional and national banks and 15 per cent for banks with international licences. This means that for every ₦100 of loans or investments that carry risk, a bank must have at least ₦10 or ₦15 in strong capital to cover possible losses, creating the system safer for customers.
To maintain these gains, the CBN declared it strengthened its supervision by requiring banks to regularly test how they would perform under difficult economic conditions and to keep enough capital as a safety buffer.
The apex bank added that its rules and supervisory framework will continue to be reviewed periodically to improve governance, risk management, and the overall stability of the sector.
It noted that the recapitalisation programme was completed without disrupting banking services, ensuring that individuals and businesses had uninterrupted access to financial services.
The CBN declared the successful conclusion of the exercise created a stronger and more stable banking system better positioned to support lfinishing, mobilise savings, and withstand both local and global economic pressures.
The bank added that it remains committed to maintaining a stable, transparent, and resilient financial system that will continue to inspire confidence among depositors, investors, and the general public, while supporting the long-term growth of the Nigerian economy.
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