Daniel Adaji
The Central Bank of Nigeria (CBN) has successfully concluded a major banking recapitalisation exercise, marking a significant milestone in Nigeria’s financial sector reform and positioning the industry to support the country’s long-term economic ambitions.
The recapitalisation programme required Nigerian banks to meet new minimum capital thresholds by March 31, 2026, as part of a broader strategy to strengthen the resilience, competitiveness, and lending capacity of the financial system.
The initiative is designed to align the banking sector with the Federal Government’s aspiration of building a $1 trillion economy, while enhancing financial stability and supporting large-scale economic activities.
Under the new requirements, international commercial banks were mandated to raise a minimum capital base of ₦500 billion, while national commercial banks were required to meet ₦200 billion. Regional commercial banks and national merchant banks were set at ₦50 billion each, with national non-interest banks required to raise ₦20 billion and regional non-interest banks ₦10 billion.
The CBN disclosed in a fact sheet on Saturday that the exercise recorded a strong outcome, with banks mobilising a total of ₦4.65 trillion in new capital as of the March 31 deadline. A total of 33 banks met the new capital thresholds, reflecting substantial compliance across the sector.
The recapitalisation drive also attracted significant investor interest, both locally and internationally. Data from the apex bank showed that 72.55 per cent of the capital raised came from domestic sources, while 27.45 per cent was sourced from international markets, signalling sustained investor confidence in Nigeria’s banking system and ongoing financial reforms.
The apex bank noted that the recapitalisation programme represents the most significant banking reform since the 2005 consolidation exercise, which reshaped the structure of Nigeria’s banking industry.
The increased capital base is expected to strengthen banks’ ability to absorb economic shocks, improve risk management frameworks, and align operations with global regulatory standards such as Basel III. The reform is also anticipated to enhance governance structures across the sector.
In addition, the recapitalised banks are expected to play a critical role in financing key sectors of the economy, including infrastructure, energy, manufacturing, and technology, which require long-term and high-value funding. This is seen as vital to advancing Nigeria’s industrialisation drive and export diversification agenda.
The CBN emphasised that the programme reflects strong coordination between monetary and fiscal authorities, particularly collaboration among the apex bank, the Ministry of Finance, and capital market institutions, aimed at ensuring policy coherence and macroeconomic stability.
The strengthened banking system is also expected to improve policy transmission, support liquidity management, and aid inflation control, while broadening access to credit and promoting financial inclusion nationwide.
The apex bank stated that the recapitalisation would help build banks that are “fit for purpose” in a trillion-dollar economy, enabling sustainable financing for small and medium enterprises, export-oriented businesses, and major infrastructure projects.
It also clarified that banks yet to fully meet the new requirements remain operational and are in the process of completing their recapitalisation, assuring stakeholders of continued stability in the financial system.
Commenting on the development, Olayemi Cardoso, Governor of the Central Bank of Nigeria, underscored the importance of a strong financial system to economic growth.
“Sustainable economic growth is unattainable without a resilient financial system. This recapitalisation ensures Nigerian banks can fund the scale of transactions needed to drive a $1 trillion economy,” he said.
He noted that “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.”
With stronger capital buffers, improved governance, and enhanced regulatory oversight, the Nigerian banking sector is now better positioned to support individuals, businesses, and the broader economy, reinforcing confidence in the country’s financial architecture.
