The Central Bank of Nigeria (CBN) has concluded its 24-month banking sector recapitalisation programme, with Nigerian banks raising a combined ₦4.65 trillion in fresh capital to strengthen balance sheets and improve system-wide resilience.
The recapitalisation drive, launched in March 2024, recorded strong investor participation, with 72.55% of total capital sourced domestically and 27.45% from international markets—highlighting sustained confidence in Nigeria’s banking sector despite macroeconomic headwinds.
CBN Governor, Olayemi Cardoso, said the exercise has materially improved the sector’s shock-absorption capacity and positioned banks to support credit expansion and economic recovery.
“The recapitalisation programme has strengthened the resilience of the financial system and enhanced its capacity to support economic growth,” Cardoso said.
By the numbers:
₦4.65 trillion — total capital raised by banks
33 banks — met revised minimum capital thresholds
72.55% — local capital contribution
27.45% — foreign capital inflows
24 months — duration of recapitalisation programme
10% CAR — minimum for regional/national banks
15% CAR — minimum for international banks
The CBN noted that the recapitalisation, implemented alongside a gradual exit from regulatory forbearance, has strengthened asset quality, improved balance sheet transparency, and enhanced overall financial system stability.
To sustain these gains, the CBN said it has further strengthened its risk-based supervisory framework, requiring banks to conduct regular stress testing and maintain adequate capital buffers under varying economic scenarios.
The bank also stated that its prudential guidelines and supervisory mechanisms would continue to be reviewed periodically to reinforce governance standards, risk management practices, and sector resilience.
The apex bank emphasised that the recapitalisation process was completed without disruption to banking operations, ensuring continuous service delivery to individuals and businesses throughout the period.
It added that the successful conclusion of the programme has positioned the Nigerian banking sector to better support lending, mobilise savings, and absorb shocks in an increasingly volatile global environment.
Outlook
The CBN reiterated its commitment to maintaining a stable and resilient financial system, noting that the strengthened capital base will enhance investor confidence, deepen financial intermediation, and support Nigeria’s long-term growth trajectory.
