CBN announces successful completion of banking sector recapitalisation programme

The Central Bank of Nigeria (CBN) has confirmed the successful conclusion of its banking sector recapitalisation programme, which was launched in March 2024 to strengthen the nation’s financial system.

A joint statement issued on Wednesday in Abuja by Dr Olubukola Akinwunmi and Mrs Hakama Sidi-Ali revealed that Nigerian banks raised a total of N4.65 trillion in new capital over the 24-month period, boosting the sector’s resilience and capacity to support economic growth.

The programme saw robust participation from both domestic and international investors, with 72.55 per cent of capital sourced locally and 27.45 per cent from overseas, underscoring sustained confidence in Nigeria’s banking system.

According to the CBN, 33 banks have now met the revised minimum capital requirements established under the initiative. “A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks. All banks remain fully operational, ensuring continued access to banking services for customers,” the statement read.

The apex bank noted that the recapitalisation improved Capital Adequacy Ratios (CAR), with the sector maintaining levels above international Basel benchmarks. Minimum CAR thresholds were set at 10 per cent for regional and national banks, and 15 per cent for banks with international authorisation.

“The recapitalisation, implemented alongside an orderly exit from regulatory forbearance, has improved asset quality, reinforced balance sheet transparency, and enhanced overall financial system stability,” the CBN added.

To safeguard these gains, the apex bank said it had strengthened its risk-based capital adequacy framework, requiring banks to conduct regular stress tests and maintain appropriate capital buffers. Key regulatory measures, including prudential guidelines and supervisory frameworks, will continue to be reviewed periodically to strengthen governance, risk management, and sector resilience.

CBN Governor Olayemi Cardoso confirmed the programme’s achievements, noting that it reinforced the capital base of Nigerian banks, improved system resilience, and ensured the sector is well-positioned to support economic growth while withstanding domestic and global shocks.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks. The CBN remains committed to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the broader public,” the governor said.