16 banks meet new capital rules as CBN holds interest rate at 27%

Nigeria’s financial sector recorded major developments on Tuesday as the Central Bank of Nigeria (CBN) confirmed that sixteen banks have fully met its revised capital requirements, while the Monetary Policy Committee (MPC) voted to retain the benchmark interest rate at 27 per cent.

CBN Governor Olayemi Cardoso announced both outcomes during a press briefing at the end of the committee’s 303rd meeting in Abuja. He said the MPC reviewed the state of the banking system and the broader economy before deciding to maintain the monetary policy stance.

“The Committee decided by a majority vote to maintain the monetary policy stance,” Cardoso said, noting that members were not convinced that current economic conditions justified another rate cut. The decision extends the pause on monetary easing after the 50-basis-point reduction in September—the first and only cut since the tightening cycle began under the current CBN leadership.

The Punch reported that the MPC had raised interest rates six times in 2024 in response to surging inflation and persistent currency pressures.

Alongside the rate decision, Cardoso announced significant progress in the ongoing banking sector recapitalisation programme, confirming that sixteen banks are now fully compliant with the CBN’s new capital thresholds. He said the MPC expressed confidence in the resilience of the financial system, highlighting strong performance across key prudential indicators.

“Members acknowledged the substantial progress in the ongoing recapitalisation programme, with 16 banks achieving full compliance with the revised capital requirements,” he said.

Cardoso disclosed that 27 banks have so far raised fresh capital through equity injections, rights issues, bond offerings and other instruments as they work toward the 2026 recapitalisation deadline. “We are monitoring developments and, from all indications, the exercise is moving in the right direction,” he added.

He stressed that the recapitalisation drive is designed to strengthen the banking system for long-term economic support, especially as Nigerian lenders continue expanding across Africa. Stronger capital buffers, he said, are essential for managing cross-border risks and supporting Nigerians who conduct business in multiple jurisdictions.

The new capital requirements, announced on 28 March 2024, raised the minimum capital base for banks with international licences to ₦500 billion, prompting aggressive fundraising across the industry. Zenith Bank raised ₦350.46 billion through a rights issue and public offer earlier in the year, while GTCO priced a fully marketed offering on the London Stock Exchange in July.

Cardoso noted that the number of banks fully meeting the new thresholds increased from eight in July to fourteen in September, and now sixteen as of November-a trend he said reflects accelerating compliance as the sector enters the final stretch of the recapitalisation programme.

With the deadline still more than a year away, analysts say the steady progress on capital raises, combined with stable monetary policy, suggests the CBN is positioning the financial system for greater stability and competitiveness amid a challenging economic environment.