CBN wraps up bank recapitalisation as 33 lenders meet new capital threshold, raise N4.65trn

The Central Bank of Nigeria (CBN) has concluded its banking sector recapitalisation programme, announcing that 33 out of 38 banks have met the revised minimum capital requirements introduced to strengthen the country’s financial system.

In a statement issued on Wednesday, the apex bank said the exercise, which began in March 2024, has been completed after a 24-month implementation period.

The statement, jointly signed by Hakama Sidi-Ali, Acting Director of Corporate Communications, and Olubukola Akinwunmi, Director of Banking Supervision, revealed that banks collectively raised N4.65 trillion during the recapitalisation process.

According to the CBN, the programme attracted significant participation from both domestic and international investors.

“The programme recorded strong participation from both domestic and international investors, with 72.55 per cent of capital sourced locally and 27.45 per cent from international markets, reflecting sustained confidence in the Nigerian banking sector,” the statement said.

The CBN Governor, Olayemi Cardoso, said the recapitalisation exercise has strengthened the financial position of banks and enhanced the resilience of the banking sector.

“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,” Cardoso said.

The apex bank, however, noted that a few institutions are still undergoing regulatory and judicial processes, which are being handled through existing supervisory and legal frameworks.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme. A limited number of institutions remain subject to ongoing regulatory and judicial processes,” the regulator stated.

Despite the ongoing processes involving some lenders, the CBN assured customers and stakeholders that all banks remain fully operational, with no disruption to banking services across the country.

The regulator further disclosed that the recapitalisation exercise has strengthened capital adequacy ratios (CAR) across the banking sector, with current levels remaining above internationally accepted benchmarks under the Bank for International Settlements (Basel standards).

Under the regulatory framework, the minimum CAR threshold remains 10 per cent for regional and national banks, while banks with international licences must maintain a minimum of 15 per cent.

According to the CBN, the recapitalisation programme was implemented alongside a gradual exit from regulatory forbearance, a move aimed at improving asset quality and strengthening transparency in bank balance sheets.

“The recapitalisation, implemented alongside an orderly exit from regulatory forbearance, has improved asset quality, reinforcing balance sheet transparency and overall financial system stability,” the bank said.

To sustain the gains recorded in the exercise, the apex bank said it has strengthened its risk-based supervisory framework, requiring banks to carry out regular stress testing and maintain adequate capital buffers.

The CBN added that it will continue to review prudential guidelines and supervisory processes to enhance governance, risk management practices, and overall stability within the banking industry.

According to the regulator, the successful completion of the recapitalisation programme marks a major milestone in strengthening Nigeria’s banking sector and positioning it to support economic development.

“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 statement added.

The apex bank reiterated its commitment to maintaining a stable, transparent and resilient financial system, saying this will continue to build confidence among depositors, investors, and the broader public.