Local investors dominate bank recapitalisation drive with 72% of N4.65tn raised

Local investors accounted for the majority of funds mobilised during Nigeria’s banking sector recapitalisation programme, contributing 72.55 per cent of the N4.65 trillion raised by banks over the past two years, the Central Bank of Nigeria (CBN) has disclosed.

The apex bank made the revelation on Wednesday while announcing the conclusion of the recapitalisation exercise, which commenced in March 2024 and was designed to strengthen the capital base of deposit money banks and enhance the resilience of the financial system.

According to the CBN, Nigerian investors provided about N3.37 trillion of the total capital raised, reflecting strong domestic confidence in the banking industry. Foreign investors contributed the remaining 27.45 per cent.

The disclosure was contained in a statement jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

The statement noted that the recapitalisation programme led to significant improvements in the capital positions of banks across the country.

“Over the 24-month period, Nigerian banks raised a total of N4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the CBN said.

The apex bank confirmed that 33 banks have successfully met the revised minimum capital requirements introduced under the programme, while a few institutions remain subject to ongoing regulatory and judicial processes.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” the statement said.

“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.”

CBN Governor Olayemi Cardoso said the recapitalisation initiative had significantly strengthened the banking system and positioned it to play a more effective role in supporting economic growth.

“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 regulator also stressed that the recapitalisation exercise was implemented without disrupting banking operations nationwide, noting that key prudential indicators, particularly capital adequacy ratios, have improved and remain above global Basel regulatory benchmarks.

Under the revised framework, the minimum capital adequacy ratio is set at 10 per cent for regional and national banks, while international banks are required to maintain a minimum of 15 per cent.

The apex bank explained that the recapitalisation programme coincided with a gradual withdrawal from regulatory forbearance, a policy shift it said had improved asset quality across the banking industry, strengthened transparency in banks’ balance sheets, and enhanced overall financial stability.

To consolidate the gains of the exercise, the CBN said it has strengthened its risk-based supervisory framework, including the conduct of periodic stress tests and the enforcement of capital buffers for banks.

It added that supervisory and prudential guidelines would be reviewed regularly to ensure improved corporate governance, risk management, and institutional resilience across the sector.

“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 said.

Meanwhile, fresh data from the National Bureau of Statistics (NBS) indicates that foreign capital inflows into Nigeria’s banking sector rose sharply during the recapitalisation period.

According to the NBS, foreign investments in the sector increased by 93.25 per cent year-on-year to $13.53 billion in 2025, up from $7.00 billion recorded in 2024, reflecting growing investor interest in the industry.

Despite the improved capital base of banks, however, the Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the benefits of the reforms have yet to translate into stronger credit flows to the productive sectors of the economy.

The think-tank noted that access to credit for small and medium-scale enterprises (SMEs) remains limited, warning that the broader impact of the banking reforms would only be felt when businesses and the real sector begin to experience easier access to financing.