CBN concludes banking sector recapitalisation, raises N4.65tn

Barbara Bako, Abuja.

The Central Bank of Nigeria (CBN) has announced the successful completion of its banking sector recapitalisation programme, with Nigerian banks raising a total of N4.65 trillion over a 24-month period.

The programme, which commenced in March 2024, was designed to strengthen the resilience of the country’s financial system and enhance banks’ capacity to support economic growth.

According to the apex bank, the exercise attracted strong participation from both domestic and international investors.

It disclosed that 72.55 per cent of the capital was sourced locally, while 27.45 per cent came from foreign markets, reflecting sustained investor confidence in the Nigerian banking sector.

Commenting on the development, CBN Governor, Olayemi Cardoso, said: “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.”

The CBN stated that 33 banks have met the revised minimum capital requirements set under the programme, while a few others remain subject to ongoing regulatory and judicial processes being handled through established frameworks.

It, however, assured that all banks remain fully operational, guaranteeing uninterrupted access to banking services.

The bank further noted that the recapitalisation has improved capital adequacy ratios (CAR) across the sector, with levels remaining above international Basel benchmarks.

It maintained that minimum CAR thresholds are pegged at 10 per cent for regional and national banks, and 15 per cent for banks with international authorisation.

In addition, the CBN said the programme, implemented alongside an orderly exit from regulatory forbearance, has enhanced asset quality, strengthened balance sheet transparency, and improved overall financial system stability.

To sustain these gains, the apex bank disclosed that it has reinforced its risk-based supervision framework, requiring banks to conduct regular stress testing and maintain adequate capital buffers.

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It added that key regulatory measures, including prudential guidelines and supervisory frameworks, will continue to undergo periodic reviews to bolster governance, risk management, and sector resilience.

The CBN emphasised that the recapitalisation exercise was executed without disrupting banking operations, ensuring continuous access to financial services for individuals and businesses throughout the period.

It added that the successful completion of the programme has positioned the banking sector to better support lending, mobilise savings, and withstand both domestic and global economic shocks.

The apex bank reaffirmed its commitment to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the general public.