By Bassey Udo
After 24 months of pursuing the banking sector recapitalization agenda, the curtain fell on Tuesday as the Central Bank of Nigeria (CBN) announced the successful conclusion of the programme.
A statement by the apex banking sector regulatory signed by its Director of Banking Supervision, Olubukola A. Akinwunmi, and the Ag. Director, Corporate Communications, Hakama Sidi-Ali, said the exercise, which began since March 2024, came to a conclusion, with Nigerian banks successfully raising a total of ₦4.65 trillion in new capital.
Àlthough the details of the banks that successfully scaled the minimum capital threshold was not available at the time of going to the press, the statement said the new capital would help strengthen the resilience of the financial system and enhance its capacity to support the growth of the economy.
A review of the performance of the recapitalization exercise revealed that it recorded strong participation from both domestic and international investors in the country’s financial sector.
Details showed that about 72.55 percent of the capital was sourced from local banks, while 27.45 percent came from international markets, reflecting sustained confidence in the Nigerian banking sector.
Reacting to the conclusion of the exercise, the CBN Governor, Olayemi Cardoso said apart from the recapitalisation programme strengthening the capital base of Nigerian banks, it reinforced the resilience of the financial system,
ensuring it was wellpositioned to support economic growth and withstand domestic and external shocks.
On capital strengthening and financial system resilience, the CBN governor confirmed that a total 33 banks met the revised minimum capital requirements
established under the recapitalization programme.
He said a limited number of other financial institutions remained subject to ongoing regulatory and judicial processes being addressed through established supervisory and legal frameworks in the sector.
“All banks remain fully operational, ensuring continued access to banking services for customers,” the CBN governor said.
Besides, he said the outcome of the recapitalization programme has strengthened capital adequacy ratios (CAR), with the sector maintaining
levels above international Basel benchmarks.
With new capital realised from the programme, he said minimum CAR thresholds remain at 10 percent for
regional and national banks, and 15 percent for banks with international authorization.
The recapitalisation exercise, which was implemented alongside an orderly exit from regulatory forbearance, the CBN governor said, has significantly improved asset quality, reinforcing balance sheet transparency and overall financial system stability and enhancing prudential oversight and risk-based supervision in financial sector.
To safeguard these gains, the CBN governor said the apex bank has strengthened its risk-based capital adequacy framework, requiring banks to conduct regular stress testing across defined scenarios and maintain appropriate capital buffers.
Key regulatory measures to be adopted under the new arrangement, including prudential guidelines and the supervisory framework, are subject to periodic reviews, to support ongoing strengthening of governance, risk management, and sector resilience.
On continuity of operations and system stability, the CBN said the recapitalisation programme was carried out without disruption to banking services, ensuring continuous access for individuals and businesses throughout the process.
The successful completion of the programme, the CBN said, establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand
domestic and global shocks.
The CBN reiterated its commitment to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the broader public, while advancing the sustainability of the nation’s financial architecture.
