The Central Bank of Nigeria (CBN) has officially announced the successful conclusion of its 24-month banking sector recapitalization program, which ended on March 31, 2026. In a final update released on Wednesday, April 1, the apex bank confirmed that 33 out of 37 licensed banks fully satisfied the revised minimum capital requirements.
The exercise, which began in March 2024, resulted in the injection of ₦4.65 trillion in new capital into the Nigerian financial system, significantly exceeding early projections and reinforcing the sector’s ability to support a trillion-dollar economy.
Key Recapitalization Metrics
- Total Capital Raised: ₦4.65 Trillion.
- Domestic vs. Foreign Participation: * 72.55% of the capital (approx. ₦3.37 trillion) was sourced from local investors, reflecting strong internal confidence.
- 27.45% was attracted from international markets, despite high global interest rates.
- Compliance Rate: 33 banks met the target. The remaining four institutions are currently resolving “regulatory and judicial processes” but remain fully operational.
Impact on Financial Stability
CBN Governor Olayemi Cardoso emphasized that the program has fundamentally shifted the resilience of the Nigerian banking landscape:
- Capital Adequacy Ratio (CAR): The sector’s CAR now comfortably exceeds international Basel benchmarks. Minimum thresholds are maintained at 10% for regional/national banks and 15% for those with international authorization.
- Asset Quality: The exercise was paired with an “orderly exit from regulatory forbearance,” leading to cleaner balance sheets and improved transparency.
- Economic Support: With a bolstered capital base, banks are now better positioned to withstand domestic and external shocks while supporting the federal government’s economic growth targets.
Operational Continuity
The CBN assured the public that the 24-month transition was achieved without a single day of service disruption.
- Depositor Safety: All 37 banks—including those still finalizing legal hurdles—remain open for business, with depositor funds declared safe and secure.
- Supervisory Oversight: Institutions that did not meet the deadline are being addressed through established supervisory and legal frameworks to ensure a smooth resolution.
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