The Central Bank of Nigeria (CBN) has concluded a two-year recapitalisation exercise that saw 33 banks raise a combined ₦4.65 trillion to meet new capital requirements. Local investors contributed ₦3.37 trillion, or 72.55%, while foreign investors provided ₦1.28 trillion. The programme, launched in March 2024, required banks to meet minimum paid-up capital thresholds based on licence type: international banks must now have ₦500 billion, national banks ₦200 billion, regional and merchant banks ₦50 billion, and non-interest banks either ₦20 billion or ₦10 billion depending on scope. Governor Olayemi Cardoso stated the move "has strengthened the capital base of Nigerian banks," enhancing resilience and growth support. All 33 compliant banks are operational, with the CBN now shifting focus to supervision, mandatory stress tests, and periodic reviews of prudential guidelines. The regulator confirmed banking services remained uninterrupted throughout the process.
When the CBN says local investors supplied 72.55% of the recapitalisation funds, that signals a rare vote of confidence from Nigerians in their own financial system at a time of high inflation and currency instability. This level of domestic buy-in suggests some institutional and retail investors see long-term value in Nigerian banks despite economic turbulence. For fintech-focused startups like Paystack or Flutterwave, a stronger banking sector could mean more stable banking partnerships and improved access to financial infrastructure. But it also raises the bar for non-bank financial players, as well-capitalised banks may expand into digital services with renewed vigour.
