Nigerian banks have raised N4.65 trillion in fresh capital under a recapitalisation exercise launched by the Central Bank of Nigeria (CBN) on April 1, 2024. The two-year programme, set to conclude on March 31, 2026, mandates minimum capital requirements of N500 billion, N200 billion, and N50 billion for commercial banks with international, national, and regional licences, respectively. Prior to the reform, international banks needed only N25 billion, a level eroded by currency devaluation. The CBN disclosed that 33 of the 37 banks have met the new thresholds, with 72.55 per cent of the capital raised locally and 27.45 per cent from international investors.
Dr. Olubukola A. Akinwunmi, Director of Banking Supervision at the CBN, and Mrs. Hakama Sidi Ali, acting Director of Corporate Communications, confirmed the strengthened capital base and improved balance-sheet transparency. CBN Governor Olayemi Cardoso stated, "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 sector's Capital Adequacy Ratio (CAR) now exceeds international Basel benchmarks, with minimums at 10 per cent for regional and national banks and 15 per cent for international banks. The CBN has also introduced regular stress testing and a revised credit risk framework to enforce accountability.
Olayemi Cardoso's recapitalisation push has delivered tangible financial upgrades, but balance sheets alone won't fix public distrust. The real test comes when these stronger banks begin to consistently fund productive sectors and small enterprises. If lending remains concentrated in government securities and a few big firms, the economic transformation promised will remain out of reach.
