The Central Bank of Nigeria (CBN) announces the successful conclusion of the banking sector recapitalisation programme initiated in March 2024. Over the 24month period, Nigerian banks raised a total of #4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.
According to a statement signed by Olubukola A. Akinwunmi, PhD, the Director, Banking Supervision and Hakama Sidi Ali (Mrs.), the Ag. Director, Corporate Communications, the programme recorded strong participation from both domestic and international investors, with 72.55 percent of capital sourced locally and 27.45% from international markets, reflecting sustained confidence in the Nigerian banking sector.
The statement noted that the governor of CBN, 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 wellpositioned to support economic growth and withstand domestic and external shocks.”
“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme. A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.
“The programme has strengthened capital adequacy ratios (CAR), with the sector maintaining levels above international Basel benchmarks. Minimum CAR thresholds remain at 10 percent for regional and national banks and 15 percent for banks with international authorisation.
“The recapitalisation, implemented alongside an orderly exit from regulatory forbearance, has improved asset quality, reinforcing balance sheet transparency and overall financial system stability”.
The statement further explained that “to safeguard these gains, the CBN has strengthened its riskbased capital adequacy framework, requiring banks to conduct regular stress testing across defined scenarios and maintain appropriate capital buffers.
“Key regulatory measures, including prudential guidelines and the supervisory framework, are subject to periodic review to support ongoing strengthening of governance, risk management, and sector resilience”.
“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 establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks.
“The Central Bank of Nigeria remains committed to maintaining a stable, transparent, and resilient financial system that inspires confidence among depositors, investors, and the broader public, and to advancing the sustainability of the nation’s financial architecture” the statement stated.