Nigerian Banks Successfully Raise N4.65 Trillion in CBN Recapitalisation Drive
The Central Bank of Nigeria (CBN) has officially concluded its recapitalisation exercise, announcing that 33 banks have successfully met the revised minimum capital requirements. These institutions collectively raised approximately N4.65 trillion, reinforcing the financial system's strength and stability.
Strong Investor Participation and Sector Resilience
The recapitalisation initiative, which spanned 24 months from March 2024 to March 2026, attracted robust participation from both local and international investors. According to CBN data, domestic investors contributed the majority of funds at 72.55%, while foreign investors accounted for 27.45%, reflecting sustained confidence in Nigeria's banking industry.
In a joint statement, Olubukola Akinwunmi, Director of Banking Supervision, and Hakama Sidi-Ali, Acting Director of Corporate Communications, emphasised that the capital injection has significantly improved the sector's ability to support economic activities. They noted that the exercise was completed without disrupting banking operations nationwide, ensuring continuous access to financial services for customers.
Enhanced Capital Positions and Regulatory Oversight
CBN Governor Olayemi Cardoso highlighted that the programme has substantially boosted banks' capital positions, making the financial system more resilient to both local and global economic shocks. The regulator reported improvements in key prudential indicators, with capital adequacy ratios now exceeding global Basel standards. Specifically, ratios were set at 10% for regional and national banks and 15% for banks with international licences.
Additionally, the recapitalisation coincided with a gradual withdrawal from regulatory forbearance, leading to enhanced asset quality, improved transparency in bank balance sheets, and strengthened overall financial stability. To sustain these gains, the CBN has intensified its risk-based supervision approach, including regular stress testing and stricter capital buffer requirements, with ongoing reviews of supervisory guidelines to bolster governance and risk management.
Foreign Investment Surge and Lingering Concerns
The development aligns with a notable surge in foreign investment into Nigeria's banking sector. Data from the National Bureau of Statistics indicates that capital inflows into the industry rose sharply by 93.25% to $13.53 billion in 2025, accounting for over half of the country's total inflows for the year.
Despite these positive indicators, concerns persist regarding the real-sector impact of the reforms. The Centre for the Promotion of Private Enterprise (CPPE), led by economist Dr Muda Yusuf, acknowledged the improved stability in the banking system but pointed out that increased capitalisation has not yet translated into stronger credit access for small businesses. This highlights ongoing challenges in ensuring that recapitalisation benefits extend broadly across the economy.
While 33 institutions have met the new thresholds, the CBN clarified that a small number of banks are still undergoing regulatory and legal processes, though all remain operational to maintain service continuity.
