CBN announces successful end to banking recapitalisation with N4.65tn raised

Abdullateef Fowewe

The Central Bank of Nigeria (CBN) has announced the banking sector recapitalisation programme, launched in March 2024, successfully concluded after 24 months, with banks raising a total of N4.65 trillion in new capital.

In a joint statement signed on Wednesday by the Director of Banking Supervision, Olubukola A. Akinwunmi, PhD, and the Acting Director of Corporate Communications, Hakama Sidi Ali, the CBN highlighted the programme’s role in bolstering financial resilience.

“CBN Concludes Banking Sector Recapitalisation Programme: N4.65 Trillion Raised to Strengthen Financial System Resilience,” the statement began.

It noted strong investor participation, with 72.55% of funds from domestic sources and 27.45% from international markets.

CBN Governor Olayemi Cardoso remarked, “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 CBN confirmed that 33 banks have met the revised minimum capital requirements, while a few others are under ongoing regulatory and judicial review.

All banks continue to operate fully, with no disruptions to customer services.

Capital adequacy ratios (CAR) now exceed Basel benchmarks, at minimum thresholds of 10% for regional and national banks, and 15% for international ones.

The recapitalisation, paired with an exit from regulatory forbearance, has also improved asset quality and balance sheet transparency.

To protect these gains, the CBN has enhanced its risk-based framework, mandating regular stress testing and capital buffers. Prudential guidelines and supervision will undergo periodic reviews to boost governance and risk management.

The programme ran smoothly without interrupting services for individuals or businesses.

“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 statement affirmed.

The CBN reaffirmed its commitment “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.”