According to Nivo News, Nigeria’s banking sector is projected to receive an additional ₦900 billion capital injection in 2025 as lenders intensify efforts to meet new recapitalisation requirements ahead of the Central Bank of Nigeria’s March 2026 deadline. The development was highlighted in the latest Nigerian Banking Industry Report by pan-African rating agency Agusto & Co., which maintained a “stable” outlook for the sector.....KINDLY READ THE FULL STORY HERE▶

In March 2024, the CBN directed commercial banks to strengthen their capital bases, mandating institutions with international licences to raise at least ₦500 billion, those with national licences to meet ₦200 billion, and regionally authorised lenders to achieve ₦50 billion. Non-interest banks were also given new thresholds of ₦20 billion and ₦10 billion for national and regional operations respectively. Analysts estimate that the industry must mobilise roughly ₦4.2 trillion to achieve full compliance. By the end of 2024, the Securities and Exchange Commission confirmed that about ₦1.7 trillion had already been raised through the capital market.

The CBN Governor, Olayemi Cardoso, recently disclosed that eight banks have met the recapitalisation benchmark, while others are entering subsequent fundraising phases to close the gap. Agusto & Co. reported that 16 banks secured ₦1.7 trillion in 2024, with an additional ₦800 billion raised in the first seven months of 2025. The firm expects a further ₦900 billion to be mobilised before the end of the year as lenders shore up buffers against market volatility and position for growth. Domestic investors have provided most of this capital, reflecting confidence in Nigeria’s financial institutions.

The report, however, warned that the CBN’s termination of regulatory forbearance in June 2025 would weigh on profitability this year. Impaired loans previously enjoying temporary relief are now being fully classified, with Agusto & Co. projecting the industry’s non-performing loan ratio could rise to 6.9 per cent before improving in 2026. While some banks are expected to accelerate write-offs under transitional provisions, stricter compliance with single obligor limits and provisioning requirements may push impairment charges higher in the short term.

Profitability indicators, which surged in 2024 on the back of foreign currency revaluation gains and a high-yield environment, are forecast to decline in 2025. Agusto & Co. anticipates profit before tax will fall by 19.2 per cent, with pre-tax return on average equity dropping to 27.3 per cent from 48.2 per cent in the previous year. A recovery is projected for 2026 as fresh capital is fully deployed and impairment costs normalise.

In a series of circulars issued earlier this year, the CBN restricted some banks from paying dividends or funding foreign subsidiaries over breaches linked to regulatory forbearance. It also ordered all lenders to submit detailed capital restoration plans outlining strategies such as cost optimisation, risk transfer, and portfolio restructuring. Furthermore, banks are now required to file quarterly disclosures covering provisioning status, capital adequacy calculations, and comprehensive data on additional tier-1 instruments to enhance transparency and regulatory oversight.