Central Bank of Nigeria (CBN) Governor Yemi Cardoso said Friday that 14 commercial banks have fully met the new capital requirements under the country’s ongoing recapitalisation program.....KINDLY READ THE FULL STORY HERE▶

The announcement comes as the CBN pushes lenders to strengthen their financial base in order to make the banking sector more resilient to economic shocks. The recapitalisation drive, launched earlier this year, is one of the biggest reforms in Nigeria’s financial system in nearly two decades.

Cardoso made the disclosure while speaking at an economic policy forum in Abuja. He said the banks that have already met the new rule now stand in a stronger position to support credit growth and investment in Africa’s largest economy.

“The recapitalisation process is progressing well,” Cardoso said. “So far, 14 Nigerian banks have successfully met the new capital requirement, and we expect others to follow as the exercise continues.”

Key Details of the Recapitalisation

The new capital rule requires commercial banks to significantly raise their minimum capital base. The CBN says the higher threshold is needed to keep the banking sector stable in a time of rising inflation, a weakening naira, and global financial pressures.

Under the plan, international banks must raise their minimum capital to ₦500 billion, while national banks must hold at least ₦200 billion. Regional banks face a lower threshold but still must increase their capital to remain licensed.

Banks can meet the requirement through fresh equity injections, mergers, or the retention of earnings. The CBN has set a deadline of 2026 for all institutions to comply.

Why It Matters

Nigeria’s banking system has faced mounting pressure in recent years. Inflation is above 25 percent, foreign exchange shortages remain a challenge, and businesses struggle to access affordable loans.

Analysts say recapitalisation will give banks a stronger balance sheet, reduce the risk of collapse, and increase their ability to lend to the private sector. This, in turn, could help boost growth in an economy heavily dependent on oil revenue but seeking to diversify.

“This is a necessary step,” said Lagos-based financial analyst Chinedu Okeke. “The global environment is tough, and Nigerian banks need more strength to compete, especially with the demands of financing infrastructure, small businesses, and technology growth.”

Past Reforms

The last major recapitalisation took place in 2005, under then-CBN Governor Charles Soludo. At that time, the minimum capital base for banks was raised to ₦25 billion, which led to a wave of mergers and reduced the number of banks in Nigeria from 89 to 25.

The 2024 exercise is seen as even more ambitious. With the naira losing value against the U.S. dollar, the real strength of banks’ capital has weakened, prompting the CBN to take action.

Industry Response

Several banks have already announced plans to raise new funds through rights issues, public offers, and bond sales. Some are in talks about possible mergers.

Bank executives say they support the CBN’s push but warn that market conditions may make fundraising difficult. International investors have been cautious about Nigeria due to foreign exchange restrictions and policy uncertainty.

Still, Cardoso expressed confidence that the sector would meet the deadline. “We are committed to ensuring that Nigerian banks remain sound, safe, and able to finance the economy,” he said.

With 14 banks already compliant, the focus will now be on smaller and mid-sized lenders, many of which may struggle to meet the deadline without partnerships or new investors.

Observers say the outcome of the recapitalisation will shape the future of Nigeria’s banking landscape, potentially leading to fewer but stronger banks.

“The banking sector is the heartbeat of the economy,” said Okeke. “If the recapitalisation succeeds, it will restore confidence, attract foreign investment, and provide the support businesses need to grow.”

For now, the CBN has not released the names of the banks that have met the requirement, but officials say the full list will be made public in due course.

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