• 33 banks scale hurdle
From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN), on Wednesday, announced the successful conclusion of its banking sector recapitalisation programme, a major reform aimed at strengthening the resilience of the financial system and sustaining confidence in the Nigerian banking industry.
The exercise, which commenced in March 2024, saw Nigerian banks raise a total of ₦4.65 trillion in fresh capital over a 24-month period.
According to the CBN, 33 banks have met the revised minimum capital requirements, with all institutions remaining fully operational throughout the process to ensure uninterrupted access to banking services for customers.
In a joint statement signed by the Director of Banking Supervision, Dr Olubukola Akinwunmi and the Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank said the programme has significantly strengthened capital buffers, improved asset quality, and enhanced overall financial system stability.
“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 statement noted.
According to CBN, a breakdown of the capital inflows showed that 72.55 per cent was sourced locally, while 27.45 per cent came from international markets.
The statement also quoted the bank’s Governor, Olayemi Cardoso, saying that the recapitalisation had significantly bolstered the capital base of banks, positioning the sector to better support economic growth and withstand both domestic and external shocks.
“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,” he said.
Despite the reforms, the apex bank assured that all banks remain fully operational, with no disruption to services throughout the recapitalisation period.
“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% for regional and national banks and 15% for banks with international authorization.
“The recapitalisation, implemented alongside an orderly exit from regulatory forbearance, has improved asset quality, reinforcing balance sheet transparency and overall financial system stability,” it stated.
To sustain these gains, the regulator said it has intensified risk-based supervision, requiring banks to conduct regular stress testing and maintain adequate capital buffers under varying economic scenarios.
“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 apex bank added.
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