CBN concludes recapitalisation, as 33 banks raise N4.65trn

n n

n

•Says banks positioned to expand lending, support economic growth

n

By Babajide Komolafe, Economy Editor

n

The Central Bank of Nigeria, CBN, yesterday said it has concluded the banking sector recapitalisation programme, with 33 deposit money banks raising a total of N4.65 trillion in fresh capital to strengthen balance sheets and bolster the resilience of the financial system.

n

The CBN announced the conclusion of the recapitalisation programme in a statement signed by the Director, Banking Supervision, Dr. Olubukola Akinwunmi, and Ag. Director, Corporate Communications, Mrs. Hakama Sidi Ali.

n

The statement was titled: “CBN Concludes Banking Sector Recapitalisation Programme: N4.65 Trillion Raised to Strengthen Financial System Resilience.”

n

The statement said: “Over the 24­ month period, Nigerian banks raised a total of N4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.

n

“The programme recorded strong participation from both domestic and international investors, with 72.55% of capital sourced locally and 27.45% from international markets, reflecting sustained confidence in the Nigerian banking sector.”

n

Commenting, Governor Olayemi Cardoso: “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.”

n

Capital strengthening and financial system resilience

n

The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.

n

The apex bank, “A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks. All banks remain fully operational, ensuring continued access to banking services for customers.

n

“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.

n

The recapitalisation, implemented alongside an orderly exit from regulatory forbearance, has improved asset quality, reinforcing balance sheet transparency and overall financial system stability.

n

Enhanced prudential oversight and risk ­ based supervision

n

“To safeguard these gains, the CBN has strengthened its risk­ -based capital adequacy framework, requiring banks to conduct regular stress testing across defined scenarios and maintain appropriate capital buffers.

n

“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.”

n n