33 banks raise N4.65trn to meet new capital thresholds

Nigerian banks raised a total of N4.65 trillion in fresh capital over a two-year recapitalisation drive, with 33 lenders meeting revised minimum requirements set by the Central Bank of Nigeria (CBN), according to a statement released on Wednesday, a day after the exercise ended.

The programme, launched in March 2024, drew strong participation from both domestic and international investors, underscoring continued confidence in Africa’s most populous economy despite currency volatility and macroeconomic pressures. The central bank said 72.55 percent of the capital was sourced locally, while 27.45 percent came from offshore markets.

The statement, jointly signed by Hakama Sidi Ali, acting director of corporate communications, and Olubukola A. Akinwunmi, director of banking supervision, did not provide a breakdown of how individual banks performed or disclose details on institutions yet to meet the new thresholds, but it noted that a limited number of lenders remain subject to ongoing regulatory and judicial processes.

Olayemi Cardoso, CBN governor said the exercise has strengthened the industry’s capacity to absorb shocks and support economic growth. “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.”

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The central bank said all lenders remain fully operational, with no disruption to banking services recorded during the recapitalisation period, as authorities sought to avoid instability while tightening capital requirements.

The effort comes alongside a phased exit from regulatory forbearance introduced in previous years to cushion banks from economic headwinds.

The regulator said the capital raise has lifted the sector’s capital adequacy ratios above international Basel benchmarks, with minimum thresholds maintained at 10 percent for regional and national banks and 15 percent for those with international licences.
Improved asset quality and stronger balance sheet transparency were also cited as key outcomes of the programme.

To sustain the gains, the apex bank said it has enhanced its risk-based supervision framework, requiring lenders to conduct periodic stress tests and maintain adequate capital buffers against potential shocks.

Prudential guidelines and supervisory tools will also be reviewed regularly to strengthen governance and risk management practices across the sector.

While the central bank noted the recapitalisation as a milestone in reinforcing financial system stability, analysts say attention will now shift to how effectively banks deploy the new capital to support lending and economic activity, particularly in a high-interest-rate environment, and as President Bola Tinubu pushes a N1trillion economy drive.

The regulator reiterated its commitment to maintaining a stable and transparent financial system, noting that the strengthened capital base positions banks to mobilise savings, expand credit, and withstand both domestic and global economic pressures.

“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 said.