Nigerian Banks Raise N4.6trn Ahead of CBN Recapitalisation Deadline

Nigerian banks have collectively mobilised N4.61 trillion in fresh capital as they race to meet the March 31, 2026 recapitalisation deadline set by the Central Bank of Nigeria (CBN).

The disclosure was made on Tuesday by the CBN governor, Olayemi Cardoso, during a high-level forum hosted by the International Monetary Fund and the Africa Regional Technical Assistance Centres West 2 in Abuja.

Cardoso said the significant capital inflow highlights renewed investor confidence in Nigeria’s banking sector, despite ongoing economic adjustments such as fuel subsidy removal and foreign exchange reforms. He noted that foreign investors contributed nearly 27 percent of the total capital raised.

“Nigerian banks, in spite of navigating subsidy removals and exchange rate reforms, attracted N4.61 trillion in new capital, nearly 27 percent from foreign investors, while also expanding their footprint across African markets,” Cardoso said.

The recapitalisation exercise, which commenced in 2024, introduced new minimum capital thresholds for banks based on their operational licences. Commercial banks with international authorisation are required to raise N500 billion, while national and regional banks must meet N200 billion and N50 billion respectively. For non-interest banks, the requirements are N20 billion for national licences and N10 billion for regional operations.

Industry sources indicate that at least 34 banks have already met or are on track to meet the new requirements ahead of the deadline.

The policy is aimed at strengthening the resilience of Nigerian banks, enabling them to better absorb economic shocks and play a more robust role in supporting economic growth.

The current reform echoes the 2004 banking consolidation led by former CBN governor Charles Soludo, which increased banks’ minimum capital base from N2 billion to N25 billion and reduced the number of banks from 89 to 25 through mergers and acquisitions.

Cardoso stressed the need for stronger regulatory cooperation across Africa, noting that increasing interconnection among financial systems makes collaboration essential for managing cross-border risks and ensuring stability.

He also reaffirmed the apex bank’s strict stance on corporate governance, warning that the CBN has adopted a zero-tolerance approach to regulatory violations.

“Our stance on corporate governance is unequivocal; zero tolerance for violations,” he said, adding that the bank has ended years of regulatory forbearance, tightened supervision, and strengthened compliance standards across the sector.

On monetary policy, the CBN governor reiterated the bank’s commitment to orthodox measures aimed at restoring price stability and strengthening policy credibility.

He further highlighted ongoing efforts to regulate financial technology firms, stating that the CBN is working to balance innovation with financial system stability.

As part of broader financial reforms, the apex bank has also introduced restrictions on banking services for chronic loan defaulters, particularly those with large non-performing obligations. According to Cardoso, the move is designed to enforce credit discipline, improve repayment culture, and safeguard depositors.

With only days to the recapitalisation deadline, analysts say the strong capital mobilisation—especially the notable foreign participation—signals growing confidence in Nigeria’s banking reforms and could position the sector for increased regional expansion and long-term stability.