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Economy in stable mode as CBN concludes bank recapitalization, allays fear of depositors losing money

… Operators raise N4.65trn fresh funds

 

COMFORT EKELEME, Business Editor

 

The Central Bank of Nigeria (CBN) has announced the successful conclusion of the banking
sector recapitalisation programme initiated in March 2024.

This was disclosed in a statement issued on Wednesday in Abuja, jointly signed by Dr. Olubukola Akinwunmi, Director, Banking Supervision and Mrs. Hakama Sidi-Ali, Acting Director, Corporate Communications Department of the CBN.

According to the statement, over the 24-month period, Nigerian banks raised a total of ₦4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.

The programme recorded strong participation from both domestic and international investors, with 72.55per cent of capital sourced locally and 27.45per cent from international markets, reflecting sustained confidence in the Nigerian banking sector.
CBN Governor, Olayemi Cardoso said, “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.

CBN confirmed that 33 banks have met the revised minimum capital requirements established under the programme. A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

Also that all banks remain fully operational, ensuring continued access to banking services for customers, CBN noted that the programme has strengthened Capital Adequacy Ratios (CAR), with the sector maintaining levels above international Basel benchmarks. Minimum CAR thresholds remain at 10per cent 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.

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.
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.
Continuity of Operations and System Stability.

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.

 

 

For a better society

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