Stories by Seun Ibiyemi
The Central Bank of Nigeria (CBN) has reported significant progress in the ongoing banking sector recapitalization exercise, with 27 banks raising capital through public offers and rights issues.
This was disclosed by the Governor, Mr. Olayemi Cardoso at the CIBN Annual Bankers’ Dinner recently in Lagos.
According to Mr. Cardoso, 16 banks have already met or exceeded the new capital thresholds, demonstrating the resilience and capacity of Nigeria’s banking system.
With just four months remaining until the March 31, 2026 deadline, several other banks are advancing steadily and are well-positioned to comply fully with the requirements.
“The recapitalization exercise underscores the depth and strength of our banking sector,” the Governor said, noting that stress-testing confirms the system remains fundamentally robust. Key financial soundness indicators overwhelmingly satisfied prudential benchmarks during the year, further bolstering confidence in the sector.
The Governor explained that the CBN is complementing capital strengthening with operational reforms across banks.
Measures include a comprehensive review of the cash lifecycle, recalibrated cash-printing models, guidelines on ATM-to-card ratios, stricter approval requirements for branch and ATM closures, sanctions on non-performing ATMs, and intensified supervision of payment agents and POS operators nationwide.
Regulatory forbearance is also being addressed, with a redesigned credit-risk framework aimed at enforcing stronger governance, greater transparency, and accountability in the sector.
Cardoso emphasized that these reforms are intended to prevent the boom-and-bust cycles that have historically accompanied recapitalization efforts.
Highlighting the broader impact, the Governor noted that micro, small, and medium enterprises (MSMEs) remain central to the sector’s growth.
Microfinance lending expanded by over 14 per cent this year, and new digital-credit products reached more than 1.2 million small businesses, illustrating the expanding capacity of the banking sector to support smaller enterprises.
The CBN remains committed to ensuring that recapitalization strengthens Nigeria’s financial system, enhances depositor confidence, and positions banks to provide reliable and sustainable financial services across the country.