…as Union Bank, Polaris, Keystone Banks set sight on completing process
President Bola Ahmed Tinubu has praised Olayemi Cardoso for leading reforms at the Central Bank of Nigeria (CBN), stating that his policies are helping rebuild the nation’s economy for long-term growth.
Speaking after the March 31, 2026, deadline for bank recapitalization, Tinubu described Cardoso as committed and focused.
Specifically, he noted that the reforms iincluding foreign exchange adjustments and tighter financial regulations have improved investor confidence and strengthened the financial system.
“I must single out one man here, Olayemi Cardoso. Thank you very much for all that you are doing for the country,” President Tinubu said in a stirring speech highlighting the government’s macroeconomic program.
In a personal vote of confidence in the CBN Governor’s expertise, discipline, and integrity, the President expressed confidence in Cardoso’s ability to determine what needs to be done, as well as when and how to do it.
The Governor’s successful handling of the recapitalization included the management framework for three intervention banks: Union Bank of Nigeria, Polaris Bank, and Keystone Bank. These institutions have yet to fully complete the recapitalization process due to ongoing legal and regulatory issues. However, the banking watchdog has assured the public that these banks remain operational, stable, and capable of meeting all banking requirements.
It will be recalled that the CBN conducted an audit a few months ago which identified material issues in Union Bank’s books.
This culminated in the removal of its board and senior management in January 2024. That decision has since become the subject of litigation, with the regulator pursuing an appeal against a judgment questioning the legality of those removals.
Similarly, the proposed merger between Providus Bank and Unity Bank is facing legal hurdles that are reportedly nearing resolution.
For Polaris Bank and Keystone Bank, recapitalization remains ongoing under close regulatory supervision. Both banks were previously rescued by the CBN and are expected to complete the process once pending issues are resolved.
The recapitalization exercise raised minimum capital levels to ₦500 billion for international banks and ₦200 billion for national banks, marking one of the most significant reforms in Nigeria’s banking history.