The Central Bank of Nigeria (CBN) has confirmed that 33 banks have met the revised minimum capital requirements under its recently concluded recapitalisation programme, marking a major milestone in efforts to strengthen the country’s financial system.
The apex bank disclosed that a total of N4.65 trillion was raised over the 24-month exercise, with capital adequacy ratios across the sector now above Basel benchmarks, reinforcing banks’ capacity to support economic growth and absorb shocks.
The programme also recorded strong domestic investor participation, with 72.55% of the capital raised sourced locally, highlighting growing confidence among Nigerian investors in the banking sector.
According to the CBN, the recapitalisation was executed without disruption to banking operations, while a limited number of institutions remain under regulatory and judicial review within existing supervisory frameworks.
What they are saying
The central bank confirmed in a press release published on its website that 33 commercial banks had met recapitalization targets, raising a whopping N4.65 trillion.
Nairametrics understands that about 37 banks were affected by the capital, with 33 making the cut, including all listed banks.
- “Over the 24-month period, Nigerian banks raised a total of N4.65 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 72.55% of capital sourced locally and 27.45% from international markets, reflecting sustained confidence in the Nigerian banking sector.”
The apex bank also stated that banks that did not meet its recapitalization targets will be subject to “regulatory and judicial processes”, suggesting these banks will be either nationalized or under a court process.
- “The CBN confirms 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.”
Nairametrics understands that one of the banks that did not meet recapitalization target was downgraded to a lower tier.
Meanwhile, Unity Bank is currently undergoing a merger with Providus Bank (which has met recapitalization targets), while Union Bank’s acquisition by Titan Bank is under judicial process.
All Nigerian Banks remain operational, including those that may not have met the recapitalization target.
- “All banks remain fully operational, ensuring continued access to banking services for customers.”
More Insights
The apex bank also reported that Nigerians contributed about 72% of the amount raised, suggesting strong local participation.
Nairametrics tracker of the capital raise also suggests heightened retail participation across all levels, especially amongst high network individuals.
In addition, a cursory analysis of the shareholder distribution in the financial statements of listed companies shows that most of the majority shareholders with over 5% stake maintained their size post recapitalization.
What you should know
The Central Bank of Nigeria first announced its bank recapitalization plans in November 2023, soon after Yemi Cardoso was announced as the Governor.
- The Bank then formalized the plans in March 2024, sending shock waves through the entire banking sector.
- The apex bank had given a window of April 1, 2024, to March 31, 2026, as the period to conclude the raise.
- Banks with an international license were meant to raise N500 billion, while banks with a national license had a N200 billion target. Regional license banks were given a N50 billion target.
- Meanwhile, non-interest banks with National Authorization had a target of N20 billion and Regional Authorization with N10 billion.
At the time, the targets all seemed lofty and nearly impossible to achieve.
