In March 2024, the Central Bank of Nigeria (CBN) initiated a comprehensive recapitalisation programme aimed at strengthening the capital base of the nation’s banks. This strategic move was prompted by the need to enhance the resilience of the financial system, ensuring that it could effectively support economic growth while withstanding both domestic and external shocks. The recapitalisation process was designed to meet revised minimum capital adequacy requirements, which are set at 10% for regional and national banks and 15% for banks with international authorisation.

Over the next 24 months, Nigerian banks collectively raised a remarkable total of N4.65 trillion in new capital, with the programme concluding on March 31, 2026. This substantial capital influx was crucial for bolstering the financial health of the banks involved. Notably, 33 of the 37 banks in Nigeria successfully met the revised minimum capital requirements, showcasing the effectiveness of the recapitalisation initiative.

Of the total capital raised, 72.55% was sourced from local investors, amounting to approximately N3.37 trillion, while 27.45% came from international markets, totaling around N1.28 trillion. This strong participation from both domestic and international investors reflects a sustained confidence in the Nigerian banking sector, as highlighted by Olayemi Cardoso, who stated, “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.”

The recapitalisation programme not only improved the asset quality of the banks but also reinforced balance-sheet transparency. As a result, all banks remained fully operational throughout the process, ensuring continued access to banking services for customers. This uninterrupted service was a critical aspect of the programme, as it allowed individuals and businesses to maintain their banking activities without disruption.

As the recapitalisation concluded, the CBN set a deadline of June 10, 2026, for the submission of implementation plans for new Anti-Money Laundering (AML) standards. This move is intended to further enhance the regulatory framework governing the banking sector, ensuring that banks are equipped to tackle emerging challenges in financial crime.

The successful completion of the recapitalisation programme marks a significant improvement over past consolidation episodes in Nigeria’s banking history. Dr. Muda Yusuf noted that this reflects stronger regulatory capacity, improved market discipline, and greater resilience within the banking system. The programme has established a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks.

In summary, the recapitalisation of Nigerian banks has been a pivotal development for the financial sector, enhancing its stability and capacity to support economic growth. The strong local and international participation in the capital raise underscores the confidence in Nigeria’s banking system, which is now better equipped to face future challenges.

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The Central Bank of Nigeria has mandated a recapitalisation deadline for banks, requiring them to meet new minimum capital thresholds by March 31, 2026. As of February 19, 2026, a total of N4.05 trillion has been verified and approved as capital raised, with 71.6% of this amount, or N2.90 trillion, mobilised domestically.

In addition, 28.33% of the capital raised, amounting to $706.84 million (N1.15 trillion), has come from foreign sources. The new minimum capital requirement for international commercial banks is set at N500 billion, while national banks must meet a minimum of N200 billion.

Currently, 34 banks have successfully met the new capital requirements ahead of the deadline. Notably, the merger between Providus Bank and Unity Bank has enabled them to exceed the N200 billion requirement, showcasing a proactive approach to compliance.

However, three banks are under regulatory intervention and are being treated as special cases in the recapitalisation process. The recapitalisation exercise itself was introduced in March 2024, reflecting the Central Bank’s commitment to strengthening the banking sector.

Olayemi Cardoso, a representative of the Central Bank, stated, “Depositor funds in these institutions remain secure, and operations continue under close supervisory and regulatory oversight of the central bank.” This assurance aims to maintain public confidence in the banking system during this transitional phase.

As the deadline approaches, the Central Bank is expected to issue a final status report next week, which will provide further clarity on the recapitalisation process. The ongoing final regulatory and legal formalities for some banks may affect the overall timeline.

Ayokunle Olubunmi remarked, “I think the recapitalisation exercise has been a success thus far,” indicating a positive outlook on the progress made. Yet, uncertainties remain regarding the final capital position of the three banks under regulatory intervention, as it depends on ongoing supervisory actions and possible support arrangements.

Details remain unconfirmed regarding the exact timeline for the completion of the recapitalisation process for these banks. The Central Bank’s active engagement with stakeholders aims to ensure an orderly and credible outcome while maintaining financial stability in Nigeria’s banking sector.

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