Banks Raise ₦4.05 Trillion as Recapitalisation Deadline Looms
Nigeria’s banking sector has mobilised ₦4.05 trillion in verified and approved capital ahead of the March 31, 2026 recapitalisation deadline set by the Central Bank of Nigeria.
The disclosure was made by CBN Governor Olayemi Cardoso during the Monetary Policy Committee (MPC) briefing in Abuja.
Capital Raised: The Breakdown
• Total verified capital: ₦4.05 trillion (as of February 19, 2026)
• Domestic mobilisation: ₦2.90 trillion (71.67%)
• Foreign participation: ₦1.15 trillion (28.33%)
The amount raised is nearly double the ₦2.4 trillion reported in April 2025, showing accelerated compliance as the deadline approaches.
Cardoso described the domestic-foreign mix as a sign of broad investor confidence in Nigeria’s banking sector.
Compliance Status of Banks
•
20 banks have fully met the new capital requirements
• 13 banks are in advanced stages of raising capital
• Some institutions under regulatory intervention are following structured recapitalisation timelines
The CBN assured depositors that funds remain secure and that banks are under close regulatory supervision.
What Are the New Capital Requirements?
Announced in March 2024, the recapitalisation thresholds are:
• International banks: ₦500 billion minimum capital
• National banks: ₦200 billion
• Regional commercial & merchant banks: ₦50 billion
• Non-interest banks:
• ₦20 billion (national licence)
• ₦10 billion (regional licence)
The policy aims to strengthen resilience, improve shock absorption capacity, and position banks to support long-term economic growth.
External Sector Boost: Reserves Hit 13-Year High
Beyond recapitalisation, Cardoso revealed that Nigeria’s gross external reserves have risen to $50.4 billion — the highest level in 13 years.
The reserve build-up is attributed to:
• Favourable trade performance
• Current account surplus
• Growth in non-oil exports
• Strong diaspora remittances
• Improved market confidence
Inflation & Monetary Policy Update
• Inflation has declined from 34% (when current management assumed office) to slightly above 15%.
• The MPC recently cut the Monetary Policy Rate by 50 basis points to 26.5%.
Despite the improvement, the CBN says it remains cautious.
“Caution is our watchword,” Cardoso stressed, warning about:
• Global oil price volatility
• Geopolitical tensions
• Pre-election spending risks
• Fiscal deficits
Digital Finance & Fintech Oversight
The CBN confirmed it is:
• Developing a comprehensive digital asset framework
• Strengthening oversight of over 430 licensed fintech operators
• Enhancing cyber risk supervision
The fintech sector is now considered systemically important.
Why Recapitalisation Matters for Growth
Experts argue recapitalisation is critical for Nigeria’s ambition to become a $1 trillion economy.
According to:
• Yemi Kale, Group Chief Economist at African Export-Import Bank
• Officials of the CBN
• The Securities and Exchange Commission Nigeria
Stronger capital bases mean:
Increased lending capacity
Better support for SMEs
Improved trade finance
Deeper intra-African trade
Greater financial system stability
However, regulators emphasised that recapitalisation must translate into productive and sustainable lending, not just bigger balance sheets.
The Bigger Picture
The recapitalisation drive signals:
• Strong investor confidence
• Growing foreign participation
• Improved macroeconomic stability
• Strengthened financial buffers
Yet, sustainability will depend on disciplined fiscal policy, cautious monetary management, and effective credit allocation.
Bottom Line
With ₦4.05 trillion already raised and most banks nearing compliance, Nigeria’s banking sector appears on track to meet the March 2026 deadline.
If managed prudently, recapitalisation could mark a turning point — creating stronger banks capable of supporting economic expansion while maintaining financial stability.
Nigeria’s banking sector has mobilised ₦4.05 trillion in verified and approved capital ahead of the March 31, 2026 recapitalisation deadline set by the Central Bank of Nigeria.
The disclosure was made by CBN Governor Olayemi Cardoso during the Monetary Policy Committee (MPC) briefing in Abuja.
Capital Raised: The Breakdown
• Total verified capital: ₦4.05 trillion (as of February 19, 2026)
• Domestic mobilisation: ₦2.90 trillion (71.67%)
• Foreign participation: ₦1.15 trillion (28.33%)
The amount raised is nearly double the ₦2.4 trillion reported in April 2025, showing accelerated compliance as the deadline approaches.
Cardoso described the domestic-foreign mix as a sign of broad investor confidence in Nigeria’s banking sector.
Compliance Status of Banks
•
20 banks have fully met the new capital requirements• 13 banks are in advanced stages of raising capital
• Some institutions under regulatory intervention are following structured recapitalisation timelines
The CBN assured depositors that funds remain secure and that banks are under close regulatory supervision.
What Are the New Capital Requirements?
Announced in March 2024, the recapitalisation thresholds are:
• International banks: ₦500 billion minimum capital
• National banks: ₦200 billion
• Regional commercial & merchant banks: ₦50 billion
• Non-interest banks:
• ₦20 billion (national licence)
• ₦10 billion (regional licence)
The policy aims to strengthen resilience, improve shock absorption capacity, and position banks to support long-term economic growth.
External Sector Boost: Reserves Hit 13-Year High
Beyond recapitalisation, Cardoso revealed that Nigeria’s gross external reserves have risen to $50.4 billion — the highest level in 13 years.
The reserve build-up is attributed to:
• Favourable trade performance
• Current account surplus
• Growth in non-oil exports
• Strong diaspora remittances
• Improved market confidence
Inflation & Monetary Policy Update
• Inflation has declined from 34% (when current management assumed office) to slightly above 15%.
• The MPC recently cut the Monetary Policy Rate by 50 basis points to 26.5%.
Despite the improvement, the CBN says it remains cautious.
“Caution is our watchword,” Cardoso stressed, warning about:
• Global oil price volatility
• Geopolitical tensions
• Pre-election spending risks
• Fiscal deficits
Digital Finance & Fintech Oversight
The CBN confirmed it is:
• Developing a comprehensive digital asset framework
• Strengthening oversight of over 430 licensed fintech operators
• Enhancing cyber risk supervision
The fintech sector is now considered systemically important.
Why Recapitalisation Matters for Growth
Experts argue recapitalisation is critical for Nigeria’s ambition to become a $1 trillion economy.
According to:
• Yemi Kale, Group Chief Economist at African Export-Import Bank
• Officials of the CBN
• The Securities and Exchange Commission Nigeria
Stronger capital bases mean:
Increased lending capacity Better support for SMEs Improved trade finance Deeper intra-African trade Greater financial system stabilityHowever, regulators emphasised that recapitalisation must translate into productive and sustainable lending, not just bigger balance sheets.
The Bigger Picture
The recapitalisation drive signals:
• Strong investor confidence
• Growing foreign participation
• Improved macroeconomic stability
• Strengthened financial buffers
Yet, sustainability will depend on disciplined fiscal policy, cautious monetary management, and effective credit allocation.
Bottom Line
With ₦4.05 trillion already raised and most banks nearing compliance, Nigeria’s banking sector appears on track to meet the March 2026 deadline.
If managed prudently, recapitalisation could mark a turning point — creating stronger banks capable of supporting economic expansion while maintaining financial stability.