In March 2024, the Central Bank of Nigeria (CBN) initiated a significant recapitalisation programme aimed at strengthening the financial sector. This move was prompted by the need to enhance the stability and resilience of Nigerian banks in the face of both domestic and global economic challenges. The programme was designed to ensure that banks could meet revised minimum capital requirements and support economic growth effectively.

Over the course of 24 months, Nigerian banks raised a total of N4.65 trillion in new capital, with 72.55% sourced from local investors and 27.45% from international markets. This strong participation from both domestic and international investors reflects a sustained confidence in the Nigerian banking sector. By the end of the programme on March 31, 2026, 33 of the 37 banks in Nigeria had successfully met the revised minimum capital requirements.

The recapitalisation programme established new minimum Capital Adequacy Ratio (CAR) thresholds of 10% for regional and national banks and 15% for banks with international authorisation. These measures were crucial in improving asset quality and reinforcing balance-sheet transparency across the banking sector. As a result, all banks remained fully operational throughout the process, ensuring continued access to banking services for customers.

Olayemi Cardoso, the CBN Governor, 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.” This sentiment was echoed by other financial experts who noted the successful completion of the programme as a significant improvement over past consolidation episodes.

Dr. Muda Yusuf remarked, “This marks a significant improvement over past consolidation episodes and reflects stronger regulatory capacity, improved market discipline and greater resilience within the banking system.” The successful recapitalisation has not only fortified the banks’ capital base but also positioned them better to support lending and mobilise savings, which are essential for economic development.

As the banking sector moves forward, the CBN has set a deadline of June 10, 2026, for the submission of implementation plans for new Anti-Money Laundering (AML) standards. This initiative is expected to further enhance the integrity and transparency of the financial system, ensuring that it remains robust against illicit activities.

Currently, the Nigerian banking sector stands on a more solid foundation, equipped to face future challenges while continuing to provide essential services to individuals and businesses. The recapitalisation programme has proven to be a pivotal step in reinforcing the financial system’s stability and resilience, ultimately contributing to the broader economic growth of Nigeria.

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The Central Bank of Nigeria has established a recapitalisation deadline for banks, set for March 31, 2026. As of February 19, 2026, the total verified and approved capital raised stands at N4.05 trillion, with 71.6% of this amount, or N2.90 trillion, mobilised domestically. The remaining 28.33%, equivalent to $706.84 million (N1.15 trillion), has been sourced from foreign investments.

Currently, 34 banks have successfully met the new minimum capital threshold ahead of the deadline. The new minimum capital requirement for international commercial banks is N500 billion, while national banks must meet a minimum of N200 billion. Notably, the merger between Providus Bank and Unity Bank has enabled them to exceed the N200 billion requirement.

Three banks are currently under regulatory intervention and are being treated as special cases in the recapitalisation process. The recapitalisation exercise was initially introduced in March 2024, aimed at strengthening the financial stability of the banking sector.

Olayemi Cardoso, a representative from the Central Bank, stated, “Depositor funds in these institutions remain secure, and operations continue under close supervisory and regulatory oversight of the central bank.” He also emphasized that the bank remains actively engaged with all relevant stakeholders to ensure an orderly and credible outcome.

Ayokunle Olubunmi remarked, “I think the recapitalisation exercise has been a success thus far,” reflecting a positive outlook on the progress made. Meanwhile, the Central Bank of Nigeria is expected to issue a final status report next week, which will provide further clarity on the ongoing recapitalisation efforts.

Details remain unconfirmed regarding the final capital position of the three banks under regulatory intervention, as their outcomes depend on ongoing supervisory actions and possible support arrangements. The timeline for the completion of the recapitalisation process for these banks remains unclear.

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