By Obinna Uballa
Domestic investors accounted for the largest share of funds raised during the Central Bank of Nigeria’s (CBN) banking sector recapitalisation programme, providing more than 72 per cent of the N4.65 trillion mobilised by lenders over the course of the exercise.
The CBN disclosed this on Wednesday as it formally announced the completion of the recapitalisation programme, which began in March 2024 and required banks to strengthen their capital base in line with new regulatory thresholds.
In a statement jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank said Nigerian investors contributed about N3.37 trillion of the total capital raised, representing 72.55 per cent, while foreign investors accounted for the remaining 27.45 per cent.
According to the regulator, the exercise enabled banks to mobilise fresh capital totalling N4.65 trillion within the 24-month period, significantly improving the strength and stability of the financial system.
“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 statement said.
The CBN also confirmed that 33 banks have successfully met the revised minimum capital requirements introduced under the programme.
It noted, however, that a small number of institutions are still undergoing regulatory and judicial processes relating to the recapitalisation exercise.
“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” the statement said.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks. All banks remain fully operational, ensuring continued access to banking services for customers.”
CBN Governor Olayemi Cardoso said the recapitalisation programme has strengthened the capacity of banks to withstand economic shocks and support the country’s economic development.
According to him, the initiative has reinforced the resilience of the financial system and positioned Nigerian banks to better absorb both domestic and external risks.
“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,” Cardoso said.
The apex bank emphasised that the recapitalisation process was implemented without disrupting banking operations nationwide, adding that key prudential indicators across the sector have improved.
It said capital adequacy ratios across banks now remain above the global Basel regulatory benchmarks, reflecting stronger financial buffers within the system.
Under the regulatory framework, minimum capital adequacy ratios are set at 10 per cent for regional and national banks, while banks with international licences are required to maintain a minimum ratio of 15 per cent.
The CBN further explained that the recapitalisation programme was carried out alongside a gradual withdrawal of regulatory forbearance measures introduced in earlier years to support banks.
According to the regulator, this move helped to improve asset quality within the banking system, increase transparency in banks’ financial positions and strengthen the overall stability of the sector.
To sustain the gains from the exercise, the apex bank said it has strengthened its risk-based supervisory approach, which includes periodic stress tests and the requirement for banks to maintain adequate capital buffers.
It added that prudential and supervisory guidelines would continue to be reviewed periodically to improve corporate governance, risk management and institutional resilience across the banking industry.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the CBN said.
Meanwhile, data released by the National Bureau of Statistics (NBS) indicated that foreign investment inflows into Nigeria’s banking sector rose sharply during the recapitalisation period.
The NBS reported that foreign capital inflows into the sector increased by 93.25 per cent year-on-year to $13.53 billion in 2025, compared with $7.00 billion recorded in 2024.
The surge in foreign investment reflects growing international interest in Nigeria’s banking sector, particularly during the capital raising process by banks.
However, economic analysts have cautioned that the improved capital strength of banks must translate into stronger support for the productive sectors of the economy.
The Centre for the Promotion of Private Enterprise (CPPE) noted that access to credit remains a major challenge for many small and medium-scale enterprises despite the recapitalisation exercise.
The organisation warned that unless banks channel more funding to businesses and the real sector, the broader economic benefits of the reforms may remain limited.
Analysts say the long-term success of the recapitalisation programme will depend largely on how effectively banks use their expanded capital base to increase lending, stimulate investment and drive economic growth.
