Nigeria’s Deposit Money Banks are reinforcing their capital positions as the Central Bank of Nigeria intensifies regulatory oversight to strengthen governance, transparency, and risk management across the sector. The move is aimed at safeguarding financial stability while ensuring banks are resilient enough to withstand emerging risks and support long-term economic growth.
Speaking on the state of the industry, CBN Governor Olayemi Cardoso said Nigeria’s banking system remains stable and sound, but warned that risks such as cyber threats, credit concentration, and operational weaknesses require constant vigilance. He explained that the apex bank is managing these challenges through stronger risk-based supervision and the ongoing transition to Basel III, which is expected to improve capital quality, liquidity monitoring, and overall resilience.
At the 303rd Monetary Policy Committee meeting in Abuja, members expressed confidence in the health of the banking system, noting that key financial soundness indicators remain within regulatory thresholds. The committee also welcomed progress in the recapitalisation programme, with 16 banks already meeting the revised capital requirements, and urged the CBN to ensure the exercise is concluded successfully.
With fewer than four months to the March 31, 2026 deadline, Cardoso confirmed that the recapitalisation drive remains on track. He disclosed that 27 banks have raised funds through public offers and rights issues, with many already surpassing the new benchmarks. Stress tests conducted during the year, he added, show that the sector remains fundamentally robust, supported by healthy liquidity and non-performing loan ratios within prudential limits.
Beyond capital raising, the CBN is redesigning the sector’s credit-risk framework to protect the estimated ₦4.14 trillion in new capital expected by the end of the programme. New controls, including a strengthened compliance function and upgraded credit-risk systems, are intended to break past boom-and-bust cycles and ensure banks can safely finance Nigeria’s ambition of building a $1 trillion economy by 2030. Regulators insist that a well-capitalised, well-governed banking sector is critical to sustaining confidence, supporting businesses, and driving inclusive growth.
source: punch