CBN Bank Recapitalisation: How Nigeria’s Lenders Are Becoming Financial Heavyweights
Nigeria’s banking sector is undergoing a profound reset as the Central Bank of Nigeria (CBN) drives one of the most ambitious recapitalisation exercises in the country’s financial history. Under the leadership of Governor Olayemi Cardoso, the reform is pushing banks to raise fresh capital, strengthen governance, and clean up risk management practices, with the aim of ending the boom-and-bust cycles that have long plagued the sector.
With tougher oversight and trillions of naira expected in new capital, the recapitalisation programme is already reshaping the industry. At least 20 banks have met the new minimum capital thresholds, while others are actively raising funds ahead of the March 31, 2026 deadline. Analysts say the scale of the exercise signals strong regulatory resolve and growing market confidence, aligning Nigeria’s banking system more closely with global best practices.
At the heart of the policy is the CBN’s vision of a financial system capable of supporting Nigeria’s long-term growth ambitions, including the goal of building a $1 trillion economy. By compelling banks to strengthen their balance sheets, the regulator wants lenders that can absorb shocks, finance large infrastructure projects, and channel savings into productive investment across key sectors of the economy.
Beyond capital, the CBN is placing heavy emphasis on governance, transparency, and risk control. Newly raised funds are subject to rigorous verification by a joint committee involving the CBN, the Securities and Exchange Commission, and the Nigeria Deposit Insurance Corporation. The apex bank has also redesigned its credit-risk framework, strengthened compliance oversight, and upgraded systems such as the Credit Risk Management System to prevent reckless lending and protect financial stability.
As the recapitalisation window enters its final stretch, industry leaders have largely thrown their weight behind the reforms, describing them as timely and essential. While macroeconomic headwinds persist, the CBN insists that key banking indicators remain strong, reinforcing confidence in the sector. If the reforms achieve their full intent, Nigeria’s banks could emerge not as fragile lenders, but as resilient financial heavyweights capable of supporting sustainable growth and competing on the global stage.
source: The sun