Banks Raise N4tn Ahead of CBN Recapitalisation Deadline, Boosting Investor Confidence
Nigerian banks have successfully raised N4.05 trillion in verified and approved capital as they approach the March 31, 2026, recapitalisation deadline set by the Central Bank of Nigeria (CBN). Governor Olayemi Cardoso disclosed during a Monetary Policy Committee briefing in Abuja that 71.6% of the capital was mobilised domestically, while 28.33% came from foreign investors, highlighting broad-based confidence in Nigeria’s banking sector. This figure nearly doubles the N2.4 trillion reported in April 2025, showing accelerated growth in the financial market.
Cardoso confirmed that 20 banks have fully met the new minimum capital requirements, while 13 others are in advanced stages of raising funds. He reassured depositors that funds in these institutions remain secure, noting that banks under regulatory intervention are operating under specific legal and structural considerations. The recapitalisation policy, which raises minimum paid-up capital thresholds to N500bn for international banks and N200bn for national banks, aims to strengthen financial resilience and support economic growth.
The CBN governor also highlighted Nigeria’s gross external reserves of $50.4 billion, the highest in 13 years, attributing the growth to favourable trade developments, rising non-oil exports, healthy current account surpluses, and increasing diaspora remittances. He emphasized that sustaining these gains relies heavily on market confidence, policy consistency, and collaboration among fiscal and monetary authorities, even as risks from global shocks, oil price volatility, and pre-election spending persist.
Experts argue that bank recapitalisation is critical for Nigeria’s ambitions to become a $1 trillion economy. Dr Yemi Kale, Afreximbank’s Chief Economist, explained that stronger banks can provide the “muscle” required to finance businesses, support intra-African trade, and boost industrial growth. Similarly, CBN Deputy Governor Dr Muhammad Abdullahi stressed that while recapitalisation strengthens balance sheets, the focus must shift to productive and sustainable lending that drives the real economy.
The Securities and Exchange Commission (SEC) also praised the ongoing exercise, calling it a testament to the resilience of Nigeria’s capital market. With over 430 licensed fintech operators under close supervision, the CBN is ensuring that digital finance innovations grow safely while mitigating cyber risks. As the March 31 deadline approaches, the combined efforts of regulators, banks, and investors signal a pivotal moment for Nigeria’s banking sector, financial stability, and broader economic growth.
source: punch