Domestic investors have been the major force behind Nigeria’s ongoing bank recapitalisation programme, contributing approximately 72% of the total funds raised so far. According to the Central Bank of Nigeria (CBN), banks are tapping various fundraising channels—including rights issues, initial public offerings, and private placements—to strengthen their capital base ahead of the March 31, 2026 deadline. By February 2026, Nigerian banks had raised a verified N4.05 trillion in fresh capital.
CBN Governor Olayemi Cardoso revealed that N2.90 trillion of the total capital came from domestic investors, while foreign investors contributed N1.15 trillion, or 28%. “This balance represents broad investor engagement and confidence in the sector,” Cardoso said, highlighting the strength of local participation in stabilising Nigeria’s banking industry.
As of early March, the CBN confirmed that thirty banks had met the new minimum capital requirements for their respective licences. Thirty-three banks had raised additional capital through different channels, while the remaining institutions were undergoing routine verification by the central bank to ensure full compliance. The regulator emphasized that this verification process is part of its oversight role to maintain transparency and protect investors.
The recapitalisation programme, introduced in 2024, requires banks to meet revised capital thresholds based on their licence category. Industry observers note that this initiative has boosted activity in Nigeria’s capital market, with many banks returning to shareholders and attracting new investors. Institutional investors, including pension funds and asset managers, are believed to have played a major role in domestic mobilisation.
Experts say that the strengthened capital base will not only help banks withstand economic shocks but also expand credit to key sectors of the economy. The CBN reaffirmed that the banking system remains stable and sound, and that the recapitalisation process will continue under close regulatory supervision to ensure compliance, protect depositors, and support sustainable economic growth.
source: The sun