32 Nigerian Banks Achieve Recapitalisation Target Ahead of Deadline, Boosting Economic Growth

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that 32 banks have successfully met the revised minimum capital requirements under the ongoing recapitalisation programme. Speaking at the Monetary Policy Forum in Abuja on Thursday, Cardoso described the progress as “commendable,” emphasizing that it positions Nigeria’s banking sector to better support long-term investment and economic growth.

Cardoso explained that the recapitalisation exercise is part of broader reforms aimed at building a more resilient financial system. Key measures include the introduction of a risk-based capital framework, stricter enforcement of insider lending rules, and restrictions on credit access for major non-performing borrowers. Additionally, digital tools and improved cross-border supervision have enhanced the central bank’s capacity to monitor banking operations effectively.

The CBN governor also highlighted monetary policy successes, noting that aggressive interest rate hikes helped reduce inflation from 34.8% in December 2024 to 15.06% in February 2026. Cardoso stressed that disciplined execution and coordination with fiscal authorities were crucial in stabilizing the economy and preventing further inflationary pressures.

On the foreign exchange front, reforms introduced by the CBN have cleared over $7 billion in verified FX backlogs and improved market transparency. Diaspora remittances have surged, rising from $200 million to $600 million monthly, with a target of $1 billion by the end of 2026. These measures, combined with better reserve management, have strengthened Nigeria’s external reserves, which rose to $50.12 billion in February 2026.

Looking ahead, Cardoso said the next phase of reforms will focus on achieving single-digit inflation, sustaining a stable naira, and consolidating macroeconomic gains. He projected domestic growth at 4.49% for 2026, while warning of potential global risks, including oil price volatility and geopolitical tensions. Despite these challenges, he expressed confidence that Nigeria’s strengthened banking system and improved policy coordination will support more stable and inclusive economic growth.

source: Nairametrics