CBN Recapitalisation Deadline: Nigerian Banks Race to Meet March 31 Capital Target

With just days left before the March 31 deadline, Nigerian banks are making a final push to comply with the Central Bank of Nigeria’s (CBN) recapitalisation requirements, setting the stage for a critical week in the country’s financial sector. The apex bank is expected to release a major update midweek, as industry watchers anticipate that most lenders will meet the deadline despite last-minute hurdles.

Introduced in March 2024, the recapitalisation policy requires commercial banks to significantly boost their capital base—up to N500 billion for international banking licences—aimed at strengthening the sector against economic shocks. According to insiders, most banks have already met the required thresholds, while a handful are still resolving regulatory processes and structural adjustments before final approval.

CBN Governor Olayemi Cardoso has expressed confidence that the exercise will conclude within the stipulated timeframe. Speaking after the Monetary Policy Committee meeting in Abuja, he noted that while some institutions are finalising strategic options such as mergers, the overall process remains on track and within expectations.

So far, the banking sector has mobilised an impressive N4.05 trillion, with 71.6% sourced domestically and the remaining 28.3% coming from foreign investors. This blend, according to Cardoso, reflects strong investor confidence in Nigeria’s banking system. Financial analysts also agree, pointing out that the scale of capital raised has surpassed early projections and eased initial fears about funding gaps.

However, a few banks are still navigating complexities, including merger delays and regulatory interventions. The CBN has clarified that institutions under special supervision will follow a different recapitalisation path, assuring depositors that their funds remain safe. Analysts say most of the remaining banks have already secured the needed capital and are simply undergoing final verification, suggesting that the sector is on the brink of successfully completing one of its most ambitious reforms in recent years.

source: punch