Nigerian Banks Raise N4.61 Trillion in Capital, N1.2 Trillion from Foreign Investors
Nigerian banks have successfully raised N4.61 trillion in fresh capital as part of the ongoing banking sector recapitalisation programme, with N1.2 trillion sourced from foreign investors, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced on Tuesday. The disclosure came during the 4th annual IMF/AFRITAC West 2 High-Level Executive Forum for Financial Sector Regulation and Supervision held at the CBN headquarters in Abuja.
The recapitalisation programme, which began in 2024, aimed to ensure banks meet the required tier-one capital to retain their brand identities. According to Governor Cardoso, nearly all Nigerian banks have met this target, strengthening their resilience amid economic reforms such as subsidy removals and exchange rate adjustments. He noted that the programme also helped banks expand their footprint across African markets, attracting significant foreign investment.
Highlighting the importance of regional collaboration, Cardoso warned that Africa’s financial integration is progressing faster than regulatory coordination, creating potential cross-border risks. He urged regulators to adopt shared prudential principles tailored to Africa’s realities, enabling joint responses to emerging vulnerabilities and fostering inclusive growth across the continent.
The CBN governor also reaffirmed the bank’s commitment to strong corporate governance, stating that regulatory leniency is no longer acceptable. Measures such as restricting access to banking services for chronic defaulters were implemented to enforce credit discipline, protect depositors, and safeguard financial system stability. He emphasized that the bank’s approach balances strict supervision with support for innovation, including regulating fintech firms through the Fintech Policy Report and other reforms.
The forum, attended by international and regional regulators, provided a platform to discuss emerging financial risks, including digital finance, artificial intelligence, and climate-related challenges. The Director of IMF/AFRITAC West 2, Ivohasina Fizara Razafimahefa, described the forum as essential for exchanging knowledge and coordinating regional responses. Cardoso expressed confidence that stronger collaboration among regulators would position African financial systems as drivers of sustainable growth and development.
source: The Guardian