CBN Extends Breathing Space for Banks as Legal Bottlenecks Slow Recapitalisation Drive

he Central Bank of Nigeria (Central Bank of Nigeria) has assured that deposit money banks yet to fully meet the ongoing recapitalisation requirements will not be forced out of operation, as legal and regulatory challenges continue to slow compliance for a few institutions.

Speaking after the latest Monetary Policy Committee meeting, CBN Governor Olayemi Cardoso said the recapitalisation exercise has largely been successful, describing it as a strong signal of investor confidence in Nigeria’s financial system.

According to the apex bank, 33 banks have already met the new capital thresholds, with domestic investors contributing about 74% of total subscriptions while foreign investors accounted for the remaining 26%. Cardoso said this mix reflects solid local participation and growing international trust in the economy.

However, he acknowledged that a small number of banks are still struggling to comply due to legal disputes, regulatory constraints, and judicial delays. Some of these institutions, he explained, had previously been under regulatory intervention, which shortened their available timeline compared to others in the sector.

Despite the delays, the CBN insists the banking industry remains stable, stressing that operations across the financial system continue as normal. The regulator also reaffirmed its commitment to working with affected banks to resolve outstanding issues and complete the recapitalisation process without disruption.

source: The Sun