Nigerian Banks Rush to Raise N4.14trn as CBN Recapitalisation Deadline Nears
- Nigerian banks are working to raise about N4.14 trillion before the CBN’s March 31, 2026, recapitalisation deadline.
- The apex bank says 27 banks have raised funds so far, while 16 commercial banks have already met the new capital threshold.
- The recapitalisation drive is seen as critical to supporting Nigeria’s goal of building a $1 trillion economy by 2030.
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s banking sector is in the middle of a major overhaul as commercial banks work to raise about N4.14 trillion in fresh capital ahead of the Central Bank of Nigeria’s (CBN) recapitalisation deadline of March 31, 2026, Daily Trust reported.
According to a report by global professional services firm Deloitte, the recapitalisation exercise, launched by the CBN in April 2024, is aimed at strengthening financial stability, improving resilience to economic shocks and preparing banks to support Nigeria’s plan to build a $1 trillion economy by 2030.
Source: Getty Images
Why banks are seeking new capital
Under the new guidelines, the CBN significantly increased minimum capital requirements. Commercial banks with international licences must now hold at least N500 billion, national banks N200 billion, and regional banks N50 billion.
Merchant banks are required to maintain N50 billion, while non-interest banks must have between N10 billion and N20 billion, depending on their licence category.
Deloitte explained that the apex bank also adopted a tighter definition of qualifying capital, limiting it to paid-up share capital and share premium.
Retained earnings and other reserves were excluded, a move that effectively forced most banks to raise fresh funds, including those that previously appeared well-capitalised.
The firm noted that prolonged macroeconomic pressures, such as high inflation, rising interest rates, exchange rate volatility and foreign exchange illiquidity, had weakened banks’ capital adequacy.
Deloitte said the revised capital thresholds would allow Nigerian banks to take on larger risks, improve liquidity and expand their capacity to absorb losses in the face of domestic and external shocks.
Despite the scale of the capital-raising target, the regulator said progress has been encouraging. CBN governor, Olayemi Cardoso, disclosed that 27 banks have already raised funds through public offers and rights issues.
Speaking at a recent Bankers’ Dinner in Lagos, Cardoso said the goal of the recapitalisation is to prevent the boom-and-bust cycles that followed previous recapitalisation exercises.
He said the apex bank has created a dedicated Compliance Department to oversee financial crime supervision, market conduct, corporate governance, enterprise security and Environmental, Social and Governance (ESG) standards.
The Credit Risk Management System (CRMS) has also been upgraded and made web-enabled, enabling banks to submit returns and conduct borrower checks in real-time, with plans to integrate it more closely with banks’ internal systems.
Beyond financial stability, the recapitalisation drive is widely seen as central to Nigeria’s long-term economic ambitions. Cardoso stated that the current capital base of Nigerian banks would be insufficient to finance a $1 trillion economy without decisive reforms.
Source: Getty Images
He stressed that a well-capitalised banking system is needed to fund large infrastructure projects, industrial expansion and increased lending to micro, small and medium-sized enterprises (MSMEs).
CBN Deputy Governor Emem Usoro described recapitalisation as a key pillar of the country’s growth strategy, while UBA Group Managing Director Oliver Alawuba said the policy would strengthen banks’ ability to withstand economic shocks and support long-term development.
CBN reassures the public
Despite higher capital requirements, the CBN has continued to reassure the public that the banking system remains stable.
The regulator said the non-performing loan ratio is still within the five per cent prudential limit, while liquidity levels remain well above the 30 per cent regulatory minimum.
Cardoso added that the CBN is reinforcing operational discipline across the financial system, including reforms in cash management and ATM availability, to ensure reliable access to banking services nationwide.
The Regional Head of Equity Research, West Africa at Standard Bank Group, Muyiwa Oni, in an interview with CNBC Africa, said the new capital requirement is a welcome development, expressing optimism that most banks will meet the requirement before the deadline.
“In hindsight, one can see why the Central Bank pushed for this capital raise and its approach as well. Part of the reason why we think the sector is in a good place is that if you look at the majority of systemically important banks, quite a number of them have already met the requirement,” he said.
He added that the capital market is not disturbed by the development, as banks are making obvious efforts to substantially raise capital.
16 banks meet CBN recapitalisation requirement
Legit.ng earlier reported that the CBN announced that 16 banks had fully met the recapitalisation requirement as of November 25, 2025.
Cardoso reportedly disclosed this at the 303rd Monetary Policy Committee (MPC) meeting in Abuja.
He noted that the CBN was closely monitoring developments to ensure the exercise stays on track and strengthens the financial sector.
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