Access, Zenith, GTB, 30 Other Nigerian Banks Raise N4.65tn as CBN's Recapitalisation Exercise Ends
- The CBN announced that 33 banks met new capital requirements with strong participation from both local and foreign investors
- The exercise improved the resilience of the banking sector and was completed without disrupting banking operations
- However, concerns persist that the reforms have not yet significantly improved credit access for small businesses
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Central Bank of Nigeria (CBN) has announced that 33 banks have successfully met the revised minimum capital requirements under its recapitalisation initiative, collectively raising about N4.65tn to reinforce the country’s financial system.
The exercise, which began in March 2024 and lasted 24 months, attracted both local and international investors.
Source: UGC
According to the CBN, domestic investors provided the bulk of the funds at 72.55%, while foreign investors contributed 27.45%, an indication of sustained confidence in Nigeria’s banking industry.
Stronger capital base for Nigerian banks
In a statement issued by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank noted that the capital injection has improved the sector’s strength and ability to support economic activities.
The statement read:
“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
CBN Governor, Olayemi Cardoso, had stated that the programme has significantly boosted banks’ capital positions, making the financial system more resilient and better equipped to handle both local and global economic shocks.
Although 33 institutions have met the new thresholds, the regulator clarified that a small number of banks are still undergoing regulatory and legal processes.
Despite this, all banks remain operational, ensuring customers continue to access financial services without interruption.
Improved stability but lingering concerns
The CBN emphasised that the recapitalisation process was carried out smoothly, without disrupting banking operations nationwide.
It also highlighted improvements in key prudential indicators, particularly capital adequacy ratios, which now exceed global Basel standards. These ratios were set at 10 per cent for regional and national banks, and 15 per cent for banks with international licences.
Additionally, the regulator noted that the recapitalisation coincided with a gradual withdrawal from regulatory forbearance. This shift has enhanced asset quality, improved transparency in bank balance sheets, and strengthened overall financial stability.
To sustain these gains, the CBN said it has intensified its risk-based supervision approach, including regular stress testing and stricter capital buffer requirements.
It also pledged continuous review of supervisory guidelines to further strengthen governance and risk management across the sector.
The development aligns with a surge in foreign investment into Nigeria’s banking industry. Data from the National Bureau of Statistics shows that capital inflows into the sector rose sharply by 93.25% to $13.53bn in 2025, accounting for over half of the country’s total inflows for the year.
Source: UGC
Despite these positive indicators, concerns remain about the real-sector impact of the reforms.
The Centre for the Promotion of Private Enterprise (CPPE), led by economist Dr Muda Yusuf, acknowledged the improved stability in the banking system but pointed out that increased capitalisation has not yet translated into stronger credit access for small businesses.
Source: Legit.ng
