Nigerian Banking Sector: Eight Banks Emerge Stronger, Meet CBN Recapitalisation Drive
- The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has confirmed that eight Nigerian banks have beaten the recapitalisation hurdle
- The CBN boss disclosed this during the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, July 22, 2025
- The recapitalisation initiative, a strategic move by the CBN, aims to strengthen the capital base of Nigerian banks
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
In a significant stride towards bolstering the stability and resilience of Nigeria's financial landscape, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that eight commercial banks have successfully met the new recapitalisation threshold.
This pivotal confirmation, made during the recent Monetary Policy Committee (MPC) meeting in Abuja, signals a robust and progressive movement within the banking sector, with other institutions steadily advancing towards full compliance.
Source: Twitter
Strengthening banks, boosting financial system
The recapitalisation initiative, a strategic move by the CBN, aims to strengthen the capital base of Nigerian banks, enhance their capacity to absorb potential shocks, and ultimately foster a more robust and internationally competitive financial system.
While Governor Cardoso did not explicitly name the eight banks that have fully met the requirement during his address, his statement provides a crucial update on the progress of this ambitious undertaking.
The market eagerly awaits the official list, which will undoubtedly bring clarity and confidence to investors and the general public.
A prior report by Legit.ng disclosed that five banks, including Access Bank, Zenith Bank, Lotus Bank, Stanbic IBTC Bank, and Ecobank, have met CBN’s target.
Proactive steps ensure sector stability
The CBN's proactive approach to recapitalisation is a testament to its commitment to safeguarding depositors' funds and ensuring the long-term health of the economy.
A well-capitalised banking sector is better positioned to finance large-scale projects, stimulate economic growth, and withstand global economic volatilities.
This development is particularly timely given the current global economic uncertainties, positioning Nigeria's financial institutions on a firmer footing.
Monetary policy rates held steady
Beyond the recapitalisation update, Governor Cardoso also shed light on the MPC's deliberations, which culminated in a unanimous decision to maintain all key monetary policy parameters.
The Monetary Policy Rate (MPR) remains at a steady 27.50 per cent, with the asymmetric corridor around the MPR sustained at +500/-100 basis points.
Furthermore, the Cash Reserve Ratio (CRR) for Deposit Money Banks holds at 50.00 per cent, while that for Merchant Banks stays at 16 per cent. The Liquidity Ratio is also retained at 30 per cent.
Sustaining disinflation momentum is goal
According to Governor Cardoso, these decisions are strategically aimed at "sustain[ing] the momentum of disinflation."
This indicates the CBN's unwavering focus on curbing inflationary pressures and fostering a stable macroeconomic environment conducive to sustainable economic growth.
The consistent application of these monetary tools underscores the central bank's commitment to price stability, which is crucial for business planning, investment, and the overall well-being of Nigerian citizens.
Milestone achieved, confidence boosted
The confirmation of eight banks meeting the recapitalisation threshold is a significant milestone, reflecting the diligence and commitment of these institutions to comply with regulatory directives.
As the CBN continues to monitor the progress of other banks, the overall outlook for Nigeria's financial sector appears increasingly positive, promising a more resilient and dynamic banking landscape for the future.
Source: Twitter
This move will undoubtedly strengthen public confidence and attract further investment into the nation's burgeoning economy
Stanbic IBTC Bank hits CBN recapitalisation target
Legit.ng earlier reported that the number of Nigerian banks that have hit the recapitalisation target set by the CBN has risen to about five.
The development comes as Stanbic IBTC Bank disclosed that it has met the apex bank’s recapitalisation requirements after a successful conclusion of rights issues of the parent company, which raised N148.7 billion, with a 21.9% oversubscription rate to achieve N181.4 billion.
Stanbic IBTC Bank holds a national banking licence from the CBN and has a minimum recapitalisation target of N200 billion.
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Source: Legit.ng
