CBN Announces Next Step For Five Nigerian Banks That Failed to Meet Recapitalisation Target
- CBN assures continued operations for five banks amid recapitalisation challenges
- 33 banks have successfully met new capital requirements, reflecting investor confidence in Nigeria's economy
- Governor Cardoso emphasises banking sector stability and ongoing support for compliance among affected institutions
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria (CBN) has assured Nigerians that the five deposit money banks yet to meet the ongoing recapitalisation requirements will continue operating normally while efforts are made to resolve the legal and regulatory issues delaying their compliance.
CBN Governor Olayemi Cardoso disclosed this after the latest Monetary Policy Committee (MPC) meeting, stressing that the recapitalisation exercise has largely been successful and has attracted strong confidence from both local and foreign investors.
Source: Getty Images
According to Cardoso, the affected banks are not considered distressed or fundamentally weak institutions. Instead, he explained that they are dealing with procedural, judicial, and regulatory hurdles that slowed their ability to complete the capital-raising process within the expected timeline.
Read also
NRS exposes massive VAT, withholding tax remittance leakages by states, government agencies
33 banks meet CBN capital requirements
The CBN governor revealed that 33 Nigerian banks have successfully met the new capital thresholds introduced as part of the banking sector reforms.
He described the outcome as a strong vote of confidence in Nigeria’s financial system and economic outlook, especially at a time of global economic uncertainty and domestic macroeconomic adjustments, according to a report by Daily Sun.
Cardoso noted that Nigerian investors played the biggest role in the recapitalisation exercise, accounting for about 74 per cent of total subscriptions, while foreign investors contributed the remaining 26 per cent.
According to him, the level of participation from investors demonstrates growing confidence in the Nigerian banking industry and the broader economy.
“The process has gone relatively smoothly overall,” Cardoso stated, while acknowledging that only a few institutions remain on the compliance path.
Why some banks missed the deadline
The CBN explained that some of the affected banks had previously faced regulatory interventions, which reduced the amount of time available to them to raise fresh capital compared to other institutions.
Cardoso argued that it would be unfair to compare such banks directly with lenders that enjoyed the full recapitalisation window without restrictions or legal complications.
He added that the apex bank remains actively engaged with the institutions still working toward compliance, and is supporting them in resolving pending legal and regulatory matters.
“It would be unfair to compare their timelines directly with those of other banks that had the full period to comply,” the CBN governor said.
CBN assures Nigerians of banking sector stability
Despite concerns surrounding the recapitalisation exercise, the CBN maintained that Nigeria’s banking sector remains stable and that customers have no reason to panic.
Cardoso reassured depositors and investors that banking operations across the country continue without disruption, while the central bank closely monitors developments involving the affected institutions.
“Business continues as usual, and we support all their efforts towards resolving regulatory and legal impediments in their way,” he said.
The recapitalisation programme forms part of broader reforms designed to strengthen Nigerian banks, improve their balance sheet capacity, and position them to finance larger sectors of the economy more effectively.
Source: Twitter
The CBN has consistently maintained that the exercise is aimed at building a stronger, more resilient, and globally competitive banking industry capable of supporting Nigeria’s long-term economic growth ambitions.
Cardoso expressed confidence that once the remaining banks resolve their current challenges, they would continue on the recapitalisation path and eventually meet the required capital thresholds set by the apex bank.
S&P releases fresh ratings on 7 Nigerian banks
Legit.ng earlier reported that Nigeria’s banking sector has received a major confidence boost after leading global rating agency S&P Global Ratings upgraded the long-term ratings of seven Nigerian banks following the country’s improving economic outlook and ongoing banking reforms.
The latest rating action comes amid renewed optimism over Nigeria’s financial system after sweeping reforms introduced by the Central Bank of Nigeria and the successful recapitalisation drive across the banking industry.
S&P raised the long-term global scale ratings of seven Nigerian financial institutions to ‘B’ from ‘B-’, while assigning them stable outlooks.
Source: Legit.ng
