CBN Ends Bank Recapitalisation, Unveils Crypto Monitoring Pilot for Six Firms
- The CBN has concluded bank recapitalisation, launching a new pilot to monitor cryptocurrency transactions
- Nigerian banks raised ₦4.65 trillion in capital, predominantly from domestic investors, during recapitalisation
- The regulator initiates a pilot programme for crypto firms, enhancing compliance and financial transparency amidst growing digital finance
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 formally drawn the curtain on its 24-month bank recapitalisation programme, immediately pivoting to a new frontier: monitoring cryptocurrency transactions.
In a statement released on Wednesday, April 1, the apex bank confirmed that it has launched a supervisory pilot targeting virtual asset service providers (VASPs), signalling a stronger regulatory posture in Nigeria’s fast-growing digital finance space.
Source: Twitter
According to the CBN, Nigerian banks collectively raised ₦4.65 trillion in fresh capital between March 2024 and March 2026, with 33 lenders successfully meeting the revised minimum capital requirements.
While a handful of institutions remain under regulatory forbearance or tied up in legal processes, the regulator stressed that all banks “have remained fully operational” throughout the exercise.
Domestic investors dominated the recapitalisation drive, contributing 72.55 per cent of the total funds raised. Foreign investors accounted for the remaining 27.45 per cent, injecting about ₦1.28 trillion.
Bigger in naira, but not by much in dollars
At face value, the latest recapitalisation dwarfs the ₦406.4 billion raised during the landmark 2004–2005 banking consolidation exercise led by Charles Soludo.
However, when adjusted for exchange rate movements, the gap narrows significantly.
Back in 2005, when the naira traded at roughly ₦130 to the dollar, the ₦406.4 billion raised translated to about $3.1 billion. In comparison, the ₦4.65 trillion raised in the latest round—at an exchange rate of around ₦1,380/$—amounts to roughly $3.37 billion.
This suggests that, in real dollar terms, the current capital injection is only marginally higher than what banks raised two decades ago.
Shift in investor confidence and structure
The funding structure also reveals a notable shift in investor sentiment.
The 2005 recapitalisation saw strong foreign participation, buoyed by optimism around Nigeria’s reform agenda at the time. In contrast, the latest exercise leaned heavily on domestic capital, reflecting both evolving market dynamics and a more cautious foreign investment climate.
The CBN noted that the recapitalisation has lifted capital adequacy ratios above Basel benchmarks, maintaining minimum thresholds of 10 per cent for regional and national banks, and 15 per cent for international lenders.
CBN Governor Olayemi Cardoso said the strengthened capital base positions banks to better absorb economic shocks and support long-term growth.
Six firms selected for crypto monitoring pilot
Alongside the recapitalisation wrap-up, the CBN has begun an anti-money laundering and counter-terrorism financing (AML/CFT) supervision pilot involving six crypto-related firms: cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack, The Guardian reported.
The pilot, which commenced on March 31, focuses on ensuring compliance with global standards on financial transparency and illicit fund tracking.
Importantly, the CBN clarified that participation in the programme does not amount to licensing or formal regulatory approval.
What the pilot means for Nigeria’s crypto space
According to TheCable, under the initiative, participating firms must submit monthly compliance reports, undergo governance and transaction-monitoring assessments, and outline plans to implement the Financial Action Task Force (FATF) Travel Rule.
This rule requires financial institutions to share sender and recipient information for transactions.
The programme will be rolled out in phases, with no room for new entrants at this stage.
While the CBN stopped short of declaring full-scale regulation, the move signals a clear shift. The regulator is no longer standing on the sidelines as cryptocurrency adoption accelerates across Nigeria.
Source: Twitter
Instead, it is stepping in—carefully but decisively—to shape the future of digital finance oversight.
CBN mandates banks to take stress tests
Legit.ng earlier reported that barely after completing a sweeping recapitalisation exercise, Nigerian banks are now staring down another critical hurdle.
The Central Bank of Nigeria (CBN) has directed all deposit money banks, including major players like Access Bank, United Bank for Africa, and Zenith Bank, to conduct comprehensive stress tests starting April 1, 2026.
The results of these tests must be submitted no later than April 30, 2026, in what analysts describe as one of the most consequential regulatory deadlines in recent years.
Source: Legit.ng
