32 Nigerian Banks Meet Recapitalisation Target Ahead of Deadline – CBN
- The CBN said 32 banks have met new recapitalisation requirements ahead of the deadline
- The banking sector raised N4.61 trillion in fresh capital, including foreign investments
- Monetary and foreign exchange reforms helped reduce inflation and stabilise the naira
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that 32 banks have met the new capital requirements under the ongoing recapitalisation programme ahead of the March 31, 2026, deadline.
Cardoso disclosed this on Thursday during the Monetary Policy Forum held in Abuja, noting that the progress reflects improved strength and resilience within Nigeria’s banking sector, PUNCH reported.
Source: Getty Images
Earlier, the CBN disclosed that Nigerian banks raised a total of N4.61 trillion in new capital under the recapitalisation programme.
According to the apex bank, about 27 per cent of the funds came from foreign investors, strengthening banks’ capacity to absorb shocks and expand operations.
Banking reforms boost sector resilience
According to the CBN governor, the recapitalisation exercise has enhanced banks’ ability to support long-term investments and economic growth.
He said the development positions the financial system to contribute meaningfully to Nigeria’s ambition of building a $1 trillion economy.
Cardoso added that the Monetary Policy Forum, its first edition for 2026, was organised to promote engagement with stakeholders and encourage inclusive policymaking.
He stressed that maintaining macroeconomic stability requires collaboration among monetary and fiscal authorities, financial institutions, and the private sector.
Reforms introduced to address economic challenges
Cardoso explained that recent reforms were introduced in response to economic pressures inherited in 2023, including rising inflation, foreign exchange instability, and supply constraints.
He noted that inflation climbed to 29.9 per cent in January 2024, driven largely by food prices and exchange rate pressures.
The CBN also faced challenges such as high Ways and Means financing, which rose to N26.95 trillion by May 2023, and a foreign exchange backlog exceeding $7 billion.
To address these issues, the apex bank implemented measures to restore discipline and credibility in monetary policy.
Ways and Means financing declined significantly to N3.51 trillion in December 2024 and further to N2.84 trillion by January 2026, according to Cardoso.
Interest rate hikes, FX reforms yield results
The CBN adopted a tight monetary policy stance in 2024, raising interest rates by 875 basis points from 18.75 per cent to 27.50 per cent to control inflation.
As conditions improved, the bank eased rates to 27.0 per cent in September 2025 and further to 26.5 per cent in February 2026.
On the foreign exchange front, Cardoso said the CBN cleared over $7 billion in backlog and introduced reforms to improve transparency, including a willing-buyer, willing-seller system.
These measures helped boost diaspora remittances from about $200 million to $600 million monthly, with a target of $1 billion per month by 2026.
He added that the parallel market premium narrowed to below 2 per cent, while external reserves rose from $38.34 billion in February 2025 to $50.12 billion in February 2026.
Improved ratings, investor confidence
Cardoso said the reforms have attracted positive global recognition, with rating agencies upgrading Nigeria’s outlook in 2025.
He added that Nigeria also exited the Financial Action Task Force (FATF) grey list, while the International Monetary Fund (IMF) commended the CBN’s policy direction.
The governor highlighted additional reforms in the banking sector, including stricter lending rules, a risk-based capital framework, and enhanced supervisory systems supported by digital tools.
Payment system, financial inclusion strengthened
The apex bank also introduced improvements in the payments system, including migration to global standards and stronger fraud management systems.
Cardoso said initiatives such as the Consumer Complaints Management System and the Women’s Financial Inclusion Dashboard have expanded access to financial services.
He noted that these efforts contributed to a decline in inflation from 34.8 per cent in December 2024 to 15.06 per cent in February 2026.
Exchange rate stability has improved, while foreign exchange liquidity has strengthened, allowing Nigerians to resume international card transactions.
Source: Getty Images
Outlook remains cautious despite progress
Despite the gains, Cardoso said the CBN remains cautious, with plans to further reduce inflation to single digits and sustain exchange rate stability.
He warned that global uncertainties such as geopolitical tensions and oil price volatility, as well as domestic challenges like food supply constraints, could impact the economy.
However, he expressed optimism that Nigeria’s economy will grow by 4.49 per cent, supported by ongoing reforms and improved policy coordination.
CBN assures Nigerians of deposit safety
Legit.ng earlier reported that the CBN has reassured Nigerians that the country’s banking sector remains stable and secure amid ongoing concerns over the recapitalisation exercise.
The apex bank stated that customer deposits are fully protected and that banking operations continue without disruption.
It also clarified that the March 31, 2026, deadline for recapitalisation does not pose any risk to customers.
Source: Legit.ng
