Banks Raise N4tn in Recapitalization

Banks Raise N4.05tn Ahead of March Recapitalization Deadline

Nigerian Lenders Move to Meet CBN’s Capital Requirements Before 2026 Cut-Off

Nigerian banks have collectively raised N4.05 trillion in fresh capital as the March 31, 2026 recapitalization deadline approaches, according to a report by Punch Newspapers.

The development was confirmed by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, during a recent Monetary Policy Committee briefing in Abuja.

Capital Mobilization Gains Momentum

The N4.05 trillion figure represents a significant increase from the N2.4 trillion earlier reported in April 2025, reflecting accelerated efforts by banks to strengthen their capital base ahead of the regulatory deadline.

Breakdown of Funds Raised:

Domestic investors: N2.90 trillion (approximately 71.6%)
Foreign investors: N1.15 trillion (approximately 28.3%)

The participation of foreign investors indicates sustained external confidence in Nigeria’s banking sector despite prevailing macroeconomic pressures.

Compliance Status of Banks

According to the CBN, a majority of banks are making substantial progress toward meeting the new capital thresholds:

20 banks have fully met the minimum capital requirements.
13 banks are in advanced stages of recapitalization and are expected to comply before the deadline.

The apex bank maintains ongoing regulatory engagement with institutions still completing their capital-raising processes.

New Capital Requirements

The recapitalization policy, announced in March 2024, introduced revised minimum capital thresholds:

International commercial banks: N500 billion
National commercial banks: N200 billion
Regional commercial and merchant banks: N50 billion
Non-interest banks:
- National: N20 billion
- Regional: N10 billion

These thresholds apply strictly to paid-up capital and do not include shareholders’ funds.

Objective of the Recapitalization Drive

The CBN states that the exercise is designed to:

Strengthen the resilience of Nigeria’s banking system
Improve banks’ capacity to finance large-scale economic activities
Position the sector to absorb external shocks
Support long-term economic growth

Regulators have also reassured depositors that the banking system remains stable and that customer funds are secure.

Broader Economic Context

During the briefing, Cardoso noted improvements in Nigeria’s external position, including growth in foreign reserves, which he attributed to stronger trade performance, improved remittance inflows, and policy reforms.

As the deadline approaches, attention will shift to how effectively banks deploy the newly raised capital to stimulate lending, support businesses, and reinforce financial stability in Africa’s largest economy.

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