14 banks meet CBN recapitalisation requirement, says Governor Cardoso, marking key progress in Nigeria’s banking reforms and sector resilience

14 banks meet CBN recapitalisation requirement, Central Bank Governor Olayemi Cardoso confirmed on Tuesday, as Nigeria’s financial sector continues structural reforms aimed at enhancing stability and investor confidence.

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Speaking in Abuja following the latest Monetary Policy Committee (MPC) meeting, Cardoso hailed the resilience of the banking sector and noted that financial soundness indicators remain within benchmark levels.

“Members also acknowledge the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement,” he said.

The announcement marks significant progress since the CBN raised the minimum capital requirement for banks in March 2024 — setting ₦500 billion for commercial banks with international licences.

The recapitalisation drive is intended to bolster the system’s shock absorption capacity and support Nigeria’s broader economic goals.

In July, only eight banks had reportedly met the requirement. The figure has now climbed to 14, indicating a renewed pace in capital raising through public offers, rights issues, and corporate bonds.

The CBN Governor also disclosed that the apex bank had successfully terminated forbearance measures and waivers on civil obligors — a move he described as pivotal to enhancing transparency, improving risk management, and ensuring long-term financial health in the banking industry.

“The removal of the forbearance measures was only transitory and does not pose any risk to the soundness or stability of the banking industry,” Cardoso assured.

The recapitalisation exercise, introduced as part of broader structural reforms, is expected to run through 2025.

Analysts believe the increased capital buffers will enable banks to expand credit to the private sector, drive infrastructure finance, and withstand global financial shocks more effectively.

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The MPC urged continued implementation of supportive policies to ensure full compliance and a successful conclusion of the recapitalisation process.