CBN hails banking resilience as 16 lenders meet recapitalisation target

By Abubakar Yunusa

Nigeria’s banking system remains stable, sound and resilient, the Central Bank of Nigeria has said, amid ongoing reforms to strengthen the sector.
CBN Governor, Olayemi Cardoso, said the apex bank remains vigilant to emerging risks, including cyber threats, credit concentration and operational weaknesses.
He said these risks are being tackled through stronger risk-based supervision and Nigeria’s transition to Basel III standards.
The governor spoke against the backdrop of the 303rd meeting of the Monetary Policy Committee in Abuja, where members noted with satisfaction the sustained resilience of the banking system.
According to the MPC, key financial soundness indicators have remained within regulatory thresholds, reflecting a stable sector.
The committee also acknowledged progress in the ongoing bank recapitalisation programme, with 16 banks already meeting the revised capital requirements.
Cardoso said the recapitalisation exercise, which ends on March 31, 2026, is firmly on track.
Speaking at the Bankers’ Dinner in Lagos, he said 27 banks had raised fresh capital through public offers and rights issues.
“Sixteen banks have already met or exceeded the new capital thresholds, a testament to the depth and resilience of Nigeria’s banking sector,” he said.
He added that recent stress tests confirmed the sector’s robustness, with prudential benchmarks largely satisfied.
As part of safeguards, the CBN is redesigning the banking sector’s credit-risk framework to protect about N4.14tn being raised.
Cardoso said the apex bank would enforce stronger governance, transparency and accountability in the management of new capital.
He disclosed that a dedicated Compliance Department has been established to oversee financial crime supervision, market conduct and corporate governance.
The CBN governor said the upward review of banks’ capital base — up to N500bn depending on licence type — was necessary to help banks withstand macroeconomic shocks.
He said inflation, interest rates, currency volatility and forex illiquidity had strained capital adequacy across the sector.
Cardoso stressed that a well-capitalised banking industry is critical to Nigeria’s ambition of achieving a $1tn Gross Domestic Product by 2030.
“Will Nigerian banks have sufficient capital to service a $1tn economy? The answer is no, unless we take action,” he said.
The recapitalisation programme, announced on March 28, 2024, requires banks to comply within 24 months.
CBN Deputy Governor, Corporate Services, Emem Usoro, said recapitalisation was central to funding and powering a larger economy.
UBA Group Managing Director, Oliver Alawuba, described the policy as timely, saying it would boost banks’ capacity to absorb shocks and finance long-term growth.
Analysts said the reforms align with the CBN’s statutory mandate to promote financial system stability and safeguard public confidence.