33 Nigerian Banks Raise N4.65tn in Recapitalization Drive

The Central Bank of Nigeria (CBN) announced that 33 banks successfully raised a total of N4.65 trillion as part of a recapitalization program that concluded in March 2024. This initiative was designed to strengthen the financial system and enhance the banks' capacity to support the economy.

The statement, jointly signed by Director of Bank Supervision Olubukola Akinwunmi and Acting Director of Corporate Communications Hakama Sidi Ali, highlighted that local investors contributed 72.55% of the funds, while international investors accounted for 27.45%. CBN Governor Olayemi Cardoso commented that the recapitalization program reinforced the capital base of Nigerian banks, ensuring they can withstand domestic and external shocks.

The CBN confirmed that these banks met the revised minimum capital requirements, with a few undergoing regulatory processes. The recapitalization coincides with a gradual exit from regulatory forbearance, aiming to improve asset quality and strengthen balance sheets.

The program is expected to enhance the overall stability of the banking sector.