Nigeria's Banks Raise ₦4.65tn but Face Lending Issues

Nigeria's banks have successfully raised ₦4.65 trillion in fresh equity through a recapitalisation exercise that concluded in March 2026, with 33 banks meeting the revised minimum capital requirements set by the Central Bank of Nigeria (CBN). Domestic investors contributed approximately 72.55% of the funds.

The recapitalisation aimed to enhance financial stability and increase banks' capacity to support economic growth. However, lending figures indicate that the increased capital has not alleviated the financing challenges for Nigerian businesses.

By September, the average maximum lending rate reached 32.62%, up from 29.20% in August. Additionally, outstanding bank credit to manufacturing fell from ₦8.53 trillion in December 2024 to ₦5.65 trillion in August 2026, marking a 33.8% contraction.

The recapitalisation programme requires banks to maintain specific capital levels but does not mandate corresponding increases in lending. Monetary conditions remain restrictive, with the CBN's benchmark Monetary Policy Rate at 23% and a 45% Cash Reserve Requirement for deposit money banks.