Nigeria's Banking Sector Faces 60-Day Recapitalization Deadline

The Central Bank of Nigeria, led by Olayemi Cardoso, has set a deadline of March 31, 2026, for Nigerian banks to comply with new capital requirements. Commercial banks must meet minimum capital thresholds ranging from N500 billion to N25 billion based on their license category.

Banks failing to meet these requirements may opt to downgrade their operations or divest offshore. As of now, 19 banks have already met the minimum capital requirements, with more expected to comply in the coming days.

The CBN is ensuring strict verification processes to prevent capital bubbles and money laundering risks. The exercise aims to strengthen risk management frameworks and regulatory oversight to prevent misallocation of funds and excessive risky lending practices in the banking sector.