CBN Strengthens Nigerian Banks with ₦4.65 Trillion Recapitalisation

The Central Bank of Nigeria (CBN) stated that the recent recapitalisation of Nigeria's banking sector, which took place from April 1, 2024, to March 31, 2026, has resulted in a stronger capital foundation for banks. This recapitalisation programme, launched in March 2024, aimed to enhance banks' resilience against economic shocks and improve their capacity to support a growing economy.

Approximately ₦4.65 trillion in fresh capital was raised, with domestic investors contributing 72.6 percent and international investors 27.4 percent. While the increased capital provides a greater cushion against losses and enhances banks' ability to absorb unexpected losses, the CBN emphasized that capital alone does not ensure resilience.

Banks may still face challenges from deteriorating loans, sector exposure, liquidity issues, operational failures, or weak internal controls. The CBN indicated that the completion of this recapitalisation marks the beginning of a new phase of reform in the banking sector.