Nigeria's Banking Sector Raises N4.65 Trillion in Recapitalization

Nigeria's banking sector is set to enter a new phase of strength and stability following a significant recapitalization exercise that raised N4.65 trillion within 24 months. The Central Bank of Nigeria (CBN), under the leadership of Olayemi Cardoso, announced on March 28, 2024, that the two-year recapitalization exercise would commence on April 1, 2024, with a compliance deadline of March 31, 2026.

The exercise aims to ensure that Nigerian banks can withstand domestic and external shocks by increasing their capital base. The minimum capital requirements have been revised to N500 billion for commercial banks, N200 billion for international banks, and N50 billion for regional banks.

The CBN disclosed that 33 out of 37 banks met the revised minimum capital requirements. The recapitalization program is expected to reinforce the financial system's resilience and maintain capital adequacy ratios above international benchmarks.

The CBN emphasized that the program would be conducted without disrupting banking services.