Nigerian Banks Rush to Raise N4.14trn Ahead of CBN Recapitalization Deadline

Nigerian banks are undergoing a major overhaul as they work to raise N4.14 trillion in fresh capital before the CBN's recapitalization deadline of March 31, 2026. The recapitalization exercise, initiated by the CBN in April 2024, aims to enhance financial stability, improve resilience to economic shocks, and support Nigeria's goal of building a $1 trillion economy by 2030.

The minimum capital requirements for commercial banks have been significantly increased, with banks needing to hold at least N500 billion for international licenses, N200 billion for regional licenses, and varying amounts for other types of licenses. Despite the challenges posed by macroeconomic pressures, high inflation, rising interest rates, and exchange rate volatility, Nigerian banks are making progress in meeting the new capital thresholds.

CBN Governor Olayemi Cardoso revealed that 27 banks have already raised funds through public offers or rights issues.