CBN's Recapitalization Program: Strengthening Banks' Capital

The Central Bank of Nigeria (CBN) initiated a recapitalization program on March 28, 2024, to create a stronger banking sector capable of supporting a ₦1 trillion economy by 2030. By the end of the program, which concluded on March 31, 2026, 33 banks had raised a total of ₦4.65 trillion in fresh capital.

The new minimum capital requirements included ₦500 billion for commercial banks and ₦200 billion for regional banks. Despite these efforts, the CBN's April 2026 report indicated weak credit flow to the agricultural sector, which employs a significant portion of the labor force.

The report highlighted that less than five percent of bank credit goes to agriculture, raising concerns about the effective deployment of the newly raised capital. While banks like GTCO reported a 12.4% growth in their net loan book, the challenge remains in ensuring that the capital supports sectors that are currently underserved, particularly agriculture and infrastructure.