The Central Bank of Nigeria (CBN) has announced the successful completion of its banking sector recapitalization programme, which concluded by the deadline of March 31st, 2026. Over a two-year period, the initiative saw 33 financial institutions raise a substantial total of N4.65 trillion in fresh capital. This significant capital injection aims to fortify the resilience and stability of Nigeria’s financial system.

A detailed breakdown of the capital sources reveals robust investor confidence, with 72.5% of the funds acquired by banks sourced locally, while the remaining 27.5% was garnered from international markets. This balance highlights both domestic commitment and sustained global trust in the Nigerian banking sector's prospects.

CBN Governor Olayemi Cardoso commented on the achievement, stating that the recapitalization program has effectively strengthened the capital base of Nigerian banks. This, he noted, reinforces the financial system's resilience, ensuring it is well-positioned to support economic growth and withstand both domestic and external shocks. The apex bank confirmed that 33 out of 38 banks have successfully met the revised minimum capital requirements established under the program.

The recapitalization exercise has significantly improved Capital Adequacy Ratios (CAR) across the sector, with levels consistently maintained above international Basel benchmarks. The CBN reaffirmed specific minimum CAR thresholds: 10% for regional and national banks, and 15% for banks with international authorization, aligning with global standards for financial soundness.

Furthermore, the recapitalization was implemented alongside an orderly exit from regulatory forbearance. This strategic move has led to improved asset quality, enhanced balance sheet transparency, and a stronger overall financial system stability. While a limited number of institutions remain subject to ongoing regulatory and judicial processes, the CBN assures that these are being addressed through established supervisory and legal frameworks, and crucially, all banks remain fully operational, ensuring continuous access to banking services for customers.

To sustain these gains and further enhance oversight, the CBN has strengthened its risk-based supervisory framework. This includes mandating regular stress testing and the maintenance of adequate capital buffers by banks. Additionally, prudential guidelines and supervisory processes will undergo continuous review to foster improved governance and risk management practices within the sector.

The successful completion of this comprehensive recapitalization program has culminated in the creation of a stronger, more resilient banking system. This fortified system is now better positioned to effectively support lending, mobilize savings, and navigate the complexities of both domestic and global economic challenges, paving the way for sustained financial health and economic development in Nigeria.