Nigeria's CBN Completes Bank Recapitalization Program

Nigeria's Central Bank of Nigeria (CBN) announced the successful completion of a two-year banking recapitalization program on April 2, 2026, with 33 banks meeting the revised minimum capital requirements after raising a total of 4.65 trillion naira. The initiative, launched in 2024, aimed to bolster the financial sector's resilience amid economic pressures, enabling banks to better support growth and withstand shocks.

The program required international banks to hold at least 500 billion naira in capital, national banks 200 billion naira, and regional or merchant banks 50 billion naira. Banks achieved this through public offers, rights issues, private placements, and mergers, mobilizing funds equivalent to about 2.95 billion dollars at current exchange rates. Domestic investors accounted for 72.55 percent of the capital, while foreign sources contributed the remaining 27.45 percent, or roughly 810 million dollars. CBN Governor Olayemi Cardoso described the effort as a landmark achievement, stating, "The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support...