Banks Raise N4.61tn Capital as Foreign Investors Take 27% Share — CBN

Nigerian banks have raised a total of N4.61 trillion in fresh capital under the ongoing recapitalisation programme of the Central Bank of Nigeria, highlighting strong investor confidence and rising foreign participation in the sector.

The disclosure was made in a statement issued by the apex bank following remarks by its Governor, Olayemi Cardoso, at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum for Financial Sector Regulation and Supervision in Abuja.

According to the regulator, the capital inflow stems from the Banking Sector Recapitalisation Programme introduced in 2024 as part of broader efforts to strengthen the financial system amid ongoing economic reforms.

The CBN noted that Nigerian banks were able to attract significant investment despite operating in a challenging macroeconomic environment shaped by subsidy removal and exchange rate adjustments.

“The Governor outlined how Nigeria’s regulatory and supervisory reforms exemplify proactive leadership. He recalled that in 2024, the CBN anticipated upcoming challenges and launched the Banking Sector Recapitalisation Programme to strengthen the resilience of Nigerian banks.

“This proactive policy, he noted, inspired similar reforms across Africa, adding that Nigerian banks, despite navigating subsidy removals and exchange rate reforms, attracted N4.61 trillion in new capital, nearly 27% from foreign investors, while even expanding their footprint across African markets.”

The apex bank added that the recapitalisation drive is already delivering results, particularly in boosting investor confidence and enabling Nigerian banks to scale operations beyond domestic borders.

The latest figure represents an increase of about N560 billion from the N4.05 trillion earlier verified and approved in February, signalling continued momentum as the recapitalisation exercise approaches its final phase.

At the forum, Cardoso reaffirmed the regulator’s firm stance on corporate governance and compliance within the banking industry.

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“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector.”

He also revealed new measures aimed at enforcing credit discipline, particularly targeting large borrowers with non-performing loans.

“In line with this, we have implemented a restriction of banking services to non-performing large-ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability,” he added.

Beyond recapitalisation, the CBN stressed the importance of closer collaboration among African regulators as cross-border financial activities deepen across the continent.

The bank noted that stronger coordination is necessary to manage systemic risks associated with growing financial integration.

It also reiterated its commitment to orthodox monetary policy aimed at restoring price stability and strengthening policy credibility.

In the fintech space, the regulator said it is advancing reforms designed to balance innovation with financial system stability through enhanced regulatory oversight.

The high-level forum brought together central bank leaders and financial regulators from six African countries, with discussions focusing on emerging risks, including digital finance, artificial intelligence, and climate-related financial challenges.