32 Banks Meet Recapitalisation Target – CBN

Nigeria’s banking sector has recorded a major milestone in its ongoing recapitalisation programme, with 32 financial institutions already meeting the revised minimum capital requirements set by the Central Bank of Nigeria (CBN).

The development signals growing industry alignment with regulatory reforms aimed at strengthening the country’s financial system and supporting long-term economic expansion.

CBN Governor Olayemi Cardoso disclosed the progress during a Monetary Policy Forum in Abuja, describing it as a significant step toward building a more resilient and investment-ready banking sector.

Read Also:

• CBN Restricts Banking Services for Large Loan Defaulters
• CBN Introduces Stricter BVN Regulations, Sets Up Fraud Watchlist

“The banking sector recapitalisation programme has recorded commendable progress, with 32 banks having already met the revised capital requirements. This achievement has significantly strengthened the resilience and capacity of the Nigerian banking system, positioning it to effectively mobilise long-term capital, support productive investment, and play its critical role in enabling the transition towards a $1.0 trillion economy,” he said.

The recapitalisation effort forms part of a broader reform package designed to improve governance, risk management, and regulatory oversight across the financial system. Measures introduced include a risk-based capital framework, stricter enforcement of insider lending rules, and tighter restrictions on credit access for non-performing obligors. The apex bank has also enhanced its supervisory capabilities through digital monitoring tools, early warning systems, and improved cross-border oversight of Nigerian banks operating internationally.

Cardoso noted that monetary policy tightening played a crucial role in stabilising the economy. He revealed that inflation dropped sharply from 34.8 percent in December 2024 to 15.06 percent in February 2026 following aggressive interest rate hikes totalling 875 basis points in 2024. Subsequent easing saw the policy rate adjusted to 26.5 percent as conditions improved.

On the foreign exchange front, the CBN cleared over $7 billion in backlog obligations and introduced a transparent willing-buyer, willing-seller system. These reforms, alongside improved reporting and surveillance, helped narrow the gap between official and parallel market rates to below two percent.

He also highlighted the growing importance of diaspora remittances, which increased from approximately $200 million to $600 million monthly. The apex bank is targeting $1 billion in monthly inflows by the end of 2026, supported by enhanced settlement systems and stronger regulatory frameworks.

External reserves rose significantly, with gross reserves reaching $50.12 billion in February 2026, while net reserves climbed to $34.80 billion in 2025. Cardoso attributed this to improved reserve management, diversification strategies, and stronger asset management frameworks.

He further noted that fiscal discipline has improved, particularly with the reduction of Ways and Means financing from N26.95 trillion in May 2023 to N2.84 trillion by January 2026. The move restored compliance with statutory limits and reinforced central bank independence.

Looking ahead, the CBN plans to consolidate these gains by targeting single-digit inflation, maintaining exchange rate stability, and strengthening reserves. While acknowledging global uncertainties such as geopolitical tensions and oil price volatility, Cardoso expressed confidence in Nigeria’s economic trajectory.

“The most challenging phase of macroeconomic adjustment is now behind us,” he said, emphasising the need for sustained coordination across fiscal and monetary authorities to maintain progress.