Domestic investors power Bank recapitalisation with 72.5% of N4.65tn

By: Amarachi Okonkwo 

The Central Bank of Nigeria (CBN) has announced that domestic investors contributed the majority of funds raised during the banking sector recapitalisation programme, accounting for 72.55 per cent of the N4.65 trillion total secured by lenders.

The apex bank disclosed this in a statement on Wednesday marking the conclusion of the exercise, which commenced in March 2024 and resulted in 33 banks meeting the revised minimum capital requirements.

The statement, jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali, revealed that Nigerian investors injected approximately N3.37 trillion into the banking system. Foreign investors accounted for the remaining 27.45 per cent, reflecting sustained international interest despite global economic uncertainties.

According to the CBN, the capital raise significantly bolstered the financial system’s resilience and enhanced banks’ capacity to support economic growth.

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“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the statement noted.

CBN Governor, Olayemi Cardoso, described the outcome as a critical milestone in strengthening the sector.

“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 economic growth and withstand domestic and external shocks,” Cardoso said.

The regulator confirmed that 33 banks successfully met the revised capital thresholds, while a small number of institutions remain subject to ongoing regulatory and judicial processes. It emphasised that all banks remain fully operational, with no disruption to banking services nationwide.

The recapitalisation exercise also delivered improvements in key prudential indicators, particularly capital adequacy ratios, which the CBN said remained above global Basel benchmarks. Under the revised framework, minimum capital adequacy ratios were set at 10 per cent for regional and national banks, and 15 per cent for banks with international licences.

The CBN further noted that the programme coincided with a phased exit from regulatory forbearance, a move aimed at improving asset quality, strengthening balance sheet transparency, and enhancing overall system stability.

To sustain these gains, the apex bank said it has intensified its risk-based supervision approach, incorporating periodic stress testing and stricter capital buffer requirements. It added that supervisory and prudential guidelines would continue to be reviewed to strengthen governance, risk management, and resilience across the banking sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement added.

Meanwhile, data from the National Bureau of Statistics (NBS) showed that foreign capital inflows into Nigeria’s banking sector surged by 93.25 per cent year-on-year to $13.53 billion in 2025, up from $7.00 billion recorded in 2024. The increase underscores heightened investor appetite during the recapitalisation period.

However, the Centre for the Promotion of Private Enterprise (CPPE) has cautioned that the strengthened banking system has yet to translate into meaningful credit expansion for small businesses. The group warned that the full benefits of the reforms are still limited in the real economy, particularly for micro, small, and medium enterprises.

The development highlights a growing policy challenge for regulators: ensuring that stronger bank balance sheets translate into increased lending to productive sectors and broader economic impact.