Twenty Banks Meet CBN Recapitalisation Requirements

…Thirteen Banks Jostle To Meet Recapitalisation Deadline

…External Reserves Cross $50bn

The Central Bank of Nigeria (CBN) has confirmed that 20 of the 33 banks participating in the ongoing recapitalisation programme have successfully met the new minimum capital requirement, signaling significant progress in strengthening the country’s banking sector.

The development underscores the continued resilience of Nigeria’s financial system amid both domestic and global economic challenges.

The milestone was highlighted during the 304th Monetary Policy Committee (MPC) meeting, held on February 23–24, 2026, in Abuja.

The meeting, attended by eleven members of the Committee, also reviewed key macroeconomic indicators, global economic developments, and the outlook for Nigeria’s domestic economy.

On March 28, 2024, the apex bank issued a circular notifying banks of a new capital raise. With the review, the new capital requirement of International Banks was raised to N500bn, National Banks capital was raised to N200bn while regional banks new capital was reviewed upward to N50bn.

However, the CBN exempted banks’ reserves, shareholders’ funds and retained earnings from the capital requirement in order to inject fresh capital into the system.

The exercise commenced on April 1, 2026, and would end 24 months later on March 31, 2026, the CBN said.

In addition to progress on the recapitalisation drive, the CBN Governor Olayemi Cardoso said there has been a remarkable rise in Nigeria’s gross external reserves, which surged to $50.45bn as of February 16, 2026 the highest in thirteen years.

The level of reserves provides an import cover of approximately 9.68 months for goods and services, reinforcing the stability of Nigeria’s external sector and strengthening investor confidence.

The ongoing recapitalisation programme, which requires participating banks to raise additional capital to meet regulatory thresholds, is part of the CBN’s broader strategy to build a more robust and well-capitalised banking sector.

According to Cardoso, the exercise is critical to enhancing the financial system’s capacity to support sustainable economic growth, credit expansion, and investment.

“The recapitalisation drive is central to our efforts to ensure that banks remain resilient, capable of supporting economic activities, and able to absorb shocks in an increasingly complex financial landscape,” the CBN Governor said.

As part of its policy decisions during the meeting, Cardoso said the MPC also lowered the Monetary Policy Rate (MPR) by 50 basis points to 26.5 percent, citing the ongoing moderation in headline inflation.

This marks the second rate cut in five months, reflecting confidence in the resilience of the financial sector.

Headline inflation eased to 15.10 percent in January 2026, down slightly from 15.15 percent in December 2025, while food inflation fell to 8.89 percent, supported by improved domestic food supply, exchange rate stability, and favourable base effects.

Core inflation similarly eased to 17.72 percent from 18.63 percent over the same period.

The MPC highlighted that the external sector performance has been a major driver of economic stability, supported by higher export earnings and increased remittance inflows.

These developments have contributed to greater stability in the foreign exchange market, ensuring a steady supply of dollars for trade and import obligations.

Cardoso said the Committee also welcomed the Presidential Executive Order 09, which redirects oil and gas revenues into the Federation Account, further improving fiscal revenues and strengthening reserves.

According to the him, the remaining 13 banks in the recapitalisation programme are expected to meet the new minimum capital requirement in the coming months.

Once completed, the initiative will reinforce the resilience, liquidity, and operational capacity of Nigeria’s banking sector, positioning it to better support domestic credit needs and economic expansion.

He emphasised that the financial system’s resilience, bolstered by recapitalisation and strong external reserves, provides the foundation for continued evidence-based monetary policy decisions.

By maintaining high liquidity standards and enforcing recapitalisation, the CBN aims to safeguard the banking sector while enabling sustainable economic growth.