By Bababunmi Agbebi
Edited by Ezennia Uche
As Nigeria’s banking sector approaches a critical regulatory deadline, the Central Bank of Nigeria (CBN) has provided an important update on the progress of its ongoing recapitalization initiative, one of the most significant reforms to the financial industry in recent years.
The apex bank’s recapitalization exercise, launched in March 2024, requires Nigerian banks to meet significantly higher minimum capital thresholds by March 31, 2026. The objective is to reinforce the resilience of the financial sector, enhance banks’ capacity to support economic activity, and position Nigerian financial institutions to compete more effectively in the global market.
The recapitalization policy mandates higher capital bases for banks depending on their authorisation categories:
- International commercial banks: ₦500 billion
- National commercial banks: ₦200 billion
- Regional commercial banks: ₦50 billion
- Merchant banks: ₦50 billion
- Non–interest banks (national and regional): ₦20 billion / ₦10 billion respectively
By raising capital requirements, the CBN aims to ensure banks have adequate loss-absorbing capacity, support larger financing portfolios, and mitigate risks from future economic shocks.
In its latest public disclosure, the CBN revealed that approximately 20 commercial banks have now met the new recapitalization requirements ahead of the March deadline. This represents a steady climb in compliance as financial institutions work to satisfy regulatory standards.
This latest figure marks an improvement from earlier reports indicating that 19 banks had met the requirements and reflects continued momentum within the sector. While the number of fully compliant banks varies slightly across sources, it is clear that a majority of institutions are on track or have already achieved full compliance.
CBN officials have emphasised that the focus of the exercise now extends beyond mere compliance. According to the Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, the bank is placing greater emphasis on ensuring that the strengthened capital bases are translated into productive, sustainable credit growth and real economic impact.
This pivot underscores the broader regulatory intent: to boost financial stability while supporting key economic sectors, including small and medium enterprises, infrastructure, and export-oriented industries.
Despite notable progress, not all banks have fully complied with the recapitalization mandate with only a handful of weeks remaining before the deadline. Some smaller regional lenders and non-interest banks are still in the process of raising sufficient capital, underscoring ongoing challenges related to investor confidence, market conditions, and cost of capital.
As Nigeria’s banking sector edges closer to the March 31, 2026 deadline, the recapitalization exercise stands out as a pivotal milestone in the industry’s evolution. With most banks either meeting or advancing steadily toward the required capital benchmarks, the outlook appears broadly positive. The CBN’s emphasis on translating compliance into meaningful economic activity further aligns the recapitalization framework with national development goals.
By strengthening capital buffers and promoting financial stability, the CBN’s recapitalization policy is helping to lay the groundwork for a more robust, resilient, and globally competitive banking system ready to support Nigeria’s long-term growth trajectory.
