The Central Bank of Nigeria (CBN) on Tuesday announced that eight commercial banks have fully met their recapitalisation requirements, while others are making progress to meet the deadline.
Olayemi Cardoso, CBN governor disclosed this in Abuja after the conclusion of the two-day Monetary Policy Committee (MPC) meeting.
At the same meeting, the CBN retained its benchmark interest rate, known as the Monetary Policy Rate (MPR), at 27.5 percent, despite slowing inflation and sluggish economic growth.
The MPC members also acknowledged the continued stability of the banking system, reflected in steady Financial Soundness Indicators (FSIs), which are expected to be further strengthened by the ongoing banking recapitalisation exercise.
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The Committee, therefore, urged the Central Bank’s Management to maintain strong oversight of the banking sector to ensure its sustained resilience, safety, and soundness.
Cardoso noted that one of the Nigerian banks had raised a significant amount of capital on the London Stock Exchange, reflecting growing confidence among international investors in the Nigerian banking system.
“There has been a lot of interest locally in investing in the banks. We will continue to do our part by building resilience, creating buffers, and adhering to the rules,” Cardoso said.
He commended Guaranty Trust Holding Company (GTCO) for its recent activities in the capital market, highlighting that the institution successfully raised a “significant amount of money” through its public offering.
The CBN governor also clarified that the forbearance measures recently introduced by the Central Bank are temporary and consistent with international best practices under the Basel II framework. He noted that such measures are neither new nor exclusive to Nigeria, but are standard tools used globally to help banks build buffers during periods of transition.
Reaffirming the resilience of Nigeria’s banking sector, he stated that the system remains “fit for purpose,” supported by current data showing a Capital Adequacy Ratio (CAR) of 13 percent and Non-Performing Loans (NPLs) within the regulatory limit of 5 percent.
A report by Proshare noted that Nigerian banks have collectively raised over N13 trillion in fresh equity capital as of mid-2025, significantly strengthening their capital buffers and improving resilience to credit risk.
The substantial capital raise implies improvements in key financial health indicators. Banks can now report stronger Capital Adequacy Ratios (CARs), reduced Cost of Risk (CoR), larger and more diversified asset bases, more robust capital buffers capable of absorbing non-performing loans (NPLs), and healthier Cost-to-Income Ratios (CIRs).
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The report reviewed the banks’ recapitalisation strategies and performance during the 2023–2024 period, in line with the Central Bank of Nigeria’s revised capital requirements. These set a minimum Common Equity Tier 1 (CET1) capital of N200 billion for nationally licensed banks and N500 billion for those with international licenses. All Tier 1 banks fall under the international license category.
However, some high-performing Tier 2 banks, often referred to as “borderline Tier 1,” are also striving to meet the N500 billion threshold to compete more effectively in the continental and global banking arena.
