Nigerian banks have raised a total of 4.61 trillion naira (US$3.1 billion) in fresh capital ahead of a March 31 recapitalisation deadline, the country’s central bank governor said, underscoring efforts to strengthen the resilience of the financial sector.
Olayemi Cardoso, governor of the Central Bank of Nigeria, disclosed the figure on Tuesday at a high-level forum organised by the International Monetary Fund and the AFRITAC West 2 regional technical assistance centre in Abuja.
The amount raised represents an increase from the 4.05 trillion naira reported by February, reflecting accelerated efforts by lenders to meet new capital requirements. According to the central bank, nearly 27 percent of the funds came from foreign investors, highlighting renewed international interest in Nigeria’s banking sector.
The recapitalisation exercise follows a revised policy introduced by the CBN in March 2024, which gave banks a 24-month window from April 1, 2024, to March 31, 2026 to strengthen their capital base. By early March, 30 of Nigeria’s 33 banks had already met the minimum requirements through rights issues, initial public offerings and private placements.
Cardoso said the move was designed to prepare the banking sector for anticipated economic challenges, including reforms such as fuel subsidy removal and exchange rate adjustments.
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“This proactive policy inspired similar reforms across Africa. Nigerian banks, despite navigating subsidy removals and exchange rate reforms, attracted N4.61 trillion in new capital,” he said, adding that the development could support expansion across African markets.
The central bank chief also emphasised the importance of collaboration among African regulators, noting that increasingly interconnected financial systems require coordinated oversight to maintain stability.
“As African banks and financial systems become increasingly interconnected, collaboration among regulators is not optional but essential to safeguard stability and ensure shared prosperity,” he said.
Beyond recapitalisation, the CBN signalled a tougher stance on corporate governance and regulatory compliance. Cardoso said the central bank has adopted a “zero-tolerance” approach to violations and will tighten supervision as regulatory forbearance measures are phased out.
He added that the bank has introduced restrictions on banking services for chronic defaulters, particularly large borrowers with non-performing loans, as part of efforts to enforce credit discipline and protect depositors.
“In line with this, we have implemented a restriction of banking services to non-performing large-ticket obligors,” he said.
The central bank is also maintaining a commitment to orthodox monetary policy measures aimed at restoring price stability and strengthening policy credibility in Africa’s largest economy.
At the same time, Cardoso highlighted ongoing efforts to regulate financial technology firms, stressing the need to balance innovation with financial system stability. He urged African regulators to adopt robust prudential frameworks to address emerging risks in the fast-growing fintech sector.
Analysts say the successful capital raise could enhance the ability of Nigerian banks to absorb shocks, support lending and finance large-scale projects, particularly as the country navigates economic reforms and global uncertainties.
The recapitalisation drive is seen as a critical step in positioning Nigeria’s banking sector for long-term growth, while reinforcing confidence among investors and stakeholders.
