‎14 Banks Scale CBN’s New Capital Hurdle, Says Cardoso‎

‎14 Banks Scale CBN’s New Capital Hurdle, Says Cardoso‎

By Abiola Adigun
Albarka 89.9 FM

Fourteen Nigerian banks have successfully met the Central Bank of Nigeria’s (CBN) new capital requirement as the ongoing recapitalisation exercise gathers momentum, Governor Olayemi Cardoso announced on Tuesday.
Speaking at a press briefing after the Monetary Policy Committee (MPC) meeting in Abuja, Cardoso said the banking sector had demonstrated resilience, with most financial soundness indicators remaining within safe thresholds.
“Members also acknowledge the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement,” Cardoso said. “They therefore urge the banks to continue the implementation of policies and initiatives that will ensure the successful completion of the exercise.”
The governor also disclosed that the MPC welcomed the termination of forbearance measures and waivers on civil obligors, saying the decision promotes transparency, strengthens risk management, and safeguards long-term financial stability. He assured the public that the removal of these measures was temporary and posed no systemic risk.
The recapitalisation drive was triggered in March 2024, when the CBN raised the minimum capital requirement for commercial banks with international licences to ₦500 billion. The move was aimed at strengthening the sector’s ability to withstand shocks and support Nigeria’s economic growth.
Since then, banks have turned to the capital market and foreign exchanges to shore up their balance sheets. In January, Zenith Bank Plc raised ₦350.46 billion through a rights issue and public offer. In July, Guaranty Trust Holding Company Plc (GTCO) successfully priced a fully marketed offering on the London Stock Exchange.
As of July 22, the CBN had confirmed that only eight banks had met the recapitalisation benchmark. Tuesday’s update now places that number at 14, signaling accelerated compliance within the sector.
Financial analysts say the progress underscores banks’ determination to align with regulatory expectations.
“The fact that 14 banks have now crossed the capitalisation threshold is a vote of confidence in the financial sector,” said Muda Yusuf, Chief Executive of the Centre for the Promotion of Private Enterprise (CPPE). “It also means that banks will be in a stronger position to finance the economy, especially in critical sectors.”
Industry watchers, however, caution that smaller banks may face challenges in raising capital before the deadline, making mergers and acquisitions likely in the coming months.
Cardoso reiterated that the CBN remains committed to monitoring the process to ensure that the recapitalisation exercise delivers a stronger, more resilient banking system.