The Central Bank of Nigeria (CBN) on Tuesday confirmed that 16 banks had fully met the revised regulatory capital requirements set by it to boost the banking sector and stabilize the nation’s financial system.
The apex bank governor, Mr. Olayemi Cardoso, disclosed this during a press conference on the decisions taken at the 303rd Monetary Policy Committee (MPC) meeting held in Abuja.
Cardoso said the MPC expressed satisfaction with the sustained resilience of the Nigerian banking system as “most financial soundness indicators remain within regulatory thresholds.”
Noting that the indicators demonstrate the sector’s stability despite broader economic challenges, the governor said that the committee “acknowledged the substantial progress in the ongoing recapitalisation programme, with 16 banks achieving full compliance with revised capital requirements.”
- Advertisement -
Giving more insights into the success of the recapitalization programme so far, Cardoso explained that the banks were actively working to strengthen their financial buffers as part of the intended outcome of the recapitalisation process.
He further clarified: “16 of them have fully complied. 27 of them have, through various means, raised capital. We are monitoring the developments and from every indication, it is going in the right trajectory.”
It would be recalled that on March 28, 2024, the CBN had set new minimum capital requirements for banks to be met by March 31, 2026.
According to the recapitalization template, commercial banks with an international license are required to raise their minimum capital base to N500 billion, while banks with national licence must meet N200 billion capital base, regional commercial and merchant banks, N50 billion; and N20 billion for national non-interest banks (with regional non-interest banks needing N10 billion).
The CBN directed that the banks must raise this capital through means like rights issues, private placements, or mergers, and only paid-up capital and share premium count toward the new minimums, not reserves or Additional Tier 1 capital.
Following this regulatory directive, the banks had been striving to raise funds through share issuances, bond offerings, and other mechanisms with tangible results to show for their efforts so far.
The recapitalisation effort has been part of a broader drive to develop a financial sector that is fit for purpose — one capable of building strong buffers and supporting the Nigerian economy effectively in the years ahead.
Analysts believe that the recapitalisation programme is expected to strengthen the resilience of Nigeria’s banking system, enhance credit availability, and improve investor confidence, among other benefits to the country.
The MPC has, therefore, urged the CBN to ensure that the ongoing recapitalization programme is successfully implemented for long-term socio-economic benefits to Nigeria
