Domestic investors emerged as the dominant contributors to Nigeria’s banking sector recapitalisation exercise, accounting for more than 72 per cent of the N4.65 trillion raised by banks during the two-year programme initiated by the Central Bank of Nigeria (CBN).
The apex bank disclosed this on Wednesday while announcing the completion of the recapitalisation initiative, which commenced in March 2024 and required banks to shore up their capital base to meet newly introduced regulatory thresholds.
According to the CBN, Nigerian investors contributed approximately N3.37 trillion to the total capital raised, representing 72.55 per cent of the funds mobilised by lenders, while foreign investors accounted for the remaining 27.45 per cent.
The figures were contained in a statement jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The regulator explained that the recapitalisation drive enabled banks to raise N4.65 trillion in fresh capital within the 24-month period, significantly strengthening the stability and resilience of the country’s financial system.
“Over the 24-month period, Nigerian banks raised a total of N4.65 trillion in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the CBN said.
The apex bank also confirmed that 33 banks have successfully met the revised minimum capital requirements introduced under the programme.
However, it noted that a small number of institutions are still undergoing regulatory and judicial processes related to the exercise.
“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” the statement said.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks. All banks remain fully operational, ensuring continued access to banking services for customers.”
CBN Governor, Olayemi Cardoso, described the outcome of the recapitalisation exercise as a major step towards strengthening the Nigerian banking system.
He said the programme had reinforced the financial strength of banks and improved their capacity to withstand both domestic and global economic shocks.
“The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks,” Cardoso said.
The CBN also emphasised that the recapitalisation process was carried out without causing disruptions to banking operations across the country.
According to the regulator, key prudential indicators across the banking sector have improved significantly, with capital adequacy ratios now remaining above the global Basel regulatory benchmarks.
Under the existing regulatory framework, regional and national banks are required to maintain a minimum capital adequacy ratio of 10 per cent, while banks operating with international licences must maintain a minimum of 15 per cent.
The apex bank added that the recapitalisation exercise coincided with the gradual withdrawal of regulatory forbearance measures that had been introduced earlier to support the banking sector.
This process, the CBN explained, helped improve asset quality across the industry, strengthened transparency in banks’ balance sheets, and enhanced the overall stability of the financial system.
To consolidate the gains from the exercise, the regulator said it has strengthened its risk-based supervisory framework, which includes periodic stress testing of banks and the enforcement of adequate capital buffers.
The CBN also indicated that supervisory and prudential guidelines would be reviewed regularly to enhance corporate governance standards, risk management practices, and institutional resilience across the banking industry.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the apex bank said.
Meanwhile, data from the National Bureau of Statistics (NBS) suggests that foreign investors also showed growing interest in Nigeria’s banking sector during the recapitalisation period.
According to the NBS, foreign capital inflows into the banking sector rose by 93.25 per cent year-on-year to $13.53 billion in 2025, compared with $7.00 billion recorded in 2024.
The sharp increase in foreign investments reflects heightened investor confidence in the sector, particularly as banks sought fresh capital to meet the new regulatory requirements.
Despite the strengthened capital base of banks, however, economic analysts have warned that the real impact of the reforms will ultimately depend on whether the banking sector is able to increase credit to the productive segments of the economy.
The Centre for the Promotion of Private Enterprise (CPPE) noted that access to finance remains a major challenge for many small and medium-sized enterprises across the country.
According to the organisation, the benefits of the recapitalisation exercise may remain limited unless banks deploy their expanded capital to support businesses and stimulate growth in the real sector.
Analysts therefore argue that the long-term success of the programme will be measured not only by the improved capital strength of banks, but also by the extent to which the financial sector supports investment, expands credit, and drives economic development.
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