Domestic investors have contributed about 72 percent of the funds raised by Nigerian banks under the ongoing recapitalisation programme, according to the Central Bank of Nigeria (CBN).

The apex bank disclosed that financial institutions have continued to approach the capital market through various fundraising channels as they work to meet the March 31, 2026 deadline for the recapitalisation exercise.

As of February 2026, banks had raised a total of N4.05 trillion in verified and approved capital.

Domestic participation dominates fundraising

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, said N2.90 trillion of the total funds raised came from domestic investors, while N1.15 trillion—representing about 28 percent—was sourced from foreign participation.

According to him, the figures demonstrate strong local investor participation in the capital strengthening exercise across the banking sector.

“In summary, 71.67 percent is domestic mobilisation and 28.33 percent is foreign participation. This balance represents a mix of domestic and foreign investment, signalling broad investor engagement and confidence in the sector,” Cardoso said.

Thirty banks meet capital requirements

The CBN also disclosed that many banks have already complied with the new minimum capital requirements as the deadline approaches.

In a statement issued by Hakama Sidi-Ali, the Acting Director of Corporate Communications at the CBN, the regulator said 30 banks had already met the new capital thresholds applicable to their licence categories.

According to the statement, 33 banks in total have raised additional capital through rights issues, initial public offerings and private placements as part of the recapitalisation programme.

“As of March 6, 2026, the recapitalisation exercise is progressing steadily. Thirty banks have met the new minimum capital requirements applicable to their respective licence authorisations,” the statement said.

The central bank added that the capital positions of the remaining banks are currently undergoing routine verification before final confirmation of compliance within the stipulated timeline.

Capital market activity rises

Industry observers say the recapitalisation drive has increased activity in Nigeria’s capital market since the programme was introduced.

Several banks have returned to the market to raise funds from existing shareholders and new investors through rights issues, public offers and private placements.

Market analysts believe that institutional investors such as pension funds, asset managers and other investment vehicles have played a key role in the strong domestic participation recorded so far.

Purpose of the recapitalisation programme

The CBN introduced the recapitalisation programme in 2024 to strengthen the resilience of Nigeria’s banking sector.

The policy requires banks to raise fresh capital to meet revised minimum thresholds based on their operating licence categories.

According to the regulator, the capital increase is designed to help banks absorb economic shocks more effectively and expand their ability to finance businesses and households.

Experts say stronger capital buffers will also improve financial system stability and increase banks’ capacity to support key sectors of the economy.

The programme represents one of the most significant capital strengthening exercises in Nigeria’s banking industry since the 2005 banking consolidation, which reduced the number of banks through mergers and acquisitions.

CBN maintains oversight

The central bank said the recapitalisation process is being closely monitored to ensure transparency, regulatory compliance and protection for depositors and investors.

“The Nigerian banking system remains stable and sound. The recapitalisation programme remains firmly on track and will further strengthen the capacity of the banking sector to support households, businesses and sustainable economic growth,” the CBN said.

The regulator added that it will continue to maintain supervisory engagement with financial institutions throughout the recapitalisation period to ensure full compliance with prudential standards.

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Nigeria’s banking sector is undergoing one of its most comprehensive reforms in decades, as deposit money banks move to raise an estimated ₦4.14 trillion in fresh capital ahead of the March 31, 2026 recapitalisation deadline, according to a report by global professional services firm, Deloitte.

The recapitalisation exercise, introduced by the Central Bank of Nigeria (CBN) in April 2024, is aimed at strengthening financial stability, improving resilience to macroeconomic shocks, and positioning the banking system to support Nigeria’s ambition of building a $1 trillion economy by 2030.

Under the new framework, the CBN significantly raised minimum capital requirements, setting thresholds at ₦500 billion for commercial banks with international licences, ₦200 billion for national banks, and ₦50 billion for regional banks.

Merchant banks are required to maintain ₦50 billion, while non-interest banks must hold between ₦10 billion and ₦20 billion, depending on licence scope.

Unlike previous recapitalisation exercises, the apex bank adopted a stricter definition of qualifying capital, limiting it to paid-up share capital and share premium, while excluding retained earnings and other reserves.

This change effectively compelled most banks to raise new funds, even those that previously appeared adequately capitalised.

Deloitte noted that the policy shift became necessary as banks’ capital buffers were eroded by prolonged macroeconomic pressures, including high inflation, rising interest rates, exchange rate volatility, and foreign exchange illiquidity.

The firm said the recapitalisation would enable Nigerian banks to take on larger risks, strengthen liquidity positions, and expand their capacity to absorb losses arising from domestic and external shocks.

Progress so far suggests the sector is responding positively. CBN Governor Olayemi Cardoso disclosed that 27 banks have raised capital through public offers and rights issues, with 16 banks already meeting or exceeding the new minimum capital requirements well ahead of the deadline.

Speaking at the recent Bankers’ Dinner in Lagos, Cardoso said the recapitalisation programme remains on track, noting that stress tests conducted during the year confirmed the sector’s resilience, with key financial soundness indicators remaining within regulatory benchmarks.

He added that, with months left to the deadline, several banks are well positioned to comply comfortably, while others are making steady progress.

To safeguard the trillions of naira being injected into the financial system, the CBN is redesigning its credit-risk framework, focusing on stronger governance, improved transparency, and firmer accountability. The objective, according to Cardoso, is to prevent the boom-and-bust cycles that followed past recapitalisation efforts.

As part of the reforms, the apex bank has established a dedicated Compliance Department to oversee financial crime supervision, market conduct, corporate governance, enterprise security, and Environmental, Social and Governance (ESG) compliance.

In addition, the Credit Risk Management System (CRMS) has been upgraded and web-enabled, allowing banks to submit statutory returns and conduct real-time borrower checks, with plans underway to integrate the platform more closely with banks’ internal systems.

At its 303rd Monetary Policy Committee (MPC) meeting, the CBN-led committee expressed satisfaction with the banking system’s resilience and urged the apex bank to ensure a smooth conclusion of the recapitalisation process.

Beyond financial stability, regulators view the exercise as critical to Nigeria’s long-term growth strategy. Cardoso said the current capital base of Nigerian banks would be insufficient to finance a $1 trillion economy without decisive reforms.

CBN Deputy Governor Emem Usoro described recapitalisation as a key pillar of national economic planning, while UBA Group Managing Director, Oliver Alawuba, said the policy would strengthen banks’ ability to withstand shocks and fund long-term development.

Despite the higher capital thresholds, the CBN has reassured the public that the sector remains stable, noting that the non-performing loan ratio is within the five per cent prudential limit and liquidity ratios remain above regulatory minimums.

Analysts say the success of the recapitalisation programme will be critical in determining not only the future strength of Nigeria’s banking sector but also its capacity to drive sustainable economic growth in the coming years.

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Jaiz Bank has successfully met the Central Bank of Nigeria’s revised capital requirement ahead of schedule. The bank also unveiled a new corporate identity as part of its refreshed brand strategy.

During a media briefing in Abuja, Managing Director Dr. Haruna Musa confirmed that Jaiz Bank is now fully compliant with the minimum capital requirement set by the CBN. He described the recapitalisation as a major boost to the bank’s financial strength and long-term growth prospects.

With this milestone, Jaiz Bank becomes one of the first institutions in the country to surpass the threshold, a development that reinforces its credibility and positions it for expansion.

The new corporate identity reflects the bank’s vision to remain a leading non-interest financial institution in Nigeria, built on trust, innovation, and customer-centered services.

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