Nigeria’s banking sector has entered a defining moment following the successful completion of a far-reaching recapitalisation exercise, led by the Central Bank of Nigeria under Governor Olayemi Cardoso. With more than ₦4.6 trillion raised by over 30 financial institutions, industry stakeholders say the reform has laid a strong foundation for banks to expand lending, support businesses, and play a central role in achieving the Federal Government’s ambitious $1 trillion economy target by 2031.
What began in November 2023 as a policy announcement has now matured into one of the most consequential financial sector reforms in Nigeria’s recent history. At the time, Cardoso framed the initiative as essential to repositioning the banking system for the scale of economic growth the country seeks.
“The administration has set an ambitious goal of achieving a Gross Domestic Product of $1 trillion,” Cardoso said. “Attaining this target requires sustainable and inclusive growth at a significantly higher pace than current levels.”
Nearly two years later, the recapitalisation programme has reached its March 31, 2026 deadline, ushering in what analysts describe as a new era of stronger, more resilient banks with enhanced capacity to support economic expansion.
Realigned for growth
The recapitalisation policy, formally launched on March 28, 2024, introduced new minimum capital thresholds—₦500 billion for international banks, ₦200 billion for national banks, and ₦50 billion for regional institutions. The 24-month compliance window allowed banks to raise fresh capital through equity injections, rights issues, mergers, and strategic investments.
By the deadline, about 33 banks had collectively mobilised approximately ₦4.65 trillion, with 72.55 percent sourced domestically and 27.45 percent from international investors—an indication of sustained confidence in Nigeria’s financial system.
For many analysts, the reform was not just timely but inevitable. Nigeria’s economic landscape had evolved significantly, with rising inflation, exchange rate volatility, and increasing infrastructure demands exposing the limitations of banks’ existing capital bases.
A report by Deloitte noted that macroeconomic headwinds had eroded banks’ capital adequacy, constraining their ability to support large-scale financing.
“The upward revision will ensure that Nigerian banks have the capacity to take on bigger risks and stay afloat amid both domestic and external shocks,” the report stated.
