From the available data from the Central Bank of Nigeria (CBN), the majority of the banks that are operating in Nigeria would meet the minimum capital requirements set by the apex bank.
CBN, on Thursday, March 28, 2024, announced the jerk up of minimum capital requirements for all the banks, to ensure that they are strong, resilient and stable enough to carry out financial intermediation, and the much-needed financing of development projects and programmes in Nigeria.
As suitably designed, CBN increased the minimum capital base for commercial banks with international authorisation from N25 billion to N500 billion.
It also increased the minimum capital base for commercial banks with national authorisation to N200 billion, while those with regional authorization were pegged at N50 billion.
The new minimum capital for merchant banks was increased to N50 billion, while the new requirements for non-interest banks with national and regional authorisations were pegged at N20 billion and N10 billion, respectively.
Although this is not the first time the CBN is embarking on recapitalisation exercise. On July 6, 2004, the CBN also undertook a recapitalisation exercise under the leadership of former governor, Prof. Charles Soludo, who increased the minimum capital base for commercial banks in the country, from N2 billion to N25 billion, with a deadline of December 31, 2005.
The recapitalisation exercise in 2004, which brought the Nigerian banks from 89 to 25, was tailored to check the incessant banks failures and fraud in the system, boost depositor confidence and position the banks to finance larger, long-term projects to drive economic growth.
The recapitalisation process involved the consolidation of banks through mergers and acquisitions, which aimed to strengthen the banks’ financial positions and enable them to face financial challenges in the global market.
The recapitalisation also freed Nigerian banks from reliance on public sector funds and better equipped them to finance larger projects within key sectors such as oil, gas, and telecommunications.
Additionally, the reforms resulted in improved banks’ performance, increased lending to the private sector, and growth in the non-oil sector of the economy.
The current recapitalisation exercise, however, is to further strengthen the capacity of the banking sector to support households, businesses, and sustainable economic growth, positioning the banks to effectively play their intermediation role in the $1 trillion economy of President Bola Tinubu’s administration.
Industry experts said to build a one trillion-dollar economy is not an easy task, as it requires careful planning, robust and clear policy direction, dutiful implementation, and averred commitment from stakeholders that would galvanise the various sectors of the economy. They therefore, support the banking recapitalisation to reposition the banks to be able to fund, finance and power the economy and favourably compete globally with its peers in other climes.
According to the directive of the CBN, all the banks in the country are expected to meet the minimum capital requirements within 24 months (two years) commencing from April 1, 2024, and terminating on March 31, 2026.
Since the announcement, banks across the industry have been jostling to meet both the thresholds and the deadline.
Just last week, Friday, March 6, 2026 to be precise, the apex bank announced that the recapitalisation programme remains firmly on track, revealing that about thirty (30) banks have met the new minimum capital requirements applicable to their respective licence authorisations.
CBN disclosed that in total, thirty-three (33) banks have raised additional capital through rights issues, initial public offerings (IPOs), and private placements as part of the programme. Noting that the capital positions of the remaining banks are currently undergoing the Central Bank’s routine verification process ahead of final confirmation of compliance within the recapitalisation timeline.
The governor of CBN, Mr Olayemi Cardoso in the last Monetary Policy Committee Meeting of the Bank, announced that as of 19 February 2026, the total verified and approved capital raised by the banks amounts to ₦4.05 trillion.
Of this, he disclosed that ₦2.90 trillion (71.67%) was mobilised domestically, while US$706.84 million (₦1.15 trillion, 28.33%) represents foreign participation. Explaining that the balanced mix of domestic and foreign capital indicates broad investor engagement and confidence in the sector.
While the remaining banks that are yet to meet the requirements are pushing to make it before the deadline, the CBN said it would continue to maintain close supervisory engagement with them to ensure full compliance with prudential and capital requirements.
