Nigeria’s Banking Recapitalisation Hits N4.61tr

Nigeria’s banking sector has raised N4.61 trillion in fresh capital, in what the Central Bank of Nigeria (CBN) describes as a major milestone in its ongoing recapitalisation drive.

In a statement released on Tuesday, the apex bank said about 27% of the total, roughly N1.24 trillion, came from foreign investors, pointing to renewed international interest in Nigeria’s financial system.

CBN Governor Olayemi Cardoso disclosed the figures at the 4th Annual IMF/AFRITAC West 2 High-Level Executive Forum in Abuja.

The latest total represents an increase of N560 billion from the amount confirmed just a month ago, as banks step up efforts ahead of the March 31, 2026 deadline.

Strengthening Banks Against Economic Pressure

The recapitalisation programme, introduced in 2024, is aimed at positioning Nigerian banks to support a $1 trillion economy.

Cardoso said the sector has been stable despite recent policy changes, including fuel subsidy removal and exchange rate unification.

“Nigerian banks despite navigating subsidy removals and exchange rate reforms, attracted N4.61 trillion in new capital, nearly 27% from foreign investors, while even expanding their footprint across African markets,” he said.

The additional capital is expected to strengthen the industry in several ways. It should improve banks’ ability to absorb economic shocks, protect depositors’ funds, and support lending to key sectors such as infrastructure and industry.

It also puts Nigerian lenders in a stronger position to expand operations across Africa.

CBN Targets Loan Defaulters

Alongside the capital, the CBN is strengthening regulations around loan repayment and corporate governance.

Cardoso issued a warning to large borrowers who have failed to service their loans, saying the regulator has begun restricting access to banking services for such customers.

“We have implemented a restriction of banking services to non-performing large-ticket obligors. This decisive step underscores our commitment to credit discipline, financial integrity, and accountability,” he said.

The central bank also noted an end to regulatory leniency.

“Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector,” Cardoso added.

Under the new measures, strong oversight and compliance requirements have become mandatory for bank executives.

AI, Fintech and Stability

Discussions at the Abuja forum, which brought together regulators from six African countries, also focused on the future of banking.

Key areas included the growing role of financial technology, the use of artificial intelligence, and emerging risks such as climate change.

For businesses and individuals, a better-capitalised banking sector is expected to mean safer deposits and improved access to credit.

For the larger economy, the strong foreign participation in the N4.61 trillion capital raise shows confidence in current reforms and could support further investment inflows.

With the March 31 deadline approaching, Nigeria’s banking sector is projected to become more stable and competitive, both at home and across the African market.

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