The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has stated that 27 banks have accessed the market to raise additional funds since the inauguration of the latest recapitalisation exercise.
Cardoso disclosed this at the 60th Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria on Friday.
Nigerian banks have been raising funds to meet the fresh capital thresholds set for them by the CBN, which in March 2024 directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn.
The CBN also ordered commercial banks with regional authorisation to achieve a N50bn capital floor, while non-interest banks with national and regional authorisations will need to increase their capital to N20bn and N10bn, respectively, with a March 2026 deadline.
As we strengthen the capacity of our banks, stress-testing this year confirms that Nigeria’s banking sector remains fundamentally robust. Key financial soundness indicators overwhelmingly satisfied prudential benchmarks during the year.”
He added, “Our decisive actions on regulatory forbearance mark another turning point. As recapitalisation progresses, we are redesigning the credit-risk framework to enforce stronger governance, greater transparency, and firmer accountability across the sector.”
We are determined to break the boom-and-bust cycle that has accompanied past recapitalisation efforts. MSMEs remain central to our efforts. This year alone, microfinance lending expanded by over 14 per cent, and new digital-credit products reached more than 1.2 million small enterprises — evidence of the sector’s growing depth and capacity. We are improving access to credit, supporting microfinance institutions, and expanding financial products tailored to smaller enterprises.”
Speaking on the economy, the CBN governor noted that Nigeria is now more than ever capable of withstanding external shocks.
“This year’s actions, including the deployment of the Electronic Forex Market Surveillance System, the shift to a single, market-determined foreign exchange rate regime, and enhanced risk-based banking supervision, underscore our track record of reform delivery. They have strengthened Nigeria’s capacity to absorb external shocks, from volatile oil prices to shifts in credit-rating sentiment.
“With oil now a smaller share of GDP and fiscal revenue, a sharp oil-price decline would be cushioned by the flexible FX regime, rising non-oil exports, and growing services trade. In short, Nigeria is more resilient to external shocks today than at any point in our recent history. The Central Bank of Nigeria will continue to steer monetary policy with discipline, anchored firmly to its core mandate of price stability. Stability remains the bedrock upon which investment flourishes, resources are allocated efficiently, and purchasing power is protected,” he added.
Cardoso asserted that the growth of the country’s external reserves has been mostly organic.
0 Comments