CBN says 27 banks secure new capital in ongoing recapitalisation exercise

The Central Bank of Nigeria has confirmed that a total of 27 banks have successfully mobilised fresh capital as part of the ongoing recapitalisation programme designed to strengthen the financial system and enhance the resilience of deposit money banks. The disclosure marks a major milestone in the implementation of the banking sector reforms announced earlier in the year, aimed at ensuring that Nigerian banks possess the financial muscle required to support long-term economic growth, withstand external shocks, and compete effectively at both regional and global levels.

According to the apex bank, the recapitalisation drive has continued to attract strong responses from banks across all categories, with each institution actively pursuing strategies such as private placements, rights issues, public fundraising, injection of retained earnings, mergers, and acquisitions. The 27 banks that have already secured additional capital represent a broad mix of commercial, merchant, and non-interest banks, indicating sector-wide commitment to the regulatory benchmarks set by the CBN.

The recapitalisation mandate, which requires banks to significantly increase their minimum capital base by 2026, forms part of a wider set of reforms introduced to fortify the financial services industry. The CBN has consistently emphasised that the sector must be adequately capitalised to support large-scale investments, infrastructure financing, manufacturing, agriculture, and the broader private sector that anchors Nigeria’s economic diversification efforts. With the economy facing multiple challenges including inflation, exchange-rate pressure, and external vulnerabilities, the apex bank views stronger banks as essential to national stability.

Bank executives have responded by intensifying their capital-raising plans, many of which have already gained shareholder approval. Several institutions have approached the domestic and international markets, while others have sought to leverage strategic investors to boost liquidity buffers. The CBN stated that the responses reflect growing confidence in the Nigerian banking sector, as well as the recognition by industry leaders that compliance with the new requirements is vital for long-term competitiveness. The drive also highlights a broader shift toward deepening operational capacity, improving governance standards, and strengthening financial sustainability.

For many institutions, the recapitalisation process is also an opportunity to reorganise internal structures and streamline operations to improve efficiency. Banks are reviewing their branch networks, digital infrastructure, and risk-management frameworks to align with the realities of a more capital-intensive business environment. Analysts believe that banks that complete the recapitalisation early will enjoy a competitive edge through increased lending capacity, stronger credit ratings, and enhanced investor perception.

The CBN also noted that more banks are progressing steadily through the approval stages of their capital-raising plans, with many expected to conclude arrangements in the coming months. The apex bank has pledged to maintain close engagement with institutions to ensure a seamless recapitalisation process. It reassured the public that the financial system remains stable, and the recapitalisation programme is a forward-looking measure rather than a response to distress. The aim, the bank reiterated, is to build a stronger financial architecture capable of supporting an economy aspiring to rapid growth and global competitiveness.

Industry experts have welcomed the update, describing the progress as a positive indicator of sectoral health and management discipline. They note that the last major recapitalisation exercise undertaken nearly two decades ago transformed the Nigerian banking landscape, reducing the number of weak institutions and improving the sector’s ability to handle large transactions. Many believe the current exercise will produce similar structural benefits, particularly in attracting foreign investment and deepening the capacity of banks to finance mega-projects such as refineries, renewable energy installations, large-scale housing schemes, and technology infrastructure.

However, experts also caution that the process may trigger consolidation among banks unable to independently meet the new capital thresholds. While some mid-sized and smaller institutions have expressed readiness to raise capital, others may opt for mergers as a viable route to compliance. The CBN has maintained that it is open to such consolidation provided it strengthens the industry and protects depositors. Market watchers anticipate that the coming year may witness renewed merger discussions and strategic partnerships across the sector.

For customers, the recapitalisation drive is expected to bring more robust banking services, improved digital offerings, and stronger guarantees of deposit protection. Better-capitalised banks are also more likely to expand lending to small businesses, agriculture firms, manufacturers, and technology start-ups—key contributors to job creation and economic innovation.

As the recapitalisation exercise continues, the CBN says it will publish periodic progress updates to maintain transparency and keep the public informed. The apex bank reaffirmed its commitment to safeguarding financial stability, strengthening monetary policy transmission, and enhancing the role of the banking sector in Nigeria’s economic transformation.

With 27 banks already securing new capital and others advancing in their plans, the recapitalisation programme is shaping up as one of the most decisive reforms in Nigeria’s recent financial history. The coming months will be crucial as banks race toward the regulatory deadline, adjust their strategies, and position themselves for a stronger future under a more resilient and better-capitalised banking system.