Nigeria Bank Recapitalization Concludes

The Nigeria — Central Bank of Nigeria successfully concluded its banking sector recapitalization program, which commenced in March 2024. Over 24 months, Nigerian banks raised N4.65 trillion in new capital, with 33 banks meeting the revised minimum capital requirements. This initiative has strengthened the capital adequacy ratios of banks, ensuring they remain above international Basel benchmarks. The program attracted strong participation from both domestic (72.55%) and international (27.45%) investors, reflecting sustained confidence in the Nigerian banking sector. Governor Yemi Cardoso emphasized that the recapitalization reinforces the financial system's resilience and its ability to support economic growth. While a few institutions are still undergoing regulatory and judicial processes, all banks remain fully operational. The Nigeria — Central Bank of Nigeria has also strengthened its risk-based capital adequacy framework to safeguard these gains. Despite the positive outcomes, the Centre for the Promotion of Private Enterprise, led by Muda Yusuf, expressed concerns about weak credit flows to small businesses.