32 Banks Meet CBN Recapitalisation Target as Nigeria Pushes Financial Sector Reforms

The Central Bank of Nigeria (CBN) has announced a major milestone in its ongoing banking sector reforms, revealing that 32 Nigerian banks have successfully met the revised minimum capital requirements ahead of the regulatory deadline.

CBN Governor, Olayemi Cardoso, made the disclosure during a Monetary Policy Forum in Abuja, describing the development as a significant step toward strengthening the country’s financial system. According to him, the recapitalisation drive is designed to enhance the resilience, stability, and global competitiveness of Nigerian banks.

Cardoso noted that the achievement positions the banking sector to better mobilize long-term capital, support productive investments, and contribute meaningfully to Nigeria’s ambition of becoming a $1 trillion economy. The recapitalisation programme has also attracted strong investor confidence, with banks collectively raising about ₦4.61 trillion in fresh capital.

Beyond increasing capital bases, the reforms are part of a broader strategy to improve governance and risk management across the financial system. The CBN has introduced stricter regulatory measures, including a risk-based capital framework, tighter controls on insider lending, and limits on exposure to non-performing borrowers. These steps are aimed at preventing systemic risks and ensuring greater accountability within the sector.

In addition, the apex bank has strengthened its supervisory capacity through the deployment of digital early warning systems and enhanced monitoring mechanisms. These tools are expected to improve oversight and enable quicker responses to emerging financial risks, particularly for Nigerian banks operating across borders.

On the macroeconomic front, Cardoso highlighted improvements in key indicators. Inflation, which had surged to 34.8% in late 2024, has reportedly declined to 15.06% as of February 2026. He attributed this to aggressive monetary tightening, including significant interest rate hikes followed by gradual easing to stabilize the economy.

The CBN has also implemented reforms in the foreign exchange market, clearing over $7 billion in backlogs and introducing a more transparent willing-buyer, willing-seller system. These measures have helped narrow the gap between official and parallel market rates, boosting confidence among investors and market participants.

Diaspora remittances have seen notable growth as well, rising from around $200 million to $600 million monthly, with projections to hit $1 billion per month by the end of 2026. Meanwhile, Nigeria’s external reserves have strengthened considerably, reaching over $50 billion, driven by improved asset management and diversification strategies.

Despite these positive indicators, public reactions remain mixed. Many Nigerians question how these macroeconomic gains translate into real improvements in daily life, particularly as the cost of living remains high. Concerns persist over inflationary pressures, rising energy costs, and limited purchasing power among citizens.

Analysts argue that while recapitalisation strengthens banks, its direct impact on ordinary Nigerians may take time to materialize. A more robust banking sector can support economic growth by financing businesses, creating jobs, and stabilizing the financial environment—but these benefits often unfold gradually rather than immediately.

Looking ahead, the CBN says it will focus on consolidating these gains by targeting single-digit inflation, maintaining exchange rate stability, and further strengthening reserves. However, global uncertainties such as geopolitical tensions and oil price volatility continue to pose risks to the country’s economic outlook.

Ultimately, the recapitalisation milestone signals progress in Nigeria’s financial sector reform agenda, but it also highlights the ongoing challenge of translating macroeconomic stability into tangible benefits for the average citizen.