The Digest:
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has announced that 20 banks have fully met the apex bank's minimum capital requirements, raising a total of N4 trillion as of February 19, 2026. Speaking at the MPC's 304th meeting in Abuja, Cardoso revealed that an additional 13 banks are at an advanced stage of their capital raising processes and expected to conclude within the stipulated timeframe. Of the N4 trillion raised, N2.90 trillion (71.6%) was mobilised domestically, while $706.84 million (N1.15 trillion, 28.33%) came from foreign investors. Cardoso noted that other institutions are finalising plans and evaluating strategic options, including consolidation. He also reported that gross external reserves have risen to $50.4 billion in February, the highest level in 13 years. The recapitalisation drive follows the CBN's March 2024 directive increasing minimum capital requirements, with international banks now required to hold N500 billion.
Key Points:
- The N4trn capital raise strengthens the banking sector's resilience and capacity.
- High domestic participation (71.6%) reflects local investor confidence in banks.
- Banks gain enhanced capital base, while depositors benefit from increased stability.
- This signals successful implementation of CBN's recapitalisation policy.
- The timing, with 20 banks compliant, shows sector-wide progress.
Sources: The Cable, CBN
