Banks raise N4.05tr in recapitalisation drive
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso yesterday affirmed that 20 banks have fully met the new minimum capital requirements. According to him, 13 others are on course to
- 20 meet requirements, 13 others on course
- MPC cuts interest rate to 23.5 per cent
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso yesterday affirmed that 20 banks have fully met the new minimum capital requirements.
According to him, 13 others are on course to meeting the threshold ahead of the March 31 deadline.
He also said that banks have raised N4.05 trillion through domestic and foreign instruments.
Cardoso spoke while giving the latest progress report on recapitalisation.
Cardoso spoke in Abuja after the 304th meeting of the Monetary Policy Committee (MPC). He said recapitalisation is progressing well and expressed confidence that the process would be completed within the stipulated time.
He said: “To date, 20 banks have fully met the new minimum capital requirements, and a further 13 are at the advanced stage of their capital raising processes.
“There are other institutions that are still finalising their plans and evaluating a range of strategic options. And there’s time, which of course includes consolidating where appropriate.”
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He outlined that as of February 19, total verified and approved capital raised by banks stood at N4.05 trillion. Out of this amount, N2.90 trillion, representing 71.6 per cent, was mobilised within Nigeria, while $706.84 million (equivalent to N1.15 trillion or 28.33 per cent), came from foreign investors.
“In summary, 71.67 per cent is domestic mobilisation, and 28.33 per cent is foreign participation. This balance represents a mix of domestic and foreign, which signals broad investor engagement and confidence in the sector,” Cardoso said.
The CBN boss added that foreign investors had earlier shown strong interest in Nigeria’s banking sector.
“Several MPCs ago, I mentioned that when I went abroad and met with some of the investor communities, they had a very strong interest in investing in banks. I’m glad that has come out in a very positive way,” he said.
He also addressed concerns about banks currently under regulatory intervention. He explained that such institutions may not follow the same recapitalisation timeline because of legal and structural issues affecting them.
He said: “We remain actively engaged with all relevant stakeholders to ensure that they have an orderly and credible outcome while maintaining financial stability.
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“Depositor funds in these institutions remain secure and operations continue under close supervisory and regulatory oversight of the Central Bank.”
At the meeting, the MPC decided to reduce the benchmark interest rate, known as the Monetary Policy Rate (MPR), from 27 per cent to 26.5 per cent. This is the second rate cut in five months.
“The Committee’s decision was based on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation path will continue,” Cardoso stated.
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Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, welcomed the rate cut noting that it shows that Nigeria’s economic reforms are beginning to produce results.
“The move reflects rising confidence in Nigeria’s macroeconomic stabilisation and highlights strong coordination between fiscal and monetary authorities as the country transitions from stabilisation to economic consolidation,” Edun stated on the Ministry’s official X handle.
He explained that the reduction in interest rates will benefit both the government and the private sector.
He said: “For government, the rate cut lowers borrowing costs and creates fiscal space to accelerate investment in infrastructure, energy, agriculture and social services. For businesses, it improves access to credit, supports private sector investment, and strengthens job creation in the real economy”.
The minister added that the decision also sent a positive message to investors at home and abroad.
He said: “Importantly, the decision reinforces investor confidence and signals that President Bola Tinubu’s reform programme is delivering results.
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“The administration remains committed to disciplined fiscal management, structural reforms and close collaboration with the Central Bank to drive growth, stability and improved livelihoods for all Nigerians.
Meanwhile, the Federal Government has announced plans to make dollar savings and investment opportunities more accessible to ordinary Nigerians, including those living abroad.
As part of this effort, Edun recently met with Jishike Holdings Limited and Libeara, the digital assets arm of Standard Chartered. The meeting focused on proposals to widen participation in Nigeria’s domestic dollar investment programme, following strong investor interest in the country’s first offering last year.
The initiative aims to lower the entry requirements for investors, encourage more Nigerians to save in foreign currency through formal channels, and allow small-scale investors to take part in structured investment products.
Government officials say the programme will maintain strict investor protection measures and follow all regulatory guidelines to ensure safety and transparency.
Edun said the government is committed to new financing approaches that will help mobilise local resources and allow Nigerians to benefit more directly from the country’s economic growth.
He said the broader goal is to deepen financial inclusion, strengthen domestic capital markets and build a more stable and resilient economy.
