Nigeria’s banking sector has wrapped up one of its biggest capital-raising exercises in recent history, with lenders pulling in a combined ₦4.65 trillion to meet new regulatory thresholds set by the Central Bank of Nigeria.

The capital raise drew heavily from local investors, who accounted for 72.55% (₦3.37 trillion) of the total, while foreign investors contributed 27.45% (₦1.28 trillion), a split the CBN says signals sustained confidence in Nigeria’s banking system despite macroeconomic headwinds.

In a press statement on Wednesday, the regulator said the over 24-month recapitalisation programme, which began in March 2024, has now been concluded, strengthening banks’ balance sheets and positioning the sector to better absorb shocks and fund economic growth.

“The recapitalisation programme has strengthened the capital base of Nigerian banks,” said CBN governor, Olayemi Cardoso. “Reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

The recapitalisation exercise, first announced in 2024, was meant to strengthen banks’ balance sheets amid rising inflation, currency volatility, and growing credit risks, while positioning lenders to finance Nigeria’s long-term ambition of becoming a $1 trillion economy.

Under the new regime, banks must meet minimum paid-up capital based on their operating licences: international banks to ₦500 billion ($370.58 million), national banks to ₦200 billion ($148.23 million), regional banks to ₦50 billion ($37.06 million), merchant banks to ₦50 billion ($37.06 million), non-interest banks with national authorisation to ₦20 billion ($14.82 million), and non-interest banks with regional authorisation to ₦10 billion ($7.41 million).

Most banks clear the bar

According to the CBN, 33 banks have met the revised minimum capital requirements. A handful of institutions remain entangled in regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

The regulator stressed that all banks are still fully operational.

With the recapitalisation phase now closed, the CBN is shifting focus to supervision.

Banks are now required to run regular stress tests and maintain capital buffers under a strengthened risk-based framework. The regulator also signalled that prudential guidelines and supervisory rules will be reviewed periodically to keep pace with evolving risks.

The CBN noted that banking services remained uninterrupted throughout the capital raise, preserving access for individuals and businesses, a critical factor in a period of economic adjustment.

According to the apex bank, the successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks.