In a major update on the ongoing banking sector reform, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has disclosed that eight banks have successfully met the apex bank?s new recapitalisation requirements, with several others actively working towards compliance ahead of the March 31, 2026 deadline.

Cardoso made this announcement during a press briefing following the 301st Monetary Policy Committee (MPC) meeting held in Abuja.

Recapitalisation Timeline and Requirements

Recall that in April 2024, the CBN issued a new capital base directive for Deposit Money Banks (DMBs), aimed at strengthening the banking system?s resilience and capacity to support Nigeria?s economic growth.

Under the revised guidelines:

International banks are required to raise their minimum paid-up capital to N500 billion

National banks must have at least N200 billion

Regional banks are expected to maintain a N50 billion minimum capital

Banks were given a 24-month window from April 1, 2024, to March 31, 2026, to meet the new benchmarks either through mergers, acquisitions, rights issues, private placements, or other CBN-approved means.

Identities of Compliant Banks Still Undisclosed

While confirming that eight banks have already met the new capital requirement, Cardoso withheld their identities, stating that more detailed disclosures would follow in due course.

The recapitalisation drive is part of CBN?s broader efforts to:

Bolster financial system stability

Increase banks? ability to fund large-scale infrastructure and private sector projects

Align the sector with international best practices

Industry analysts suggest the move could trigger a fresh wave of bank mergers, acquisitions, and strategic partnerships, reminiscent of the 2004?2005 banking consolidation era under former CBN Governor Charles Soludo

The CBN is expected to provide more detailed updates in the coming months. (MSME Africa)

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