By Olatunbosun Obafemi
The Central Bank of Nigeria (CBN) has disclosed that only eight banks have fully met the new recapitalisation requirements set for financial institutions. CBN Governor, Olayemi Cardoso, made the announcement on Tuesday during a press briefing following the 301st meeting of the Monetary Policy Committee (MPC) held in Abuja.
Cardoso said that while eight banks have already complied with the capital requirements, several others are actively progressing toward meeting the set deadline. He added that the recapitalisation effort is essential for strengthening the resilience of the country’s financial system.
“Members noted the continued stability in the banking system, as reflected in stable financial soundness indicators (FSIs),” Cardoso stated. “This will be further supported by the ongoing banking recapitalisation exercise. The MPC noted that eight banks have fully met their recapitalisation requirements while others are making progress.”
In response to questions from reporters, Cardoso revealed that one Nigerian bank had successfully raised a significant amount of capital through a listing on the London Stock Exchange (LSE). Although he did not name the bank, it is understood that Guaranty Trust Holding Company Plc (GTCO) priced its offering on the LSE earlier this month.
“That clearly is a reflection of the way international investors view the Nigerian banking system,” Cardoso said. “I had the privilege of speaking with a number of these investors prior to the listing, and I can say there is strong international interest in the Nigerian financial system.”
Cardoso emphasized that the CBN will continue to exercise strict oversight over the banking sector to ensure financial soundness, resilience, and investor confidence. He noted that adherence to regulatory requirements and adequate capital buffers remain critical to safeguarding the banking industry.
In March 2024, the CBN raised the minimum capital requirement for commercial banks with international licenses to N500 billion, prompting banks like Zenith Bank and GTCO to initiate capital-raising efforts through rights issues, bonds, and international offerings. The recapitalisation drive is part of broader efforts to strengthen Nigeria’s banking sector and prepare it for future economic challenges.
