The Nigerian banking sector is gearing up for a transformative year in 2025, with banks expected to attract an additional N900 billion in capital as part of a Central Bank of Nigeria (CBN) mandated recapitalisation exercise. This initiative aims to enhance the financial strength and resilience of the sector, ultimately supporting economic growth and stability.
This recapitalisation drive, which began in March 2024, sets new minimum capital requirements for banks to meet by March 2026. Under the guidelines, banks with international licences must maintain a capital base of N500 billion, national banks N200 billion, and regional banks N50 billion. The initiative is designed to align the Nigerian banking system with global standards, improve banks’ ability to finance large-scale projects, and safeguard depositors’ funds.
In the early phases of this capital strengthening strategy, Nigerian banks have already raised significant funds from the capital market—with N2.2 trillion secured in 2024 alone. Continuing this momentum, the sector is expected to raise roughly N900 billion more in 2025, further solidifying their balance sheets.
Eight banks have already met the recapitalisation target ahead of the deadline, with several others making notable progress. This robust capital base will enable banks to increase lending to vital sectors such as agriculture, infrastructure, and manufacturing, while expanding access to underserved markets through technological innovations like mobile and agent banking.
Industry experts anticipate that the increased capital requirements could foster mergers and acquisitions, especially among smaller banks, promoting a more consolidated and competitive banking ecosystem. However, the CBN emphasizes that this process aims to create a stronger financial sector capable of supporting Nigeria’s ambitious goal of a $1 trillion economy.
Monetary policy remains supportive, with steady interest rates and improved foreign exchange stability complementing the recapitalisation efforts. The CBN continues to monitor the sector’s financial health, ensuring compliance and fostering transparency, which is key to sustaining investor confidence.
As banks navigate through this recapitalisation exercise, the sector is poised to emerge more resilient, innovative, and better positioned to drive Nigeria’s economic transformation in the coming years.
More than news- Its Icegate