Nigeria’s banking sector has entered a new phase of strength and resilience following the successful completion of a massive recapitalisation exercise that raised ₦4.65 trillion over two years.
The initiative, led by the Central Bank of Nigeria, saw 33 banks shore up their capital positions, with analysts describing the outcome as a significant milestone in strengthening financial stability and boosting confidence in the sector.
Governor Olayemi Cardoso said the programme has positioned banks to better withstand economic shocks while enhancing their ability to support growth across key sectors of the economy.
A notable feature of the exercise was strong local investor participation, which accounted for over 70 per cent of the funds raised, signalling growing domestic confidence in the financial system.
The recapitalisation, launched in March 2024, also coincided with reforms aimed at improving transparency and asset quality, including a phased exit from regulatory forbearance.
Industry observers say the move marks a shift towards a more proactive and risk-based regulatory approach, with banks now required to conduct regular stress testing and maintain higher capital buffers.
Despite the scale of the reforms, banking operations continued without disruption, ensuring customers had uninterrupted access to services throughout the process.
The development is being closely monitored across West Africa, with experts suggesting it could serve as a model for strengthening financial systems in the region.
