CBN assures five banks will continue operations despite recapitalisation delays

The Central Bank of Nigeria (CBN) has reassured depositors and investors that five deposit money banks still struggling to meet the new recapitalisation requirements will continue normal operations. CBN Governor Olayemi Cardoso gave the assurance after the latest Monetary Policy Committee (MPC) meeting in Abuja.

Cardoso said the affected banks are not distressed or fundamentally weak. He explained that procedural, judicial and regulatory hurdles slowed their capital-raising process. The CBN is actively supporting these institutions to resolve pending legal and regulatory issues.

33 banks meet new capital thresholds

The CBN governor revealed that 33 Nigerian banks have successfully met the new capital thresholds introduced under the banking sector reforms. He described the outcome as a strong vote of confidence in Nigeria's financial system and economic outlook.

Cardoso noted that Nigerian investors accounted for about 74 per cent of total subscriptions in the recapitalisation exercise. Foreign investors contributed the remaining 26 per cent. He said this level of participation demonstrates growing confidence in the banking industry and the broader economy.

Some banks faced regulatory interventions

Cardoso explained that some of the affected banks had previously faced regulatory interventions. This reduced the time available to them to raise fresh capital compared to other institutions. He argued it would be unfair to compare their timelines directly with banks that enjoyed the full recapitalisation window without restrictions.

“It would be unfair to compare their timelines directly with those of other banks that had the full period to comply,” the CBN governor said.

Banking sector remains stable

Despite concerns, the CBN maintained that Nigeria's banking sector remains stable. Customers have no reason to panic. Cardoso reassured depositors that banking operations across the country continue without disruption.

“Business continues as usual, and we support all their efforts towards resolving regulatory and legal impediments in their way,” he said.

The recapitalisation programme is part of broader reforms to strengthen Nigerian banks, improve balance sheet capacity and position them to finance larger sectors of the economy. The CBN has consistently said the exercise aims to build a stronger, more resilient and globally competitive banking industry.

Cardoso expressed confidence that once the remaining banks resolve their current challenges, they will continue on the recapitalisation path and eventually meet the required capital thresholds.