The Central Bank of Nigeria (CBN) has disclosed that 33 banks raised ₦4.65 trillion and met the revised minimum capital requirements under the banking sector recapitalisation programme, strengthening the industry’s capacity to finance larger investments and withstand economic shocks.
CBN Deputy Governor, Corporate Services, Dr Muhammad Sani Abdullahi, disclosed this in a keynote address at the 38th Seminar for Finance Correspondents and Business Editors, held under the theme, “Towards a Robust and Resilient Financial System in the Post-Banking Sector Recapitalisation Era.”
Abdullahi said the recapitalisation exercise should not be viewed merely in terms of the amount of money raised by banks, but by its ability to improve productive lending, financial services, inclusion and the capacity of the banking system to support Nigeria’s development.
The recapitalisation programme was announced in March 2024, giving banks two years to raise capital appropriate to their respective licence categories.
According to the CBN, 33 banks had met the revised minimum requirements by the end of the two-year programme and collectively raised ₦4.65 trillion.
CBN Links Stronger Banks to $1tn Economy Ambition
Abdullahi said stronger capital buffers would become particularly important as Nigeria pursues its ambition of building a $1 trillion economy by 2030.
He said adequately capitalised banks should be better positioned to mobilise larger pools of capital, finance infrastructure, support industrial expansion, facilitate international trade and compete in regional and global markets.
Stronger capital buffers should also improve the ability of banks to absorb losses during periods of economic stress and maintain investment in innovation and digital transformation.
However, the Deputy Governor stressed that additional capital alone would not guarantee a resilient financial system.
“Capital, however, is a starting point. Boards and management must maintain sound controls, recognise risks early and lend on the strength of viable projects,” he said.
He said sound corporate governance, accountability and transparency must accompany the stronger balance sheets created by recapitalisation.
FX Market Gap Falls Below 2%
The CBN also provided an assessment of Nigeria’s foreign-exchange reforms, contrasting current market conditions with the situation inherited in 2023.
Abdullahi said Nigeria’s foreign-exchange market was heavily administered and fragmented at the time, with multiple windows operating alongside a substantial parallel market.
According to him, the gap between official and parallel-market exchange rates averaged more than 60 per cent in 2022 and exceeded 100 per cent at certain points late that year.
The World Bank, he said, estimated that the implicit subsidy created by the exchange-rate structure cost Nigeria approximately three per cent of GDP in 2022.
The CBN subsequently consolidated foreign-exchange windows, moved towards a willing-buyer, willing-seller framework, removed restrictions preventing 43 categories of imports from accessing the official market and reviewed outstanding FX forward claims.
Valid claims were subsequently settled, the Deputy Governor said.
Three years into the reforms, the average gap between official and parallel-market rates has fallen from 68.2 per cent between January and May 2023 to less than two per cent, according to the CBN.
Abdullahi said the narrower spread had given businesses a more reliable basis for pricing and planning.
Autonomous Sources Provide 68% of July FX Inflows
The structure of foreign-exchange inflows has also shifted.
Total FX inflows reached $10.82 billion in July 2026, with autonomous sources accounting for $7.33 billion, or nearly 68 per cent.
Remittances received through International Money Transfer Operators reached $950 million during the month.
Net foreign portfolio inflows stood at $6.31 billion between January and August 2026.
While acknowledging that portfolio flows can reverse, Abdullahi said broader improvements in foreign-exchange supply had reduced the market’s reliance on direct CBN intervention. FICAN_2026_Merged_Keynote_Addre…
Foreign Reserves Rise to $55.60bn
Nigeria’s external buffers have also strengthened, according to the apex bank.
Gross external reserves stood at $55.60 billion as of September 11, 2026, while the end-August reserve position provided an estimated 11.3 months of import cover.
The CBN also pointed to improvements in inflation and economic growth.
Headline inflation, which rose to 34.8 per cent in December 2024 during the initial economic adjustment, had moderated to 15.43 per cent in July 2026.
Nigeria’s real Gross Domestic Product, meanwhile, expanded by 4.43 per cent in the second quarter of 2026, driven mainly by non-oil activities.
Abdullahi cautioned that the improvements reflected several factors, including monetary policy, oil receipts, remittances and global financial conditions, and did not mean pressures facing households and businesses had disappeared.
CBN Warns Banks on Cybersecurity, Governance
As Nigerian banks emerge from recapitalisation with larger balance sheets, the CBN said its supervisory attention would increasingly focus on how those institutions manage risk.
The apex bank will continue monitoring governance, asset quality, liquidity and large exposures, while expecting lenders to protect customer data and maintain reliable payment services.
Risk-management systems, the Deputy Governor said, must go beyond conventional credit risks to cover market and liquidity risks, operational vulnerabilities, cybersecurity, third-party dependencies and climate-related financial risks.
The rapid movement of financial services towards digital channels makes cybersecurity particularly important.
Banks were therefore urged to continuously invest in cybersecurity, data protection, disaster recovery and business continuity systems.
“Public trust depends on customers being able to transact securely and access their funds reliably, including when systems come under pressure,” Abdullahi said.
Stronger Banks Must Translate Capital Into Productive Lending
The CBN stressed that the ultimate measure of the recapitalisation programme would be what banks do with their strengthened financial positions.
Agriculture, manufacturing, services and infrastructure require financing structured around their investment horizons and cash flows, while households and smaller businesses require reliable payment services and suitable financial products.
According to Abdullahi, the benefits must also extend to rural communities, women and young entrepreneurs.
“We should assess recapitalisation by the quality of banking services and productive lending it supports, as well as by the amount of capital raised,” he said.
Businesses were similarly encouraged to improve corporate governance, transparency and sustainability practices to strengthen their ability to access the additional financing capacity available within the banking industry.
Abdullahi said greater financing could support productive investment in technology, energy, transportation, power, agriculture, manufacturing and services.
Financial Press Critical to Market Confidence
The Deputy Governor also emphasised the role of financial journalists in explaining economic and banking reforms to businesses, investors and the public.
He said accurate and objective financial reporting strengthens transparency, supports investor education and enables informed public debate, particularly in an environment where information spreads rapidly across digital platforms.
Abdullahi said three years of reforms had strengthened the foundations of monetary and financial stability, but sustaining the progress would require responsible banking, disciplined supervision and continued attention to households and businesses.
He added that regulators, financial institutions, businesses, investors, the media and the public all have roles to play in developing a financial system capable of absorbing shocks, supporting innovation and expanding economic opportunities.
