14 banks have fully complied with the new regulatory capital requirements set by the Central Bank of Nigeria (CBN), according to a briefing given by CBN Governor, Olayemi Cardoso after the most recent meeting of the Monetary Policy Committee (MPC).
A recapitalisation regime for commercial banks was introduced by the CBN earlier this year, with varying minimum capital requirements based on the type of banking license. Banks with international authorisation, for example, were required to keep ₦500 billion in capital. National banks are subject to ₦200 billion, while regional banks are subject to ₦50 billion.
There are correspondingly tiers of minimums for other classes (merchant banks, non-interest banks). In Nigeria’s financial history, this represents one of the most ambitious recapitalisation initiatives. The CBN raised the minimum from ₦2 billion to ₦25 billion in 2004, which led to a wave of mergers and consolidations and the last significant overhaul of capital requirements. Just eight banks had been verified to have complied with the new requirements at a previous checkpoint. Thus, the update from Cardoso signifies a significant improvement in banking industry compliance.
The CBN Governor informed BrandSpur banking and finance news desk in a meeting held in Abuja on Tuesday, that despite macroeconomic pressures, the banking industry is still strong and that the majority of financial soundness metrics are staying within anticipated bounds. He went on to say that the MPC acknowledged the substantial progress in the ongoing bank recapitalisation exercise.
According to Cardoso, the MPC also approved of the termination of civil obligors and forbearance measures, claiming that doing so would improve long-term stability, risk management, and transparency in the financial industry. He assured the public that this removal is temporary and shouldn’t jeopardise banks’ stability or soundness.
The Monetary Policy Rate (MPR) was lowered by 50 basis points, from 27.50% to 27.00%, by the MPC in parallel policy actions. Additionally, it maintained a 30% liquidity ratio, lowered the commercial banks’ cash reserve ratio (CRR) from 50% to 45%, and kept merchant banks’ CRR at 16%. To further enhance liquidity management, a 75% CRR was applied to public sector deposits that are not TSA.
Continuing, Cardoso revealed that as of September 11, 2025, Nigeria’s external reserves had increased to USD 43.05 billion from approximately USD 40.51 billion at the end of July, meaning that imports would cover about 8.28 months. In the second quarter of 2025, Nigeria’s current account showed a surplus of USD 5.28 billion, compared to USD 2.85 billion in the first quarter, he added.
However, there is hope that the larger recapitalisation drive can be successful because 14 banks have already overcome the capital hurdle, indicating early success in the regulatory push. Since some banks have not yet complied, pressure is still on the remaining ones to raise additional funds through internal restructuring, mergers, bond issuances, or rights issues.
Liquidity limitations, high borrowing costs, and macroeconomic challenges may make things more difficult, according to some analysts. Normalising policies, or ending forbearance, must be handled carefully because if they are implemented too quickly, weaker banks may be strained; if they are implemented too leniently, transparency risks may still exist.
The accomplishment of these capital requirements has a cascading effect: a stronger banking system can bolster confidence, encourage credit expansion, and support Nigeria’s long-term goal of becoming a $1 trillion economy.
