Nigeria’s banking sector has recorded significant progress in meeting new capital requirements, with 32 financial institutions already complying with the Central Bank of Nigeria’s (CBN) recapitalisation directive ahead of the regulatory deadline.
CBN Governor Olayemi Cardoso disclosed this development during the Monetary Policy Forum in Abuja, noting that the strong response from lenders reflects improved confidence in the reform agenda and signals growing stability within the financial system.
Brandspur Banking News Desk reports that the recapitalisation exercise is a cornerstone of broader financial sector reforms aimed at enhancing resilience, strengthening governance, and positioning banks to support Nigeria’s long-term economic ambitions, including the target of building a $1 trillion economy.
According to the apex bank, the reforms are being supported by the introduction of a risk-based capital framework, tighter oversight of insider lending, and the gradual withdrawal of regulatory forbearance granted during previous economic stress periods. Supervisory operations have also been modernised through digital monitoring tools and improved cross-border regulation of Nigerian banks operating internationally.
Cardoso highlighted that macroeconomic stabilisation policies have begun to yield results, particularly in the fight against inflation. Headline inflation declined sharply to 15.06 percent in February 2026 from a peak of 34.8 percent in December 2024, following aggressive monetary tightening that saw policy rates rise by 875 basis points in 2024 before being gradually reduced to 26.5 percent.
Foreign exchange reforms were also cited as a major contributor to renewed investor confidence. The CBN cleared more than $7 billion in foreign exchange backlogs and implemented a rule-based willing-buyer willing-seller framework, which has helped stabilise the naira and narrow the gap between official and parallel market rates to below two percent.
Diaspora remittances have emerged as a key pillar of foreign exchange stability, with monthly inflows rising from approximately $200 million to $600 million after the introduction of improved settlement systems and stricter market transparency rules. The central bank is targeting $1 billion in monthly remittance inflows by the end of 2026.
Nigeria’s external reserves have also strengthened considerably, rising to $50.12 billion in February 2026, compared with $38.34 billion a year earlier. Net reserves recorded a particularly sharp improvement, supported by enhanced reserve management strategies and diversification into assets such as gold.
The governor further noted that fiscal discipline has improved following a sharp reduction in Ways and Means financing, which fell from N26.95 trillion in May 2023 to N2.84 trillion by January 2026. This move, he said, restored adherence to statutory limits and reinforced the independence of the central bank.
With recapitalisation efforts gaining momentum and macroeconomic indicators showing signs of recovery, the CBN expects the next phase of reforms to focus on achieving single-digit inflation, sustaining exchange rate stability, and strengthening financial inclusion through upgraded payment systems and consumer protection frameworks.
