Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has revealed that 14 banks have fully met the new regulatory capital requirements as part of the apex bank’s ongoing bank recapitalisation exercise.
Speaking during a press conference in Abuja on Tuesday, following the 302nd Monetary Policy Committee (MPC) meeting, Cardoso said the Nigerian banking sector continues to demonstrate resilience and stability.
“The MPC noted the continued resilience of the banking system with most financial soundness indicators remaining within projected benchmarks,” he said.
“Members also acknowledged the significant progress in the ongoing bank recapitalisation exercise, as 14 banks have fully met the new capital requirement.”
Recapitalisation: A Key Pillar of Financial Reform
The bank recapitalisation exercise, which was formally announced in early 2024, is designed to strengthen Nigeria’s banking sector, improve risk absorption capacity, and position banks for increased funding of large-scale infrastructure and private sector projects.
While Cardoso did not name the 14 banks that have complied, he noted that the CBN will continue implementing policies and initiatives to ensure the full and successful completion of the recapitalisation program.
Cardoso also disclosed that the CBN had successfully terminated forbearance measures and waivers for civil obligors,an era of leniency that allowed banks to postpone strict regulatory actions for struggling borrowers.
“The successful termination of forbearance and waivers on civil obligors has helped promote transparency, risk management, and long-term financial stability,” Cardoso noted.
He reassured the public that the impact of the removal of forbearance measures is transitory, and does not pose any risk to the soundness of Nigeria’s financial system.
Nigeria’s bank recapitalisation initiative comes at a time when the country is looking to strengthen economic growth, attract foreign investment, and drive industrialisation under the Tinubu administration.
About the Author
