Pat Stevens/
The Central Bank of Nigeria has acknowledged that some banks failed to meet newly imposed capital requirements, despite a sweeping recapitalisation exercise that raised N4.65 trillion and was expected to stabilise the country’s financial system.
In a press statement announcing the conclusion of the 24-month programme launched in March 2024, the apex bank confirmed that while 33 banks have met the revised minimum capital thresholds, a number of institutions remain entangled in regulatory and judicial processes, effectively placing them outside full compliance.
The admission introduces a note of caution into what had been presented as a broadly successful reform effort, suggesting that vulnerabilities persist within parts of the banking sector.
The CBN said the affected institutions are being addressed through established supervisory and legal frameworks, a process that could involve restructuring, capital injections, or potential consolidation.
The recapitalisation programme attracted strong investor confidence, with 72.55 percent of the funds raised locally and 27.45 percent sourced from international markets.
The central bank said the exercise has strengthened capital adequacy ratios across the sector, bringing them above global Basel benchmarks.
CBN Governor, Olayemi Cardoso, maintained that the initiative has reinforced the resilience of Nigeria’s financial system, improving its capacity to absorb shocks while supporting economic growth through increased lending and savings mobilisation.
Despite the compliance gaps, the CBN assured that all banks remain fully operational and that customers continue to have uninterrupted access to banking services.
It also highlighted tighter prudential oversight measures, including mandatory stress testing and enhanced risk-based supervision, to safeguard the gains recorded.
Financial analysts say the disclosure underscores lingering structural weaknesses within a segment of the industry, even as the broader system appears more robust.
The ongoing regulatory scrutiny is expected to determine whether the affected banks can independently meet the new thresholds or will be compelled towards mergers or other corrective measures.
The central bank reiterated its commitment to maintaining a stable, transparent, and resilient financial system, expressing confidence that outstanding compliance issues will be resolved under its strengthened supervisory regime.
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