Domestic investors lead the charge while foreign participation surges, as CBN assures depositors of stability and reserves hit a 13-year high…..
Nigeria’s banking sector has pulled in a staggering ₦4.05 trillion in verified and approved capital as lenders race to beat the March 31, 2026 recapitalisation deadline set by the Central Bank of Nigeria.
Governor Olayemi Cardoso disclosed the figure on Tuesday during the Monetary Policy Committee briefing in Abuja, describing the outcome so far as a strong signal of investor confidence in the country’s financial system.
“As of February 19, 2026, total verified and approved capital raise stands at ₦4.05 trillion,” Cardoso said.
The figure represents a sharp acceleration compared to April 2025, when about ₦2.4 trillion had been raised, meaning banks have nearly doubled their capital mobilisation in less than a year.
Domestic Investors Take the Lead
A breakdown of the capital inflows shows that ₦2.90 trillion about 71.67 per cent came from domestic sources, while ₦1.15 trillion, or 28.33 per cent, was contributed by foreign investors.
Cardoso noted that the mix reflects both strong local backing and renewed global appetite for Nigerian banking assets. He recalled engaging international investors months earlier, hinting at the interest that has now materialised into tangible commitments.
According to him, the balance between domestic and foreign participation demonstrates broad-based engagement and signals confidence in the sector’s long-term prospects.
Where the Banks Stand
So far, 20 banks have fully met the new minimum capital thresholds, while 13 others are in advanced stages of completing their capital-raising programmes.
The apex bank says it is working closely with institutions still in the process to ensure an orderly conclusion ahead of the deadline. For lenders currently under regulatory intervention, recapitalisation efforts are proceeding within specific legal and structural frameworks.
Cardoso assured depositors that funds in affected institutions remain secure and that operations continue under strict supervisory oversight.
The New Capital Benchmarks
Under the recapitalisation directive issued in March 2024, banks are required to significantly shore up their capital bases:
- International licence holders must raise their minimum paid-up capital to ₦500 billion.
- National banks are expected to meet a ₦200 billion threshold.
- Regional commercial and merchant banks must maintain ₦50 billion.
- Non-interest banks are required to hold ₦20 billion (national) and ₦10 billion (regional).
The policy is designed to strengthen the resilience of Nigerian banks, equipping them to withstand shocks and support larger-scale economic activity.
Bigger Banks, Bigger Ambitions
For policymakers and financial analysts, the recapitalisation drive goes beyond regulatory compliance. It is being framed as a strategic move to power Nigeria’s long-term economic ambitions.
Dr Yemi Kale, Group Chief Economist and Managing Director of Research and Trade Intelligence at Afreximbank, recently emphasised that stronger capital buffers are critical to bridging Africa’s estimated $80–$120 billion annual trade finance gap.
He argued that without deeper capital pools, banks cannot provide the scale of lending required for industrial expansion, machinery imports, SME growth, and intra-African trade.
In his view, recapitalisation increases banks’ capacity to extend credit to domestic businesses and exporters — a necessary ingredient if Nigeria is to transition from a raw-material exporter to a competitive industrial hub.
Reserves Climb to 13-Year High
Beyond the banking recapitalisation, Cardoso pointed to improvements in Nigeria’s external position. Gross external reserves have climbed to approximately $50.4 billion as of mid-February 2026, the highest level recorded in 13 years.
He attributed the increase to favourable trade developments, a healthy current account surplus, stronger non-oil exports, and rising diaspora remittances. Market confidence, he said, remains the underlying driver.
However, he cautioned that risks persist, including global economic shocks, oil price volatility, geopolitical tensions, and the potential impact of pre-election fiscal spending if not properly managed.
Inflation Down, But Caution Remains
On inflation, the CBN governor dismissed suggestions that recent policy adjustments signal complacency. Although the Monetary Policy Committee trimmed the Monetary Policy Rate by 50 basis points to 26.5 per cent, he stressed that the central bank remains cautious.
Inflation, which stood at roughly 34 per cent when the current leadership assumed office, has declined to slightly above 15 per cent, a development Cardoso described as encouraging but fragile.
Sustaining the progress, he noted, will require fiscal discipline and coordination across economic stakeholders, not monetary policy alone.
Digital Finance Under the Microscope
With more than 430 licensed fintech operators now active in Nigeria, the CBN is also tightening oversight in the fast-growing digital finance space.
Cardoso disclosed that work is underway on a comprehensive regulatory framework for digital assets, aimed at fostering innovation while safeguarding financial stability. Strengthened supervision, particularly around cybersecurity risks, forms part of the broader strategy.
The Real Test Ahead
As the March 31, 2026 deadline approaches, the headline figures suggest momentum is firmly on the side of Nigeria’s banks. Yet industry watchers say the ultimate measure of success will not be the trillions raised, but how effectively the expanded capital base translates into productive, well-targeted lending.
For now, the numbers tell a compelling story: investor confidence is rising, reserves are climbing, inflation is easing, and banks are getting bigger.
Whether that momentum transforms into sustained economic expansion is the chapter Nigerians will be watching closely in the months ahead.
