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CBN Tightens Oversight as Banks Raise Capital to Safeguard Financial Stability

Nigeria’s banking system remains stable and resilient as Deposit Money Banks step up efforts to strengthen their capital base under the Central Bank of Nigeria’s intensified regulatory oversight.

CBN Governor Olayemi Cardoso said the apex bank remains vigilant to emerging risks such as cyber threats, credit concentration and operational weaknesses, noting that these are being addressed through stronger risk-based supervision and the transition to Basel III.

At its 303rd Monetary Policy Committee meeting, members affirmed that the banking sector remains safe and sound, with most financial soundness indicators within regulatory benchmarks. The committee also welcomed progress in the recapitalisation programme, with 16 banks already meeting the new minimum capital requirements.

Speaking at the Bankers’ Dinner in Lagos, Cardoso disclosed that 27 banks have raised capital through public offers and rights issues, while others are advancing steadily towards the 31 March 2026 deadline.

To safeguard the estimated ₦4.14 trillion in new capital, the CBN is redesigning its credit-risk framework, enforcing stronger governance, transparency and accountability. The bank has also upgraded its Credit Risk Management System to improve monitoring and efficiency.

The recapitalisation drive, launched in April 2024, raised minimum capital requirements to between ₦50 billion and ₦500 billion, depending on licence type. Cardoso said the reforms are critical to supporting economic expansion and positioning the banking sector to help drive Nigeria’s ambition of a $1 trillion economy by 2030.

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