By Juliet Ezeh
Banks operating in Nigeria have collectively raised about N4.05tn in fresh capital as the Central Bank of Nigeria’s banking sector recapitalisation programme gathers pace ahead of its deadline.
The CBN disclosed that the funds were mobilised through a mix of domestic and foreign investments as financial institutions moved to meet the new minimum capital thresholds introduced by the regulator in 2024.
Speaking on the progress of the exercise, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealed that the amount represented verified and approved capital raised by banks as of February 19, 2026.
Cardoso noted that the development reflected growing investor confidence in Nigeria’s banking sector and the broader financial system.
According to him, a significant portion of the capital was raised locally, while foreign investors also played a notable role in supporting the recapitalisation efforts.
“In summary, 71.67 per cent is domestic mobilisation and 28.33 per cent is foreign participation. This balance represents a mix of domestic and foreign investment, which signals broad investor engagement and confidence in the sector,” he said.
Industry data show that approximately N2.90tn of the total funds raised came from domestic sources, accounting for about 71.6 per cent of the capital mobilised, while N1.15tn, representing 28.33 per cent, was sourced from foreign investors.
Financial analysts say the strong domestic participation demonstrates renewed confidence among Nigerian investors, pension funds and institutional players in the stability of the banking sector.
The recapitalisation policy was introduced by the apex bank in 2024 as part of broader reforms aimed at strengthening the resilience of financial institutions and positioning the sector to support economic growth.
Under the programme, banks were required to raise fresh capital based on the category of their operating licences, a move designed to ensure that lenders maintain stronger financial buffers to absorb potential economic shocks.
Since the announcement of the policy, many banks have approached the capital market to raise funds through rights issues, public offers and private placements.
Several financial institutions have also embarked on corporate restructuring and strategic capital raising initiatives to comply with the new regulatory benchmarks before the March 31, 2026 deadline.
Market observers believe the recapitalisation exercise could deepen Nigeria’s capital market and improve the lending capacity of banks, particularly to key sectors of the economy.
They also note that the ongoing capital raising activities may further enhance the ability of banks to finance large-scale infrastructure projects, support small and medium-sized enterprises and expand credit to households.
The Central Bank has repeatedly emphasised that the recapitalisation programme is intended to strengthen the long-term stability of the banking system while improving its capacity to drive sustainable economic development.
Regulators have also maintained close engagement with financial institutions throughout the process to ensure that capital raised by banks meets regulatory and prudential standards.
With the recapitalisation deadline approaching, analysts expect more banks to conclude their fundraising activities as they work to fully comply with the new capital requirements introduced by the apex bank.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.