The Governor of the Central Bank of Nigeria, Olayemi Cardoso, announced that 32 Nigerian banks have met the revised minimum capital requirements under the ongoing recapitalisation programme, marking a significant milestone in efforts to strengthen the nation’s financial system.
Speaking at the Monetary Policy Forum in Abuja on Thursday, Cardoso described the progress as “commendable,” noting that it positions the banking sector to better drive long-term investment and support economic growth.
He added that the programme is central to building a more resilient financial system, one capable of driving Nigeria’s goal of becoming a $1 trillion economy.
Cardoso said, “The banking sector recapitalisation programme has recorded commendable progress, with 32 banks having already met the revised capital requirements. This achievement has significantly strengthened the resilience and capacity of the Nigerian banking system, positioning it to effectively mobilise long‑term capital, support productive investment, and play its critical role in enabling the transition towards a $1.0 trillion economy.”
He noted that the recapitalisation exercise forms part of broader reforms designed to strengthen governance and risk management across the banking sector.
Key measures include the introduction of a risk-based capital framework, a phased exit from regulatory forbearance, stricter enforcement of insider lending rules, and limits on credit access for major non-performing borrowers.
According to him, the CBN’s supervisory capacity has been strengthened through digital tools, including enhanced early warning systems, improved off-site surveillance, and more robust cross-border supervision of Nigerian banks operating internationally.
He also noted that monetary tightening played a key role in curbing inflation, with headline inflation falling sharply from 34.8 per cent in December 2024 to 15.06 per cent in February 2026.
Cardoso said the Monetary Policy Committee hiked rates by 875 basis points in 2024 to tame inflation, before gradually easing them to 26.5 per cent in February 2026.
The CBN boss said internal simulations showed inflation would have worsened without the CBN’s measures, highlighting the need for disciplined policy and close coordination with fiscal authorities.
He added that in the foreign exchange market, the CBN cleared over $7 billion in verified FX backlogs and introduced a rule-based willing-buyer, willing-seller system to improve transparency.
Combined with tighter reporting, stronger market surveillance, and interbank trading reforms, these steps helped stabilise the market and cut the parallel market premium to below 2 per cent, boosting confidence and encouraging increased diaspora inflows.
