CBN: Eight banks reach recapitalisation target

 Torchlight news.


CBN: Eight Banks Reach Recapitalisation Target

.MPC Maintains Interest Rate and Other Policy Parameters

.Central Bank Aims for Single-Digit Inflation


The Central Bank of Nigeria (CBN) has confirmed that eight banks have already met the new minimum capital requirements set for their respective licenses. The recapitalisation effort, which began last year and is expected to conclude by March 2026, is part of broader reforms to strengthen the financial system.

Speaking at a press briefing in Abuja after the Monetary Policy Committee (MPC) meeting, CBN Governor Olayemi Cardoso stated that several banks have made meaningful strides in boosting their capital base to meet the new regulatory standard. “Eight banks have so far complied fully with the recapitalisation benchmark, while others are on track to meet the deadline,” he said.

The recapitalisation policy, introduced in March 2024, redefined the minimum capital base to include only paid-up share capital and share premium—excluding retained earnings and other reserves. This revision necessitated fresh capital-raising efforts by most banks, despite having shareholder funds above the previous threshold.

Under the updated requirements, commercial banks with international licenses must now hold a minimum of ₦500 billion in share capital and premium, while those with national licenses must maintain ₦200 billion, by March 31, 2026.

Initial capital-raising efforts in 2024 were largely successful, with banks raising over ₦2 trillion and most offers oversubscribed. Several banks—including top-tier institutions—are preparing for further capital injections before the end of Q4 2025 to close remaining gaps.

Cardoso noted that the recapitalisation programme aims to boost the resilience of the banking sector, improve capacity to fund large-scale economic activities, and align the financial system with international regulatory standards. He added that core Financial Soundness Indicators (FSIs) reflect continued sector stability.

MPC Holds Key Rates Steady

To reinforce recent progress in curbing inflation, the MPC decided to retain all monetary policy parameters. The Monetary Policy Rate (MPR) stays at 27.5%, with an asymmetric corridor of +500/-100 basis points. The Cash Reserve Ratio (CRR) remains at 50% for deposit money banks and 16% for merchant banks, while the Liquidity Ratio stays at 30%.

Governor Cardoso said the decision is part of efforts to maintain disinflation momentum and contain price instability. “We will continue to deploy all available tools—MPR, CRR, and a well-functioning forex market—to drive inflation down,” he stated, adding that managing public inflation expectations through clear communication remains a top priority.

From the perspective of Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), the decision to hold rates was anticipated. He noted that despite a slight dip in headline inflation to 22.22%, month-on-month figures for general, food, and core inflation all rose. These trends, he said, support the CBN’s stance.

He further emphasized that other inflationary pressures—such as high energy costs, exchange rate volatility, insecurity, and rising logistics and finance costs—are still affecting the economy, making a rate cut unlikely.

Dr. Yusuf also highlighted the need to make funding more accessible to investors, arguing that an interest rate above 30% is stifling growth and investment potential.

Meanwhile, the Nigeria Employers’ Consultative Association (NECA) expressed support for the MPC’s decision. Its Director-General, Adewale-Smatt Oyerinde, said the CBN’s firm policy stance is essential to sustaining recent economic gains and promoting long-term macroeconomic stability.

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