The Central Bank of Nigeria (CBN) has allowed deposit money banks yet to meet the new recapitalisation requirements to continue operations by extending the deadline while they address legal and regulatory issues affecting their compliance.
The decision comes as the banking sector moves closer to the deadline for meeting higher capital thresholds introduced to strengthen financial stability and resilience.
CBN Recapitalisation Deadline Gets Extended
The extension of the recapitalisation deadline for banks shows that the CBN now recognises delays caused by legal disputes and regulatory constraints affecting a small number of lenders.
CBN Governor Olayemi Cardoso explained that the recapitalisation programme has recorded strong overall progress, with most banks already meeting the new capital requirements.
He noted that about 33 banks have successfully met the set thresholds, reflecting strong investor confidence in the Nigerian banking sector.
Some Banks Face Legal and Regulatory Setbacks
Cardoso disclosed that a few banks still struggle to complete their recapitalisation due to legal, regulatory, and judicial issues.
He explained that some of these institutions previously came under regulatory intervention, which limited their ability to raise capital within the same timeframe as other banks.
According to him, these circumstances created timing disadvantages that affected their compliance progress.
CBN Maintains Stability in Banking Sector
Despite the delays, the CBN maintained that the banking industry remains stable and fully operational.
The apex bank assured stakeholders that affected institutions continue to serve customers while working toward full compliance.
Cardoso stressed that regulators do not classify the delayed banks as weak institutions. Instead, he described them as banks dealing with procedural and structural challenges.
Investor Participation Strengthens Recapitalisation Drive
The recapitalisation exercise has attracted strong participation from both domestic and foreign investors.
Reports show that domestic investors account for a significant share of total capital raised, while foreign investors also contributed substantially.
The CBN described this investment pattern as evidence of continued confidence in Nigeria’s economic and financial system.
Banks Continue Capital Raising Efforts
Several banks continue to explore mergers, acquisitions, and equity offerings to meet the new capital requirements.
Some institutions have already completed major fundraising activities, while others remain in advanced stages of regulatory approval and capital verification.
The CBN works alongside the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC) to verify all capital inflows before final approval.
Sector Reform Aims to Strengthen Financial System
The recapitalisation exercise forms part of broader reforms aimed at improving the strength and resilience of Nigeria’s banking system.
The CBN said the policy will help banks support economic growth, absorb financial shocks, and expand lending capacity to key sectors of the economy.
Officials believe stronger capital buffers will also improve confidence in the financial sector.
Conclusion
The CBN recapitalisation deadline extension highlights the regulator’s flexible approach to institutions affected by legal and regulatory constraints.
While most banks have already complied, the CBN continues to monitor remaining institutions closely to ensure a stable and fully recapitalised banking sector ahead of the final deadline.
