Nigerian Banks Secure N4.61 Trillion in Fresh Capital, N1.2 Trillion from Foreign Investors
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has revealed that Nigerian banks successfully raised approximately N4.61 trillion in fresh capital as part of the ambitious banking sector recapitalisation programme. This significant financial milestone was disclosed during the 4th annual IMF/AFRITAC West 2 High-Level Executive Forum for Financial Sector Regulation and Supervision, held at the CBN headquarters in Abuja on Tuesday.
According to the apex bank chief, about 27 per cent of this capital, equivalent to N1.2 trillion, was sourced from foreign markets by the participating banks. This announcement comes just days before the conclusion of the recapitalisation initiative, which commenced in 2024. The programme has enabled nearly all banks to meet the required tier-one capital thresholds, thereby preserving their brand identities and operational licenses.
Cardoso Warns of Cross-Border Risks and Calls for Regulatory Collaboration
Governor Cardoso emphasized the growing interconnectedness of African financial systems, highlighting the urgent need for enhanced collaboration among regulators to safeguard stability and ensure shared prosperity. He cautioned that African financial integration is advancing at a faster pace than regulatory coordination, raising significant concerns over cross-border risks that could threaten economic security.
In a detailed statement, Cardoso noted that regional financial integration is outpacing political coordination, urging regulators to adopt shared prudential principles tailored to Africa's unique realities. He argued that such a framework would facilitate joint responses to emerging vulnerabilities while simultaneously supporting inclusive growth across the continent.
Nigeria's Recapitalisation Programme as a Model for Proactive Leadership
The CBN governor pointed to Nigeria's recent banking reforms as evidence of proactive leadership, recalling that the apex bank launched the Banking Sector Recapitalisation Programme in 2024 to strengthen the resilience of banks ahead of anticipated economic challenges. He stated that this policy has influenced similar reforms across Africa, demonstrating Nigeria's role as a regional trendsetter in financial regulation.
Cardoso further explained that Nigerian banks, despite navigating complex economic reforms such as subsidy removal and exchange rate adjustments, managed to attract about N4.61 trillion in new capital. Notably, nearly 27 per cent of this amount originated from foreign investors, while banks have also expanded their operational footprint across various African markets.
Strengthening Corporate Governance and Enforcing Credit Discipline
Cardoso reaffirmed the CBN's unwavering commitment to strengthening corporate governance within the banking sector, stressing that regulatory leniency is no longer acceptable. "Our stance on corporate governance is unequivocal: zero tolerance for violations. By ending years of regulatory forbearance, we have reinforced accountability, tightened supervision, and elevated compliance standards across the sector," he declared.
He added that the CBN has implemented restrictions on banking services for non-performing large-ticket obligors as part of broader efforts to enforce credit discipline and protect the financial system. "This decisive step underscores our commitment to credit discipline, financial integrity, and accountability. By curbing access to banking services for chronic defaulters, we are reinforcing the culture of repayment, protecting depositors, and safeguarding the stability of the financial system," Cardoso explained.
Monetary Policy and Fintech Regulation
On monetary policy, the governor reiterated that the CBN remains committed to orthodox measures aimed at restoring price stability, strengthening policy credibility, and anchoring expectations through discipline and consistency. He also highlighted the growing role of financial technology, noting that the apex bank is regulating fintech firms in a manner that balances innovation with stability.
Cardoso mentioned that the Fintech Policy Report and ongoing structural reforms are designed to strengthen supervisory capacity within the rapidly evolving digital financial ecosystem. He urged forum participants to sustain the platform as a venue for shared learning and coordinated action, where regulators can analyse common challenges, exchange insights, and develop collective responses to global financial trends.
IMF Director Highlights Emerging Risks and Regional Coordination
The Director of IMF/AFRITAC West 2, Ivohasina Fizara Razafimahefa, stated that the forum provides a crucial platform for dialogue between the International Monetary Fund (IMF) and national regulators, enabling the exchange of practical experiences, technical knowledge, and policy innovations. He revealed that discussions at this year's forum focused on emerging risks to financial stability, particularly those linked to digital finance, fintech expansion, artificial intelligence, and climate-related challenges.
According to Razafimahefa, these risks necessitate regional coordination, proactive regulation, and continuous engagement among stakeholders to preserve the resilience of Africa's financial systems. He expressed confidence that stronger collaboration would position Africa's financial systems as drivers of sustainable growth and development, echoing Cardoso's call for unified action.
